Weekly & Monthly
Market Update Report
Perishables & Non-Perishables
DATE: January 30, 2008
Oil and Shortening Weekly Market Trend
| Category | Pricing Situation | Last Updated |
| Soybean Oil | - Decrease | 1/28/08 |
| Corn Oil | - Increase | 1/28/08 |
| Canola Oil | - Decrease | 1/28/08 |
| Peanut Oil | - Firm | 1/28/08 |
| Cottonseed Oil | - Decrease | 1/28/08 |
| Pinto Beans | - Increase | 1/28/08 |
| Black Beans | - Steady | 1/28/08 |
| Flour - All types | - Increase | 1/28/08 |
| Margarine | - Soft | 1/28/08 |
| Sugar | - Soft | 1/28/08 |
| Rice | - Increase | 1/28/08 |
Dairy Weekly Market Trend
| Category | Pricing Situation | Last Updated |
| Eggs | - Steady | 1/28/08 |
| Butter | - Steady | 1/28/08 |
| Milk | - Steady | 1/28/08 |
| Cheese | - Steady | 1/28/08 |
Poultry Weekly Market Trend
| Category | Pricing Situation | Last Updated |
| Leg Quarters | - Steady | 1/28/08 |
| Bnls/Sknls Thigh Meat | - Steady | 1/28/08 |
| Breast Trim | - Steady | 1/28/08 |
| Wings | - Increasing | 1/28/08 |
| Jumbo Wings | - Increasing | 1/28/08 |
| Tenders | - Firm | 1/28/08 |
| Small Tenders | - Firm | 1/28/08 |
| Boneless Breast | - Firm | 1/28/08 |
| Small Boneless Breast | - Firm | 1/28/08 |
| Georgia Dock | - Firm | 1/28/08 |
| Turkey - Whole Bird 12/14 | - Steady | 1/28/08 |
| Turkey - Whole Bird 20/22 | - Steady | 1/28/08 |
| Turkey - Fresh Tom Breast | - Steady | 1/28/08 |
| Turkey - Bone in Breast | - Steady | 1/28/08 |
Beef Weekly Market Trend
| Category | Pricing Situation | Last Updated |
| Commodity Boxed Beef | |
|
| Chuck | - Soft | 1/28/08 |
| Rib | - Steady | 1/28/08 |
| Loin | - Steady | 1/28/08 |
| Round | - Soft | 1/28/08 |
| Thin Meats | - Steady | 1/28/08 |
| Ground Beef | - Firm | 1/28/08 |
Pork Weekly Market Trend
| Category | Pricing Situation | Last Updated |
| Pork Loin 21dn Bone In | - Steady | 1/28/08 |
| Pork Loin Boneless w/Strap | - Steady | 1/28/08 |
| Pork Loin Boneless Strap Removed | - Steady | 1/28/08 |
| Back Ribs | - Steady | 1/28/08 |
| Hams 20 / 23 | - Firm | 1/28/08 |
| Pork Bellies 14/16 | - Steady | 1/28/08 |
| Pork Butts | - Steady | 1/28/08 |
| Pork Trimmings 42% | - Steady | 1/28/08 |
| Pork Trimmings 72% | - Steady | 1/28/08 |
| Spare Ribs | - Steady | 1/28/08 |
Veal & Lamb Weekly Market Trend
| Category | Pricing Situation | Last Updated |
| Domestic Veal | - Steady | 1/21/08 |
| Imported Bob Veal | - Steady | 1/21/08 |
| Domestic Lamb | - Steady | 1/21/08 |
| Australian Lamb | - Steady | 1/21/08 |
| New Zealand Lamb | - Steady | 1/21/08 |
Seafood Weekly Market Trend
| Category | Pricing Situation | Last Updated |
| Shrimp | |
|
| PUDs | - Steady | 1/28/08 |
| Domestic Green Headless | - Steady | 1/28/08 |
| Mexican | - Firm | 1/28/08 |
| Latin American | - Steady | 1/28/08 |
| Tigers | - Steady | 1/28/08 |
| Lobster |
|
|
| Canadian Meat | - Firm | 1/28/08 |
| Canadian Tails | - Firm | 1/28/08 |
| South African | - Steady | 1/28/08 |
| West Australian | - Steady | 1/28/08 |
| Warm Water Tails | - Firm | 1/28/08 |
| Miscellaneous Shellfish |
|
|
| Alaskan Brown King Crab | - Firm | 1/28/08 |
| Alaskan Red King Crab | - Firm | 1/28/08 |
| Russian Red King Crab | - Firm | 1/28/08 |
| Alaskan Snow Crab | - Firm | 1/28/08 |
| Canadian Snow Crab | - Firm | 1/28/08 |
| Dungeness Crab | - Firm | 1/28/08 |
| Pasteurized Crab Meat | - Firm | 1/28/08 |
| Scallops | - Steady | 1/28/08 |
| Fin Fish |
|
|
| Striped Pangasius | - Steady | 1/28/08 |
| Catfish | - Steady | 1/28/08 |
| Cod | - Steady | 1/28/08 |
| Flounder/Sole | - Steady | 1/28/08 |
| Grouper | - Steady | 1/28/08 |
| Haddock | - Steady | 1/28/08 |
| Halibut | - Steady | 1/28/08 |
| Hoki | - Steady | 1/28/08 |
| Mahi Mahi | - Steady | 1/28/08 |
| Orange Roughy | - Steady | 1/28/08 |
| Ocean Perch | - Steady | 1/28/08 |
| Pollock - Alaskan | - Steady | 1/28/08 |
| Pollock - Chinese | - Steady | 1/28/08 |
| Salmon - Atlantic | - Steady | 1/28/08 |
| Salmon - Pacific | - Steady | 1/28/08 |
| Sea Bass | - Steady | 1/28/08 |
| Swordfish/Marlin | - Steady | 1/28/08 |
| Tilapia | - Steady | 1/28/08 |
| Trout Sea | - Steady | 1/28/08 |
| Tuna | - Steady | 1/28/08 |
| Whiting | - Steady | 1/28/08 |
| Miscellaneous Seafood | |
|
| Oysters | - Steady | 1/28/08 |
| Calamari | - Steady | 1/28/08 |
Produce Weekly Market Trend
| Category | Pricing Situation | Last Updated |
| Lettuce | - Firm | 1/28/08 |
| Strawberries | - Soft | 1/28/08 |
| Potatoes | - Firm | 1/28/08 |
| Onion--Yellow | - Steady | 1/28/08 |
| Onions--Reds/Whites | - Steady | 1/28/08 |
| Apples | - Firm | 1/28/08 |
| Oranges | - Firm | 1/28/08 |
| Lemons | - Steady | 1/28/08 |
| Avocados | - Steady | 1/28/08 |
| Asparagus | - Decrease | 1/28/08 |
| Cucumbers--West | - Steady | 1/28/08 |
| Cucumbers--East | - Decrease | 1/28/08 |
| Green Bell Peppers--West | - Steady | 1/28/08 |
| Green Bell Peppers--East | - Increase | 1/28/08 |
| Tomatoes (Round)--West | - Firm | 1/28/08 |
| Tomatoes (Round)--East | - Firm | 1/28/08 |
Dairy
CHEESE: Barrels closed at $1.7500 and 40# blocks at $1.6500. The weekly average for barrels is $1.7763 (-.0732) and blocks, $1.6500 -.0905). The cheese market remains weak. The large inverted price spread has started to narrow. Buyers, particularly those with prices based on weekly or monthly averages, still have the incentive to wait for the declines to catch up to the daily close. Some food service outlets have reacted to reduced customer traffic by reducing orders. Current offerings are at least adequate for the light to moderate interest. Milk volumes available for cheese production remain well above year ago levels at most locations.
BUTTER: The butter market closed for the week at $1.2325. The weekly average for Grade AA is $1.2300 (+.0100). The CME cash butter price continues to adjust within
a narrow range of the weekly close of $1.2325. Producers and handlers indicate that churning across the country remains seasonally active as cream supplies are often heavier than anticipated for this time of the year. Cream volumes continue to move from one region of the country to another, although lack of available trucks is limiting some movement. Producers and handlers continue to churn for domestic needs with some also churning for international needs. Most international butter needs stem from commitments arranged last fall with minimal new buyer interest being reported. Domestic buyer interest is fair, although retailers and food service outlets are looking forward to Easter/Passover needs in the near
future. Buyers for retail needs appear to be preparing for some good feature activity during this holiday period, especially with a relatively low base price at hand. Food service orders are also gaining some momentum as the upcoming holidays near. Some food service
outlets are proceeding cautiously on placing future orders as economic conditions might impact away from home eating patterns and choices.
MILK: Milk production is trending steady to higher throughout the nation. Fat and protein tests are increasing and approaching seasonal highs. Bottling demand is reduced,
encouraging milk to instead clear into manufacturing operations. Demand from manufacturers is sluggish. As a result, discounts as much as $5 under class are reported. Condensed skim demand is reduced, encouraging production of NDM. Cream supplies are
ample. Despite slight increases in the CME AA butter average, cream prices are trending lower with some multiples reported as low as 90. Cream demand is fair at best with most supplies filtering into churns.
EGGS: Retail demand is mixed around the nation, as we complete the last full week in January. As is typical, no mention was made of promotional activity. Similarly, no mention was made of food service and/or institutional demand either. Wholesale trading activities remain completed at economic levels supportive of existing quotations. From an overall perspective, supplies are generally adequate. Brown eggs remain desired, and their supply remains insufficient to satisfy demand requirements. Further processors both exchange and seek additional product above current ranges, necessitating that these be adjusted. The market is steady. Reports received today suggested that prices for virtually all products in all formats are either firm or trending higher partially due to the ever-decreasing currency relationships between the dollar and others, spurring inquiries principally for items in the dried complex, from not only the traditional buyers such as Japan and the United Arab Emirates, but also from countries which rarely express interest in product acquisitions. Whites in all formats are increasing in value.
Commodity Meat: Beef, Poultry, Pork,
Veal and Lamb
Boxed Beef Overview:
Packers are reporting an excellent sold position as they enter this week. Packers attacked excessive inventory issues early last week resulting in a favorable inventory balance in all primal and sub primal categories by week’s end. For the moment, demand is in lock step with production.
The market value of Beef will continue to adjust downward for another 2 weeks. Winter demand Chuck and Round meats are starting to slow, and it is 21 to 30 days too early for Rib and Loin meats to begin spring price rallies and the return of the outdoor grilling season. There will be little downside risk in Beef pricing once we get to mid February.
The big news in the market place is the closure of the Tyson Fresh Meat Emporia, KS Beef plant, a facility that employed approximately 2,500 people. While the loss of production will be virtually invisible to the industry, it is the first sign of needed consolidation within the ailing industry. The trickle down effect will see 50 to 80 feedlots surrounding the plant close and the migration of cattle, feedlots and people away from this part of the country. Stay tuned. Another big announcement could be forthcoming yet this week.
Market at a Glance
Chuck Meat: Adjusting Slightly Lower Minor downward price adjustments are expected as a mechanism to keep Chuck meat moving through retail pipelines. Export business has not materialized as expected, at least not yet.
Rib Meat: Steady
The Rib market is now at a seasonal and semi annual bottom. It will be 3 weeks before the market will tolerate spring pricing.
Loin Meat: Steady to Slightly Higher
Tenderloins are now trading at or near the seasonal and semi annual lows. As the end of February nears, Tenderloins will rebound and move sharply higher into spring. Strip Loins, Short Loins and Top Butts will follow the same trend line, however prices are already inching higher.
Round Meats: Adjusting Slightly Lower
Minor downward price adjustments are expected as a mechanism to keep Round meat moving through the retail and foodservice pipelines.
Ground Beef: Steady at premium prices
Ground Beef will move higher. Consumer demand will be high, to which retail is responding.
PORK:
Market Update
This past week we finally began to see some evidence of supplies of hogs drying up a little. If slaughter rates go down by 200,000 head per week in the short term and perhaps further next month, hog and pork prices should be able to stabilize and possibly even increase a bit, as the nearby futures are implying. Yet also keep in mind that demand is normally quite weak in the first quarter, making a sharp price increase unlikely.
Pork Loins: Trimmed bone-in loins averaged unchanged from the previous week and about $18 below last year at this time. Boneless loins were $1 higher and $19 below last year. About this time in 2007, loin prices began to increase rather dramatically, but the supply situation was in no way comparable to 2008. Anticipate some modest upside as supplies are reduced seasonally, but certainly nothing overly exciting. The risk of further declines is quite low, thus buyers will gain little from waiting on the sidelines.
Hams: The 20-23# hams advanced to $50 and the 23-27# hams to $48. These gains brought the weekly average price about $1 higher in each case. Prices should average higher again next week, as recent increases are expected to be sustainable in the short term. During February, further gradual gains in ham values are expected as supplies finally lighten a little. At the end of December there were 49.6 million lbs of hams in freezers in the US, up 33% from last year and 11% above the five-year average. Yet out of the last 10 years, in six years freezer stocks of hams at the end of the year were above the 2007 level, sometimes rather dramatically. Considering the level of production seen this fall, we view ham freezer stocks to be not particularly burdensome at this time.
Pork Bellies: Belly freezer stocks at the end of 2007 were only up 3% from the previous year, although 28% above the five-year average. As with the hams, freezer stocks are not burdensome in our view and shouldn’t be a major constraint to upside price potential in 2008. The path of prices will depend in part on how much interest is generated by lower prices in the first quarter, as well as the extent that pork supplies tighten moving forward. Last week, the USDA posted steady cash belly quotes, implying good underlying support despite the record output. Expect prices to hold steady in the near term, beginning to turn higher by mid-February. Upside potential by late spring is to $100 or slightly beyond.
Pork Butts: Butts showed a higher quote towards the end of the week, but it remains to be seen whether slight gains can be sustained. Gradually higher is the call.
Pork Trimmings: Working through the backlog of supplies, the trimmings prices have been unable to rise at all. Weekly average values are still easing lower at this time. The signs of tightening hog supplies should be taken as a signal to replenish inventories of pork trim, even if the upside risk in February is limited.
Ribs: Freezer stocks of spareribs were surprisingly low at the end of 2007, suggesting buyers are content at this point to see how the market develops. Continued slow progress higher seems likely.
POUTLRY:
Chicken
There was an increase in demand for white meat both domestically and exports that strengthened the market. Wings were steady for the week and are probably at their peak. We should see the market continue to firm in February based on increasing domestic demand and continued strong exports. Additionally we should be on the look out for any reports of supplier pull backs and keep an eye on the grain markets as these will affect input costs and the ability of suppliers to keep a record export pace.
Turkey
The whole turkey and fresh tom breast market remained steady for the week. Based on past market activity we would whole bird prices to begin firm in the next few weeks.
Veal and Lamb:
Domestic Veal
Supplies are still short and Livestock contracts continue at record high levels. There are some signs of potential downward trends coming at the end of January as forward livestock contract prices are showing signs of decreasing. No change
Imported Bob Veal
Markets are stable. No change
Domestic Lamb
Suppliers and pricing are steady. No change
Australian Lamb
Australia is well ahead of their year ago trend for kills and exports. No change
New Zealand Lamb
Markets are stable and stocks are plentiful. 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 season is virtually complete and nearly all product has crossed the border. The season was lower than last year which was one of the highest in recent history. We are still awaiting final number for this current season, but it is still said to be lower than an average year as well. All this means is that inventories are likely to run out sooner and pricing is going to be high and firma for any available product.
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 firm as product is starting to be fished and is not up to full steam as yet. Pricing is not likely to fall much as Canadian product is hard to source and pricing in that market is steady to firm.
Canadian Snow Crab
Fishing is done until next season. There is reported to be low inventories in the market and with Alaskan prices up, the market is remaining steady to firm for anything that is available.
Dungeness Crab
The season is just getting underway and is not looking very strong at this point. There has been little carryover from the other seasons this year and pricing is steady to firm anything that is available.
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.
Scallops
We are 90 days away from seeing the first landings for the New 08/09 Sea Scallop season. March first will be when it opens and there will be many boats that have not fished in 2-4 months that will be anxious to go fishing and get a financial stock to start paying there bills. We are looking at a 30 % decrease in production for the 08/09 season and with rising fuel prices we will not see the lows that we saw in the 07/08 season.
The outlook for the next 90 days will be minimal landings and as Lent approaches we will see the demand rise so that could bring highest prices for the season.
Finfish
Pangasius Hypophthalmus (Striped Pangasius, Swai) / Pangasius Bocourti (Basa)
Pangasius Bocourti (Basa): Continued increase of sales as many customers find this to be the best reasonable priced item with good availability and the right sizes.
Catfish
Pond pricing has leveled off a bit, and the demand has remained stable. Cost will remain the same for the next few weeks.
Cod
Alaska’s Pacific cod fisheries have now been open for three weeks to longline, pot and jig vessels. Both pot vessels and longline catch-processors (C-Ps) in the Bering Sea have increased their early season effort relative to previous years, while vessels in the Gulf of Alaska (GOA) have preceded near historical catch rates.
After cutting the 2008 Bering Sea Pollock quota by 28%, the North Pacific Fishery Management Council (the Council) postponed a planned cut to 2008 Pacific cod quotas, leaving them at 2007 levels. Despite constant quotas, higher catch rates suggest the longliners will fill their A-season quota in the last week of January, two weeks earlier than last year when the National Marine Fisheries Service (NMFS) closed the fishery on February 12. Similarly pot vessels have increased their early season effort from last year, leading NMFS to close them approximately one week earlier than last year.
Flounder / Sole
Availability of all sizes continues to be sufficient to meet market demand. There could be some possible shortages in late February and March when Chinese factories close for the Chinese New Year holiday.
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 production is running small and catch is nearing the quota. Iceland is beginning to catch but they are on the smaller size as well. Look for firm prices on 8-16 oz. fillets and 16-32. On top of this Europe continues to be aggressive in sourcing Cod alternatives.
Halibut
Inventories varied from seller to seller, ranging from nil to barely adequate. Demand continues to exceed the
available supply.
Hoki
New Zealand cuts Hoki quota 10%. Fisheries Minister Jim Anderton on Tuesday announced catch limits for the coming fishing season of 90,000 tones. 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
Season in South America normally would have started by now, but there has been little frozen production so far. This is a “La Nina” year with colder water temps and outlook is uncertain. A lot of orders have been placed with South American producers but very little product has actually shipped. Vessels are now returning to the ports for the holidays and will resume fishing the second week in January.
Orange Roughy
The market firmed on 6-8s. Offerings of this size are short and closely held. The balance of the market is steady at listed levels. The undertone is full steady for newly bought product as replacement costs continue to increase.
Ocean Perch
Availability will be strong moving forward. Prices should remain fairly stable over the next few months.
Pollock
POLLOCK PRICES ON THE RISE
Due to the current rate of consumption and concerns over ice and poor weather in the coming weeks, the Alaskan Pollock market will remain tight even as the new domestic "A" season approaches with new production scheduled for February. And the new season's catch, unlike "B" season in the Summer/Fall, splits production between Surimi and fillets (i.e., less raw material goes into the fillet market). Additionally, more "A" season product goes to supplying European and Asian countries than does "B" season material. Added up, these market conditions suggest the time to buy is in Q1 before all competitors join the uptake.
Salmon
Atlantic
The salmon market is in a major state of flux. The disease problems in Chile will affect the consistency of supply of salmon fillets from that country. These problems will continue to reduce the biomass of salmon under cultivation and require the premature harvesting of smaller diseased fish. The end result will be a significant drop in salmon exports from Chile, anywhere from 30 to 60%, in 2008. What is not clear though, is what the magnitude of the reduction will be and the timing of the shortages. Several farms are not harvesting right now to take advantage of the short supply in the 2nd half of 2008. The good news is that Canada continues to ramp up production. They are set with good supplies through the winter. The only question is whether their increase will off set Chile’s shortfall. Expect pricing to increase through Lent and then stabilize for a while. Chum (Keta).
Declining prices for competing salmon species are putting downward pressure on the prices for Keta Salmon. The supply of Chum Salmon is adequate for market demand.
YTD imports from China are down 4% from 2006.
Kings/Coho
We are down to one farm doing the Farmed kings. Supply is very tight and the market is very strong.
Sockeye
Fresh sockeyes are done for the year but good supplies of frozen vacuum packed skin on PBO sockeye fillets are available
Sea Bass
Sellers reported market resistance to higher offerings. Although demand is fair at best, replacement costs continue to rise and sellers reported that buyers are looking for deals that are below cost.
Swordfish / Marlin
Blue Marlin: Coming in from Honolulu, Hawaii quality and pricing stable.
Stripe Marlin: Decent amounts of Stripe Marlin from Hawaii are available.
Tilapia
The rate of increase in imports of frozen fillets from China decreased slightly but is still 42% more than last year. Percentage increases from Panama, Indonesia and Ecuador have been between 21% and 37%. YTD fresh fillet imports are 14% higher than last year.
Trout
Sea Trout: the market trended lower on 4-6s and 6-8s. Supplies are fully adequate for a dull demand.
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. Our market information is that the 8 oz. natural boneless fillets are being well received and are the most likely to compete with other higher priced white fish.
Tuna
Similar to swordfish in that this should be a peak production time in Asia, but landings have been lower than usual. Look for a steady to firm market.
Whiting
Pricing levels for 4-6s, 6-8s skin-on firmed and are now the same as those for skinless fillets. Sales continue to take place within our levels but buying resistance is still noted due to constantly increasing prices. The market is full steady as replacement costs continue to go up in Argentina.
Miscellaneous 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
Landings continue to be decent – and the size of the squid very nice. The one challenge is the boats that are fishing on squid must go far to catch it. With diesel at over $3.00 a gallon it is too far for some boats that can not stock enough squid on board to pay for the trip. This cost of fuels is forcing processors to pay prices that have never been paid before in order to get the boats to actually go out and catch the fish. This will translate into an eventual price increase on the HB – though we are trying to hold off for now.
The same pressure is coming from the Chinese and other imported squid – increased cost of catching (i.e. higher fuel costs) will force prices of raw material up.
Perishables
NATIONAL PRODUCE PROCUREMENT CENTER
Quality You Can Count On Everyday!
ICEBERG LETTUCE:
The lettuce market is steady to slightly lower with prices leveling out. Over the next couple of weeks California has a couple of different weather systems headed in, rain is expected thru the weekend, and picking back up again mid week, next week. Also cooler temperatures are expected, so we expect supplies to fall off, demand to suffer and pricing to fluctuate. We should still expect to see defects including epidermal peel, cap discoloration, misshapen heads, and ribbiness. Weights are running 44 – 50 lbs per case. Florida is experiencing fair to good supplies with demand being steady. Consistent good weather expected much of next week. This market is also expected to rise in connection with the weather on the west coast market next week. Mexican supplies of iceberg are steady.
ROMAINE & LEAF:
The leaf markets continue to have wide price ranges from all shippers. Supplies vary on each of the different leaf packs. Romaine, green leaf, and butter are in better supplies. Red leaf continues to be in short supply. Romaine demand has leveled out and is struggling to keep up with supplies. The quality on Romaine out of Yuma is okay with blister peel and weights in the 35 to 38 pound range. The quality on the other leaf packs is acceptable. The defects are twist, ribby appearance, Yellow fringe burn, epidermal peel, and big vein. The defects are twist, ribby appearance, Yellow fringe burn, epidermal peel, and big vein. Florida romaine is seeing improving quality with the cooler weather. Weights are in the 38 – 42 lbs range, and that market is expected to increase next week, due to weather in the west.
BROCCOLI:
The broccoli market appears to have picked up steam. Most shippers have lighter volume this week. This is giving the shippers a chance to firm up pricing and possibly take their prices up through the week. The market continues to have a very wide range in prices depending upon supplies for each shipper. Demand for processed broccoli also continues to be strong. The supply of broccoli has leveled off for many of our shippers in Yuma and Santa Maria. Demand has increased on bunched and broccoli crowns, which is helping to stabilize the market. The few lots with quality issues are showing some purple cast. Mexico and Florida continue to have product available and are good alternative sources.
CAULIFLOWER:
The cauliflower market is heating up. Mainly due to cold weather and that most shippers offered deals to clean up their inventories last week. Demand has increased over previous weeks helping to support current prices. The overall supply of cauliflower has dipped slightly lower and it appears to be lighter as the week progresses. The quality of cauliflower is good with some yellow cast and rough curds showing up. Weights range between 28 to 32 pounds. The quality of cauliflower is still good with some yellow cast and rough curds showing up. Weights range between 28 to 32 pounds. Mexico still has good supplies of cauliflower available as well.
CARROTS:
Carrots supplies have tightened up with the cold weather in California. Demand continues to be strong, spurring the market on. Quality and color of carrots are excellent. Georgia is still going strong. Quality and supplies are good and the market remains steady. Canada continues to go strong. Supply has lightened up some. Quality is good and the Canadian market is steady.
CELERY:
The celery market is steady this week so far. The cool weather is responsible for the abundant supplies of smaller sized celery available. The supplies do vary form shipper to shipper. Demand looks to remain good through the week. Celery is shipping out of Oxnard, Yuma and Coachella. Texas and Florida are harvesting celery but they have not adversely affected the market in California and Arizona. The California market continues to have a wide price range. 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.
BERRIES
Strawberries: Florida received some heavy rain in the strawberry growing areas last Thursday and again last Saturday. This along with cool weather is limiting supplies and quality. Expect this to cause a demand exceeds supplies situation, and harvest is going to be very light out of Florida for the next 10 days. California Strawberry shippers have light supplies of new crop strawberries coming on. Rain is possible from Tuesday through Friday of this week, and cool weather with lows near 31 degrees in Oxnard is keeping supplies coming on slow. Demand exceeds supplies. Market is firm out of all areas. Quality is good out of California.
Raspberries/Blackberries: Demand is very good with light supplies. Market is very firm. Quality is good. Supplies of Blackberries are coming from Mexico and are loading out of L.A. and Oxnard. The market is slightly firmer. Quality is good with a few fair lots.
Blueberries: Market is steady. We could see the market start to firm up as the week moves on due to rising demand. Quality is great out of both L.A. and Miami.
POTATOES:
Cold temperatures continue to have an impact on supplies and prices in Idaho. With several days of below zero temperatures last week some sheds in Idaho were forced to run half days or shut down entirely. Supplies of Norkotahs have dwindled to very small numbers and becoming less unavailable at this time. For the balance of the year some shippers will have to rely on Burbanks only, for all shipments. Large sized cartons are scarce in the Burbank crop so we should not expect to see any substantial drop in the price of the big stuff in the near future; however, there may be some deals being made on 90ct, 100ct, & 6oz #2’s. New crop California colored potatoes are going now with excellent quality and good supplies. WA product is still available with very good quality. Red potatoes in Wisconsin and North Dakota are set to finish earlier then expected, watch that market.
ONIONS:
The Idaho yellow onion market continues to be a disaster. Supplies are very good and look to remain so through the entire storage season. Market prices have dipped slightly, and deals are widely available. This is with no question, a “buyers market “.Quality is exceptional as well. White onions are seeing some activity with light supplies but light demand as well. Red volume is more limited and market prices could increase. Washington has good supplies of all colors. Mexican white onions have started with light supplies loading out of Texas. New crop yellow are set to start in about 2-3 weeks with red to follow about 1-2 weeks after that. Supplies will initially be very limited on new crop onions.
APPLES & PEARS:
Demand and movement both remain strong and no change to either is anticipated anytime soon. Both have dwindled supplies about a month ahead of schedule. FOB’s on Red Delicious and Granny Smith may increase (slightly) shortly. Small sizes will remain tight for the remainder of the WA state storage season.
With Pears, the Bartlett deal is totally done. The Bosc market is just about as strong as it has ever been at this time of year. Anjou condition is good and fruit should remain available until mid summer (typically into early August). The import Packham deal should start up around early March.
BANANAS:
There are indicators that markets are slightly strengthening. Demand is good. Availability is tightening as vessel deliveries in the east are behind schedule and supplies on the ground are constantly evaporating once they arrive. Last week, there were some additional organic availability but this has since dried up. Quality is good with no reported issues.
SPECIALTIES:
Pineapple supplies remain tight on larger fruit and this will not change at least until month’s end. 7’s continue to have the best availability. Demand remains brisk and quality remains good.
AVOCADOS:
Super Bowl supplies will remain plentiful. With the anticipated dip in post-bowl demand, markets should soften but are steady now. CA fruit is beginning to ripen more evenly, Mexican volume is plentiful, and Chilean supplies could last through next month.
-CA harvests are not yet at full speed; there are some deals to be had on 60’s.
-Mexican fruit quality is good but shelf life is not optimal. Crossings will begin to decrease once CA volume really gets off the ground.
-Chilean boat arrivals should last well into February but with continuously less volume.
ASPARAGUS:
Markets may very well fluctuate over the next 7-10 day period after which pricing is expected to trend down due to increased new-crop Mexican volume. Current volume has been impacted by recent cooler weather. Demand appears a little off. Mexican quality is very good.
CITRUS
EAST
Grapefruit markets are softer on 32’s and smaller due to plentiful supplies. 23’s and 27’s are tight. Quality remains good.
The Juice market is easing. As the transition to the Pineapple variety continues, fruit is peaking on 100’s; brix level and juice content are excellent and color is very good.
Honey Tangerine production is in full swing. Sunbursts are totally gone. Quality is generally good but there are some color issues that are not atypical for this early part of the deal; brix levels are very good.
WEST
CA Navel FOB’s are steady. The best availability is on 72’s and 88’s. Quality is generally good but there is some softer fruit out there.
Lemon markets have yet to ease down. Overall quality is good.
Lime markets are firm but should ease within the next two weeks as new fields break open.
GRAPES:
FOB’s have finally reacted to supply increases and dropped dramatically compared to last week. Larger-sized fruit remains scarce. Quality is ranging from fair to good.
MELONS:
Cantaloupe supplies are tight and will most likely remain this way until mid February when Guatemala’s spring production begins to kick in. Quality is variable.
Unlike Lopes, east coast Honeydew supplies are in good shape. Quality is good to very good and the better availability is on larger fruit—8’s are very tight.
Seeded Watermelon supplies are limited as growers/shippers are directing product towards the Mexican domestic market; Seedless volume is in much better shape. Quality is good.
CUCUMBERS:
Eastern
Markets are lower on decreased demand and much-improved off-shore supplies; volume should remain stable for awhile. Quality is very good.
Western
Supplies are expected to be in a slight flush over the next two weeks but markets are expected to remain steady heading into next week. Quality is ranging from good to excellent.
GREEN BELL PEPPERS:
Eastern
FOB’s are a little stronger driven by older fields playing out, weather issues, and lower yields. Quality is fairly good overall with thick walls and good color being reported. However, there are some reports of sun tanning and minimal wind scarring.
Western
Recent cooler weather has impacted production numbers and there is the chance of rain in the short term forecast. Volatility has strengthened markets. Once we get past uncooperative weather, new fields should be ready to break with good volume. Quality is ranging from fair to very good.
RED BELL PEPPERS:
Western
Although cooler temps have impacted overall volume, supplies should remain decent over the next 5-7 day period and are then expected to tighten back up. Quality is ranging from good to excellent.
SQUASH:
Eastern
Both Yellow and Zuke markets are somewhat softer due to improved supplies out of Homestead. There is still some production volume out of the Immokalee area. Depending on the specific growing area, wind scarring is generally minimal.
Western
Even taking recent cool weather into consideration, production volume has at least slightly improved. However, forecasted rain could also impact supplies. The markets may now be at their lowest points. Quality on both is wide ranging from fair to very good.
TOMATOES:
Overall demand is lacking causing Round markets to be mostly stable. Cherry and Grape FOB’s have eased on both coasts. However, in general, markets are probably at their lowest point before trending back up shortly. Quality is generally good.
In the east, Puerto Rican Mature Greens should begin to land this week.
In the west, Nogales volume has begun to kick in. Culiacan has good supplies of Mature Greens. Vine Ripe markets are a little stronger due to growing area transition in Baja. And, Roma markets are a little stronger as well due to cooler weather that has impacted production volume.
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