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AUAI

THINGS YOU SHOULD KNOW:

COMMODITY ALERT: Brussel Sprouts will continue to be extremely tight as insect damage is causing a lack of supplies until new crop California product starts in mid July

June 18, 2014

Š 2014 PRO*ACT, LLC

Weather Tim Lynch High pressure builds out west with above average temperatures expected over the next week or so. Temperatures in the 70s along the coast to upper 80s inland today will warm to the mid 90s late this week. Onshore flow and a continued morning marine layer presence will keep the coastal regions near to just above norms.

Cantaloupe and Honeydew are extremely limited Red grapes have tightened up significantly

Apples and Pearsthe eastern supplies are short and Washington is in large fruit so stay ahead on the smaller sizes Blackberries are in a demand exceeds supply situation. Central Mexico is done for most shippers and new crop California is not fully up to speed but will be in the next couple of weeks Lemon demand is exceeding supplies

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Freight: Mike McIntire Trucks in California remain extremely tight with rates higher than normal for this time of year. Trucks in Washington and Idaho remain steady. The national average on diesel fuel remained steady and is now 3.882 per gallon. CA price is also steady and is currently 4.069 per gallon. Crude oil is steady and is now at 106.25 per barrel.


Commodity Updates APPLES/PEARS John Tole Washington Red Delicious continues to produce mostly large fruit. Red 100’s and larger are much more available than the 113’s and smaller, especially in the lower grades. Most Washington shippers will sub up to the higher grades to cover any volume of small fruit. The market all sizes of reds is steady right now. Golden Delicious is also steady and the Golden’s are still evenly sized. Washington Granny-Smith are steady on most sizes although there is some flex in 113’s and smaller. The market for large Granny-smith is strong. Expect small Grannies to rise as the Gala’s and Fuji’s finish up. Washington Gala is steady but the market is strong as they are almost finished for the season. The Galas are peaking on 88/100’s. The Fuji market is also strong as they near the end of their season. Most Washington Fuji’s shippers are still peaking on 80-size and larger. Washington D’Anjou pears are still peaking on 80/90’s while 110’s and smaller remain limited. Many packers are out of 120-size and smaller. The D’Anjou availability is very light with all suppliers. There are a few Red Pears available but supplies are limited and the market is higher. ASPARAGUS Gabe Romero/Mike Pacheco Good supplies are available on small, standard and large size Mexican asparagus. There is still domestic asparagus but the market is stronger versus the Mexican product. There are short supplies on Extra Large and Jumbo asparagus. Mexico, California and Peru are the main growing regions for this commodity. Loading out of Florida for Peruvian product is an option. AVOCADO Tim Kelley Mexico’s supplies continue to be steady, and represent 45% of the fruit in the US. Mexico’s supplies will drop greatly by the end of the month as their main crop starts to finish up. Quality and flavor are very good. California growers are currently harvesting good volume. The fruit is very good, with high maturity levels. Size currently peaking on 40’s/48’s and 60’s/70’s supplies are dropping as fruit sizes up. Peruvian fruit arrivals have increased and

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Commodities at a glance… Commodity

Quality

Market

Apples

Good

Steady

Asparagus

Good

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

Steady

Good

Lower/Higher

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

Steady Higher Higher Higher Steady Higher Steady Higher Steady Higher Steady Steady Lower

Eggplant (Western)

Good

Steady

Eggplant (Eastern)

Good

Steady

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

Good Good Good Fair Fair

Steady Higher Steady Steady Higher

Melons: Cantaloupe

Good

Higher

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

Good Good Good Fair Good Good Excellent Good Good Good

Higher Steady Steady Lower Steady Steady Steady Lower Lower Steady


Commodity Updates Z will continue thought the summer. Fruit is at mid-season quality and will gain maturity though the month. Quality of fruit is very good, with fruit size curve shows a predominance of 40’s/48’s followed by 28’s/32’s.

BELL PEPPERS Western Bells: Mike Cantu We have basically wrapped up on Green Bells out of Nogales. Southern California crops are demand exceeds. Some bells are loading out of Arvin and some Fresno California. Market coming off slightly in certain districts. Open field colored Red bells are done out of Mexico. Hothouse red bells are also done out of Mexico. California red bell market is slightly higher and slight demand exceeds. Gold bells markets continue steady availability depends on growing district. Mexico has basically wrapped up on both hothouse and open field gold bells. Eastern Bells: Harry Sheaffer Green pepper remains short with limited volume. BERRIES Jonathan Mule’ Strawberries: Heavy demand has this market is a demand exceeds supply situation which looks to continue through the month. All shippers are sold out two to three days in advance. Quality is being reported as good with medium size fruit being harvested currently. Weather is favorable in the growing areas. Main shipping area is Salinas/Watsonville. Only a few shippers are still harvesting for the fresh market out of Santa Maria Raspberries: Lighter supplies, due to seasonal transition between plant cycles has this market active. Demand is good. We should see supplies slowly improve over the next couple of week. Quality is looking good. Blackberries: Supplies are very limited out of California with a firm market. Supplies out of this area will slowly improve over the next couple of week. Quality is fair. Georgia has started with moderate supplies and good quality. Mexico has finished for the season. Look for this market to be active till supplies improve. Blueberries: East Coast production continues to be in check with demand. Market is steady. California supplies are tight due to a temporary

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continued

gap in production between California and the Pacific Northwest season. Quality is good overall. BROCCOLI Gabe Romero/Mike Pacheco This overall market is stronger in Salinas and Santa Maria. The supplies in both growing regions are limited going into this weekend. Mexico continues to have production if needed. This growing area will have moderate supplies. The quality is reported as good in Salinas, Santa Maria and Mexico. CARROTS Tim Kelley Bakersfield crop is producing good volumes of good quality carrots with good size. CAULIFLOWER Gabe Romero/Mike Pacheco Cauliflower supplies will remain short going into this weekend. Once again we continue the acreage gaps due to erratic weather patterns. The market is active as the result of lack of supplies. Production continues mainly out of Santa Maria and Salinas. Overall quality of this commodity is good, with occasional spotting and creaminess in color being reported CELERY Gabe Romero/Mike Pacheco The celery market is extremely aggressive due to 3 growing regions currently harvesting. Supplies are mostly to the 24ct and 30ct sizing. Celery can be found in Salinas, Santa Maria, and Oxnard. The quality is very nice from all regions. CITRUS Tim Kelley Lemons: Demand continues to rise, and has created a demand exceeds supply situation on all sizes and grades. The market continues to firm on pricing on all sizes with this strong demand for fruit. Oranges: Valencia’s are now the primary orange supply. Sizing continues to favor the 88’s/72’s/113’s sizes. With the long, hot days of summer, we are seeing re-greening of the fruit. This is a normal occurrence in the summer. The fruit is still ripe and sweet. We are still able to source late season navels in the large sizes, 72’s to 40’s. The late season navels look to be available though the month. Limes: Once again supplies are continuing to increase while demand continues to gradually


Commodity Updates Z ease off. Market prices on larger sizes continue to trend lower while smaller sizes are stabilizing. Supplies of larger sizes continue to increase.

CUCUMBERS Western Cucumber: Mike Cantu Market in Nogales is becoming insufficient to quote. Market is unsettled due to as demand outpacing supplies in Southern California. Some growers are close to wrapping up for season Nogales. California (Mex) cucumbers remain high FOB’s and Baja will start new acreage in two weeks. Eastern Cucumbers: Harry Sheaffer Expect the market to decrease with good quality and more volume. EGGPLANT Western Eggplant: Mike Cantu Market is expected higher Nogales has wrapped up for season. California is steady but with high FOBS and demand exceeds. Eastern Eggplant: Harry Sheaffer Eggs are in better supply and quality. GRAPES: Amy Grolnick Coachella volume is down on the flames. They are starting Scarlet Royals this week with limited volume and very good quality. Nogales is finishing up over the next couple of weeks with Flames and the Sugarones will start to get limited and clean up as well. Arvin, CA has started with flames in a light way and will be limited for the next few weeks of the start up. We should see the first of the greens next week. GREEN ONIONS Gabe Romero/Mike Pacheco This market has shown some strength as supplies are limited from the Mexico growing region. The Salinas area has not started production to create a sense of balance yet. Prices and supplies will vary from shipper to shipper. LEAF LETTUCE Gabe Romero/Mike Pacheco This market is steady with most suppliers on all leaf items. The romaine hearts continue to demand a higher price as this commodity has lighter availability. Some tip and fringe burn are still being reported with most suppliers. Salinas and Santa Maria continue to be the main growing regions on these commodities.

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continued

LETTUCE Gabe Romero/Mike Pacheco This market has firmed up with all shippers. Most shippers have remained ahead of scheduled harvesting of their acreage. Pinking, rib discoloration continues to be issues reported upon arrivals. Look for this market to remain active well into next week. MELONS: Amy Grolnick Cantaloupe: Cantaloupe is extremely limited. In addition to being ahead in fields, shippers have been struggling with both mosaic and aphid pressure. They are continuing to struggle with availability. Honeydew: Honeydew is extremely limited in CA and the Phoenix area. The Nogales market has strengthened as they tighten up as well. ONIONS John Tole California yellows are steady but the market is firm as most shippers are transitioning between short-day and intermediate-day varieties. New Mexico is steady on all sizes. Both areas are still heavier to jumbos and larger and are short on mediums. Reds are steady in both areas with good availability on jumbos and some volume discounts. Both states have limited supplies of Medium reds. Whites are steady in both areas. The quality has been good on all colors in California while New Mexico has ranged from fair to good. POTATOES John Tole Idaho is steady to lower depending on the shipper. A couple packers are flexing on volume for certain sizes. Most packers are still producing more 90-count and smaller. The number-two demand is still strong that market continues to rise for both sizes. Washington is steady to lower on all the counts. The late Washington storages are heavier to the smaller counts but the availability is good for all counts right now. Colorado is steady on all sizes and they are also producing more 90-count and smaller. Large counts in Colorado remain short. Wisconsin is steady but strong on all sizes of russets as they are close to the end of their season. California will have new-crop russets in Bakersfield on Monday. Bakersfield red, gold, and white potatoes are still peaking on A’s but there are good supplies of B-size as well. The California markets are steady on all


Commodity Updates colors. Northern Florida continues packing red and gold potatoes, with a few whites. The Reds are peaking on A-size while the Gold’s and whites are peaking on B’s. The Florida market is steady to lower. Arizona Reds and gold’s are steady and both are heavier to Asize. The Arizona quality has been very good. SQUASH Western Squash: Mike Cantu Market is slowing wrapping up on production of Italian and yellow s/n for Mexican product. California squash currently shipping out of Santa Maria. Supplies are generally adequate for demand. Eastern Squash: Harry Sheaffer Squash is in Georgia and the Carolinas quality is good. STONE FRUIT Amy Grolnick California stone fruit is going strong. Both yellow and white, peaches and nectarines are available with excellent quality and good sugars. Peaches remain tight and will have a strong market through June. Most peaches right now are very large so small fruit remains limited. Apricots are also available with good quality. Both red and black plums and pluots are now available with good quality and volume. Plums are running very large so small fruit is very limited. Cherries are available in Washington. TOMATOES Aaron Aliotti Western/Mexico: With California shippers coming to market, the focus has shifted away from 2 Layer in Baja for the gassed greens in the golden state. Prices are steady this week but expected to come down a bit as the South East brings greater harvests to market and supplies grow in the west. Roma tomato movement with the summer crop out of Baja is holding things steady, with shippers offering better quality fruit at a dollar less this week with more supply in the pipeline. Cherry and grape tomatoes remain tight this week out of Mexico. Very little cherry tomatoes are available with grape tomatoes coming into better supply. With only a few shippers with product to sell, pricing remains high and competitive with Florida for the time being. Some growers out of McAllen will start new fields in the coming week, which

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Continued will bring more supplies to market, easing some of the demand pressure off of San Diego. Eastern/Tomatoes: The Palmetto-Ruskin deal has just about finished with a few shippers left with product to move. Quincy and Carolina have started this week days earlier than expected helping calm the rising Market, however it will not be until the weekend or so that we see major increases in volume. Rounds are steady this week and expected to soften going into the middle of the month. Romas are harvesting in fewer volumes than weeks past but prices remain low in an effort to compete with imports from Baja. Cherry and Grape tomatoes remain limited and are showing signs of hope for next week with inventories loosening up in new growing areas over the next 10 days or so. Until then prices will remain elevated until better supply is available. VALUE ADDED Gabe Romero/Mike Pacheco The main issues with value added continue to be with romaine. The bruising and black discoloration is showing up upon arrivals. Broccoli and Cauliflower supplies are steady. Spring Mix and Spinach have shown moisture and some light bruising from time to time. WATERMELON Mike Cantu Market is steady. Current Nogales crossings are steady/ to lower and will start to wrap up production soon. Next area for production will be Phoenix. The spring crop will be mostly packed in bins and cartons will become lighter in supplies.

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