February 13, 2008

ICEBERG LETTUCE:

The lettuce market is steady right now, but may dip further by weeks end. Demand is better then last week, but warmer weather has also left the shippers with an abundance of product. Shippers are offering a few deals this week so far than previous weeks. Current lettuce defects include cap discoloration, misshapen heads, ribbiness and epidermal peel. Shippers are trimming the defected leaves down and this is causing the color of the lettuce to be very pale.

Florida is experiencing very good supplies with demand and supplies expected to being steady. Weights reported in the 38 – 44 lbs per case range. Mexican supplies of iceberg are steady.

ROMAINE & LEAF:

The leaf markets once again continue to have wide price ranges from all shippers. Supplies vary on each of the different leaf packs. Green leaf, red leaf, and butter are in better supplies now, but romaine supplies continue to lag behind demand. The weather is a bit warmer which is helping growth rates. The demand for romaine is increasing. The quality on Romaine out of Yuma is fair with blister/peel and weights in the 35 to 38 pound range. Growth has been helped by warmer weather. The demand for romaine is increasing, and still ahead of supply, resulting in higher markets. The quality on Romaine out of Yuma is fair with blister/peel and weights in the 35 to 38 pound range. Florida romaine market has continues to be very tight with some suppliers reporting being sold out. Supplies did improve this week, but enough to help with the gap. Weights are in the 38 – 42 lbs range. Very light supplies out of Mexico.

BROCCOLI:

The broccoli market continues with more favorable prices. Available supplies have better volume this week mainly due to warmer weather helping its growth. Coupled with slow demand the increased volume is bringing the market to lower levels. There are deals out there to try and kick-start demand. Demand for processed broccoli continues to be strong. There have been a few reports of quality issues showing some purple cast. Plenty of product is still coming out of Florida, and very heavy supplies available from Mexico right now.

CAULIFLOWER:

The cauliflower market is sliding lower also. Warmer weather has improved growth rates and looks to continue this week. Demand has weakened from previous levels. The overall supply of cauliflower has increased and the trend looks to continue. Prices still vary from shipper to shipper as their volumes change. Many shippers are offering deals to move product this week. The quality of cauliflower is good with some yellow cast and rough curds showing up. Weights range between 28 to 32 pounds.

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. Canadian carrots supplies have tightened up just a bit. Quality continues to be good.

CELERY:

The celery market is stabilizing, and it looks to continue to do so for the rest of the week. The supply of larger sized celery is where many shippers are making deals to move excess volume. The supplies do vary form shipper to shipper. Demand is slowing down on celery and looks to remain so for the week. Celery is shipping out of Oxnard, Yuma and Coachella. Texas and Florida are harvesting celery and are not adversely affecting the market on California and Arizona product. 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: With Valentine’s Day Pull out of the way, shippers are still looking for a home for a lot fruit. This has helped to put some downward pressure on the market. Demand is moderate to light out of California, again causing the market to weaken. Quality is great. Demand is also light out of Florida with a weakening market. Quality is fair to good.

Raspberries/Blackberries: Raspberry supplies are limited. Demand is very good and the market is active. Quality is good. Blackberry supplies are very limited. Market is active. 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 good movement. Quality is great out of both L.A. and Miami.

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POTATOES:

With Temperatures returning to 30 degrees plus, packing sheds can return to full schedules and transfer from storage to pack should not be an issue. This is helping to steady the market this week. Burbanks are dominating the pack out, as Norkotahs continue to dwindle, and sizing continues to the smaller side. Norkotahs will finish up in Idaho in the next couple of weeks, which will put the large size product in even shorter supply. Western states are in good supply on big potatoes. Washington and Colorado have excellent supplies of Norkotahs and are peaking to the larger sizes. Deals can be made on straight load volume 50ct and larger from Washington and Nevada currently has good supplies of large size Burbanks. The colored potato market remains steady. New crop California colored potatoes are going strong with excellent quality supplies. Mount Vernon, WA product is still available with very good quality and supplies. There are still supplies coming out of North Dakota on all colors as well.

ONIONS:

The Idaho yellow onions continue with very good supply and excellent quality. The market was mostly steady this week, but there were also a few dips on Jumbo yellows. Very little export demand continues to keep this market down in the cellar. Some shippers are even saying they are not covering cost of growing the onions. There are deals to be made on load volume jumbo and larger sizing. Red onions inventories are starting to tighten just a bit, but good quality. Washington has good supplies of all colors. White onions are continuing to see some activity with light supplies but light demand as well. Mexican white onions have started with light supplies loading out of Texas. New crop Mexican yellow onions are now available, with light supplies. Reds will follow a few weeks later.

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APPLES & PEARS:

Poor weather has caused trucking nightmares that have just begun to clear up. Smaller-sized fruit continues to tighten at a faster rate than larger sizes and demand just does not want to back off at all. FOB’s on Reds and Golds are mostly stable while Granny have firmed once again since the prior week.

WA Pear markets are stable; supplies and quality are both good on Anjou and Bosc. Anjou should last at least through the middle of summer and Bosc should remain available through March. Bartletts will re-start in August.

BANANAS:

Available volume has tightened further with prorates increasing to around 20% of cases ordered. Market fruit is scarce; FOB’s are high and firm but have stabilized for the most part. Quality remains good.

SPECIALTIES:

Soft demand and ample supplies have caused Stone Fruit markets to weaken; quality is good to excellent.

Pineapple volume is a little tight but demand is a little sluggish—markets are currently steady. Within the next week or two we expect demand to begin to exceed available supplies and continue this way through the Easter holiday that comes early this year (March 23). Quality is good.

AVOCADOS:

Post Super Bowl demand is just beginning to pick back up. Although CA harvest volume is beginning to improve, production remains on the tight side to allow fruit to size up. Available sizing is still skewing on 60’s and smaller. Supplies should be much improved within the next month and even better within the next two. Markets are stable. Oil content is decent but not optimal and is still improving. Checkerboarding is going away and shelf life is good.

Chilean pricing is steady to slightly down. For the most part, this deal will wrap up by the end of the month. One last small arrival is due in next week. Remaining sizing is skewing smaller. Both quality and shelf life remain good.

Mexican FOB’s are also steady to slightly down. Oil content is very good. Volume crossing the border has fallen to help maintain favorable markets.

ASPARAGUS:

Markets are steady to slightly stronger as Standard and XL supplies have tightened on solid demand. Quality is good to very good with some minor curving still being noted. Recent growing conditions in Mexico have been very good with temps expected to cool slightly over the next few days.

According to The Produce News, CA supplies should be good for Easter that is falling especially early this year on March 23. Also, very light production has already begun in the Imperial Valley and may start as early as later this month for other CA growing areas.

CITRUS:

EAST

There are no significant changes to the Grapefruit markets. There are good supplies available in a range of sizes. The end of March will bring tighter supplies and firmer pricing.

Solid demand is burning through Pineapple Juice Orange supplies and causing prices to rise. By the last week of the month, we expect the Pine deal to be wrapped up and for the Valencia deal to have started at FOB’s higher than current pricing.

Honey Tangerine supplies far exceed demand and the market continues to crash. Quality is solid: exterior appearance is fair to good; brix levels are high; and, overall eating quality is very good.

WEST

Navel markets remain steady and availability remains plentiful. Korean exports are solid and on the increase. Fruit is peaking on 88’s & 72’s followed by teens & 56’s. Brix, color, and overall quality are all good. Recent cooler weather will improve shelf life.

Lemon pricing is stable to slightly firmer and markets remain very strong partially due to solid demand. D1 harvests remain somewhat limited. 165’s and 200’s remain the tightest sizes. Some lingering, limited Mexican fruit remains available but quality is reportedly very poor. Chilean fruit will become available again in May.

Lime volume crossing the border is limited; tight supplies and healthy demand are causing firmer markets. Although there is reportedly some wind and thripp scarring, color and overall quality are good.

GRAPES:

Available supplies now far exceed demand causing further market declines that have now stabilized for awhile. Pricing is predicated on sizing. There are deals to be made on smaller fruit but care is needed to ensure product is not old.

Flame markets are stronger than Green Seedless that continue to weaken due to enhanced volumes. Larger-sized Flames are commanding stronger prices. Harvesting should wrap up within the next 10 days that will then transition to Ruby and Crimson.

Thompson & Sugarone FOB’s have stabilized. Compared to Flames, there is much better availability on larger-sized Thompsons. Berries have a good exterior finish and eat well.

MELONS:

Cantaloupe pricing is softer. Demand is on the weak side. Quality is fair to good; immaturity, softness, and sunken areas have all been issues. Spring harvests in Guatemala start up this weekend and will lead to better availability on 9’s and 12’s.

Honeydew markets are easing. Honduran volume is good. Overall off-shore quality is very good.

Watermelon markets are soft, especially on smaller fruit. Demand is only fair on Seedless and weaker on Seeded. Good growing conditions in southern Mexico have produced good volume and quality.

CUCUMBERS:

Eastern

Markets are mostly steady and should remain this way for the next 7-10 days. There are plenty of supplies; demand is not overabundant but it is sufficient to move containers. Super floor inventories are cleaning up on a daily basis; there are plentiful amounts of Selects. Color and overall quality are very good.

Western

Although production is steady, we expect to see fewer Supers and more off-grades by the weekend. Markets may firm by next week due to lower projected volumes. Demand is only fair. Currently, there is no firm date when Baja will get started and alleviate some price pressure. Quality is good to excellent.

GREEN BELL PEPPERS:

Eastern

Markets are strong; they may firm by the beginning of next week due to limited harvesting and tighter supplies. Larges and Mediums will have the best availability by the weekend; Jumbo’s, XL’s, and Choppers will all be tighter. Demand is decent but not the greatest and although some issues are being reported, quality is generally good.

Western

Ample volume is expected for the next 7-10 days. However, within the next two weeks, fields will be on the backside of production volume. There are deals to be made based on size. Quality is good to excellent.

RED BELL PEPPERS:

Western

The projected downturn in volume is holding true. Cooler temps and growers picking product green to take advantage of market conditions have tightened supplies and firmed pricing. And, this scenario is expected to linger for at least the next two-week period. Although some new acreage is expected to break by month’s end, some older acreage will be playing out by the middle of next month. Better-quality labels are easily selling out fairly quickly.

SQUASH:

Eastern

Plentiful volume brought on by warmer temps has eased FOB’s. Both Yellow and Zuke markets are relatively cheap but fairly steady. Boca received some rain yesterday and there is the possibility of some bad storms over the weekend accompanied by strong winds that could turn the current supply scenario upside down.

Western

Yellow supplies are decent but are far less than currently available Zuke supplies. Yellow markets are firm and stable while Zukes are at lower levels with plentiful supplies expected for the next 10-14 days.

Quality is good to excellent and expected to remain this way as product continues to be harvested from newer fields. Volume on both should improve by month’s end as growers enter new fields.

TOMATOES:

Overall supplies will generally be tighter over the next 3-4 weeks, but Mexican production should be able to cover demand that is still not stellar. FL volume continues to dwindle which will pressure the western deal; eastern markets will be predicated on western activity and conditions. With the exception of some hit and miss issues with Romas, overall quality is good, especially out of Nogales.

In the east, markets are steady to slightly softer. Cherry FOB’s are the most stable. Grape pricing is most likely on the floor now. Some packing houses are completely done for the next month until spring production takes off.

Homestead production is expected to slow down but not stop—bloom drop affects will be felt within the next 7-10 days. Immokalee/Naples will gap because it was affected more by past freezing temps and volume out of this area is now not expected to improve until late next month.

In the west, there is some softer pricing on Mature Greens, Grapes, and Cherries; Vine Ripes & Romas are both slightly firmer. Mature Green volume will begin to decline within the next month. A week ago, there were a lot of Vine Ripes with a lot of color that had to be moved through the supply chain at cheaper pricing; although pricing has rebounded, it will most likely remain fairly stable over the next couple of weeks. Roma pricing is currently being defined by quality—better quality will definitely cost more. Reportedly, there is one Baja grower about to break new Grape fields.

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