Market trends For week ending june 28, 2019 - Performance Foodservice

 
Market trends For week ending june 28, 2019 - Performance Foodservice
market trends
For week ending june 28, 2019
Market trends For week ending june 28, 2019 - Performance Foodservice
market trends
WEek ending june 28, 2019

Beef, Veal & Lamb
Last week cattle slaughter edged 0.5% over the week prior and was 2.6% larger than last year. Despite bigger beef production,
lighter carcass weights continue to temper overall output. Beef output last week was flat from the prior week and was 1.5% over
last year. Lighter carcasses are also supporting the 50% lean beef trim market, with prices pushing over the mid-$0.90’s area.
Additionally, retail ground beef features are supporting grinds, and prices are failing to exhibit a normal seasonal break. Beef inter-
est is expected to wane post Fourth of July, and the grinds are forecasted to trend lower into the mid-summer.

         Description           Market Trend      Supplies       Price vs. Last Year
Live Cattle (Steer)             Decreasing        Short               Higher
Feeder Cattle Index (CME)       Increasing        Short                Lower
Ground Beef 81/19               Decreasing        Good                Higher
Ground Chuck                    Decreasing        Good                Higher
109 Export Rib (ch)             Increasing        Good                 Lower
109 Export Rib (pr)             Increasing        Good                 Lower
112a Ribeye (ch)                Increasing        Good                 Lower
112a Ribeye (pr)                Increasing        Good                 Lower
114a Chuck , Shlder Cld(ch)     Increasing        Good                Higher
116 Chuck (sel)                 Decreasing        Good                 Lower
116 Chuck (ch)                  Increasing        Good                 Lower
116b Chuck Tender (ch)          Increasing        Good                Higher
120 Brisket (ch)                Decreasing        Good                Higher
120a Brisket (ch)               Decreasing        Good                Higher
121c Outside Skirt (ch/sel)     Increasing        Good                 Lower
121d Inside Skirt (ch/sel)      Decreasing        Good                 Lower
121e Cap & Wedge                Decreasing        Good                 Lower
167a Knckle, Trimmed (ch)       Decreasing        Good                Higher
168 Inside Round (ch)           Decreasing        Good                Higher
169 Top Round (ch)              Decreasing        Good                Higher
171b Outside Round (ch)         Decreasing        Good                Higher
174 Short Loin (ch 0x1)         Decreasing        Good                 Lower
174 Short Loin (pr 2x3)         Increasing        Good                Higher
180 0x1 Strip (ch)              Increasing        Good                 Lower
180 0x1 Strip (pr)              Increasing        Good                 Lower
184 Top Butt, boneless (ch)     Decreasing        Good                 Lower
184 Top Butt, boneless (pr)     Increasing        Good                Higher
184-3 Top Butt, bnls (ch)       Decreasing        Good                 Lower
185a Sirloin Flap (ch)          Increasing        Good                 Lower
185c Loin, Tri-Tip (ch)         Increasing        Good                 Lower
189a Tender (sel, 5 lb & up)    Decreasing        Good                Higher
189a Tender (ch, 5 lb &up)      Increasing        Good                Higher
189a Tender (pr, heavy)         Increasing        Good                Higher
193 Flank Steak (ch)            Increasing        Good                Higher
50% Trimmings                   Decreasing        Good                Higher
65% Trimmings                   Decreasing        Good                Higher
75% Trimmings                     Steady          Good                Higher
85% Trimmings                   Decreasing        Short               Higher
90% Trimmings                   Increasing        Short               Higher
90% Imported Beef (frz)         Increasing        Good                Higher
95% Imported Beef (frz)         Increasing        Good                Higher
Veal Rack (Hotel 7 rib)           Steady          Good                Higher
Veal Top Round (cap off)          Steady          Good                Higher

                                                                                                                                     3
Market trends For week ending june 28, 2019 - Performance Foodservice
market trends
WEek ending june 28, 2019

Grains
The corn and soybean planting season has slowed once again with adverse weather during the last week and more to come.
As of Sunday, 92% of the corn crop and 77% of the soybean crop had been planted. But some farmers are opting to take
insurance instead of planting. The grain markets could remain volatile throughout the summer.

       Description         Market Trend   Supplies   Price vs. Last Year
Soybeans, bushel            Increasing      Good           Higher
Crude Soybean Oil, lb       Increasing      Good           Higher
Soybean Meal, ton           Increasing      Good           Lower
Corn, bushel                Increasing      Good           Higher
Crude Corn Oil, lb          Decreasing      Good           Lower
High Fructose Corn Syrup    Increasing      Good           Higher
Distillers Grain, Dry       Increasing      Good           Lower
Crude Palm Oil, lb BMD        Steady        Good           Lower
HRW Wheat, bushel           Increasing      Good           Lower
DNS Wheat 14%, bushel       Decreasing      Good           Lower
Durum Wheat, bushel         Increasing      Short          Lower
Pinto Beans, lb               Steady        Good           Higher
Black Beans, lb             Decreasing      Good           Lower
Rice, Long Grain, lb          Steady        Good           Lower

Dairy
Spot butter prices are modestly lower this week. Cheese block prices are down slightly also. Per the USDA, U.S. milk pro-
duction in May was down .4% from the prior year but the milk per cow yield was .4% better than 2018. Dairy farmers grew
the herd by 5k head during the month and better milk output gains are likely later this year. This should help seasonal dairy
market price declines that occur each fall. In the near-term, look for cheese prices to weaken but rise thereafter through
mid-August. Though butter prices usually soften in mid-July, they normally firm the rest of the summer.

        Description        Market Trend   Supplies   Price vs. Last Year
Cheese Barrels (CME)        Increasing     Good            Higher
Cheese Blocks (CME)         Decreasing     Good            Higher
American Cheese             Increasing     Good            Higher
Cheddar Cheese (40 lb)      Increasing     Good            Higher
Mozzarella Cheese           Increasing     Good             Same
Provolone Cheese              Steady       Good             Same
Parmesan Cheese             Increasing     Good            Higher
Butter (CME)                Decreasing     Good            Higher
Nonfat Dry Milk             Increasing     Ample           Higher
Whey, Dry                   Decreasing     Good            Higher
Class 1 Base                  Steady       Good            Higher
Class II Cream, heavy       Increasing     Good            Higher
Class III Milk (CME)        Increasing     Good            Higher
Class IV Milk (CME)         Decreasing     Good            Higher

                                                                                                                                4
Market trends For week ending june 28, 2019 - Performance Foodservice
market trends
WEek ending june 28, 2019

Pork
Last week pork production set a record for any week between May and July and was a whopping 12.3% over last year. De-
spite the escalating June pork output schedules, the USDA pork cutout has failed to decline precipitously, down (counter-sea-
sonally) just 4.3% from mid-May and is 1.6% over last year. Elevated ham and picnic prices continue to support the pork
cutout, but bellies have fallen more than 33% from their mid-April peak and are 21% cheaper than a year ago.

         Description           Market Trend   Supplies   Price vs. Last Year
Live Hogs                         Steady       Ample            Lower
Sow                             Decreasing     Ample           Higher
Belly (bacon)                   Decreasing     Good             Lower
Sparerib(4.25 lb & down)        Increasing     Good             Lower
Ham (20-23 lb)                  Decreasing     Good            Higher
Ham (23-27 lb)                  Decreasing     Good            Higher
Loin (bone in)                  Decreasing     Good             Lower
Babyback Rib (1.75 lb & up)     Decreasing     Good            Higher
Tenderloin (1.25 lb)            Increasing     Good             Lower
Boston Butt, untrmd (4-8 lb)    Decreasing     Good            Higher
Picnic, untrmd                  Increasing     Good            Higher
SS Picnic, smoker trm box       Decreasing     Good            Higher
42% Trimmings                   Decreasing     Good             Lower
72% Trimmings                   Decreasing     Good            Higher

                                                                                                                                5
Market trends For week ending june 28, 2019 - Performance Foodservice
market trends
WEek ending june 28, 2019

Poultry
For the week ending June 8th, chicken slaughter was up 13.5% from the holiday week prior but was 3.1% over last year.
In addition to those harvest increases, bird weights were also up which pushed ready-to-cook chicken production 5%
over the prior year. The six-week average of chicken output was up 2.5% (yoy). Rising production rates have yet to trim
chicken prices, with the ArrowStream wholesale Chicken Index (USDA) rebounding this month. Chicken breast meat prices
are showing late spring firmness which may extend into early July. Wing prices are relatively inflated, but escalating chicken
production and waning interest is expected to pressure wing prices lower.

        Description            Market Trend    Supplies    Price vs. Last Year
Whole Birds WOG-Nat             Decreasing      Good              Lower
Wings (jumbo cut)               Increasing      Good             Higher
Wing Index (ARA)                Increasing      Good             Higher
Breast, Bnless Skinless NE      Increasing      Good             Higher
Breast, Bnless Skinless SE      Decreasing      Good             Higher
Breast Boneless Index (ARA)     Increasing      Good             Higher
Tenderloin Index (ARA)          Increasing      Good             Higher
Legs (whole)                    Decreasing      Good             Higher
Leg Quarter Index (ARA)           Steady        Good             Higher
Thighs, Bone In                 Increasing      Good             Higher
Thighs, Boneless                Decreasing      Good             Higher

        Description            Market Trend    Supplies    Price vs. Last Year
Whole Turkey (8-16 lb)           Steady         Good             Higher
Turkey Breast, Bnls/Sknls       Decreasing      Good             Higher

Eggs

        Description           Market Trend    Supplies    Price vs. Last Year
Large Eggs (dozen)             Increasing      Short             Lower
Medium Eggs (dozen)              Steady        Short             Lower
Liquid Whole Eggs              Decreasing      Short             Lower
Liquid Egg Whites                Steady        Short             Lower
Liquid Egg Yolks               Decreasing      Short             Lower
Egg Breaker Stock Central      Increasing      Short             Lower

                                                                                                                                 6
Market trends For week ending june 28, 2019 - Performance Foodservice
market trends
WEek ending june 28, 2019

Seafood
Elevated price levels are encouraging U.S. snow crab imports. During April, the U.S. imported a whopping 37% more snow
crab than the previous year. However, historically small Canadian snow crab quotas are still expected to limit the world snow
crab supply. This is anticipated to temper any notable snow crab downside moves for the next several months.

         Description          Market Trend    Supplies   Price vs. Last Year
Shrimp (16/20 frz)              Steady         Good             Lower
Shrimp (61/70 frz)              Steady         Good             Lower
Shrimp Tiger (26/30 frz)        Steady         Good             Lower
Snow Crab, frz                   Steady        Good            Higher
Tilapia Filet, frz               Steady        Good            Higher
Cod Filet, frz                   Steady        Good            Higher
Tuna Yellowfin, frsh             Steady        Good            Lower
Salmon Atlantic Filet, frsh      Steady        Good            Higher
Pollock Filet, Alaska, frz       Steady        Good            Higher

                                                                                                                                7
Market trends For week ending june 28, 2019 - Performance Foodservice
market trends
WEek ending june 28, 2019

Paper and Plastic Products
           Description             Market Trend    Supplies      Price vs. Last Year
                                 WOOD PULP (PAPER)
NBSK- Paper napkin                   Increasing     Good               Lower
42 lb. Linerboard-corrugated box       Steady       Good               Higher
                           PLASTIC RESINS (PLASTIC, FOAM)
PS-CHH-utensils, cups, to-go cont.      Steady        Good             Lower
PP-HIGP-heavy grade utensils            Steady        Good             Lower
PE-LLD-can liners, film, bags           Steady        Good             Lower

Retail Price Change from Prior Month

           Description                 May-19        Apr-19            Mar-19
Beef and Veal                         Increasing    Increasing       Increasing
Dairy                                 Increasing    Increasing       Increasing
Pork                                  Increasing    Decreasing       Increasing
Chicken                               Decreasing    Increasing       Decreasing
Fresh Fish and Seafood                Increasing    Decreasing       Increasing
Fresh Fruits and Vegetables           Decreasing    Decreasing       Increasing

Various Markets
After pricing the highest since February (earlier this month), nearby Arabica coffee futures have fallen sharply over the last
two weeks. Despite the Brazilian real finding support as of late, Brazil’s coffee exports are strong. If coffee prices continue to
weaken, view it as a good forward buying chance.

          Description                Market Trend   Supplies     Price vs. Last Year
Whole Peeled, Stand (6/10)            Increasing     Good              Higher
Tomato Paste-Industrial (lb)          Increasing     Good              Higher
Coffee lb ICE                         Decreasing      Good             Lower
Sugar lb ICE                          Decreasing      Ample            Higher
Cocoa mt ICE                          Decreasing      Short            Higher
Orange Juice lb ICE                   Decreasing      Good             Lower
Honey (clover) lb                      Steady         Good             Lower

                                                                                                                                     8
Market trends For week ending june 28, 2019 - Performance Foodservice
market trends
WEek ending june 28, 2019

Produce

Market Overview
Due to the recent rainfall followed by extreme heat in our Salinas                          MARKET ALERT
growing region, we are now experiencing shortages and escalated                 • Avocados – EXTREME
prices in iceberg, romaine, and leafy greens. We are also seeing a              • Berries (Blueberries, Blackberries,
significant drop in yields in our Northern CA strawberry and blackberry           Raspberries, Strawberries) - EXTREME
production due to the recent rains and high temperatures. Celery is still       • Cabbage (Red) – ESCALATED
in a very EXTREME situation. Smaller-sized lemons are also EXTREME.
                                                                                • Celery – EXTREME
                                                                                • Green Beans - ESCALATED
Apples & Pears
                                                                                • Lemons (small sizes) -EXTREME
Demand is strong for Golden Delicious and Granny Smith apples;
                                                                                • Lettuce (Iceberg, Romaine, Green/Red
125- and 138-count storage supplies are limited. Washington Fuji,
Gala, Granny Smith, and Red Delicious Apples are available. Braeburn              Leaf, Butter) – ESCALATED
and Honeycrisp volume has been depleted. Quality is excellent: fruit            • Parsley: (Curly, Italian) - ESCALATED
is crisp and juicy. Sugar levels range from 14 to 18 Brix. The market           • Snow Peas – ESCALATED
is unchanged; supplies are sufficient. D’Anjou Pears are available, as          • Sugar Snap Peas - ESCALATED
well as Bosc stocks. Sugar levels range from 12 to 14 Brix. California
Bartlett’s will hit the market in mid-July.
                                                                                                WATCH LIST
                                                                               • Baby Squash-East
Artichokes
Supply industry-wide is fair. Demand is fair and prices are steady to          • Sweet Potatoes and Yams
higher.

    Salinas Product Forecast: We are expecting markets to remain high because volume has gone down, due to the
    heatwave. Broccoli, Cauliflower and Celery markets will be strong this week. Tender Leaf will be very light next week.
    We are looking forward to a great week ahead. Quality Forecast: Yields and quality could continue to be off, because
    of the effects of the heat wave we had over the last 2 weeks. Expect Weather Temperatures in Salinas to be cooler
    than last week, with 78 being the projected high this week.

    Good Buys
    Each week, we spotlight commodities based on how favorable prices, quality, and supply are in the market. Stay
    ahead of the trends and look to these good buys for their stellar performance in the fields!

     Commodity        Market Update                  Produce Expert Tip
     Peaches          Domestic peaches are           Hope you’re feeling peachy! Peaches are this week’s good buy.
                      available out of South         Loaded with Vitamin C, eating peaches can improve your skin
                      Carolina and Central           texture, reduce wrinkles, and help fight skin damage caused by the
                      Georgia.                       sun and pollution. It is officially summer time, so protect your skin,
                                                     stay hydrated, and eat your peaches!

                                                                                                                              9
Market trends For week ending june 28, 2019 - Performance Foodservice
market trends
WEek ending june 28, 2019

Produce (continued)

Arugula                                                               Raspberries
Supplies and quality are fair, due to the recent heat wave.           EXTREME Raspberries will be the least affected as they are
                                                                      grown under hoops and at elevations where they have not
Asparagus                                                             been heavily impacted by heat.
Standard has good volume; the larger sizes have limited
volume.                                                               Strawberries
                                                                      EXTREME We are still experiencing severe shortages and
Avocados                                                              higher prices due to the past rain followed by extreme heat in
EXTREME – We are continuing to experience a very active               the berry growing region.
avocado market due to ongoing record high field prices
in Mexico with no relief in sight. We are still experiencing          Bok Choy
decent volume arriving from Peru, while California continues          50# are in short supply and prices are up. Supplies are
to produce steady numbers despite their seasonal                      coming from San Juan Bautista, CA.
decline. However, at this time, there is not enough supply
to counteract the decreased volume in Mexico. We are                  Broccoli
requesting that customers be flexible on sizing as well as            Supplies are steady this week; some fields suffered because
origins. We will need to shift regions to Peru where necessary        of heat last week. Supplies are steady and are expected to
as well as sub sizes where needed in order to maintain                back to normal in the next few weeks.
the integrity of the supply chain. At this time there are no
shortages.                                                            Brussels Sprouts
                                                                      Supply and quality are good, and demand is fair.
Bananas
Markets remain steady with consistent production and supply.
Fruit quality is not an issue at this time.                            Brussels Sprouts

                                                                                                  Demand                 Fair
Beans
EAST: Short Supply! GA has ended and the coastal areas that                                        Supply             Good
have begun were hit with heavy rain last week. The product
that’s available is hit or miss with quality. Other local deals are                                Quality            Good
still a few weeks away.
WEST: There are several areas in production, but no
significant volume is available from any given region. Baja will       Bok Choy
be starting up in about 2-3 weeks. FOBs are up and quality is                                     Demand              Good
fair to good.
                                                                                                   Supply             Good
Berries:
Blackberries                                                                                       Quality            Good
EXTREME Due to the previous rain and high temperatures,
we are seeing a significant drop in yields in our blackberry           Broccoli
production in Northern CA. We expect to see a shortage in
supply and rising prices.                                                                         Demand              Good

Blueberries                                                                                        Supply             Good
EXTREME Blueberries are in a harvest gap with the Pacific                                          Quality          Fair-Good
NW being weeks behind schedule. Blueberries will be our
toughest item for June. Prices will remain high and product is
still very short in supply.                                            Cilantro

                                                                                                  Demand              Good

                                                                                                   Supply                Fair

                                                                                                   Quality               Fair

                                                                                                                                       10
Market trends For week ending june 28, 2019 - Performance Foodservice
market trends
WEek ending june 28, 2019

Produce (continued)

Cantaloupe                                                          Eggplant
We are going on the California and Arizona Desert regions           EAST: GA has had nice hot temps, which eggs love. Volume
with descent volumes on the 12’s and larger, light volumes on       is coming on strong. FOBs are low and quality is good. Plant
the 15’s. The overall quality is very nice with good sugars and     City still has a few packages shipping, but quality is not good
nice clean net. The brix has been 13-14 so fruit is eating well,    enough to meet #1 grade.
and internal color is excellent with a tight cavity. The market     WEST: MX is wrapping up this week which puts the pressure
is fairly strong due to cooler temperatures and volumes not         on the CA desert. Supplies are slowly starting to come online,
coming off at a rapid rate. Weather is supposed to warm up          but things are still snug. FOBs remain high and quality is just
next week and should see some better volumes.                       average.

Carrots                                                             English Cucumbers
Supply and quality on carrots is good. Supply is now available      There is a steady supply available from Florida, Mexico, and
in Georgia as well.                                                 Canada.

Cauliflower                                                         Fennel
Supplies are expected to be very good this week.                    Supply on fennel will be short for the next few weeks due to
                                                                    frost damage and the Yuma season finishing with light supply.
Celery                                                              We will continue to see a majority of smaller fennel this week -
We are in the third week of harvesting in Salinas, CA. Celery       18s and 24s will remain limited.
prices are still high, but are finally coming down a bit. Prices
are mainly in the high 50’s and low 60’s. The weather in            Garlic
Salinas should be back to normal and we are also expecting          Supply is firming up and markets are active due to trade tariffs
normal volume as well.                                              being imposed on products from China.

Cilantro
Supplies are snug this week.

Corn
Markets are down, with good supply available on yellow,
white, and bi color out of Florida and the desert.

Cucumbers
EAST: GA’s crop is starting to wind down as May’s heat
took its toll on production and quality on the later plantings.
North Carolina crop is also for the most part wrapped up.
Fortunately, the scattered local programs are starting to pop
up all over. FOBs are up as supply is fragmented. Quality
varies by grower and by region.
West- Nogales has about another week or so left until they
call it quits. Baja’s volume was recently down slightly due to
weather but has since started to pick back up. FOBs are up
slightly with the decrease.
WEST: Nogales has about another week or so left until they
call it quits. Baja’s volume was recently down slightly due to
weather but has since started to pick back up. FOBs are up
slightly with the decrease in availability with good quality from
both areas.

                                                                                                                                       11
market trends
WEek ending june 28, 2019

Produce (continued)

Ginger                                                             Green Onions
Chinese ginger markets are mixed, but quality is good. Also,       We are seeing good movement from Eastern demand.
product is available at higher costs from Brazil, Peru and         Supplies are plentiful from Mexico. But many growers will
Thailand. 				                                                     be reducing volumes in the next few weeks, due to reduced
                                                                   summer planting schedules. Also, many growers are now
Grapes                                                             harvesting at night to reduce heat related damage to crops.
We are in full swing out of Mexico and Coachella things are
finally starting to get better as crossings have increased and     Honeydew
plenty of availability across the board, and prices are finally    Market is a bit stronger than the Cantaloupe Market as we
starting to ease. The Mexico fruit has been fighting sugar, but    are harvesting in Mexico, Arizona and the Desert region of
weather has helped to bring it on. The overall quality of the      California. There are lighter supplies across the board due
fruit out of both regions is very clean, firm, and good color.     to much less planted acreage in the regions this year. The
The sugars will continue to get better in the next week to         overall quality out of all regions has been good with a clean
10 days. The expected volume out of Mexico is 22 million           and green to cream cast. The internal color and sugars look
compared to last year’s crop at 14 million and they are about      good as a well as a nice cavity. We are expecting to see good
2-weeks later than normal so we for sure will not have a gap       quality going forward through all these regions barring any
when we transition to the Central valley around the 4th of July.   major weather.

Green Cabbage                                                      Jicama
Supply and quality are good in the West; we are seeing the         Steady supply crossing through Texas.
impact of rain, which is causing post-harvest issues, in
the South and Mid-Atlantic.                                        Kale (green)
                                                                   Supply is good and quality is fair.
Red Cabbage
Supplies are very tight this week.                                 Lemons
                                                                   We are still picking some fruit out of Dist. 1(Central Valley)
                                                                   and have started to pick Dist. 2 (Coastal Regions) fruit, just
                                                                   primarily size picking to relieve the trees of some stress. We
                                                                   are peaking on the big sizes and 165’s and smaller are very
                                                                   limited and market much stronger and will continue to see
                                                                   this heading into the summer due to all the rains, fruit has
                                                                   been growing and peaking on 95’s,115’s. The overall color is
                                                                   excellent as well as juice content. The moisture has also been
                                                                   creating spores in the fields as well and we will hope that it
                                                                   is not to extensive on the clear rot, but it is inevitable, and
                                                                   we are doing al we can to help slow the spores down in the
                                                                   field and in the packinghouse. Again, we are blessed to have
                                                                   the moisture, we will get through it one way or another. Also
                                                                   starting to see a few Chilean imports arrive but bigger volume
                                                                   starting around the mid of July as Mexico will start about the
                                                                   same time as well.

                                                                                                                                     12
market trends
WEek ending june 28, 2019

Produce (continued)

Green Leaf Lettuce

                      Demand    Good

                      Supply    Fair

                      Quality   Fair

Red Leaf Lettuce

                      Demand    Good

                      Supply    Good

                      Quality   Fair

Butter Lettuce

                      Demand    Good

                      Supply    Good

                      Quality   Fair
                                       Lettuce:
                                       Butter
Napa Cabbage
                                       We currently have decent supplies of butter lettuce. Quality is
                      Demand    Fair   consistent and demand is stable.

                      Supply    Fair   Green Leaf
                                       Green leaf yield is slightly down, mainly because of recent
                      Quality   Fair
                                       changes in temperature this time of year. We are seeing some
                                       irregular sizing, fringe/wind burn and occasional internal burn.
Parsley                                Demand is strong as markets are continuing to advance.

                      Demand    Good   Iceberg Lettuce
                                       The key to this week will be what the yields are. Last week we
                      Supply    Fair
                                       were about 20% below budget and this week will most likely
                      Quality   Good   be the same. Quality has also been affected by the heat and
                                       there are a little more cosmetic issues than normal. The market
                                       is active and will continue to be that way, with lighter volumes
Radicchio                              overall.
                      Demand    Good
                                       Romaine & Romaine Hearts
                      Supply    Good   Demand is strong for romaine. Industry supplies are down
                                       about twenty percent right now. Harvest crews are doing a
                      Quality   Good   good job of putting together good packs but are dealing with
                                       many quality issues. Cupping, fringe/wind burn, twist and
                                       occasional internal burn are present, which are reducing yields
                                       at the field level. The market is continuing to advance.

                                                                                                          13
market trends
WEek ending june 28, 2019

Produce (continued)

Limes                                                                    Jalapeños (Chiles)
The market is steady to slightly higher compared to last week.           EAST: GA has a steady stream to keep eastern demand
Rain in Mexico reduced the volume of shipments into South                afloat. Look for the scattered eastern deals to come alive
Texas. Quality is good with occasional issues of scarring and            in the next few weeks. FOBs are steady with good quality
yellowing.                                                               available.
                                                                         WEST: Nogales is winding down with subpar quality.
Napa                                                                     Buyer beware of the cheap product as there are a number
Supplies are tight this week.                                            of defects in these cases. Baja has better quality but is
                                                                         demanding a higher price point.
Onions
The onion market is hot as a result of all the rain NM got               Red & Yellow Bell Pepper
last week. Most all the sheds down there should be up and                EAST: Very limited volume is importing from Honduras,
running and I expect that this onion market will settle down             therefore, most demand is turning to Canada & Mexico to
a little over the next few weeks. The sheds are well behind              bridge supply needs. FOBs are up with fair to good quality
on filling orders and this is keeping the market up. I don’t             available.
believe we will see any single digit fobs on yellows out of there        WEST: Both Canada & MX’s production has slowed over
this year. Its going to be a good market this year for these             the last week, but with good weather in the forecast, things
summer onion growers.                                                    should rebound through transition in the next few weeks.
                                                                         Green cast has been the biggest concern from both regions.
Oranges                                                                  Look for FOBs to increase with the snug supply.
We are still running navels, quality is a bit rough due to nearing
the end of the season. You will see some soft fruit with
puff and crease, also some clear rot due to all the moisture
this season. We have also started some Valencia’s and will
continue through the summer, the overall crop volume is of
normal size and peaking on 88’s,113’s. The overall quality of
the Valencia’s looks good now, but fruit will have a tinge of
green with good internal juice and sugars are 12-13 so eating
good, and keep in mind they are a Valencia that has been on
the tree for about 15 months.

Parsley(Curly, Italian)
ESCALATED Supply is tight due to recent quality and
weather-related issues.

Green Bell Pepper
EAST: Georgia still has some pepper, but heat and rain are
starting to take their toll on quality. #1 grade fruit is very limited
from this region. A few local deals are starting to pick in the
Carolinas with more volume expected next week. These will
bridge the gap until MI, NJ, and the other scattered local
deals take over for the remainder of the summer season.
FOBs are up and quality is split.
WEST: Supply is transitioning from the CA desert into the
Bakersfield area. Legrande is projected to start this weekend,
1-2 weeks ahead of schedule. Despite Legrande coming
on board, supply will be snug for a couple of weeks through
transition. FOBs are up and quality is mostly good, but some
fair crops coming from older regions.

                                                                                                                                        14
market trends
WEek ending june 28, 2019

Produce (continued)

Pineapple						                                                   Sweet Potatoes and Yams
Pineapple markets are trending towards smaller sizes. We are      WATCH LIST The sweet potato market continues to be tight
expecting to see less 5’s and more 7’s and 8’s for the next 2     after many growers were affected by Hurricane Florence in
months. Quality is very good right now, climate in Costa Rica     North Carolina last September. Increasing demand and heavy
has improve which is optimal for maintain good quality.           rains in Mississippi, Louisiana, Arkansas, and Alabama also
                                                                  created challenges for the other major growing regions, but
Idaho Potatoes                                                    luckily quality and size is still good. We will continue to see
The remaining supply in Idaho looks pretty small based on         the price of sweet potatoes rise month by month over the
the lack of movement on small cartons. 70cts and larger are       summer until we get to next season’s harvest.
up again this week with tight supplies across the state. Most
Growers are projecting a new crop start date of the second        Yellow Squash/Zucchini
week of August.                                                   EAST: Eastern production is scattered all over, but no
                                                                  source has a significant amount of volume. Many regions
Radishes                                                          experienced weather, both rain and cooler temps, which is
Markets are firming up due to heavy precipitation and wind        impacting quality. FOBs are up with the fragmented regions
damage to fields.                                                 and subpar quality available, especially on yellow.
                                                                  WEST: Baja, Santa Maria, & Fresno are all producing steady
Salad Blends                                                      numbers. CA seems to have the better quality, but as usual,
Prices are climbing; iceberg and romaine volume is limited.       yellow is showing more scuffing that we’d like to see. FOBs
Quality is fair. Inspectors are closely monitoring finished       are flat with relatively good quality available.
cartons for heat-related defects, as well as chunks and cores,
to achieve the best packs.

Snow Peas
ESCALATED Many areas are still shut down, but we should
start to see some product in the next weeks.

Sugar Snap Peas
ESCALATED Many areas are still shut down, but we should
start to see some product in the next weeks.

Spinach (Bunched)
Spinach supply and quality are fair due to the recent heat
wave.

Spinach (Baby)
Supply and quality are fair due to the recent heat wave.

Spring Mix
Supplies are fair/good. Quality has been fair because of recent
rain, followed by hot weather.

                                                                                                                                    15
market trends
WEek ending june 28, 2019

TOMATOES                                                                    WEST/MEXICO
                                                                            Rounds
EAST                                                                        Western supply continues to be driven by vine ripes, but mature
Rounds                                                                      greens are quickly picking up steam. New crop vines from eastern
Eastern tomato production was on a slight hold last week due to             MX & Baja are looking great. Nogales still has a handful, but these
rain, but things have since cleared up in the SC, FL & GA regions.          are quickly on the decline as their season wraps up. Northern
SC fruit has a larger size profile than other regions, but the full         CA mature greens have started in a light way, with more growers
spread is readily available. Recent rains had initially affected quality,   coming on board each week. Expect things to be going full steam
but things are starting to bounce back. FOBs are steady but                 closer to July 1. FOBs are steady with good quality available. Note,
feeling a little downward pressure as the western market picks up           Nogales quality is poor to fair.
steam.
                                                                            Romas
Romas                                                                       Strong volumes are coming from Eastern MX & Baja this week.
Supply continues to be limited as suspected. Romas are in                   Northern CA has begun in a light way and we will see this
the hands of few from the Quincy region. TN, VA & NC will be                continue to ramp up through July 1. No shortage of romas at
running in July. The west is the driver seat for summer season.             this time. FOBs are down and quality is good to excellent.
FOBs are steady with good quality available.
                                                                            Grapes/Cherries
Grapes                                                                      Similar to rounds and romas, Eastern MX & Baja are in the
Grapes are readily available in FL/GA & SC this week, with SC               driver seat right now. FOBs are steady and quality is good
carrying most of the volume. Sizing was on the bigger side                  (much improved from prior weeks).
initially, but this has since leveled out as we move into 2nd and
3rd picks. FOBs are steady moving into the end of this week.                Tree Fruit
Quality was somewhat questionable the last couple of weeks                  Supplies are going good on Peaches, plums and Nectarines
due to rain, but we are seeing improvements with the later                  market but still strong as the cool weather has slowed growth,
picks.                                                                      but we are looking at hot temperatures starting today and fruit
                                                                            volume will really start to increase and markets should ease a
Cherries                                                                    bit. Cherries are also tight due to the rains that caused some
Steady as she goes, there is good availability from the                     major damage.
southeast region. FOBs are steady to slightly down with good
quality available.                                                          Watermelons
                                                                            Good supply crossing through Nogales and McAllen. New crop
                                                                            is also available out of the desert and South Georgia. Quality is
                                                                            outstanding.

                                                                                                                                               16
You can also read
Next slide ... Cancel