May 21, 2008

ICEBERG LETTUCE:

The lettuce market is soft, as supplies are exceeding demand right now. Warm weather has brought on improved growth rates and demand is near the bottom, resulting in the low market. Availability is good. However there were days of 100 degree heat in the growing regions, last week that may have burnt up the crops. We still have to wait to see what damage there is, so this market could turn around very quickly. There are a few issues to report including some irregular sizing, windburn, and occasional growth crack. There is good green color on most packs of lettuce. Mexico continues to have an abundance of product available and, New Mexico is now reporting the availability of their local crop.

ROMAINE & LEAF:

The leaf market remains steady. There have been good supplies on all leaf items. Boston had been in short supply basically because shippers did not plant as much this season, supplies are now increasing. We are seeing some shippers pricing green, red and romaine aggressively to move their excess supplies. Romaine weights are ranging from 39 to 44 pounds. There have been some lots showing tip burn, yellow discoloration, and some mechanical damage. Supplies of romaine from Mexico have been sporadic.

BROCCOLI:

The broccoli market is stable for the near term. Prices are aggressive, and very promotable, as shippers compete for business. Supplies from all growing regions look to be steady. Broccoli bunched is ranging fro 2 to 4 stalks per bunch. This commodity is showing some branchiness and purple cast. In addition, there has been some yellow discoloration in some lots. We also need to be on the lookout for hollow core. Strong, and steady supplies of broccoli are available from Mexico.

CAULIFLOWER:

The cauliflower market is mostly steady for now; prices will still vary form shipper to shipper. Supplies also vary depending on the shipper and growing region. This commodity is showing occasional off white to yellow color. There have been reports of some lots showing bruising. Weights are averaging ranges of 27 to 32 pounds. Availability out of Mexico is very light right now.

CARROTS:

The Carrot market continues to remain steady. West Coast supply and quality are adequate on all sizes of Carrots, but starting to tighten up just a bit. Texas carrots are now available. Georgia is still going strong. Quality and supplies are good and the market remains steady. Mexico is busy sending in carrot supplies through Texas.

CELERY:

The celery market continues to be very active. Supplies are extremely short, as most shippers begin the day as “sold out”. Prices will continue to be very strong, as seeder issues have taken away approx 40% of the supplies. Booking your orders in advance is suggested. This should continue to be the issue until the Salinas growing season starts in mid June.

BERRIES

Strawberries: The past four days of 80 to 90 degree temperatures have caused some minor quality issues with growers. Shippers have had to strip plants to some degree and are having to be very selective as to what they are packing. The biggest problem that has presented it’s self is bronzing due to the heat. Growing areas are now back to cool mornings and mildly warm days, ideal growing conditions. Market remains steady.

Raspberries: Production has increased slightly in Watsonville and with the much needed warmer temperatures over the past four days the plants are producing good quality berries and better volume. Quality remains good.

Blackberries: Quality remains consistently good. Production in Watsonville has increased and will continue to do so. Some shippers are already lowering prices due to increased production in Santa Maria. Overall production is increasing in all areas Watsonville, Santa Maria and Kingsburg, Quality is good.

Blueberries: New crops in California are producing good volume in Delano Ca. and Watsonville is just starting with very small numbers. New crop quality is good with increasing production as we progress into the season. The Carolinas are soon to start. Most shippers will be up to full production by the end of May. Driscoll’s will be in light production this month due to growing region transition.

POTATOES:

SHORT, SHORT, SHORT, SHORT!!! 70 CT and larger continue to be in very short supply, the market is now advancing weekly, if not daily! With Idaho and Colorado short on supplies this season, other competing states are taking advantage of the shortage and raising prices also. As we have said all season long, the Burbanks are running small with many more #2’s than usual this year. California has new crop red, white and gold potatoes with good availability and quality. Florida has lighter supplies of white potatoes, supplies of red potatoes are much better. North Dakota will still have good availability of old crop red potatoes and the Gold potatoes are looking to finish up in the next couple of weeks. Arizona has started with light availability on reds and golds to follow soon

ONIONS:

Hot!!! This is a very unstable market for now. . The Idaho storage product is cleaned up for the season. Texas has been experiencing rain this week, limiting supplies there. Imperial Valley California should start packing around the first week of June, but heat has been a problem there. New Mexico should begin the first week of June also.

APPLES & PEARS:

WA pricing continues on its gradual upward trend. Expect general availability to remain tight through September.

With Pears, Red Anjous are effectively over and Green Anjous are still expected to last through June. Storage quality is mostly good but it is that time of the season for the potential of 2-3% decay. CA Bartletts will be starting in late July.

Truck availability remains decent out of the northwest.

BANANAS:

Banana pricing is mostly stable and overall quality is good. Contract orders are getting filled but are delayed by 1-2 days as the supply pipeline hasn’t quite caught up from a trucker’s strike and roadblocks in Guatemala that has now been resolved. Vessel schedules should get back to normal beginning next week. With the end of school rapidly approaching, Petite and Quad orders are being adjusted accordingly.

SPECIALTIES:

Pineapple pricing continues to be firm as demand remains strong partly due to strong retail promotions. Available sizes are petty evenly allocated across all sizes and quality continues to be good.

CA Stone Fruit volumes are improving and Plums are now available in limited quantities. Only average demand is weakening markets. Overall quality is good to very good on all types.

AVOCADOS:

Beginning-week California Avocado markets on 60’s were softer once again as other sizes remain stable. Smaller-sized fruit has probably hit the bottom and we may see an increase in FOB’s next week. The pricing spread between 48’s and 60’s remains quite wide. There is less Mexican volume now available. CA quality is very good but Mexican-sourced fruit is beginning to have more noticeable shelf life issues.

ASPARAGUS:

Markets are pretty much stable. CA-sourced product will dry up in the next 2-3 weeks. WA is at full production with good volume. Some product is coming out of ID and MI is getting off the ground. Jersey supplies are decent and Peru remains in the supply mix. Overall quality is good to very good.

CITRUS:

EAST

What little Grapefruit remains available is high priced with quality that can not travel any distance. This deal is effectively over.

Valencia markets have strengthened and expected to firm again next week. Quality remains good with a run of sizes available.

WEST

Navel pricing is strong and steady to slightly firmer. Valencia FOB’s are firm on 88’s and smaller; overall quality is very good and expected cooler weather will maintain good exterior color.

Lemon markets are stronger and expected to continue their gradual trend upwards for awhile. Chilean fruit should become available the middle of next month which may help ease the market. However, we do not expect any significant relief in price pressure until September when new crop volume kicks in. Overall quality is ranging from fair to good with good color and juice content--some minimal scarring is being reported.

Lime markets are soft as volume improves and supplies are good on all sizes. Overall quality is good to very good with some reports of minimal lighter color.

GRAPES:

Current demand is just fair. Old crop Chilean Crimsons still have some volume at lower pricing. New crop Flames out of Coachella and Mexico are priced higher but improving supplies are adjusting markets on just about a daily basis. Temps have been extremely hot but cooler weather this weekend will help Flame color. Brix levels and overall quality are very good out of the gate to start the season. Crop size is looking good as well.

MELONS:

Cantaloupe markets are mostly steady. Off-shore supplies will linger for about another week. Southern CA, AZ, and TX production areas are all up and running. Heat has helped skew sizing to 9’s and 12’s; 15’s and 18’s are very tight. There is some minimal ground scarring but overall quality is very good.

Honeydews are available out of CA, AZ, TX, and Mexico. Off-shore supplies have just about dried up. Markets have been on the weak side but are beginning to show signs of strengthening as extreme desert heat has slowed harvesting and Mexican crossings have recently decreased. Overall supplies should improve next week.

Watermelon markets are steady and on the weak side as more fruit enters the supply chain from southern CA and northern Mexican supplies remain solid. Demand is not that strong but has improved for the holiday; FOB’s will ease as new growing areas come online and aggregate production volume strengthens. Quality from all areas is very good.

CUCUMBERS:

Eastern

Markets are steady to slightly firmer. Demand has strengthened. Plant City is finishing up and GA production will be more of a factor by the end of the week. Expect supplies to be on the tight side for just a little while longer; pricing will ease once volume kicks in. The Carolinas’ deal will begin next month and NJ will be in field-grown production by the end of June. Quality is fair to good.

Western

Markets are slightly firmer as the deal out of mainland Mexico has just about wrapped up and Baja volume is light. Quality out of both areas is ranging from fair to very good. Nogales will be totally finished within the next ten days, Fresno has started its deal with very limited harvesting, and Baja can not cover remaining demand. We expect markets to remain strong after the holiday with production volume slowly improving out of Baja and Fresno.

GREEN BELL PEPPERS:

Eastern

Pricing is firmer as southern FL has finished up earlier than usual, central FL volume is off, and GA has yet to really get off the ground. Pricing will remain elevated until the GA deal has significant volume and may ease down in 10-14 days. Most GA growers should be up and running by the end of next week. Overall Plant City quality is good with some minor amounts of turners and decay being reported—this deal will finish in the next 7-10 day period. GA crown pick quality is very good.

Western

Markets have eased this week as eastern demand for holiday loading has finished. Mainland Mexico still has some production but it is plagued by quality issues. The Desert deal out of Coachella will have better volume next week but intense heat may cause quality issues and a premature end to this deal--the outlook is unclear. Bakersfield volume won’t be a significant factor until around the middle of next month.

RED BELL PEPPERS:

Western

The Nogales deal has finished with field-grown product. Baja volume is limited. The Desert is in crown pick production; there is still strong demand for off-grades that can not be met leaving some Choice orders going unfilled into the holiday weekend. Choice pricing should ease next week as we get past crown picking. Desert quality is ranging from fair to very good.

SQUASH:

Eastern

Markets on both Yellow and Zucchini are steady to slightly higher. The Homestead deal has totally wrapped up. Cooler nights last week slowed down production in both FL and GA. Plant City volume is declining--GA will be at peak production by the weekend and quality out of both areas is fair to very good. Wind in GA has created some scarring issues.

Western

With Yellow, Nogales will finish up in the next 7-10 days. Light supplies out of central CA (such as Fresno) will not be able to handle the demand pressure as we can expect stronger markets next week. With Zucchini, the Nogales deal will also be finishing up within the next 10 days. Pricing is expected to strengthen next week as well, but not as much as Yellow because there are more CA growing districts that have Zucchini production. Quality is ranging from fair to very good.

TOMATOES:

FOB’s have increased across the board, especially on Rounds on both coasts and Cherries out of the west. Out of FL, XL Rounds and Vine Ripes remain very tight and rain has disrupted harvesting schedules.

In the east, volume is declining but quality remains very good. The majority of growers out of Palmetto / Ruskin will finish harvesting by June 1 (some will linger until around the 10^th). Quincy now only has a couple of growers, less acreage, and initial harvests are delayed and will begin around June 7-10 creating a supply gap.

In the west, Mature Green production has started out of the Desert and will last through mid June; the Central Valley will begin around the middle of next month. Vine Ripe availability out of Nogales is quickly dwindling; Baja production is getting off the ground and Oceanside / Oxnard will start up in early July. Roma volume out of Baja is improving with decent quality. Cherry availability is very tight as there is no decent production sourced out of the west yet and western shippers are solely relying on FL grown product.

With regional deals: Charleston is set to begin around the 10^th of June and TN in early July. AR will begin its deal early next month with peak volume expected June 20 – July 3; availability of larger-sized Rounds and quality are both expected to be very good.