Market News
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Market News: Week of November 16th
November 17, 2009
The lettuce market, especially Romaine, has gone crazy. Here is what is going on. Production is in transitions from one area to another. The bad part is all the heat that California experienced in recent weeks has made these areas of production weak. Their production was already winding down and now the heat just accelerated it. On the flip side the new areas, Yuma, are not quite ready yet and are experiencing colder than usual temps. What this means is that demands are high and supply is low. What we are typically ordering from the farms they are cutting our amounts in half and they are more than doubling the price. The problem in these situations is that when production is low and markets are high, the shipper’s/farmer’s standard fall short. We are turning over every stone to fill our customer’s needs. It is a daily battle and we are in it to win it.
The tomato world is similar. Florida had all that crazy heat earlier this year that burned a lot up. Therefore their production is low. Canada is all finished up. The West coast/Mexico is falling short supplying the whole country because of Florida’s shortfall. I think that these prices will loosen as more areas out West start producing more but, I also think they will remain strong through the rest of the year because of Florida’s situation. Again we are on top of this and we have some really nice fruit in house and on the way.
We will keep you posted. Any questions please give us a call.
Weather:
Cooler temperatures are on the way out west as a couple of storm system approach California this week. Temperatures in the low 70s today will moderate into the low 60s by late Tuesday into the weekend. A very slight chance of rain is forecast for late Tuesday however this system is expected to remain to the north of the Salinas region for the most part with another more powerful system expected to bring rain to the area the latter part of the week. The Southwestern Desert region temperatures in the 90s last week will cool to the mid 70s this week as these storm systems roll through Northern California. Rain will not be a factor however clear and cool overnight conditions leave the possibility of morning frost in these regions this week.
In the Southeast temperature highs will be in the mid 70s in the Northern regions of Florida to mid 80s in Central and Southern Florida with a slight chance of showers through the week. Overnight lows generally in the 50s look to be the norm this week.
APPLES/PEARS
Small sized apples in all varieties remain extremely short. This will be a season long issue for the Washington State apple crop.Overall crop shortages attributed to early and late growing season freezes (upwards of 5 million cartons over the season) will also contribute to the low levels of small fruit available. There are other areas in the Northeast (including the Carolina’s, Virginia, Michigan and New York) packing red ‘typed’ apples, and demand for those is very good as well, especially with the limited supply of small sizes. Anjou Pears are in excellent shape with better supplies in Washington and Bartlett pears are still going strong. There are also varietals pears available including Bosc, Seckel, Concorde, Comice and Crimson Red Pears. Special apples, including the famed Honeycrisp variety, are in good supply.
AVOCADO
Mexico shipments are lighter this week and Chile continues with good steady supplies. We are seeing higher maturity levels from both countries.
Mexican Fruit: Shipments are again a little lighter this week as growers are looking to try to firm pricing. The size curve is evening out some with larger fruit crossing.
California Fruit: California fruit should begin with light harvest sometime in December. This year’s crop forecast looks much larger than last year’s.
Chilean Fruit: The majority of the fruit is still 50’s and 60’s. Chile is expected to continue through January with shipments.
BERRIES
Strawberries: Strawberries are still being harvested in Salinas/Watsonville, Santa Maria, Oxnard and Mexico at this time. Supplies remain tight out of the South (Oxnard and Santa Maria) again this week with cold weather in place. The limited supplies will be the case for the balance of this month. Quality is fair to good. Mexico is still light on their production and will remain that way this week. Florida strawberry production will not start up till the first part of December. Look for the current markets to remain high with limited supplies. Rain is forecasted for later this week so get ahead of your needs before supplies drop off again.
Raspberries: Raspberry production remains consistent and quality remains good. Raspberries are being harvested in California and Mexico at this time. Quality is good.
Blackberries: Blackberries supplies continue to increase out of Mexico. Quality is also starting to improve as each week moves on. Market is steady
Blueberries: Supplies steady this week and arrivals of offshore fruit are still somewhat sporadic. The main pack still available is the 4.4 oz. As production continues to increase look for more of the 6oz. pack to become available.
CITRUS
Lemons: Supplies are good on all sizes and grades. The Desert crop is 30 to 40 percent lighter this year and quality is very good.
Limes: Supplies remain lighter this week due to the rain on 2 weeks ago in Mexico. Quality remains good.
Oranges: Navel quality continues to improve. Supplies remain tight on choice 113’s and 138’s of both grades. Demand continues to exceed supplies on smaller fruit. Small fruit looks to be tight for the season as this years crop is heavy to big fruit.
GRAPES
The Thompson Green Seedless crop is all but finished for the season with the exception of a few lots with diminished shelf life. There are also a few Autumn King Green seedless left as well but those are extremely limited in supply with high FOB pricing. There are, however 18# Brazilian Festivals (only located on the East Coast) available, and they can be delivered to most mid-western and eastern locations. Overall supplies on green seedless look to remain very low for at least the next 3 weeks. Looking forward, Brazil and Chile have received cold weather and rainfall which will have a significant affect on upcoming supplies, in this transition period. Chile also looks to be pushed back about 7-10 days due to the early and late season cold weather. Domestic California Red Seedless grapes (Crimson) are still available, but they are starting to wind down rather quickly. Demand is strong again this week for red seedless and the market is higher. Market levels for green seedless will continue at higher levels this week and into next.
MELONS
Cantaloupes: Arizona continues to produce domestic Cantaloupes and they should go for another 7-10 days depending on weather and yield. The prices are steady to start the week, but look for possible increases as we move through the week and supplies drop. Cooler weather prevails and sizing remains on the small side. The peak sizing is in 12/15ct and will be that way at least another week. Offshore cantaloupes remain available from the Guatemala loading in Florida. 9 and 12ct are the main sizes available, but a few smaller sizes will be available by the end of the week in Pompano Beach. There are still supplies of Mexico Cantaloupes crossing through the Nogales, AZ point of entry, but movement is only fair. Quality on product of Mexico is still improving but supplies have topped out. Overall fruit quality remains decent with moderate sugar levels.
Honeydews: Honeydews supplies out of Mexico have dropped off considerably and the Arizona desert is winding down quickly. The market on Arizona fruit is slightly higher this week as well as that for Mexico fruit. Volume has switched sizes and is now heavier to the smaller sizes 6/8/9ct.
STONE FRUIT
All domestic stone fruit is finished for the season. Chilean fruit looks to be here with the first air shots starting early next week. There are still excellent supplies of fall fruit items available such as Persimmons, Pomegranates and Quince.
TOMATOES
Western: Tomato volume is down and the demand is increasing we approach the Thanksgiving holiday. We are seeing higher markets and less availability. Achieving color will be challenging due to the diminished supply. Roma and Grape tomatoes are more available and have declined on their fob’s. We can expect a small push on both Grape and Cherry tomatoes next week out of San Diego and central California. Crossings into San Diego have been slowed significantly due to an earlier tropical storm that disrupted production, and we are now seeing diminished supplies and higher fobs. Achieving load volume is and will be difficult through the month of November.
Eastern: Supplies in Florida continue to be well below typical levels, with an expected increase in market pricing. Florida growers are experiencing major problems with reduced yields, dropping to 25% from normal averages. Both central and southern growing areas are looking at gradual improvement by early December, but will have to wait till then to see how the market will adjust. The majority of the supply concerns Rounds, Romas, Grape and Cherry tomatoes is directly related to the high temps we encountered at the end of September – early October which caused a bloom drop, thus reflecting in lower yields and reduced volume. The overall quality is good. There is a lack of bigger sized tomatoes. All round and roma supplies are down anywhere from 40-50%.
BELL PEPPERS
Western Green Bells and Colored Bells: The Coachella Valley is increasing production, but good demand is keeping the clean. New Crop Reds from Baja shipping from Chula Vista are going as well as Coachella. Production is increasing on reds, but yellow still 1 to 2 weeks away. Red bells out of Coachella are packing out to mostly a medium to small size. Large sizes are limited.
Eastern Bells: Volume in Florida remains good, with the market remaining steady from last week. Larger sizes remain strong on price, with deals to be made on off-grades. Quality has been good.
LEAF LETTUCES/ROMAINES
This week, and next will be difficult to harvest product in Salinas and Santa Maria. The same issues exist like the previous weeks. These issues include romaine having such defects as brown spotting, browning up the rib, brown butts, fringe burn and internal burn. Green leaf supplies are better than all other leaf items. Production in Yuma has started this week lightly with a few suppliers and volume will pick up towards the end of next week. This market will be active over the next two weeks. Romaine hearts are extremely tight and very active. The quality is marginal at best. Fringe burn is still being seen upon arrivals. The hearts are twisted in growth with some suppliers. Continue to expect defects on leaf items over the next few weeks with production from Salinas. Expect truck delays that have leaf items on the order throughout the week.
LETTUCE
This market is getting stronger. Salinas’s production is finished. Huron is finishing up with most suppliers this week and Yuma has started production on the light side. Contracts are being covered but open business is light with many of the suppliers. Suppliers are dealing with lightweights in Yuma, but mildew and excessive ribbing is not an issue like Salinas and Huron past production. Trucks should expect delays throughout this week and next and product will be arriving to the coolers at a slower than normal pace.
CAULIFLOWER
Supplies are much tighter on this commodity in Salinas and Santa Maria. Yuma will begin production on the 23rd of November with early forecasts indicating lightly. Salinas will continue to harvest for the next two weeks. Expect the availability on this commodity to be sporadic over the next few weeks as the transition to Yuma begins. Some reports of brown spotting have already begun to be seen upon arrivals.
CELERY
This market continues to be stable. Some suppliers are attempting to raise the pricing due to holiday ads that are in progress. Overall, the market is stable with production in Santa Maria, Oxnard and Salinas. The quality continues to be strong with no major issues to report.
BROCCOLI
Supplies have tightened up in Santa Maria and Salinas. Yuma will not begin production until the 23rd of November so trucks will be going to Yuma and Salinas for this week, depending on the order. Expect this commodity to be light in availability over the next few weeks as we transition into Yuma. Salinas will continue production for the next two weeks. Issues on this commodity include yellowing, knuckling, and pale green appearance. Processors are purchasing as much product as can be had and this will cause shortages in availability for carton business.
SQUASH
Western Squash: Mainland Mexico’s supplies are picking back up with good supplies through the month. Baja production also looks good through the month.
Eastern Squash: Volume is good, and the market has gotten stronger during the past week, as Georgia has cleaned up on older product. Florida quality has been good.
ONIONS
Demand is light with good availability. Product quality is excellent. The market is staying steady with Washington keeping the prices low due to ample supplies and good quality. There are good supplies available out of Colorado and Utah.
POTATOES
With Thanksgiving upon us trucks are extremely limited. Product is available but with trucks no showing shippers may have to limit runs due to shed space. Idaho is steady on supplies with Norkotahs still the main varietal but Burbanks are available. Washington new crop Norkotahs are going strong with good quality and availability. Colorado is going strong with new crop supplies as well. Mount Vernon, Washington with good availability; product quality is excellent. North Dakota and Wisconsin have good supplies of red, yellow and white potatoes.
Market News: Week of November 9th
November 11, 2009
Weather:
In Central California daytime highs in the low 70’s with overnight lows in the 50’s are forecast through Wednesday. The southwestern desert regions had highs in the 90’s with overnight lows in the 50’s look to be the norm. In the Southeast high temperatures in the high 70s in the northern regions to mid 80s in Central Florida with a slight chance of showers in the southern most regions through the week look to be the norm. Tropical storm Ida is expected to reach landfall over the Gulf Coast in less than 24 hours bringing with it heavy rain, wind gusts and isolated thunderstorms.
ASPARAGUS
The market is light in availability on Mexican grass. Heavy rains were seen in Mexico and this has created low yields in this growing region. Currently supplies are lighter on Peruvian and Chilean grass. Supplies are expected to increase next week. Pricing will be stronger as this week already indicates.
AVOCADO
Mexico and Chile continues with good steady supplies. We are seeing higher maturity levels from both countries.
Mexican Fruit:
Supplies are a little lighter this week as growers are looking to try to firm pricing. The size curve evening out some with larger fruit crossing and maturity is continuing to improve.
California Fruit:
California fruit should begin with light harvest sometime in December. This year’s crop forecast looks much larger than last year’s.
Chilean Fruit:
The majority of the fruit is still 50’s and 60’s. Chile is expected to continue through January with shipments.
BELL PEPPERS
Western Green Bells and Colored Bells:
Supplies of green bells from central and coastal California are all but done as they come to the end of their season. The Coachella Valley is steadily increasing production, but good demand is keeping the clean. The red and yellow bell production in central and coast areas are also in their seasonal decline. New Crop Reds from Baja shipping from Chula Vista has started as well as Coachella with light production. We should see increased production by mid November.
Eastern Bells:
Market remains strong with larger sizes mostly available. Both Florida and Georgia working product now so the market has softened. Heavy rains are expected through South Georgia in the next few days which could mean an early end there and strong winds across Florida will limit availability this weekend. Watch for the pepper market to tighten back up by the weekend.
BERRIES
Strawberries:
Strawberries are being harvested in Salinas/Watsonville, Santa Maria, Oxnard and Mexico at this time. Supplies are limited out of all areas and will be for most of this month. Quality is fair to good. The next area to come into production will be Mexico which has started in a small way but will not be in full production till the middle of November. Florida strawberry production will not start up till the first part of December. Once Florida gets started we should slowly see supplies start to meet the demand. Look for the market to be high with limited supplies thru November
Raspberries:
Raspberry production remains consistent and quality remains good. Raspberries are being harvested in California and Mexico at this time. Quality is good.
Blackberries
:
Blackberries supplies are increasing out of Mexico. Quality is also starting to improve as each week moves on.Market is steady.
Blueberries:
Supplies are still limited the start of this week. Supplies should start to increase as this week moves on. The main pack size will be 6oz and will move into the bigger packs as production increases.
LEAF LETTUCE
The next few weeks of Salinas’s production will have various issues. Romaine items will continue to have defects such as such as brown spotting, browning up the rib, brown butts, fringe burn and internal burn. Green leaf supplies are better than all other leaf items. Production in Yuma has started this week lightly with a few suppliers and volume will pick up towards the end of next week. This market will be active over the next two weeks. Romaine hearts continue to be light in availability. The quality is marginal at best. Fringe burn is still being seen upon arrivals. The hearts are twisted in growth with some suppliers. Continue to expect defects on leaf items over the next few weeks with production from Salinas.
LETTUCE
This market is currently stable. Most suppliers are dealing with issues such as lightweights, mildew and browning on outer leaves as well as excessive ribbing. These issues will continue whether the production is coming from Huron or Salinas. Supplies are light in Yuma and production will not be stronger until approximately a week to two from now. Supplies are definitely lighter out of Salinas compared to Huron. Huron product is reported as being cleaner but weight still range from 34-37 pounds on the average. This will continue throughout the week.
MELONS
Cantaloupes:
Arizona continues to produce the majority of all domestic Cantaloupes available now and the prices should remain level again this week. Central Arizona is now winding their production down and will continue to do so over the next couple of weeks. Cooler weather has settled in to start this week but sizing remains on the small side. The peak sizing is in 12/15ct and will be that way at least another 5-7 days and possibly longer. There are now offshore cantaloupes available from the first pick in Guatemala! 9 and 12ct are the main sizes available, but a few smaller sizes will be available by the end of the week in Pompano. There are still supplies of Mexico Cantaloupes crossing through the Nogales, AZ point of entry, but movement is only fair. Quality on product of Mexico has improved and should continue to as we move through the week. Fruit quality remains decent with moderate sugar levels.
Honeydews:
Honeydew markets have firmed up a little to start this week and should continue to firm as Arizona winds down and Mexico production steadies. Volume is still heavy to 4/5/6ct and will remain so this week. Demand is picking up slightly but market should remain fairly steady this week.
TOMATOES
Western:
Production in Central California is finished. There are small supplies in Oxnard, but is on the decline and will be ending soon as well. Volume is down and demand is moderate. We can expect to see higher markets and less availability. Achieving color will be challenging as well due to the diminished supply. Roma and Grape tomatoes are more available and have declined on their fob’s. We can expect a small push on both Grape and Cherry tomatoes next week out of San Diego and central California. Crossings into San Diego have been slowed a bit due to the tropical storm that disrupted production slightly.
Eastern:
Supplies in Florida continue to decline with an expected increase in market pricing. The majority of the supply concerns Rounds, Romas, Grape and Cherry tomatoes is directly related to the high temps we encountered at the end of September – early October, which caused a bloom drop, thus reflecting in lower yields and reduced volume. The overall quality is good. There is a lack of bigger sized tomatoes. All round and roma supplies are down anywhere from 40-50%.
Market news is complied of information from print and the internet. Sources may include ProAct, The Produce News, The Packer, etc.
Market News: Week of November 2nd
November 2, 2009
Fuel:
Crude oil prices remain steady and are currently at $78.05 per barrel. The National Average on diesel has also risen and moved up to $2.801, an increase of .096 cents.
Weather:
In Central California the drastic cool down continues with temperatures cooling to the mid 60s with very strong winds expected into mid- week. Winds in the 30-40 mph range with gusts into the 60 mph range are expected over the next few days. The desert regions will also see breezy conditions and cooler temperatures by mid week. Highs in the 80s today will cool to the low 70s mid week with overnight lows reaching the mid 40s through the week. A gradual warm up begins Thursday with seasonal temperatures expected over the weekend
In the Southeast high temperatures in the high 70s to mid 80s with a chance of showers through the week look to be the norm.
APPLES/PEARS
Pre-sized Bins on all apples out of Washington State continue to yield large fruit. Most all varieties are packing out 72-88’s and larger with very few cases per bin in the small sizes.
This looks to be a season long issue and could generate shortages on small sized fruit for the duration of the Washington State apple crop. Overall crop shortages (upwards of 5 million cartons over the season)* will also contribute to the low levels of small fruit available. California is still packing mainly Pink Lady Apples with a few light supplies of Granny Smith also available. There are other areas in the Northeast (including the Carolina’s, Virginia, Michigan and New York) going on red ‘typed’ apples, and demand for those is very good as well, especially with the limited supply of small sizes. Anjou Pears are going with better supplies in Washington this week and Bartlett pears are still going strong. There are also now varietals pears including Bosc, Seckel, Concorde, Comice and Red Pears.
ASPARAGUS
This market continues to be stable. Peruvian product continues to be loaded out of Miami or Los Angeles at a sharper price compared to Mexican product. Good production numbers continue to be had on jumbo sizing out of Peru.
AVOCADO
Mexico and Chile is going with good steady supplies. We are seeing higher maturity levels from both countries.
Mexican Fruit:
Supplies are good, but still peaking on 48’s and 60’s. Larger sizes are starting to pick up slowly.
California Fruit:
Next years crop looks much larger than this year’s, and should be ready to begin late December /early January.
Chilean Fruit:
Chilean fruit supplies are steady with sizes peaking on 50’s and 60’s.
BELL PEPPERS
Western Green Bells and Colored Bells:
Supplies of green bells from central and coastal California are decreasing as they get closer to ending their season. The Coachella Valley has start in a light way with their new crop green bells, and will steadily increase over the next 2 weeks. The red and yellow bell production is also in their seasonal decline. New Crop Reds from Baja shipping from Chula Vista by the end of the week. Coachella is still 1 to 2 week away from their start.
Eastern Bells:
Weather problems in Georgia are hampering matters. Most growers have been dealing with rain for the past two days. Market is steady due to lower volume right now. Demand for pepper is good, and quality seems to be good, when they can pick.
BERRIES:
Strawberries:
We are going to be in a very tight supply situation on Strawberries now thru the month of November. The Salinas/ Watsonville growing area is on its last legs. The next major storm that comes through from the
North will put this area to bed for the season. Quality is fair. The Oxnard fall crop growing area is only 10% of the volume compared to the Northern growing areas which will not be able to handle the demand. The next area to come into production will be Mexico which has started in a small way but will not be in full production till the middle of November. Florida strawberry production will not start up till the first part of December. Once Florida gets started we should slowly see supplies start to meet the demand. Look for the market to be high with limited supplies thru November. All shippers will be in a fill rate situation due to the limited supplies. Rain is in the forecast for Friday/Saturday.
Raspberries:
Raspberry production remains consistent and quality remains good. There is some California production in Watsonville and some of the southern areas. We can expect continued light production in Oxnard. Mexico has started in a light way. Quality is good.
Blackberries:
Blackberries supplies limited due to weather that went thru the growing areas last week. Quality is fair with a firm market. Look for supplies to increase next week.
Blueberries:
The supplies are still very limited with a firm market. Supplies are slowly starting to build. The main pack size will be 4.4oz and will move into the bigger packs as production increases. Market very firm.
CITRUS
Lemons:
Supplies of 95’s are limited. Availability continues to be good on 115’s and smaller.
Limes:
Supplies are good. Sizing on pack outs are good on all sizes. Demand is good. Quality remains good.
Oranges:
Valencia season has come to the end. Numerous shippers have begun packing Navel’s this week, supplies are very limited. Pack outs are heavier to the larger sizes. Demand is exceeding supplies of 88’s and smaller. More shippers will begin next week, but start up will be very slow. Fruit will be tight for the next 2 weeks.
LETTUCE:
This market is stable. Supplies are definitely lighter compared to the previous week. Light weights will be an issue with lettuce shipping out this week. Weights have been reported out of Huron to be 36-38 lbs. This will continue likely throughout the week. Yuma will begin production for some suppliers the first week in November. Salinas’s lettuce is winding down with quality being only marginal. Early signs of decay and light weights are characteristics of Salinas’ lettuce.
LEAF LETTUCE:
We are at the tail end of the Salinas deal. Pricing is ranging 3-4 dollars due to suppliers all having different availabilities. Fringe burn, brown butts, and brown discoloration on the outer leaves are all issues with romaine. Yuma will begin production the first to second week in November. This market looks to get stronger throughout the week with any kind of demand. Romaine hearts continue to be light in availability. Fringe burn is still being seen upon arrivals. The hearts are twisted in growth with some suppliers. Due to weather conditions, some growers are reporting that translucent water spots are seen on all leaf items. There have also been reports that the chopped romaine is not as strong as in past months.
Expect all leaf items to have issues and quality will be marginal at best over the next two- three weeks of production in Salinas.
MELONS:
Cantaloupes:
Arizona continues on a rollercoaster ride of supplies and sizing. Finishing this last week of October, supplies are light, but now mainly in the large fruit (9ct and JBO 9ct). Central Arizona is already past their production peak and will continue to wind down over the next several weeks. With cold weather already present and finishing the week look for lower than normal supplies and limited size availability. The peak sizing is now in the 12/15ct and will be that way at least through this week. There are a few Mexico Cantaloupes crossing through the Nogales, AZ point of entry, but supplies there are somewhat limited. Quality on product of Mexico is only fair at best for now. The market could get active if the supplies drop dramatically during the cold weather, but for now demand is slightly lower and the markets will be steady to finish the week. Fruit quality remains decent with moderate sugar levels.
Honeydews:
Honeydews are in very good supply with both Arizona and Mexico production increasing and volume heavy to4/5/6ct. Demand is steady which will keep the market in check.
TOMATOES:
Western:
Production in Central California is on the decline as there only a couple of shippers going, and will be finishing this week. Some shippers are speculating about finishing by the end of the week, and others have expressed that there will be some light availability past next week but it will depend on how much damage there is in the fields from the past rain. Volume is down and demand is moderate. We can expect to see higher markets and less availability. Achieving color will be challenging as well due to the diminished supply. Roma and Grape tomatoes are tight. We can expect a small push on both Grape and Cherry tomatoes next week out of San Diego.
Eastern:
Florida growers are harvesting in Quincy in a light way. Irregular weather patterns have slowed production. Volume on Roma, Cherry, and Grape increasing as more Florida production comes on line. Palmetto-Ruskin area is starting slowly. Some higher temps in the lower growing areas may slow the fruit from setting and we may see the results of this in about two weeks.
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