Market Report MARKET ALERT! January 29, 2015 ARTICHOKES, ASPARAGUS, BROCCOLI, CARROTS (JUMBO SIZE), GARLIC-PEELED, GINGER, GRAPEFRUIT, GRAPES, HERBS (ALL), LETTUCE (RED AND GREEN LEAF, ICEBERG, ROMAINE, ROMAINE HEARTS), MELONS, PEAS (SNOW, SUGAR SNAP), TRANSPORTATION (NORTHWEST) Commodity Price Avocados–Mexican Moderate Blackberries Expected Trend Quality Commodity Price Expected Trend Quality - Good Artichokes High ̵ Fair to Good Moderate - ↓ Good Blueberries Moderate ↑ Good Moderate ̵ Good Raspberries Moderate - Good Arugula, Cauliflower, Cilantro, Celery, Frisee, Fennel/Anise, Mache, Spinach (baby) Strawberries Moderate - Fair Asparagus High ↓ Good Grapefruit Moderate - Good Good Bok Choy, Napa, Spring Mix ̵ Good Moderate ↑ High Lemons Limes High - Excellent Broccoli, Parsley (Curly) Moderate ̵ Excellent Oranges Navels Moderate - Good Carrots Moderate ↑ Good Pineapple Moderate ↑ Good Moderate ↓ Excellent Green and Red Leaf High ↓ Fair Green Cabbage, Spinach (bunched) Iceberg Moderate to High ↑ Fair Red Cabbage High ̵ Excellent Romaine Extreme - Poor Garlic (peeled) Extreme ̵ Good Romaine Hearts Extreme - Fair Green Onions Moderate ↓ Fair Cucumbers Moderate ↓ Good Green Beans Low - Good Parsley (Italian) Moderate ̵ Very Good Green Bell Peppers Low - Good Kale Moderate ̵ Excellent Red Bell Peppers Low ↓ Good High to Extreme ‐ Poor to Fair Yellow Squash Moderate - Snow and Sugar Snap Peas Fair Zucchini Low ↓ Good Red, Yellow, White Onions, Potatoes Moderate ̵ Good Green and Red Seedless Grapes High - Good Round, Roma, Plum, Grape Tomatoes Low ̵ Good Plums Moderate ̵ Good Cantaloupes High ̵ Good Moderate ̵ Good Honeydews Moderate ̵ Good Red and Golden Delicious, Granny Smith, Fuji, Gala, Bartlett, Red Anjou, Braeburns, Cameos D’Anjou High ̵ Good Overview Supplies are becoming more available as the warm weather pattern continues though many supplies remain short. Prices are beginning to stabilize to more moderate levels. Lettuce and leaf growers in Western Arizona (Yuma), the Imperial Valley of California continue to deal with the effects of the week-long freeze that occurred in late December and early January. Although ideal growing conditions have returned to the growing areas during the past two weeks, the damage to the crop is irreversible. Growers continue to report damage such as blister and epidermal peel. Harvest crews are attempting to minimize the damage from the epidermal peeling, removing as many outer leaves as possible, resulting in small heads and lightweight cartons Market Report (mainly in iceberg, where various lots weigh as low as 36-38 lbs., compared to 4446 lbs.). Looking ahead, winter harvest cycles have been greatly accelerated this season in the desert districts, due to ideal growing conditions that occurred during December (prior to the freeze). Grower-shippers are currently three weeks ahead of harvest schedules, and anticipate a gap in supply occurring sometime in April. Transportation Unfortunately, we are not seeing a reduction in freight cost. Trucks and drivers are in a demand exceeds supply situation. Truck companies have to abide by new laws that mandate their drivers to get a 34 hour re-start rule. Their time on the road is cut back and although this enforces safer driving, it does take longer to get from one side of the country to the other. Freight companies must comply with the California West Coast air regulations, and if they do not, they are fined 10,000.00 per day. The upkeep on the actual trucks is more costly, and companies are struggling to replace equipment at the rate they are used to. To make matters worse, getting loans to pay for new equipment has been harder to secure. As a management company, we will continue to keep investigating all avenues that we can to ensure the best prices on freight as well as produce, however at this time we are not seeing the drop in price we had so desperately hoped to see. Weather Update Chance of rain is expected in Yuma this evening, becoming more probably overnight into tomorrow; potential for over 0.20” of rainfall, favoring west and southcentral Arizona. Cooler highs are forecasted for Saturday with little change in temperatures through Monday. A cooling trend is in the late week forecast for Central and Southern Mexico, including rain in Culiacan, Sinaloa (Central Mexico). Avocados There are good supplies of Mexican avocados and fairly good supplies of new crop California. Sizes are heavier to smaller on new crop. Berries Blueberries: Quality and availability have improved. Raspberries: Availability is limited but better than it has been, weekly fruit will transfer. Strawberries: Availability is good. The Florida market has good quality and strong supply. California-Arizona Citrus Grapefruit: Very limited availability continues in California, with good supplies available in both Texas and and Florida. Lemons: Lemons continue to move well. However, small fruit remains tight. 165s are tight as people have to move up a size to get covered. Prices are mirroring the change in availability. There are currently good supplies of 95s and 115s. Fruit is coming out of all growing areas, so trucks should not be an issue. Meyer lemons are available in abundance and quality is superb. Meyer lemons are very thin skinned so fruit tends to be on the soft side which is normal for this variety. Organic lemons are also ready. Limes (Persian): Prices continue to trend downward with good supplies on most sizes. Navel Oranges: Heavy fog in central California has limited picking to a few hours in the afternoon creating a shortage on the most desired sizes. Texas/Florida Citrus: Florida grapefruit/juice oranges are in good supply. There are good supplies of Texas grapefruit. There is very limited availability on in between varieties. Pineapple: Supplies are in line with movement. Specialty Citrus Items: Cara Cara and blood oranges look and taste great and are selling very well. Pummelos are next on the list and sales have been brisk. Please order ahead. Minneola are going well. Fruit has been solely out of the desert but will start to see some fruit being picked and Page 2 Market Report packed in the central California region later this week or early next week. Sizes will be smaller as we move north. Murcott should be available also starting late this week or early next week. In the meantime, some Moroccan Clementine are available on the east coast. California Lettuce Green and Red Leaf: Supplies are light again this week on all mix leaf. Green and red leaf cartons are 1821 lbs. with 9-10" heads. Green leaf has 5-6 leaves with blister (3 brown), while red leaf has 11-12 leaves with blister (10 brown). Iceberg Lettuce: Light supplies are forecasted again this week. Warm weather is also forecasted which could help increase supplies, size and weights. Weights are low forties (normal). All lettuce is showing epidermal peel or frost damage. Rain could affect quality. Romaine: Supplies will be extremely light both this week and next. Cartons are packing on the lighter side with 34-35 lbs. each. The heads are 10-11" in length and have 10-11 leaves with blister (7 are brown). Overall quality is poor so please communicate the issues within your QA departments. Romaine Hearts: Overall supplies will continue to be well below average. The lack of supplies is due to the blister and peel issues, along with being 14-20 days ahead of schedule. Overall quality is good. Crews are trimming the product down due to the blister and peel, so there is limited amount of peel that gets into the finished product. Eastern & Western Vegetables Green and Red Bell Peppers: There is good availability for green bell peppers in Florida and Nogales. Supplies are plentiful on red and yellow bells in Nogales. Cucumbers: There are good supplies and favorable prices in Nogales, although recent heavy production volume is beginning to return to normal. There are indications that the market may firm next week. Steady availability for cucumbers from Honduras, shipping from South Florida. English Cucumber: Supplies are improving more and more as product becomes readily available out of Mexico. Expect to see improvement as the weeks continue. Green Beans: Continued plentiful supplies in Nogales; prices have strengthened slightly in Florida. Squash: Zucchini & Yellow: There is an oversupply for zucchini from Southern Mexico; good availability for yellow squash. Good availability for zucchini and yellow in Florida. Acorn, Butternut, Spaghetti: Supplies are moderately tight in Nogales caused by the freeze in early January. Prices will continue to advance with supply disruption a possibility during March. Grapes Green seedless are very, very active. The market is advancing, and most shippers will finish by the end of the month. Red Globes and black seedless are getting in fewer hands and will clean up quickly. There are good supplies of red seedless with a wide range of sizes and prices. Imports should arrive in the East coast by mid-month. Herbs Fresh herbs are having a good start as the weather continues to be favorable with warm days. Lemon Thyme will be short this week as the crop is growing very slow. When harvest is possible, length will be shorter than usual. All other herbs are recovering from the frost. Yields continue to be down, but hoping for normal supplies for this time of year by late February. Melons The market on melons has tightened up. Cantaloupe quality is fair Page 3 Market Report and availability is low; supply exceeds demand as offshore fruit is impacted by weather. Mexican cantaloupe is just about finished, and quality is fair. Offshore is scarce. Watermelons Rains in Mexican growing regions have affected supplies and size of available melons. Size profiles are heavy to 60 and 80 count bins. Some supplies of seeded are available FOB Nogales. Mini seedless are also available in light numbers, as several suppliers are winding down on their northern Mexico season. There are light supplies from North and Central Florida, however this is improving daily. Imports are starting to arrive from Central America and the Dominican Republic. Quality is inconsistent. Mixed Vegetables Artichokes: Light supplies continue this week and next week. Chokes this week will be both lightly frosted and frost free. Frosted chokes have a more nutty taste to them. Once they are cooked any cosmetic discoloration disappears. Arugula: Supplies of regular Arugula are very light, and quality is fair. Expect some yellowing and frost damage. Supplies of wild arugula are also very light with some yellowing and frost damage. Asparagus: Asparagus production remains low this week. Demand is on the rise from the West; pulling from Peru to meet demand, alongside of having labor issues that are causing delays in unloading. Expect to see an increase of price at the LA port. Mexico production has been dealing with weather related issues for the last month and freezing temperatures that stopped majority of production. The forecast seems to look better next week, and we are hoping to see production out of Mexico ramp up in the next week. Bok Choy: Tight supplies, high prices. Broccoli: With the warmer temperatures broccoli continues to be more readily available. Expect supplies to improve over the next few weeks to meet demand. Crews are staying on top of fields to provide only the finest quality broccoli (reports of some brown bead and other heat related issues). Carrots: Availability has tightened for jumbo carrots in California as size and yield have declined, the result of a slower growth cycle during the late season fall harvest at higher elevation (2,150 ft.) in the Cuyama Valley of Southern California. Prices will trend higher until the harvest returns to the Southern San Joaquin Valley (Bakersfield). Cauliflower: Supplies are good this week on cauliflower. The majority of sizing available will be 12ct, with minimal 9 and 16 ct. available each day. Quality remains very nice with medium plus white curds and good strong jacket leaves. Celery: Supplies are steady in both Mexico and Yuma. Demand is fair and the market remains steady. Quality is good with the exception of very light blister. Color is a strong green and weights are between 54-56 lbs. Cilantro: Light supplies continue this week. With warmer weather in the forecast, better supplies are expected as early as this weekend. Quality is nice with 8-10” in length and good green color. Fennel/Anise: Fennel supplies this week are projected to be slightly above demand. Percentages of larger sizes will be close to needs for contracts. Demand should remain decent. Garlic: In the past few weeks, some Chinese pounds have become available in the market. Although pricing still remains high, it is anyone’s guess whether more pounds will continue to become available or if “the pipeline” will run dry again. While U.S. Customs allowed some Chinese importers to have their pounds released (after being held at ports for long periods), promises were not made to have additional/ new shipments released as well. Page 4 Market Report Moreover, some importers may now be “thinking twice” about sending further shipments so soon, when they had such a difficult time getting the previous containers released. Time will tell. On the domestic side, the demand continues to remain high and supplies tight. We are under the impression the majority of Chinese exporters are having to pay a duty rate assigned by the U.S. Dept. of Commerce (although we do not know this with 100% certainty). There is some discussion that with the assigned duty, Chinese exporters are observing little to no margin at the present market pricing. Ginger: There is a supply and demand situation that happens from time to time with ginger. The crop in storage remains tight. This is causing a lack of supply and very high prices. Green Cabbage: Supplies have returned to average and size continues to improve. Supplies will continue to increase throughout the month of February in advance of St. Patrick’s Day demand in March. Green Onions: Supplies continue to improve. Sizing is more towards smaller onions for most shippers. Good supplies are expected over the next three weeks. Kale (Green): Plentiful supplies continue. Overall quality and appearance continues to be superb. Bunches are averaging 1416” in length with dark green color. Mache: Adequate availability. Napa: Limited supplies, high prices. Parsley (Curly): Supplies are plentiful this week. Quality is extremely nice with bunches o 9-11” in length with dark green color. Parsley (Italian): Supplies are up from last week and should continue to improve as the week goes on. Overall quality is very nice with bunches a bit on the shorter side (7-9”) in length, but both color and texture are excellent. Red Cabbage: Supplies are steady and expected to increase as warmer weather continues. Quality and sizing should stay strong. Demand and production have been slow over the past few weeks, keeping the market steady with higher prices. Snow and Sugar Snap Peas: Snow peas and sugar snaps are in tight supply (Peru, Mexico, and California). Prices remain in the highs for both. Quality is poor, and limited availability will continue through next week. Spinach (baby): Baby spinach supplies are light. Quality is fair due to frost damage. Spinach (bunched): Steady supplies this week from Yuma and Mexican growing areas. Favorable weather should keep supplies consistent for the next several weeks. Bunches are large and full with 10-11” in length and weights of 20-21 lbs. Demand is fair. Spring Mix: Spring Mix supplies are light, and availability is limited. Product is showing quality issues of yellowing and wetness due to rain and possible freeze damage. Price is up. Page 5 Market Report Onions and Potatoes (Idaho) Although sales are brisk, there are plenty of supplies available. Fobs could drop further as the Mexican crop will be crossing volume in approximately two weeks. Things could become quite disconcerting for domestic growers. Potatoes: There is a good balance between supply and demand. No price increases are expected for the foreseeable future. Tomatoes Round, Roma, Plum, and Grape: The market has improved, prices are down and promotional volume is available. The quality is excellent on vine ripe out of Mexico and Mature Greens from Florida. Washington Apples & Pears Demand and movement are very good. Supplies continue to be short on all small fruit in all varieties. There are still great promotional opportunities on 88s and larger red delicious. Quality remains excellent. Pear demand is exceeding supply, especially for 110s and smaller. Supplies continue to be tight on these sizes. Crop is running heavy to U.S. #1, peaking 90s and larger. Trucking continues to be an issue with more booked loads than trucks to haul them. Rates have eased somewhat but not reflecting lower fuel prices. Tree Fruit Chilean Stone Fruit is now available, please call for details! There are good supplies on persimmons, pomegranates and Asian pears. Granny Smith apples are starting to clean up on small sizes and bags. Kiwi: Chile is the main supply area. California is starting. Italian is available off East Coast and will be available on the West Coast in a week. Produce Alliance, LLC 1 Vantage Way Suite B-440 Nashville, TN 37228 Phone: 615-259-0290 Fax: 615-259-0295 The information contained in this communication is privileged, confidential and exempt from disclosure under applicable law. If the reader of this communication is not the intended recipient, you are hereby notified that any dissemination or distribution of this communication to other than the intended recipient is strictly prohibited. If you have received this communication in error, please notify us immediately, including a copy of the original communication, and delete all incidences of this communication from your system. Page 6
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