January 9, 2008

ICEBERG LETTUCE:

The lettuce has gotten active again, with demand for lettuce increasing. The recent cool weather has slowed down the growth rates, which has caused the carton weights to drop, then add in the fact that a lot of product is being peeled down to get rid of epidermal peel. Expect some cartons to weight in as little as 38 to 42 lbs. per case. Some shippers were starting the day sold out of supplies on all packs earlier in the week, that looks like it is starting to ease and the market is making small adjustments. Expect better supplies next week. Yuma and the Imperial Valley are supplying our market with lettuce. Some of the defects include weak tips, misshapen heads, ribbiness and puffy heads. Also, color may be pale due to product being peeled down. Mexican lettuce continues to cross the border through Texas, Florida is harvesting lettuce, availability is stated as fair to good, with weights 35 lbs – 38 lbs. Supply is expected to remain steady for next week.

ROMAINE & LEAF:

Florida is harvesting, and availability is fair to good. Weight for Romaine is ranging 34 lbs. to 38 lbs. per case. Quality and supply is expected to improve next week. For all of the Yuma / California crops, cold temperatures and shorter hours of daylight has been keeping the markets up. We do expect to see some relief as weather improves.

BROCCOLI:

The broccoli market has been staying high as a result of cold weather halting growth and, high export demand to Europe and Asia. Weather has started to improve and export demand has slipped, so we expect to see this market starting to improve. Processed broccoli demand continues to be strong and out pacing demand. There have been a few lots with quality issues are showing some hollow core and yellow beads. Mexico, Florida, California, and Arizona continue to have product available.

CAULIFLOWER:

The cauliflower market continues it’s very strong market due to the past cold weather in the desert slowing down growth. Orders right now are just calling for cauliflower regardless of size, some customers are reported as taking whatever size they can get. Many shippers are needing to buy product from other shippers in order to cover orders. Prices will still vary from shipper to shipper as their volumes change. Expect to see this market improve with a little good weather in California and Arizona. Mexico still has good supplies of cauliflower available as well. The quality of cauliflower is still good with some yellow cast and rough curds showing up. Weights range between 28 to 32 pounds.

CARROTS:

No change in the carrot market. The Carrot market continues to remain steady on the West Coast. Both supply and quality are good. Canada continues to go strong. Quality is good and the Canadian market is steady. Georgia started with carrots last Monday and should last into April or May. Carrots from Mexico continue to be plentiful through Texas.

CELERY:

A little cold weather in Oxnard CA, has slowed down growth for celery, and has the celery market showing some strength. The supply of bigger sized celery is not as plentiful as the smaller sizes. Demand looks to remain good through the week. Celery is shipping out of Oxnard and Coachella, and Yuma, AZ. The quality of celery is nice with color ranging from medium to dark green, while weights on celery are lighter ranging between 50 and 60 pounds out of California. Some bow, crack, and twist have been reported. Florida is off to a great start with celery. Weather has been a factor here, but we are anticipating a little relief in the markets next week. Mexican celery is still available through Texas.

BERRIES

Strawberries:

Quality will be fair for the next week or longer, as California strawberry growing areas received about 3 inches of rain over the weekend. This has reduced availability even further which has limited supplies and quality of the strawberries coming out of fields. Market is very active. Temperatures are back to normal this week If the weather cooperates, California Strawberry Shippers should be slowing getting back on track by the middle of next week. Florida berries were impacted by the freezing temperatures last week. Quality and availability there has been compromised as well. Berries out of Mexico are being reported in the high teens to low twenty dollars FOB, and size is reported as a medium to large berries. Colorful harvest is also offering Mexican strawberries, loading in McAllen, TX.

Raspberries/Blackberries:

Demand is good with light supplies. Market is firm. Quality is good with a few fair lots. Better supplies of Blackberries are coming from Mexico and are loading out of L.A. and Oxnard. The market is slightly weaker. Quality is good with a few fair lots.

Blueberries:

Market is slightly weaker. Quality is great out both L.A. and Miami.

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POTATOES:

Prices on the Idaho russet potatoes are rising, as some shippers finish up on Norkotahs for the season. As previously reported the Burbank crop is heavy to the smaller sized potatoes, making 70 ct and larger a premium price. Wisconsin, and Colorado are reporting short crops and lack of sizing also. Keep in mind that the cold weather could be a factor for transportation from the storage facilities to the packing facilities. If it is too cold to move the potatoes to the packing sheds, then orders will not be filled in a timely manner. Keeping a few extra potatoes in inventory during this time of year is a good idea! Red potatoes could be looking to increase prices as Wisconsin and North Dakota are set to finish earlier then expected.

ONIONS:

No real change in the yellow onion market. Demand has been good, but supplies are plentiful so there does not appear that there will be any increase in prices in the near future. The white onions, which are used heavily in Mexican cuisine, are continuing push higher in anticipation of the storage crop needing to last longer than originally anticipated, as new crop onions. Red onions are also showing some strength in their pricing.

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APPLES & PEARS:

Demand remains strong and is increasing on some varieties such as Red Delicious, Fuji, and Gala. However, markets are mostly stable. Once again, smaller Red Del’s and now Granny Smith 80’s and smaller are noticeably tight; however, there are plenty of 72 Wash Extra Fancy Granny Smiths. Quality is also consistently good with no condition issues noted.

With Pears, Bartlett markets are steady and availability may last into early next month; quality is generally good, but some lots have been turning color. Bosc and Red Anjou should last into April. Comice and Concords will be around another 3-4 weeks.

The trucking situation has been improving but there is no excess supply of available equipment.

BANANAS:

FOB’s have stabilized somewhat prior to their expected continued upward trend. Supplies on conventional fruit are tight, prorates are occurring, and now there is some hit & miss on ripe hands being mixed in with dead green fruit. Conversely, there appears to be some stronger-than-usual availability on organic fruit. Overall volume is expected to tighten further before the situation gets any better.

SPECIALTIES:

Pineapple volume on 7’s is still decent, 8’s are promotable, and 5’s & 6’s remain tight; sizes will shift larger towards the end of the month. Quality is good.

Chilean stone fruit continues to increase and Cherry supplies remain good.

AVOCADOS:

There will be plenty of fruit available for the Super Bowl, but expect the best availability on smaller sizes. CA continues to get off the ground and dry out from recent past rains. Pricing is slightly stronger and oil content is not the greatest. There will be much better volume and improved quality by month’s end and supplies are skewing on 60’s and smaller.

Mexican growers are raising prices even though post-holiday volume has improved. Oil content is good but shelf life is not as strong as Chilean sourced fruit.

Chilean FOB’s on 50’s and larger are stronger and there are good supplies of smaller fruit. Oil content is very good and we have about another 3-4 weeks left of this deal.

ASPARAGUS:

Markets are steady to slightly softer as demand remains good and more Peruvian volume is beginning to arrive by both air and vessel; Jumbos are the tightest and there are no reported quality issues. Out west, Some Mexican-sourced product has begun to trickle in across the border and some buyers here are allegedly avoiding Peruvian product due to quality issues. Cooler temps and rain in Mexican growing areas has delayed arrivals.

CITRUS

EAST

The FL industry escaped any serious damage from freezing temps back on January 3. Larger-sized Grapefruit (23’s-32’s) are very limited and FOB’s are up; there is plenty of availability on 36’s and smaller and overall quality is good. Sunburst markets are slightly stronger as supplies dwindle heading towards the transition to Honeys late next week; quality is good. Juice Orange markets are steady but firm and quality is decent.

WEST

Navel markets remain mostly stable. Recent rain has prevented any decent harvest volume but has not caused any real damage. The large crop will most likely keep pricing relatively steady for awhile. Quality remains good to very good.

Lemon markets remain steady and strong as D3 production volume comes to a close within the next 1-2 weeks, much earlier than usual. D2 harvest volume is minimal and D1 fruit supplies will be increasing within the month. Juice content and overall quality are good and smaller fruit (165’s +) remains limited.

Lime markets are stable even though rain has hurt production volume; markets will most likely remain fairly steady and firm for awhile. Large volume increases are not expected until late March. Juice content and overall quality are very good.

GRAPES:

Although volume is improving, it still can not meet demand, especially on Flames. Perlette volume is better but still limited. Arrivals can just not yet fill the supply pipeline back up. Volume should be in much better shape by the end of next month and we should see correspondingly much more normal FOB’s by then. However, pricing will remain relatively high for at least another two weeks. Sizes are still skewing smaller and quality remains good.

MELONS:

Cantaloupe markets are steady but high and firm due to lighter arrivals and stronger demand. Supplies should improve next week. Supplies are transitioning from Guatemalan to Honduran fruit. External appearance is just fair with a green cast and brix and eating quality is fair to good.

Honeydew markets are active and firmer. volumes are also limited and markets are high and firm as well. Cooler temps in Honduras will be affecting available supplies for the next 1-2 weeks.

Watermelon markets are stable as volume remains decent. Demand is just light to fair at best. Quality is good to very good.

CUCUMBERS:

Eastern

FOB’s have strengthened mainly due to late vessel arrivals and overall limited off shore volume that can not meet demand. Past rain has significantly impacted production. Supplies are expected to improve slightly by the weekend, but expect high pricing for the next 1-2 weeks. There some small pockets left of domestic production but much of this capability was cut short by last week’s freeze; dribs and drabs may linger for the next 1-2 weeks. Overall quality is good to very good.

Western

Uncooperative weather, especially cooler temps, has prevented a smooth transition to new field production and volume is limited. This, coupled with stronger demand, has significantly raised FOB’s. Quality is fair to very good.

GREEN BELL PEPPERS:

Eastern

Product did suffer some damage from last week’s freezing temps, but it was not catastrophic and really varies widely by growers even within close proximity of each other. Bloom drop is an issue that will manifest itself down the road. Markets have significantly firmed and will remain on the strong side for awhile. Current quality is ranging from fair to very good.

Western

Cooler temps and rain in Mexican growing areas have hurt numbers crossing into Nogales and, just as in the east, markets are up significantly. There is a gap between older fields playing out and the wait to break new fields open; expect 2-3 weeks of limited volume before we see any real relief. Quality is fair to good with some issues such as wet stem being reported.

RED BELL PEPPERS:

Western

We expect stronger markets next week, again, as weather has curtailed production. We do not expect any significantly improved volume until the beginning of next month. There is a wide range of quality spanning from fair to very good.

SQUASH:

Eastern

FOB’s are much higher. Last week’s freeze caused bloom drop in both Immokalee and Homestead and just about wiped out any remaining production around Plant city. Expect limited supplies for the next couple of weeks. Homestead did not receive the same level of damage that Immokalee did and Homestead is currently the larger producer. Although there has been some wind scarring and softer ends noted, quality is generally good.

Western

Once again, rain and cooler temps in Mexican growing areas has impacted production volumes. In combination with strong demand, markets are strong. Yellow quality is fair to good and Zuke quality is fair at best. Expect tighter supplies for the next 1-2 weeks as growers try to make the transition to finally break open new fields.

TOMATOES:

Round Fob’s have actually eased down while Cherries have strengthened; demand is just fair. In the east, there was varying freeze damage to growers in and around Immokalee (including bloom drop) but no serious damage to Homestead. Current quality remains good but some softer fruit is already being noted.

Mainland Mexican volume is getting stronger for all types and will continue to affect aggregate FOB’s. Vine Ripes out of Baja are very limited as rain has hurt supplies and quality on remaining production. More buyers are switching over to Grapes sourced out of Mexico.

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