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The Source THINGS YOU SHOULD KNOW:

COMMODITY ALERT:

Domestic garlic supplies will be light in availability until approximately August. Chinese supplies are extremely light as well. Twelve week averages are in effect for all garlic AUAI orders

July 8, 2013

© 2013 PRO*ACT, LLC

Weather: Tim Lynch A fairly typical summertime weather pattern will return to the Salinas Valley this week following last week’s heat wave. A return of the marine layer near the coast with mid 90s in the interior valleys with 60s to low 70s near the coast will be the norm this week. A tropical depression off the tip of Baja will track northeast today (away from landfall) and begin to weaken as it moves into cooler water.

Potatoes continue with low pack outs

Freight: Mike McIntire Truck rates in CA are easing slightly as we get past the July 4th pull. Trucks in the Northwest and Idaho remain steady. The national average for diesel is 3.817 for last week – down 0.021 from the previous week but up 0.169 from last year. CA diesel rate is 4.105.

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Commodity Updates APPLES/PEARS John Tole Washington Red demand remains light and the market is steady. Red delicious is still peaking on extra-fancy 88/100’s and there are limited supplies of the smaller sizes & lower grades. Golden Delicious is also steady and is peaking on 88/100’s. Granny-Smith apples are also steady. Grannies are still heavier to the 80’s and larger. Galas are steady on most sizes and grades but the availability remains limited. Fuji’s are still peaking on 88’s and larger and the market is steady but supplies are light. Washington D’Anjou’s pear supplies are light and the market is steady. The remaining fruit is mostly 100’s and larger and the US#1 grade. California expects to start packing new-crop th Bartlett pears on approximately July 10 . ASPARAGUS Gabe Romero/Mike Pacheco The supplies have loosened up in Mexico. Washington is done for the season and California supplies are finished as well. Production from Peru can be purchased in Miami or LA. The market is steady to begin the week. This market is expected to remain steady through Friday of this week. Good quality is being reported on Peruvian and Mexico product. AVOCADO Tim Kelley Demand remains strong and for avocados. Shipments are still setting industry records. Mexico’s supplies have dropped drastically and Mexican growers are demanding much higher field prices than US shippers are willing or able to pay. California is seeing a drop in volume coming in from growers due to the current heat wave in California. The size curve has adjusted upward slightly producing more of the larger fruit and shorting the supplies of the smaller fruit; overall resulting in a rising market on the 60’s and 70’s and an industry not getting enough supply to meet demand. Peruvian fruit has arrived and is helping out the supplies of larger fruit, but not much on the small fruit. BELL PEPPERS Western Bells: Mike Cantu Green bell market is steady. Crops are currently shipping from Southern California with all sizes available. Loading from Bakersfield, Thermal, Gilroy, and Los Angeles. Open field colored Red bell market is generally steady.

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Commodities at a glance… Commodity

Quality

Market

Apples Asparagus

Good Good

Steady Steady

Avocado (Mexican)

Good

Steady

Avocado (California) Bell Peppers (Western) Bell Pepper (Eastern) Berries: Strawberries Berries: Raspberries Berries: Blackberries Berries: Blueberries Broccoli Carrots Cauliflower Celery Citrus: Lemons Citrus: Oranges Cucumbers (Western) Cucumbers (Eastern)

Good

Higher

Good

Steady

Fair Fair Good Fair Good Good Good Good Good Good Good Good Fair

Higher Steady Steady Higher Steady Steady Steady Steady Steady Steady Steady Steady Higher

Eggplant (Western)

Good

Steady

Eggplant (Eastern)

Fair

Lower

Grapes, Green Grapes, Red Green Onions Lettuce: Leaf Lettuce: Iceberg

Good Good Good Fair Fair

Higher Steady Steady Higher Higher

Melons: Cantaloupe

Good

Steady

Melons: Honeydew Onions Pears Potatoes Squash (Western) Squash (Eastern) Stone Fruit Tomatoes (Western) Tomatoes (Eastern) Watermelon

Good Good Good Good Good Fair Good Good Good Excellent

Steady Steady Higher Higher Higher Higher Steady Steady Higher Steady


Commodity Updates Z Good availability from Southern California. Gold bells market continues steady availability depends on growing district. Eastern Bells: Janine Baird We should see pepper begin to tighten up this week as Georgia is now on their final round of pepper. North Carolina is going with pepper but it is all crown picking and still hit and miss on volume.

BERRIES Mike Gorczyca Strawberries- The market is steady with good demand. Strawberries are being harvested in Salinas/Watsonville and some shippers have supplies in Santa Maria. Most shippers have better availability next couple weeks which will drive this market down. Fruit size is medium running in the 18 count to 22 count range. Expect to see fair quality arrivals with soft/white shoulders, bruising, and green tips. Due to fair quality, it will be critical to monitor the cold chain management and inventory turnover. Please only order what is needed. Fruit will have difficulty traveling to the East Coast. The forecast will be normal temperatures ranging between mid 60’s to low 70's in the growing regions. Better growing temperatures should dramatically help the quality; volume; and more importantly improve production. Raspberries: Supplies are mainly coming out of Watsonville and Oxnard. Market is steady with supplies decreasing slightly which is keeping availability tight. Demand is very good and quality is reported as good. Blackberries: Market is slightly firmer with very good demand out of Watsonville /Salinas. Quality is good to fair depending on the lot. Blueberries: The supplies are coming out of Oregon and Washington. The next growing region will be British Columbia which is ramping up this week. Improved weather should help out harvesting dramatically with better production. Quality is being reported as good and the market is steady with moderate demand. The main pack is 6 oz and pints. Michigan is the next growing region, which will be ramping up in the next couple of weeks. Quality is expected to be good in this region. Rain showers have curtailed harvest in some of growing regions and should clear up this week. Main pack out of the East is pints.

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continued

BROCCOLI Gabe Romero/Mike Pacheco This market is steady to start the week. Early forecasts from shippers indicate that crowns are more readily available than bunched product. This pattern of production will likely continue throughout the week. Demand overall is on the light side. CARROTS Tim Kelley Supplies and quality are good, and size is coming, bringing more JBO carrots to market and lower market. CAULIFLOWER Gabe Romero/Mike Pacheco The cauliflower market is steady. Supplies are expected to be moderate to good at least through the middle of the week. Prices will vary from shipper to shipper as some continue to be slightly better off than others. The overall quality is strong with very few complaints of yellow discoloration being reported. CELERY Gabe Romero/Mike Pacheco The celery market continues on a steady path. There is a very slight gap in pricing. With Oxnard finished in production, pricing has firmed up with a few suppliers. Large sizing, twenty-four counts in particular continues to be the best sizing available. Santa Maria is in production as well. Michigan celery is not due to start until the third week of July. Small sizing, 36s and smaller continues to demand a higher price. CITRUS Tim Kelley Lemons: Supplies are good on the smaller sizes and less abundant on the larger ones. Seasonal demand is good, keeping market firming weekly. Quality is good. Oranges: The Valencia oranges are fresh, in good condition and are eating well. Valencia sizing is currently peaking on113’s/88’s/138’s. Limes: Supplies are off a little with rains in the growing area of Mexico and condition has dropped off some due to these rains. CUCUMBERS Western Cucumber: Mike Cantu Market is steady. Supplies still light as demand is still high. Cucumbers are mostly from Baja California and other from Thermal.


Commodity Updates Z Eastern Cucumbers: Janine Baird The cucumber market is extremely tight this week. Georgia is finishing up and the quality on the product that remains is very poor. Michigan is not yet into any real volume as they have been experiencing a lot of rain. The growing regions farther east also have very little volume. EGGPLANT Western Eggplant: Mike Cantu At a Glance Quality- Good Market- Steady Eggplant market is steady with good supplies. Eastern Eggplant: Janine Baird Eggplant has come on strong in South Georgia with shippers looking to move on this item, as today’s pricing reflects. GRAPES: Amy Grolnick Flames have finished up in Coachella and Scarlet Royals are now available with good size and quality. Greens are pretty much cleaned up for the season. Mexican grapes loading in Nogales, AZ are finishing up with mostly med/large fruit, very limited on size, and only fair quality at best. The Bakersfield area is starting with flames and Sugarones they are very good quality with good size. Green grapes are more limited but will have better availability over the next couple of weeks. The extremely high temperatures have stopped the fruit from coloring up and stalled the growth. Demand is better. GREEN ONIONS Gabe Romero/Mike Pacheco The green onion market remains unchanged. Supplies continue to be strong out of Mexico. Prices are expected to be steady throughout the week. Domestic green onions are in full swing harvesting. Quality is very nice form both growing regions LEAF LETTUCE Gabe Romero/Mike Pacheco The romaine market is steady with most shippers. Tip burn has been reported. Supplies are light to moderate. The green leaf market is very active. Low yields and smaller planting by growers has caused a gap in the marketplace. Tip burn and dehydration has been reported sporadically upon arrivals. This market continues to be competitive with most suppliers.

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continued

LETTUCE Gabe Romero/Mike Pacheco This market is active with all suppliers. Production is light to begin the week. Early forecasts indicate lettuce numbers will be moderate to light at best, with some suppliers sold out to begin the week. The gap in pricing is very minimal as pricing is active and competitive. Some lots have had arrival issues such as tip burn, some mechanical damage, and pink ribbing. MELONS: Amy Grolnick Cantaloupe: The Westside California product has started with excellent quality and good availability. Quality is excellent with high Brix and fruit is still peaking to 12’s and larger. Honeydew: Mexican dews continue to cross with less volume each week into Nogales. th There should be availability through July 13 . Domestic dews are available with steadily increasing volume. Demand is light and supplies have started to increase slowly with the domestic honeydews coming onto the scene. The market is still depressed. ONIONS John Tole The yellow onion market is steady to lower in both districts. The availability is only fair on yellows but the demand has been low. Expect the market to remain steady unless demand picks up. Some shippers in both districts will flex a little for volume yellow orders. Reds are also steady to lower and there is some volume flex for jumbos. Whites are steady to lower in both districts with good supplies available. The quality has been good on all colors. POTATOES John Tole The Idaho carton market is higher and supplies remain limited on most sizes. Most packers need at least two to three business-days notice to cover carton orders so stay ahead. Make sure to stay ahead on cartons until we approach August as the storage quality is not improving and many sheds are closing early. Lower than normal pack-out percentages are still the main issue in Idaho which is due to the poor storage quality of the Burbanks. Good quality storage lots are harder and harder to find in Idaho. Washington & Colorado are both higher. Colorado is also having some issues with storage quality. Idaho continues to


Commodity Updates produce more 80-count and smaller while Washington and Colorado are heavier to 70’s and larger. Bakersfield, California continues packing new-crop Norkotahs and they are still heavy to 90’s and smaller. The new-crop russet quality is very good. Bakersfield also continues to pack a few reds, gold’s, and whites, but they will finish by the end of the week. Stockton will start packing new-crop reds, whites, and gelds between today and next Monday. SQUASH Western Squash: Mike Cantu Market continues unsettled on both Italian and Yellow S/N. Light supplies of yellow s/n squash causing market to inch up as demand pressures pricing. New districts are starting up in Southern California. Eastern Squash: Janine Baird Squash in Georgia is all but finished and there has been too much rain in Michigan and New Jersey to shoulder the demand. This market will get increasingly stronger as the week goes on. STONE FRUIT Amy Grolnick The California stone fruit season is in full swing with plenty of good quality product. Peaches, Nectarines, Plums and Pluots are plentiful. Brix are high and fruit is eating really well. There are several varietal stone fruits available as well. Washington cherries are available with increasing volume. TOMATOES Aaron Aliotti Western: A recent heat wave in California is causing supplies on rounds to tighten sending buyers to the east where prices are up. There is an adequate supply of roma and grape tomatoes with cherry slight tighter. Cooler weather is expected to return this weekend bringing temperatures to the Mid 80’s next week allowing for more fruit to enter the pipeline. Eastern: Northern Florida and South Carolina are in full production with Tennessee coming on next week. Grape and cherry tomatoes coming into better supply sending prices back down to normal summer rates. Demand for rounds is up and the market may go higher in weeks to come depending on weather conditions on both coasts. For now scattered

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Continued showers are expected through the weekend in south Florida then dissipating after Monday next week. VALUE ADDED Gabe Romero/Mike Pacheco Lettuce supplies are on the lighter side, overall, the quality is fair. There are ample supplies of romaine and this will continue throughout the week. Romaine quality has been suspect with signs of tip burn and some decay showing up in the finished product. Broccoli raw product supplies will be steady this week. The cauliflower has tightened up. WATERMELON Mike Cantu Market is steady. Demand exceeds on s/less watermelon. The growing districts are in Yuma and Phoenix, AZ. Availability on seeded watermelon is very sporadic.

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