Weekly & Monthly

Market Update Report

Perishables & Non-Perishables

DATE: October 3, 2007

Oil and Shortening Weekly Market Trend

Category	Pricing Situation	Last Updated
Soybean Oil	- Increase	10/1/07
Corn Oil	- Increase	10/1/07
Canola Oil	- Increase	10/1/07
Peanut Oil	- Firm	10/1/07
Cottonseed Oil	- Increase	10/1/07
Lard	- Increase	10/1/07
Dry Beans	- Increase	10/1/07
Flour - All types	- Increase	10/1/07
Margarine	- Increase	10/1/07
Sugar	 - Steady	10/1/07
Rice	- Firm	10/1/07

Dairy Weekly Market Trend

Category	Pricing Situation	Last Updated
Eggs	 - Steady	9/28/07
Butter	- Soft	9/28/07
Milk	 - Steady	9/28/07
Cheese	 - Steady	9/28/07

Poultry Weekly Market Trend

Category	Pricing Situation	Last Updated
Leg Quarters	- Soft	10/1/07
Bnls/Sknls Thigh Meat	- Soft	10/1/07
Breast Trim	- Soft	10/1/07
Wings	- Soft	10/1/07
Jumbo Wings	- Soft	10/1/07
Tenders	- Soft	10/1/07
Small Tenders	- Soft	10/1/07
Boneless Breast	- Soft	10/1/07
Small Boneless Breast	- Soft	10/1/07
Georgia Dock	- Soft	10/1/07
Turkey - Whole Bird 12/14	- Firm	10/1/07
Turkey - Whole Bird 20/22	- Firm	10/1/07
Turkey - Fresh Tom Breast	- Firm	10/1/07
Turkey - Bone in Breast	- Firm	10/1/07

Beef Weekly Market Trend

Category	Pricing Situation	Last Updated
Commodity Boxed Beef	
Chuck	- Firm	10/1/07
Rib	- Firm	10/1/07
Loin	- Firm	10/1/07
Round	- Firm	10/1/07
Thin Meats	 - Steady	10/1/07
Ground Beef	- Firm	10/1/07

Pork Weekly Market Trend

Category	Pricing Situation	Last Updated
Pork Loin 21dn Bone In	- Firm	10/1/07
Pork Loin Boneless w/Strap	- Firm	10/1/07
Pork Loin Boneless Strap Removed	- Firm	10/1/07
Back Ribs	 - Steady	10/1/07
Hams 20 / 23	 - Steady	10/1/07
Pork Bellies 14/16	 - Steady	10/1/07
Pork Butts	- Firm	10/1/07
Pork Trimmings 42%	 - Steady	10/1/07
Pork Trimmings 72%	 - Steady	10/1/07
Spare Ribs	 - Steady	10/1/07
Sows	 - Steady	10/1/07

Veal & Lamb Weekly Market Trend

Category	Pricing Situation	Last Updated
Domestic Formula Veal	- Increase	10/1/07
Imported Bob Veal	 - Steady	10/1/07
Domestic Lamb	 - Steady	10/1/07
Australian Lamb	- Decrease	10/1/07
New Zealand Lamb	 - Steady	10/1/07

Seafood Weekly Market Trend

Category	Pricing Situation	Last Updated
Shrimp	
PUDs	 - Steady	10/1/07
Domestic Green Headless	 - Steady	10/1/07
Mexican	- Firm	10/1/07
Latin American	 - Steady	10/1/07
Tigers	- Firm	10/1/07
Lobster
Canadian Meat	- Firm	10/1/07
Canadian Tails	- Firm	10/1/07
South African	 - Steady	10/1/07
West Australian	 - Steady	10/1/07
Warm Water Tails	- Firm	10/1/07
Miscellaneous Shellfish
Alaskan Brown King Crab	- Firm	10/1/07
Alaskan Red King Crab	- Firm	10/1/07
Russian Red King Crab	- Firm	10/1/07
Alaskan Snow Crab	- Firm	10/1/07
Canadian Snow Crab	- Firm	10/1/07
Dungeness Crab	- Firm	10/1/07
Pasteurized Crab Meat	- Firm	10/1/07
Crawfish	 - Steady	10/1/07
Scallops	 - Steady	10/1/07
Fin Fish
Striped Pangasius	 - Steady	10/1/07
Cape Capensis	- Firm	10/1/07
Catfish	- Soft	10/1/07
Cod	- Firm	10/1/07
Flounder/Sole	 - Steady	10/1/07
Grouper	- Firm	10/1/07
Haddock	- Firm	10/1/07
Halibut	- Firm	10/1/07
Hoki	- Firm	10/1/07
Mahi Mahi	- Firm	10/1/07
Orange Roughy	 - Steady	10/1/07
Ocean Perch	 - Steady	10/1/07
Pollock - Alaskan	 - Steady	10/1/07
Pollock - Chinese	 - Steady	10/1/07
Salmon - Atlantic	 - Steady	10/1/07
Salmon - Pacific	 - Steady	10/1/07
Sea Bass	 - Steady	10/1/07
Swordfish	 - Steady	10/1/07
Tilapia	 - Steady	10/1/07
Trout Sea	- Increase	10/1/07
Tuna	 - Steady	10/1/07
Whiting	- Firm	10/1/07
Other Seafood
Oysters	 - Steady	10/1/07
Calamari	 - Steady	10/1/07

Produce Weekly Market Trend

Category	Pricing Situation	Last Updated
Lettuce	- Firm	10/1/07
Strawberries	 - Steady	10/1/07
Potatoes--New Crop	- Soft	10/1/07
Onions	- Soft	10/1/07
Apples	 - Steady	10/1/07
Oranges	 - Steady	10/1/07
Lemons	 - Steady	10/1/07
Avocados	 - Steady	10/1/07
Asparagus	- Soft	10/1/07
Cucumbers--West	- Firm	10/1/07
Cucumbers--East	- Firm	10/1/07
Green Bell Peppers--West	- Firm	10/1/07
Green Bell Peppers--East	- Firm	10/1/07
Tomatoes (Round)--West	- Firm	10/1/07
Tomatoes (Round)--East	- Increase	10/1/07

Dairy

CHEESE: Barrels closed at $1.8500 and 40# blocks at $1.9000. The weekly average for barrels is $1.8880 (-.0415) and blocks, $1.8600 (-.0485). The cheese market is currently unsettled. The inverted barrel/block spread seen in the previous week at the CME returned back to normal on Friday as blocks were priced higher than barrels. The recent lower market prices have increased the buying interest, but because of low supply issues, getting the extra cheese from preferred suppliers is difficult. The prospect for potential further declines in prices has other buyers still waiting for lower weekly averages or further declines in the spot price. Some cheese makers are not dropping their price fully inline with the CME in an attempt to increase their markup to cover some of their increased costs this year. Sizeable orders for the early holidays will need to be placed soon. Current natural cheese supplies are tight and barrel supplies are more readily available. Many cheese makers have delayed spot milk purchases to help fill orders until October when lower milk prices are expected. Current cheese production remains light. Lighter school milk volumes have provided extra manufacturing milk in some areas. Cheese yields are rebounding in areas with increasing milk components.

BUTTER: The butter market closed for the week at $1.3150. The weekly average for butter was $1.3240 down (-0.0580) from last Friday. The butter complex is mixed. The CME market price has declined $0.055 cents this week at the CME and closed the week at $1.3150. This is the lowest close since mid March. Domestically, butter demand is listed as fair to good. Inventories are not being pulled down at anywhere near their historical pace, indicating that heavy production exists with only a light demand in the market. Buyers are currently in the market taking contracted loads and preparing for end of year demand by covering holiday features. Many butter producers are filling orders for export butter and those sales are being used to move butter. Some plants are seeing export volumes increase. Total volumes are not being fully disclosed and the impact is not affecting U.S. prices. Stock numbers remain high, which is limiting the impact of any exporting. Producers are not anticipating any problems meeting year end demand. The Cold Storage report showed that butter in cold storage on August 30, totaled 260.7 million pounds, up 45.5 million pounds (21%) from last year, although down 10.8 million pounds (4%) from the end of July.

MILK: Milk supplies are heavier than anticipated throughout the West, lighter in Florida, and steady to higher elsewhere across the US. Increased milk shipments into Florida are reported to offset current supply deficiencies. Fluid milk demand is holding up better than expected given the high price. Fluid milk movement into cheese plants is irregular with bottling plants and churns taking in some excess volumes. Demand for bottled milk is reduced in some sectors of the West, flat in the East and fairly good in the Midwest. Condensed skim movement is steady for the mostly contractual interest. Cream supplies are available for seasonal production of butter and Class II products. Cream prices are lower due to decreases in the CME AA butter price. Multiples are reportedly trending steady. Closing out 2007 and moving into 2008, feed prices will remain an ongoing concern for milk producers.

EGGS: Current retail demand is “Mixed” with Larger sizes “Generally Available” and Medium sizes “Improving” in a market “Attempting to Test”. Retail demand remains mixed as we closed out September. In selected areas, consumer preferences are shifting between both egg size and pack number due to current pricing levels. Wholesale trading activities are modest in volume. Larger graded sizes are exchanged mostly at discounts to existing quotations, while their nest run counterparts generally carry premiums. Exchanges of the smaller sizes also mostly carry premiums. The larger sizes are generally available with supply of mediums improving. Further processors have reduced their interest somewhat, as they attempt to evaluate short-term inventory requirements versus the necessity of replenishing decreasing volume finished product stocks. The market is attempting to test. Yolk, frozen/dried/liquid product is still wanted, but there is insufficient trading activity to justify a change in current values today. The Whole egg market is relatively firm and whites are still retaining current values.

Commodity Meat: Beef, Poultry, Pork,

Veal and Lamb

Boxed Beef Overview:

Chuck Meat: Steady and moving higher.

The procurement of live cattle at $96 will force prices $0.03 to $0.05 higher within the Chuck complex. Packers may trade-off price to achieve a desired inventory position. The Chuck market should remain steady based upon increasing domestic demand and contracted volume for export business.

Rib Meat: Steady but trending higher.

USDA Choice Rib Eye meat will increase to hold its value and appreciate though not at the rate previously anticipated. USDA Select and lower Beef will trade aggressively.

Loin Meat: Steady and trending higher

Strip Loins, Short Loins and Top Butts will remain steady to slightly higher in price due to the limited numbers of USDA Choice graded cattle. The Rib Eye and PSMO Tenderloins will be asked to carry the financial burden of the Boxed Beef cutout. Expect Tenderloins to continue to appreciate at steady pace.

Round Meats: Transitioning higher

With packers paying more money for live cattle, the Round will be asked to carry a higher percentage of the financial load.

Ground Beef: Moving higher

Packer pressure to increase margin and excellent forward sales will lift the value of the Ground Beef complex. Higher prices should be expected.

PORK:

Market Update

Availability of hogs can still be characterized as largely ample, however some isolated cases of firm trade did develop in certain areas in support of the large kill. Direct sales were mixed, $2.04 lower to $2.21 higher. Terminal markets were largely unchanged, though only lightly tested. The market remained well supplied given the sustained high-rate of slaughter. Offerings of all lines of fresh pork and pork processing ranged adequate to ample, however significant buying interest has failed to develop.

The ample fresh pork supplies will minimize and delay the fall seasonal market increase. At these prices levels, “It’s a good time to feature pork.”

Hogs:

Carcass base price weighted average: $60.46 dn $9.66

Average weight: Live 266.07 lbs. Carcass: 201.97 lbs.

Pork Loins: 21 dn bone-in loins reduced from ample supplies. Large slaughter and little interest pushed prices to favorable market levels to attract buyer and trader interest. Watch for packers boning loins to offer back rib at favorable prices.

Hams: 20/23 Ham prices further reduced due to ample supplies. The abundance supply has changed the market high for the fall season into the low 70’s at best. Without export activity do not expect the market to feel upward pressure until late October.

Pork Bellies: 14/16 Belly prices continue to be under pressure from ample inventories. At this time Retail and Foodservice have little interest in finished bacon products to absorb weekly fresh inventories. Watch for these market lows to spark interest at Foodservice chain stores on bacon sandwiches.

Pork Trimmings: Large weekly slaughter rates and reduced demand moved market prices to lower levels.

Ribs: Spareribs prices are steady light weights and medium weights. The market remains stabile with discounting noted.

Sows: 5-550# Sows are trading at $42 cwt.

POUTLRY:

Chicken

The slide in boneless breast has eased up slightly as the prices have reached a point that has brought buyers to the market. Bone in breast and tenders continue to fall. We expect the fall to moderate as prices will bring buyers into the market in coming weeks. Dark meat has seen some weakness the past two weeks but has not been dragged down as much as white. Wings and jumbos softened a little this week but we expect they will remain firm and jumbos may be short of need later this year.

Turkey

The turkey market continues strong. Market activity is picking up and gaining focus as more parties are attempting to get themselves covered. Whole bird and breast meat pricing continues to increase on limited supply. Pricing continues to trend above last year’s levels for whole birds but has dipped below last year’s level on fresh tom breasts.

Veal and Lamb:

Domestic Veal

Raw material costs have escalated and all producers are seeing the higher contracted calves at this time. These high calf prices have been pushed through to all foodservice and retail levels. There is no relief in sight until end of December or early January 2008 as previously reported.

Imported Bob Veal

Markets are stable. No change

Domestic Lamb

Markets are stable. Legs continue to be the exception as shortages are still being seen on heavy racks and loins. No change

Australian Lamb

Widespread crop failures, higher grain prices and record low water suppliers are causing an early influx of lamb into the sale yards. These increases in supply are being reflected with declining prices on imported lamb. The indication is that this situation will continue for the remainder of the 4^th quarter 2007.

New Zealand Lamb

Markets are stable. No change

Seafood

Shrimp

PUDs

Demand is reported to be fair and inventories are about adequate. Higher fuel costs are causing raw material prices to be up on new landings. Pricing is steady to firm.

Domestic Green Headless

Landings have improved in the last couple of weeks, but most of the product is in larger sizes (21/25 ct and bigger). Demand is said to be fair, but has picked up on some smaller sizes while the inventory is not increasing significantly. Pricing is steady to firm depending on size and packer inventory.

Mexican

The new season will not get underway for the wild caught product until September. Farmers are expecting to harvest some small sizes in August, but will not be in solid production until September or later. Packers are selling from existing inventories with no replacement product in sight. As inventories draw down, holes will appear and pricing is likely to be firm for any product which is available.

Latin American

Supplies are adequate and demand is reported to be good overall. Europe continues to be a strong influence due to exchange rates and demand for head on product. Production is said to be fair and pricing is steady to firm due to the current conditions.

Tigers

Demand is rated as fair while inventories continue to dwindle. The market is awaiting the infusion of new season production which should arrive to the US in the coming weeks. The market is about steady at the current high prices.

Lobster

Canadian Meat & Tails

The Canadian Spring season got off to a late start and there was little carry over inventory. Production has improved recently and there are only about 2 weeks left until the season is closed. Prime and large size tails (5 oz and up) are virtually non-existent and overall pricing is firm. Lobster meat is steady to firm as inventories are lighter than current demand due to the tourist season which is in full swing.

Cold Water Tails

South African – The high season will be coming to an end in the next couple of weeks. Currently shipments are arriving regularly to the US. Prime sizes are about the only ones available at this time and pricing is firm for available product due to tightness in the other Lobster markets.

West Australian – Demand is reported to be good. Inventories are rated as adequate although larger sizes are tighter than the rest. This season is coming to an end and shipments to the US will probably end in August. Pricing is steady to full steady depending on size.

Warm Water Tails

Fishing of Brazilian product was postponed for conservation reasons, but is expected to begin soon. Honduras should be starting in the coming weeks as well. Demand is “pent up” and ready to take any product that is available. Pricing is firm. Caribbean tails are reported to be in fair supply and pricing is steady to firm.

Miscellaneous Shellfish

Alaskan Brown King Crab

Demand has improved especially with the Retail sector buying product for features. Inventories are adequate with larger sizes being tighter. Pricing is firm.

Alaskan Red King Crab

Demand is good, but inventories are said to be barely adequate. Retail has entered this market and helped to tighten supplies especially on larger sizes. Pricing is full steady to firm.

Russian Red King Crab

The Barents Sea fishery saw increased landings through the winter which helped to replenish inventories. Larger product (6/9 & 9/12 count) is the tightest now, but pricing still remains attractive compared to historical levels. Overall the market is full steady.

Alaskan Snow Crab

The market is reported to have virtually no product available. Buyers are now focused on the Canadian season as production is running steadily. Expect pricing for any available product to be firm.

Canadian Snow Crab

The Gulf fishery is over 80% caught and Newfoundland is over 60%. The fisheries are coming down from their peaks and soon all product will be in the freezer. Most significant players have made their extended purchases and pricing is steady to firm for new orders. Little is expected to change in the near term.

Dungeness Crab

Demand is fair and pricing is full steady to firm. The season is virtually over and replacement product is not readily available. Buyers are taking anything they can to cover needs. No relief is expected until the Alaskan and Canadian seasons open in the coming weeks.

Pasteurized Crab Meat

Inventories of product from Indonesia are reported to be lower and a strong exchange rate is also helping to keep prices steady to firm. Production from Thailand has not improved much over the last few weeks and inventories are said to be adequate. Pricing is full steady to firm for most products.

Crawfish

China production will be smaller this year. Prices have been stable due to the price levels of approx. $5.00. Crawfish has become more of a specialty item especially with the competition by lower priced shrimp most notably that of rock shrimp. Expect to see this market stay stable at current levels. Spanish exports have just begun expect to see it in our market in the next few weeks. This product is a closer match to our domestic species.

Scallops

The major news is that scallop fishermen should expect a moderate decrease in the number of days they may dredge for scallops during the 2008 and 2009 fishing seasons, according to Deirdre Boelke, a fishery analyst for the New England Fisheries Management Council. A final vote is expected by October 25^th. Prices remain strong even with ample supplies of larger scallops.

Fin Fish

Pangasius Hypophthalmus (Striped Pangasius, Swai) / Pangasius Bocourti (Basa)

There has been a steady flow of imported Striped Pangasius into the US market, even with detentions by FDA to confirm species. Fortunately, there has been enough fish to satisfy the recent increases in sales. The bottom line is that with the high prices of many whitefish items, Striped Pangasius is becoming a viable substitute within the marketplace. The short term decline we expected has occurred and is reflected in the current market quotes. We see this as the bottom of the market for some time. Pangasius Bocourti (Basa) This member of the Pangasius genus has the whitest meat color and is preferred by most customers. Cambodia has recently passed US government inspection and expanded its farming operations. Be sure to work only with trusted suppliers as true Basa is always in high demand and susceptible to species substitution.

Cape Capensis

This is another whitefish market which is tied to the “coat tails” of Cod. Inventories are light as sporadic landings continue in the US. European demand and exchange rates are continuing to send more product to them instead of to the US market. Pricing is firm when inventories are available.

True Cape Capensis has the most firm texture. Hubbsi, which is the next quality level, can be much softer and pricing is generally lower. Do your homework and know what you are buying.

Catfish

Pond Bank prices are weaker. The high prices seen lately have made it difficult to sustain center of the plate protein market share. Frozen inventories are still high enough to find deals. Expect to see lower prices in the next few weeks. Chinese production is just beginning and will take many weeks to arrive in the USA. Short term Asian product will tighten especially for the larger sizes.

Cod

Eastern Canadian fishing is poor and Iceland is seeing landings come in but we must remember it is at a 30% reduced level. The Pacific catch is doing well for the relative size of the fall fishery. There is a shortage of larger fillets. We continue to see the price of Cod firming over the next several months. Rumors are, as with Pollock, that there will be a quota reduction next year for the Pacific catch.

Flounder / Sole

Market is firm and we could see slight increases over the next several weeks. Chinese production seems to be disrupted as CIQ audits and approves plants for shipment. We do not see a major supply increase until next spring.

Grouper

Inventories of Domestic Grouper are about in balance with the current demand. China’s Grouper season just began in August with boats expected to return in September. Prices should remain high until such time.

Haddock

Canadian catch is a good number but the size has been running small. Iceland is beginning to catch but they are on the smaller size as well. Look for firm prices on 8-16 oz. fillets unless we see a big change in the size of the fish in the nets.

Halibut

74% of the quote has been landed through August 27^th. Fresh demand absorbs the majority of production. Prices are staying strong and inching higher.

Hoki

New Zealand cuts Hoki quota 10%. Fisheries Minister Jim Anderton on Tuesday announced catch limits for the coming fishing season of 90,000 tonnes. He commented that although it was a difficult decision due to the social and economic implications for New Zealanders it was necessary to the ongoing sustainability of New Zealand’s fisheries.

Mahi Mahi

Asian production is over and the inventories are tight. The next significant fishery will be from Central and South America starting mid to late fall. There has been a spike in buying interest as limited inventories around the country deplete slowly. The undertone ranges from steady to full steady.

Orange Roughy

New Zealand announced large cuts to Orange Roughy quota. These include a 1050 tonne cut in the south and east Chatham Rise fishery, a 38% cut to the upper North Island fishery and effectively the closure of the South Island’s West Coast fishery, where the total allowable catch has been set at just one tonne.

Ocean Perch

Pacific Ocean Perch is in full swing pricing is stable.

Pollock

Alaskan – Fishing has been slow in the Gulf of Alaska and the Bering Sea is producing small fish. Reports are that it will take right to the end of the season to bring in the total quota. Rumors are that there may be a quota reduction next year. Look for stable to firm prices.

Chinese – Attention must be paid to the Alaskan catch.

Salmon

Atlantic – We have a bit of a divergence in the market place. Urner Barry’s Fresh farmed Salmon index has shown and up-tick over the last several weeks here in the USA. However, information from Intra Fish is that Norwegian Salmon prices have plunged. They quote one source as saying “fish weighing more than six kilos are almost impossible to sell”. As we advised last week look for deals in this market.

Wild– The troll and net Coho markets are firm; supplies are barely adequate for an active demand. The net king market trended higher, while the troll king market adjusted lower. Supplies are adequate for a moderate to active demand. The balance of the wild market is steady.

Sea Bass

Through June, U.S. imports of Chilean sea bass were down nearly 33%, to 10.27 million pounds, from a year ago. Yet the prices are about $1.00 lower from last summer, suggesting that demand is down, too.

Swordfish / Marlin

Swordfish supplies are ample to meet a dull to fair demand. Market prices are weaker.

Tilapia

Sellers reported a continuous increase in replacement costs, which could further place upward pressure on pricing. In addition, a stricter and longer inspection for soaked, short weight and contaminated product is tightening product availability in the U.S. As o now, pricing levels remain unchanged but with a full steady undertone.

Trout

Domestic market prices are steady and production is meeting demand. This is a small volume item when compared to other white fish but that should not deter one from offering this fish as a center of the plate alternative to high priced Halibut and Cod. Sea Trout: The market is rather tight; 4-6s firmed and 6-8s continue unquoted. The undertone is full steady to firm

Tuna

There continues to be world wide reduction in availability. Off setting this is the high price which is reducing demand. This situation is all that is holding this market where it is currently. Raw materials for canneries worldwide are at all-time highs. An increase in demand will firm this market quickly.

As mentioned previously, be cautious of CO treated Red Tuna. Recent tests have revealed that the Histamine levels of this product can be very high, but with the bright color, it is perceived to be wholesome. Know what you are buying.

Whiting

The whiting market can breathe a sigh of relief now that the west coast fishery will soon re-open. This may not lead to lower prices right away but it will bring supplies to the market. The demand for Pacific whiting remains strong in both domestic and foreign markets. With the currency situation as it is, export markets are very attractive.

Other Seafood

Oysters

The Louisiana oyster season begins and will contribute approximately 33 % of the nation’s production. Estimates call for a harvest of about 250 million pounds. This will be a significant increase since Katrina hit the Gulf Coast two years ago.

Calamari

Still no sign of the fall run of squid and we should be seeing signs of it now. To date, not a single boat as landed a single pound. The squid run is definitely not starting early this year. The positive side is that small squid are being seen and in a few weeks they will be at appropriate size. We need to keep an eye on this market.

Overseas, things are about the same. India’s run seems to have shut down early and Peru’s run o squid, which never was too strong, seems to have stopped altogether (both for the Loligo and the giant squid). They are having a very cold winter at the moment.

Perishables

NATIONAL PRODUCE PROCUREMENT CENTER

Quality You Can Count On Everyday!

ICEBERG LETTUCE:

Lettuce has had steady demand with lighter supplies. The market had leveled off and is now picking up steam from last weeks levels. Fewer shippers are offering deals since excess volume has gone away. The majority of lettuce has been good quality, with minor amounts of mildew, and some light weights reported.

ROMAINE & LEAF:

The leaf market is steady from last week. Supplies for this week look to be adequate. This weekend’s rain had no affect on the long term outlook. Green Leaf is no longer commanding a higher price than romaine anymore. Butter lettuce continues to trade at higher levels than the other leaf packs, mainly due to quality issues from the previous hot temperatures. The demand for leaf seems to have matched supplies. Romaine is experiencing better demand and the market is reflecting it. The recent, past heat wave throughout California may have caused some tip burn and seeders. The quality out of Salinas continues to be nice on romaine with weights in the 35 to 38 pound range.

BROCCOLI:

Market stronger, supplies tighter and lighter then anticipated. Overall quality and weights continue to be good, with some slight hollow core, slightly branchy. Some regional supplies are tightening up helping to strengthen the overall market. Warmer days have started to bring on product and acreage has been increased also, hopefully to bring the market down. Packers are asking for advance notice on iceless products.

CAULIFLOWER:

Cauliflower supplies are on track, maybe even a little ahead of anticipated volumes, keeping the market in check. Demand has picked up slightly from previous levels. The quality of cauliflower is still good with white to off-white color. There have been a few reports of lighter weights in the range of 26 to 28 pounds.

CARROTS: The Carrot market is steady on the West Coast and is predicted to remain steady for the entire month of September. Shippers have adequate supplies and quality is good. School is now in session putting all snack pack sizes in high demand. Harvest will remain in Lancaster, CA until Mid November when harvest will start up in Bakersfield. Michigan has good supplies and will be going through the first part of October, weather permitting. Quality out of Michigan is good and the market is steady. Georgia will start up in mid November to early December. Canada is now in full swing and the supply is good.

CELERY:

The celery market has turned the corner and is still trending downward. Supplies are heaviest in 24 – 30 ct. celery. Shippers are lowering their prices on all sizes of celery in order to try and spur demand which has remained stagnant. The quality of celery is nice with color ranging from medium to dark green, while weights on celery continue to be in their normal range of 55 to 65 pounds out of California. We may see signs of pith and seeders. Michigan and Canada are winding down.

BERRIES:

Strawberries:

The strawberry growing areas got hit with anywhere from .25 to .75 inch of rain over the weekend. The forecast is for clear skies for the balance of the week. It will take 5 to 7 days before the fields will be cleaned up from this rain. Quality is just fair. Most arrivals will have some bruising, soft shoulders, DK and mold.

Raspberries/Blackberries:

Good demand and light supplies are causing a firming Raspberry market. It will be November before supplies get better. Quality is good. California blackberry supplies are coming in short supplies. Again supplies will not get better till November when the harvest will transition to Mexico. Market is firming.

Blueberries:

Good Demand and light supplies out of the Northwest is causing a firm market. The harvest will slowly transition to South America in November. Look for supplies to stay tight. Quality is fair to good.

POTATOES:

Burbank Idaho potatoes are available through a few shippers and at just a bit more expensive then Norkotahs. As more of the Burbanks become available, 2’s will become more plentiful also. Washington has good supplies of new crop Norkotahs. Colorado and Texas are going with good supplies of new crop Norkotahs. Red potatoes are finished in California. North Dakota, Wisconsin and Minnesota have good supplies. New crop Mount Vernon product is now available out of Washington with very good quality and supplies. White and Gold potatoes are coming out of North Dakota, Washington and Wisconsin. Quality is good.

ONIONS:

The market is steady to lower with very light demand and plenty of supplies in Idaho/ Oregon. Idaho / Oregon did receive about an inch of rain Saturday temporarily halting harvesting efforts. This week California will finish up with light supplies and good quality. Washington and Colorado both have good supplies now of all colors.

APPLES:

WA markets are generally softer this week. The harvest is about 40% complete on Red Delicious; sizes are running larger than the past couple of years and condition & quality are very good. Golden Delicious crop volume is expected to be slightly larger than last year with sizes also running a little larger; so far there is less russetting and cleaner exteriors compared to last year. Granny Smith volume is expected to be about the same. Galas are the primary volume item this season with sizes peaking on 88’s and 100’s. Harvests have at least begun on all varietals with the exception of Pink Ladies that should start up in about two weeks.

PEARS:

WA Bartlett and Anjou volumes are expected to be stronger than LY while Bosc will be slightly down. Quality on all is good to very good; beware that new crop Bartletts should be stored as close to 32 degrees as possible to prevent yellowing. Labor availability in the northwest can not keep pace with growers’ needs.

BANANAS:

Although movement has picked up a bit, markets this week are steady. Retailers are seeking greater promotional activity. Open-market fruit out of Ecuador is being affected by Russian imports paying above-market rates for now weeks in a row. Quality remains good with no reported issues on either conventional or organic fruit.

SPECIALTIES:

The CA stone fruit season comes closer to ending, especially on Peaches; Nectarine markets are strengthening.

Pineapple volume remains tight and markets are strengthening with sizing skewing on 5’s; we do not expect to see any solid, excess promotional volume until November. Overall quality continues to be good.

AVOCADOS:

Markets have softened due to lighter demand and the influx of Mexican and Chilean fruit. CA fruit availability lingers on but in very limited quantities and stronger FOB’s. Two additional Chilean vessel arrivals are expected by the end of the week; there is a slight disconnect on vessel arrivals early next month that may reverse and strengthen the market. Mexican FOB’s are slightly higher than Chilean. Quality on fruit sourced from both countries is good.

ASPARAGUS:

Markets have dropped due to stable demand and increased volume out of Peru. We expect even softer east coast markets by the weekend. Mexican volume remains limited; some limited new crop is beginning out of Baja but we expect significantly-increased volume beginning early next month as the new crop Mexican deal begins to lift off the ground. Current Mexican quality is only fair, Peruvian is good.

CITRUS

EAST

Some new crop Navels are being packed this week; fruit is just passing acceptable maturity levels and eating quality is not expected to be that great; fruit is peaking on 64’s, 80’s and 100’s. Fallglo Tangerine harvests will begin next week with marginal quality expected out of the gate and peak on 100’s and 120’s. Ambersweet Juice Orange production will begin by the end of next week and last only a limited amount of time. Hamlin Juice Orange and Grapefruit production will start up mid to late next month.

WEST

Valencia Orange markets are steady. Fancy graded fruit is far outpacing availability on Choice and re-greening continues. Teens and 138’s continue on the tight side due to school demand. Quality is fair with some re-greening and softness. The upcoming CA Navel crop is currently projected to be about 25% larger compared to last year; harvests should begin the third week of October. Some initial Navel harvests have already taken place in Texas.

Lemon availability is getting even tighter and markets have firmed once again. Standard fruit is especially tight, but may improve over the next week. Expect this tight scenario to last until late November/early December. Quality is fair to poor. Desert harvests have begun but production numbers so far are minimal. D1 should re-start around mid October, about a month early.

Grapefruit volume is tightening; quality continues to be good. The Texan season will begin around the middle of next month.

Lime markets remain active. Juice content is good and overall quality is ranging from fair to good.

GRAPES:

Rain last weekend has hurt production volumes (and caused some minimal damage) and as a continuation of last week, markets remain active. Demand is generally very good, especially on Crimsons. Expect markets to remain fairly strong for the next couple of months due to the lighter Crimson crop. We continue to transition from 19 LB Thompson to 16 LB storage. Black Seedless and Red Globe volumes remain good. Quality is very good.

MELONS:

Current Cantaloupe supplies are good and some limited new crop desert fruit has become available with much improved supplies expected over the next two weeks. 15’s and 18’s are currently tight. Quality is very good.

Honeydew volume is also good with sizes skewing on 5’s and 6’s and very good quality. Desert production should start this weekend (a little later than usual). Markets are a bit softer but are expected to reverse.

Watermelon markets are firmer and strong. CA-sourced fruit is wrapping up (but may linger into the middle of next month) and volume out of NM remains light due to early-season rain damage. New crop Mexican production has begun with much improved supplies expected early next month. Current overall quality is very good.

CUCUMBERS:

Eastern

Markets are softer and should decrease further by the weekend, mainly due to increased volume out of GA. GA quality is good but color continues to be affected by White Fly; there is a lot of off-grade GA supplies. NC FOB’s are less expensive than GA’s due to significant planted acreage and solid yields. MI quality has improved since the significant rainfall several weeks ago, but declining and limited supplies are staying mostly local. NY harvests continue with quality fair at best. NJ continues on as well with generally good quality.

Western

Markets have weakened due to increased new crop volume out of Baja. With east coast markets already lower, west coast markets are tumbling faster than expected. Quality is good to excellent.

GREEN BELL PEPPERS:

Eastern

Beginning-week markets were slightly firmer than last week but have now stabilized. MI production has rebounded slightly with good quality and harvest/packing will continue until the first freeze. The Jersey deal also continues with decent volume and very good quality. NC volume is limited and GA is still just getting started; we expect significant volume increases within the next 7-10 days.

Western

Beginning-week markets were softer. Volume is solid out of Santa Maria, stable out of Stockton/Lodi, and beginning to decline out of Gilroy/Hollister. Some shippers are selling older product; new-field product is a bit slow to kick off due to the rains this past weekend; more new fields will break and volume will improve next week. Quality is running good to excellent.

RED BELL PEPPERS:

Western

Markets are currently stable. CA volume should be stable for the next 2-3 weeks before declining seasonally. OR and WA should wrap up their deals within the next ten days.

SQUASH / ZUCCHINI:

Eastern

Beginning-week markets have firmed, partially due to stronger demand, and we expect even firmer FOB’s by the weekend, especially on Zukes. GA volume is fair and quality is good; White Fly continues to cause some lighter coloring. The MI deal has finished; product is being sourced out of the Carolinas and GA.

Western

Markets are expected to remain mostly steady next week. Some crossings have hit the Nogales scene with fair to good quality; both quality and quantity are expected to improve next week which will help pick up the slack for the declining supplies out of Santa Maria and Salinas caused by cooler temps.

TOMATOES:

Markets have strengthened partially due to rain in CA last weekend. West coast suppliers are expecting east coast business. Cherry and (especially) Roma supplies have tightened considerably, most notably in the east, and markets have firmed significantly. Expect limited Roma volume for the next two weeks due to a gap in Baja as the transition to new acreage continues and older field production dried up more quickly than anticipated. Overall quality is good. Some initial Mature Green harvests out of Quincy may begin next week.

Below is a regional update:

• Alabama: Limited supplies with generally good quality.

• Western NC & Eastern TN: NC is winding down with good quality and fairly large sizing. TN has three major grower/shippers that will last until the first frost; quality is good.

• Eastern Shore VA & Maryland: VA has limited volume. Quality is fairly good.

• Ohio & Michigan: Both deals are coming to a close even though they may linger into the middle of next month. Quality continues to be suspect.