Market News

We wanted to post you on two events that occurred late yesterday (Friday, 6/20/08) that could affect future orders. The first news is that Watsonville broke a record for heat that stood since 1988. The temperature in Watsonville on Friday, 6/20, reached 105 degrees. Even coastal ranches reached 90-95 degrees. Temperatures are going to remain excessively hot through Saturday and maybe into Sunday. The cool down may not come until as late as Monday, 6/23. This will affect yields and overall fruit quality. The first casualties of this blistering heat were the raspberries and blackberries, many of which are under hoops which during heat spells intensifies the problem. This heat had an immediate impact and supplies were reduced drastically yesterday and estimates have dropped again for today’s harvest.

The second bit of information is that we had yet another fire break out yesterday near Watsonville/Aptos. This fire interrupted some power in and around the Watsonville area and many of your drivers will attest that it was brutal trying to get out of town yesterday with Highway 1 being shut down. I attached a link to the local paper explaining the record high heat and the fire.
www.santacruzsentinel.com/ci_9649307

Lastly, this heat does a lot of funky things not only to the fruit, but the plant as well. One thing we need to keep an eye on is that today’s flower which will be fruit in +/- 28 days could be affected by this heat. This could affect pollination and therefore result in a much lighter crop 4 weeks from now.

AVOCADO – California fruit – California harvest continues at a slow pace as growers are still waiting for size to come. Many growers are size picking for 48’s and 40’s. Crop estimates have lowered for this year by 8-10 percent. There remains a light supply of #3 fruit, as the crop is very clean. Demand for fruit remains very good as less Mexican fruit is crossing into the States. The market is steady.

MEXCIAN FRUIT – Rain in Mexico continues to slow their harvest. The Mexican crop continues to service mostly the Midwest and East Coast. Mexico’s volume will remain light through the summer. Market is steady to firm.

CELERY – The celery market has had a noticeable decline. The Salinas valley has had good production and this has allowed this market to soften. Seeder is still prevalent in the fields but not nearly as dramatic as was the case in Oxnard earlier in the year. There is good availability in all sizes of celery this week. The weights have been consistenly in the 60 to 65 pound range in both the Salinas and Oxnard growing regions. MARKET LOWER

CUCUMBERS – Western Cucumbers: Mainland Mexico continues to cross a few into Nogales, and Baja growers are working with lighter supplies, and are struggling to keep up with demand. Fresno has light, but steady supplies. Demand is good. The market is firm. EASTERN CUCUMBERS: the cucumber market has tightened up with very little availability in all sizes. Once the northern growing regions kick in, the market should begin to come off. Quality is marginal at this time.

LEAF LETTUCE – The leaf market is stronger with most suppliers. The Salinas valley and the Santa Maria growing areas had experienced high temperatures in the pervious weeks. The yields were lower with many growers, thus the increase in pricing. This will likely create some defects such as internal burn, tip burn and mechanical damage throughout the week. Expect pricing to be active the following week. The weights continue to show red and green leaf at 20-24 pounds. Romaine weights consistenly range from 38 to 44 pounds. MARKET HIGH.

LETTUCE – This commodity is getting stronger in the marketplace. Some suppliers have light availability and this has caused pricing to vary among the shippers. Expect this market to be active all next week as supplies will continue to be on the lighter side. Demand is expected to be strong the following week. The overall quality has een reported as being good in terms of color and texture. The weights continue to average 41-46 pounds. This item has mechanical damage reported in small quantities. MARKET HIGHER

STONE FRUIT – There are Apricots, Peaches (white and yellow), Nectarines (white and yellow), Pluots, and Plums available in EXCELLENT SUPPLIES. California cherries are finished for the season. Washington has started their early summer red varieties as well as a few Rainiers and volume is light as was predicted due to the late spring frost conditions. Markets are very strong for Washington’s new crop fruit that is in very short supply to start their first week. Expect continued good numbers of all California stone fruit and excellent quality!

TOMATOES: The FDA website shows Baja California Norte as cleared for tomato shipments to the US. Shipments have to be accompanied by a certificate issued by the Secretaria de Fomento Agropecuario Del Gobierno Del Estado de Baja California. More information can be found on FDA website www.fda.gov

FREIGHT: Trucks in California remain as tight as they have ever been and market trucks are asking for and getting top dollar. Teams remain tighter than normal. Trucks in the Northwest and Idaho are tight as well with many trucks deadheading to California. The National Average on diesel did not change and is currently at $4.692. Diesel in Salinas continues to be close to $5.00 a gallon and is currently going for $4.979 at the Pilot Truck Stop. Crude oil went down slightly and is currently at $134.61.

STRAWBERRIES: Beginning this week a couple of the big shippers started out sold out. There where reports from other shippers that they where sold out due to pulling the crews off of production early due to the ash falling from the current fires burning in the south Monterey co. Weather is more mild than last week with cool overcast mornings and mildly warm afternoons. This should help production. Production remains steady.

LEMONS: Demand continues to get stronger. Growers are harvesting at a rate to meet demand in most sizes. Fruit is peaking on the 165’s, with 115’s and larger are looking to tighten in supplies as there is not a lot of size growth. Storage levels are remaining steady, but continue lighter than normal for this time of year. Demand is very good. The market is steady.

GRAPES: Red Globe (seeded) grapes have started in a light way this week out of Nogales. Flame production has passed its peak in both Nogales and Coachella but there is still good volume to promote. Look for prices to go up as we move through this week and into next for lighter overall supplies. Trucking issues continue to impact areas in which fruit can pick up and Nogales remains a very good loading location for price, volume and quality. We are approaching the longest days of the year and long shelf life grapes are plentiful.

LEAF LETTUCE: The leaf market continues to be steady. The Salinas valley and the Santa Maria growing areas have experienced high temperatures the past couple of weeks. This will likely create some defects such as internal burn, tip burn and mechanical damage, all week. Overall, supplies look strong on all leaf items. Expect pricing to be aggressive by most suppliers. The weights continue to show red and green leaf at 20 – 24 pounds. Romaine weights consistently range from 38 to 44 pounds. MARKET SSTEADY

TOMATOES: WESTERN: California has started producing round tomatoes that are not affected by the situation surrounding the FL. and Mexican tomatoes. The FDA website shows Baja California Norte as cleared for tomatoe shipments to the US. Shipments have to be accompanied by a certificate issued by the Secretaria de Fomento Agropecuario del Gobierno del Estado de Baja California. EASTERN: Most shippers in FL are in the same situation with a significant volume of ripening tomatoes. In some cases this is creating opportunities to make some off market deals on higher color tomatoes. Market is steady for now but with many other areas coming on line this should weaken.

To our valued Customers:

Yesterday afternoon the FDA modified its alert regarding the salmonella outbreak. More states have been added to the “acceptable source” list, including the new growing regions from the state of Florida. FDA traceback review, in addition to production and distribution pattern information, has indicated that tomatoes from the following sources are NOT associated with the outbreak:

* FLORIDA  (Counties of: Jackson, Gadsden, Leon, Jefferson, Madison, Suwannee, Hamilton, Hillsborough, Polk, Manatee, Hardee, DeSoto, Sarasota, Highlands, Pasco, Sumter, Citrus, Hernando, Charlotte)

Shipments of tomatoes harvested in these counties are acceptable with a certificate issued by the Florida Department of Agriculture and Consumer Services. You may now again offer Florida round and roma tomatoes to your customers with confidence that they are not associated with the outbreak, and Premier Produce has ample supply of tomatoes on hand to meet your needs.

Again, thank you for your support during this period, and please call us if you require further information.

Sincerely,
Premier Produce

To our valued Customers:

Here at Premier Produce we want to make sure that you are informed about the tomatoes we are using. All of our Round and Roma tomatoes are Hot House grown. Hot House tomatoes are not effected by the salmonella outbreak. The highlights of the FDA’s most recent notice are as follows.

• FDA’s notice was advice to consumers recommending they not eat raw roma, raw red round tomatoes, or products that contain these types of raw red tomatoes, unless the tomatoes are from the following sources: AR, CA, GA, HI, NC, SC, TN, TX, Belgium, Canada, Dominican Republic, Guatemala, Isreal, Netherlands, and Puerto Rico.
   
• FDA’s recommendation does not apply to grape, cherry, or tomatoes with the vines still attached (e.g., TOV’s, hot house tomatoes).
   
• More information can be found on the FDA’s website:  www.fda.gov

Please note that no grower has recalled any tomatoes. Again, at this point, FDA has only issued advice to consumers. Also, since salmonella has a 2-week incubation period, and the last reported illness was May 27th, if no other cases are reported by June 10th hopefully this issue will begin to abate.

We want to make sure that you are aware of this information. Please, do not hesitate to call us with any further questions or concerns. We will, as always, continue to do our best to meet your needs for quality assured, food safe tomatoes.

Thank you,
Premier Produce

RASPBERRIES - Production is increasing daily. More shippers are now producing raspberries and we are starting to see a slight decline in price. Quality remains good.

BELL PEPPERS - The pepper market is beginning to soften as Georgia and Mississippi come into better volume. Colored Peppers are in good supply. Price is lower.

LEMONS – Demand continues to get stronger as warm weather drives usage up. Growers are harvesting at a rate to meet demand in most sizes. Fruit is peaking on 115’s and 165’s, with 200’s beginning to get tight. Storage levels are remaining steady, but continue lighter than normal for this time of year. Demand is very good. The Market is steady at current levels.

POTATOES – EXTREMELY SHORT SUPPLIES continue on Russets with Market prices continuing upward. This may be a good time to switch over to the colored potato category; there are good supplies and quality out of California. The Burbanks are running very small out of areas with many more #2’s than usual this year. Market is continuing to go up and looks to continue to increase as the season winds down. New crop Idaho’s are behind schedule and may start mid August or September. Overall acreage is expected to be down 6-10% this year on new crop product. Washington storage product has a poor pack out as well, with some shippers running limited days to stretch out supplies. Washington new crop around August 1st. Colorado is done for the season and should be into new crop around August 1st. Nevada is still in very small Burbanks and they are now in lots with less #1 product as well. California Russets are set to start next week with starting prices thought to come out at the Idaho potato levels. New crop red, white and gold potatoes now out of California with good availability. Lighter supplies of white are coming out of Florida with good supplies of reds. North Dakota has finished for the season. Arizona is going with good availability on reds and golds.

ONIONS – Huron, California and New Mexico have started with good availability and good quality. Market should come off a bit in the next week once volume comes on. Vidalia Onions are still going with good quality and volume. MARKET STEADY

STONE FRUIT – Apricots, Peaches (White and Yellow), Nectarines (white and Yellow) Pluots, Plums and Cherries are all available and volumes continue to increase. Cooler, windy conditions in the Central Valley have growers concerned about delays in fruit pack out, but overall there is good volume, especially in the smaller sizes. Market conditions will continue to soften with the lack of demand and supply increases in the coming days and weeks.

AVACADO – California fruit – California harvest continues at a slow pace; limited harvest as growers are still waiting for size to come. Crop estimates have been lowered for this year by 8-10%. 48’s and larger are becoming a little tight. There remains a light supple of #2 fruit, as the crop is very clean. Demand for fruit remains very good as less Mexican fruit is crossing into the States. The market is steady. Mexican Fruit – Mexico’s crop continue to service mostly the Midwest and East Coast; supplies continue to drop Mexico’s volume will remain through the summer. Market is Steady.

On Friday, July 4th 2008 we will be CLOSED to celebrate Independence Day! We would like to wish you and your families a safe and happy holiday.

The following are the days we will be closed: Friday, July 4th

If you have any questions or concerns, please call us at:
(216) 391-4565  / M-F 6am-4pm, Sat 6am-Noon

Thank you and Happy Holidays from the Tony's and everybody at PREMIER!

ONIONS – Market is increasing rapidly. Texas has very limited availability with most shippers done. California will start with limited product this week and most shippers starting the first week of June. New Mexico is set to start with new crop onions the first week of June. Demand is exceeding supply.

POTATOES – Extremely limited supplies Continue with market prices increasing daily across the board. The majority of Idaho Potatoes are now Burbanks. Market is tighter and looks to continue to go up as the season progresses.

STRAWBERRIES – Weather has cooled off again. The forecast is calling for at least 4-5 days of high 50’s to low 60’s. The cooler temperatures and strong winds very well may slow production down a bit. We can expect to see some moderate to minor quality defects from this weather development. Sizing is still irregular but quality remains good to fair. Demand remains strong. Steady Market.

RASPBERRIES – Production is increasing daily. More shippers are now producing raspberries and we are starting to see a slight decline in price. Quality remains good.

BELL PEPPERS – The pepper market is beginning to soften as Georgia and Mississippi come into better volume. Colored Peppers are still very tight. Demand is strong. Prices are still up.

LEMONS – Demand continues to get stronger as warm weather drives usage up. Growers are harvesting at a rate to meet demand in most sizes. Fruit is peaking on 115’s and 165’s, with 200’s beginning to get tight. Storage levels are remaining steady, but continue lighter than normal for this time of year. Demand is very good. The Market is steady at current levels.

ORANGES – Many growers are finishing on Navel’s; Sunkist has 2 houses that will pack into next week. Sizing is mostly large fruit, 72’s & 88’s. Valencia oranges are going with all shippers now, with sizing ruining mainly 88’s and smaller. Quality is very good with brixs in the 11.5 range. The market is steady and firm.

TOMATOES – Western: San Diego production is increasing with good quality. San Diego is still getting up to speed. Production should significantly increase as we get into June. Slight market increase. EASTERN: Growing conditions have been fair. Weather forecast calls to remain steady Tomato quality is also good but volume and sizing are irregular. The market is rising. Sizing is weak. There is an abundance medium and large fruit lacking the extra large sizes, but no vine ripe tomatoes at this time. Slight market increase. Roma Tomato has increased slightly.

ASPARAGUS – The asparagus market is steady. Supplies are good for the rest of the week. Suppliers have stabilized their pricing.

AVOCADO – California crop estimates have been lowered for this year by 6-10 percent. Size curve continues to be heavier to smaller sizes. Growers are stripping some tress to relieve stress to the trees damaged by last years freeze. 48’s and larger are becoming a little tight.

STRAWBERRIES – the past four days of 80 to 90 degree temperatures have caused some minor quality issues with growers. Most shippers had to strip plants to some degree and are having to be very selective as to what they are packing. The biggest problem that has presented it’s self is bronzing due to the heat. Growing areas are now back to cool mornings and mildly warm days, ideal growing conditions. Market remains steady.

RASPBERRIES – Production has increased slightly in Watsonville and with the much needed warmer temperatures over the past four days the plants are producing good quality berries and better volume. Quality remains good.

CELERY – The celery supplies continue to be in extreme supply shortage in the Oxnard growing region. Most shippers have lost 40% of the current supplies due to seeder in the celery. Supplies will remain short until the Salinas growing season starts. This will not be until mid June. Prices will remain active all week.

LETTUCE – The lettuce market is steady supplies look to be go for the next week. This commodity is showing some irregular sizing, windburn and occasional growing crack.

BELL PEPPERS – The pepper market is extremely tight right now with the little to no availability in all pepper. Quality is marginal and sizing is irregular at this time. Market will continue rising until Georgia transition is complete. MARKET UNSTABLE!

STONE FRUIT – Apricots, Peaches, Nectarines, Pluots, Plums and Cherries are all available and volumes are increasing daily.

TOMATOES – Growing conditions have been steady and good weather forecast calls to remain steady. Tomato quality is also good. Market demand is increasing along with a steady increase in pricing.

STRAWBERRIES – Weather remains cool keeping production slow but the forecast is calling for significantly warmer temperatures for the next four days. That should increase production but could hurt production if it gets too hot. Demand will remain strong keeping supply tight. Quality is good out of Watsonville/Salinas with predominantly larger sized berries. This week continues to be very tight with lower volume due to previous abnormally cool temperatures. The effects of this will be felt until mid to the end of the week weather permitting. Most to all shippers in Oxnard have started diverting fruit into processing.

RASPBERRIES – Production has increased slightly in Watsonville. There has not been any change in the tight situation. Many shippers are still in a fill rate mode, not getting the quantities to fulfill all orders. The berry quality has been good.

CELERY – The celery supplies continue to be in extreme supply shortage in the Oxnard growing region. Most shippers have lost 40% of the current supplies due to seeder in the celery. Supplies will remain short until the Salinas growing season starts. This will not be until mid June. Prices will remain active all week.

LETTUCE – The lettuce market is steady supplies look to be go for the next week. This commodity is showing some irregular sizing, windburn and occasional growing crack.

COLORED BELL PEPPERS: - Mexico is in their last week of production and what they are packing is tired, fair at best in quality and has no legs for traveling. California is 7-10 days away from beginning their crop out of Coachella.

IDAHO POTATOES: 70ct and larger potatoes remain extremely limited, as shippers get further into the storage product. Quality is not the problem but misshapen and small product in storage has made for more #2 products with limited #1 product available.

Posted: May 13th, 2008

ASPARAGUS – The asparagus market is frozen at high prices. Supplies will remain tight from the rest of the week.

STRAWBERRIES – Quality is fair to good with smaller sized berries being predominant. Watsonville is increasingly becoming more productive. The forecast calls for mild weather, which is good for firm berries. Market should stay fairly steady through Mothers Day.

RASPBERRIES – Continuing, demand exceeds supply. There has not been any change in the tight situation.

CELERY – The celery market is very active.

CAULIFLOWER – The cauliflower market has started to decline. Supplies are getting much better.

LETTUCE – The lettuce market is steady.

HONEYDEW – Offshore honeydews are winding down quickly. The quality is only fair.

Posted: May 6th, 2008