PRO* ACT The Source AUAI The Source May 20, 2015 © 2015 PRO*ACT, LLC T H I N G S Y O U S H O U L D K N O W : LEMONS: Demand exceeds supply. Summertime demand and lighter production caused by the California drought. Expect lighter supplies throughout the summer and into the fall. ONIONS: Southern California and Texas Onion growers were hit with up to inch of rain which has interrupted supplies. Markets are active. Weather: Tim Lynch The cool weather pattern along the West Coast continues through the week as a couple of weak cold fronts move into California. These systems do not contain a lot of moisture but will bring a chance of light showers and isolated thunderstorms to California into Friday.
This weather pattern will continue to bring in a deep marine layer, fog and drizzle along the entire coast. Temperatures will remain below average through the week as coastal valleys struggle to reach the low 60s with low 70s in the inland regions. In the Southwest, N Mexico and Baja temperatures remain unseasonably cool (5-15degrees) with strong, gusty winds through the week under the influence of these low pressure systems. In the Southeast scattered showers and thunderstorms are forecast as a weak cold front moves into the region. Temperatures in the 80s to low 90s are forecast through the week.
Freight: Mike McIntire Trucks in CA look to be tighter than normal this week due to the Memorial Day holiday next Monday. Trucks in the Northwest and Idaho look to be steady but will tighten up toward the end of the week. Crude oil remains steady at 58.70 per barrel. Fuel prices continue to remain steady.
PRO* ACT The Source Commodity Updates Commodity Quality Market Apples – MI Good Steady Apples – NY Good Steady Apples – OR/WA Good Steady Asparagus – CA Good Higher Asparagus – Peru Good Steady Asparagus - MX Good Steady Avocado (Mexican) Excellent Steady Avocado (California) Excellent Steady Bell Peppers (West) – CA Good Steady/Higher Bell Peppers (West) – S MX Good Steady/Higher Bell Pepper (East) - FL Good Steady Bell Pepper (East) – GA Good Steady Berries: Strawberries – Nor CA Fair Steady/Lower Berries: Strawberries – Oxnard Fair Steady/Lower Berries: Raspberries – MX Fair Steady Berries: Raspberries – Nor CA Good Steady Berries: Raspberries - Cent Ca Good Steady Berries: Blackberries – MX Fair Steady/Lower Berries: Blackberries - Nor Ca Good Steady Berries: Blackberries - Cent Ca Good Steady Berries: Blueberries - CA Good Steady Berries: Blueberries – MX Good Steady Broccoli – MX Fair Higher Broccoli – CA Fair Higher Carrots - CA Good Steady Cauliflower – CA Fair Steady Celery – Cent CA Good Higher Cherries - CA Excellent Steady Citrus: Lemons - CA Good Higher Citrus: Oranges - CA Good Steady Citrus: Limes - MX Good Lower Cucumbers (Eastern) FL Excellent Steady Cucumbers (Eastern) GA Excellent Steady Cucumbers (Western) MX Good Steady Eggplant (Eastern) FL Excellent Steady/Lower Eggplant (Western) MX Good Steady/Higher Grapes: Green – CA Excellent Steady/Higher Grapes: Green – MX Excellent Steady Commodities at a glance… Commodity Quality Market Grapes: Red – MX Excellent Steady/Lower Grapes: Red – CA Excellent Steady Green Onions - CA Good Steady Green Onions - Baja Good Steady Lettuce: Leaf - Salinas Fair Higher Lettuce: Leaf - Cent CA Fair Higher Lettuce: Iceberg - Cent CA Fair Steady Lettuce: Iceberg - Salinas Fair Lower Melons: Cantaloupe - S.A.
Poor Steady/Lower Melons: Cantaloupe - AZ Excellent Steady Melons: Cantaloupe - CA Excellent Steady Melons: Honeydew - S.A Fair Lower Melons: Honeydew – MX Good Steady Melons: Honeydew - AZ Excellent Steady Melons: Honeydew - CA Excellent Steady Onions – CA Fair Higher Onions – TX Poor Higher Onions – CA Good Higher Pears – OR/WA Good Steady Pears – Chile Good Steady Potatoes – ID Good Steady Potatoes – WA Good Steady Potatoes – CO Good Steady Potatoes – WI Good Steady Potatoes Color – CA Good Steady/Lower Potatoes Color – AZ Good Steady Potatoes Color – FL Good Steady Potatoes Color – TX Good Steady/Higher Squash (Eastern) FL Good Steady/Higher Squash (Eastern) GA Good Steady Squash (West) MX Good Steady Squash (West) CA Good Steady Stone Fruit – CA Excellent Steady Tomatoes (East) FL Good Steady Tomatoes (West) CA Good Steady Tomatoes (West) MX Good Steady Watermelon – Sonora MX Good Steady Watermelon – Coachella Good Steady
PRO* ACT The Source Commodity Updates continued APPLES / PEARS: John Tole New York is still packing a few Red Delicious and Red Romes. Both varieties are still peaking larger fruit. The quality has been good. New York expects to pack through the first week in June. Michigan is still packing Ida-reds, Jonagolds, Jonathans, McIntosh, Red Delicious, and Red Romes. The Red Romes, Red Delicious, and Jonagolds are peaking on the larger sizes. The Jonathans and Ida-reds are peaking on smaller fruit. Availability is light for all varieties as the end of the season approaches. The quality has been good.
Washington Red Delicious are steady but most suppliers will flex on volume orders of 88's and larger. Most packers are peaking on 88's and larger in the premium and Washington extra-fancy #1 grades. Small reds remain relatively short. Golden Delicious are steady on all sizes. The Goldens remain evenly sized but 125's and 138's are relatively short. Granny-Smith are steady and are peaking on 64/72's. Granny- smith 100-size and small are very short. Fujis are steady to higher and are peaking on the larger sizes. Small Fujis remain extremely short. Galas are also steady to higher and are still peaking on 88/100's.
The Galas have better availability in the smaller sizes than most other varieties. Opals, Pink Lady's, and Braeburns are the only varietals left and supplies are light.
Pears: Washington is packing both D'anjou pears and red pears and the markets are steady. The D'anjous are peaking on US#1 80-100's and have limited availability of fancy-grade fruit. The red pears are peaking on 50/55 half-cartons and supplies are light. They will be available through May. On the import side we have Chilean Packhams and Bosc. The Packhams are steady on all sizes and are peaking on 100's. Chilean Bosc are steady as well and are heavier to 100/110's. California is set to start packing new crop Bartlett pears the week of July 6th. ASPARAGUS: Gabe Romero/Mike Pacheco Peruvian production continues to be strong in availability and represents the best deals to be had.
Loading out of Miami allows for the best pricing in the marketplace. All sizing is available, with the majority coming in standard and large size packs. Loading in Southern California is an option as well. Mexican production is moderate at best. Standard and large sizing are the main packs available on eleven pound cases for Mexican as well as California product. There are decent of jumbos available as well. Twenty-eight pound cases are not being packed out of the regions already mentioned.
AVOCADO: Tim Kelley California growers are harvesting good volume. They are peaking on 60's and smaller, with 48's and larger still limited in harvest. We'll see crop fill in with a broader range of sizing as we move through the month. Overall volume of this year's California crop looks to be lighter than first projected due to the drought. Quality and flavor are both very good. Mexico is over 75% harvested for their season. Good supplies continue to come in, and still heavy to 60's and smaller. 48's and larger remain tight, but are showing some slight improvement. Quality and flavor are at their peak.
BELL PEPPERS: Eastern Bells: Janine Baird Volume on pepper continues to be light as many Georgia shippers are not working as much pepper as anticipated. Supplies out of Florida remain light as well. With Nogales finishing up, it remains an active market on the in the Southeast. Western Bells: Jaime Contreras Colored bells from Mexico are starting to taper off in volume as some growers are wrapping up. Green bells continue short from Nogales especially on large fruit. Sonora is the main source of green bells but their run will be wrapping up soon. Large fruit in both green and colored bells remain short and at a premium.
Southern California has started and production is increasing with green bells and colored bells started. Loading locations in Southern California: Coachella, San Diego & Oxnard.
PRO* ACT The Source BERRIES Tom Smith Blackberries: Market and demand remain fairly steady. California fruit is being sold at a premium over Mexican fruit. Mexico volumes continue to decline and California fruit continues to increase slowly. Some quality issues showing up are red cell and soft spots, bleeding. Overall, the new California fruit has looked very nice. Blueberries: Market is steady, demand is good. Fruit availability has been snug on both coasts and looks to be the same situation to start next week. Florida has finished most local production. Georgia volume is light as the high bush varieties end and the rabbit eye varieties have not yet started.
North Carolina should start in the next week which will help to increase supply on the eastern side. California crop has slowed down over the recent weeks with rain and cooler weather. Mexican production continues to decline out of all areas. Availability is light in all packs. Raspberries: Market and demand remain fairly steady. As Mexico continues to decline weekly, we will see an increase in California fruit. Overall volume should remain steady as the crop transitions to CA. Some quality issues reported with soft, overripe berries. Strawberries: Demand and market are trending downward as we've passed the largest portion of the Memorial Day berry pull.
Some shippers are considering ending the Santa Maria fresh production season early to help maintain the market for fresh strawberries. They may be diverting fields into freezer/juice as early as the next couple of weeks. Overall quality is fair to good. Some quality issues showing up in the packs from the recent rain would be light color, soft spots, bruising and occasional mold. Fruit may not have the shelf life you are used to for this period. Please make sure to maintain proper cold chain to maximize shelf life. Grower/ shippers are working with their harvest crews to divert as much subpar fruit as possible and put quality fruit into the clams.
BROCCOLI: Gabe Romero/Mike Pacheco This market is still active. Crowns as well as bunched product continue to gain strength in the marketplace. The main production is coming out of the Salinas Valley. The problems with knuckling and branching continue with bunched product. Crowns will be very light throughout the week. Santa Maria will be light in availability all week. Production in Mexico is moderate to light and crowns have tightened up in this region as well. CARROTS: Tim Kelley California desert crop is starting to finish, and Bakersfield crop is just starting. Size is only fair coming out of the desert crop and it is to early for much size in Bakersfield.
Jumbo size remains snug.
CAULIFLOWER: Gabe Romero/Mike Pacheco This market is firm. Demand continues to exceed supplies. Escalated pricing is in effect. There is a gap in production that will run through the week at a minimum. Quality issues continue to be reported with irregular size heads and slight discoloration seen upon arrival. Santa Maria and Salinas are the main growing regions currently. CELERY: Gabe Romero/Mike Pacheco This market continues to gain strength. Smaller sizing overall is tighter in availability. Loading in Oxnard/Santa Maria continues to give the best fob price. Salinas will not begin production until mid to late June.
The quality is being reported as good in terms of sizing and texture. Loading in Salinas for this commodity will cost extra money due to the transportation fee from the Oxnard region tacked onto the fob price. CITRUS: Tim Kelley Lemons: Size curve of the crop is peaking on 140's and smaller. Demand is exceeding supplies on all sizes and grades of fruit. Very good demand and drought conditions in growing areas producing less fruit and no size growth are the major factor for the demand exceed conditions.
Oranges: California Navel crop is dropping off and peaking on 72's/56's. California Valencia oranges are going. Labor to pick the fruit has become an issue now with the labor force being spilt with the stone fruit harvest going as well. Demand is exceeding supplies on smaller fruit Commodity Updates continued
PRO* ACT The Source Commodity Updates Continued 113's and 138's. Quality on Valencias is very good, color is nice and brix are 11-12.00 average. Limes: The lime market came down on the larger sizes from last week's levels and is currently holding.
The smaller sizes are holding pretty steady with a hint of upside in the prices from some shippers. Supplies are increasing on larger sizes now and decreasing slightly on smaller sizes. The previous forecast of lower overall supplies from April through mid May has held true to date on larger sizes but that trend is now reversing. Lower prices have helped spur demand on all sizes. The overall quality is good on the new crop that is being harvested. CUCUMBERS: Eastern Cucumbers: Janine Baird Volume on pepper continues to be light as many Georgia shippers are not working as much pepper as anticipated.
Supplies out of Florida remain light as well. With Nogales finishing up, it remains an active market on the in the Southeast.
Western Cucumber: Jaime Contreras Market is steady. Production from Sonora is steady volume with Sinaloa pretty much wrapped up for the growing season. Warm weather has kept production steady from Sonora. Market may get unsettled as some Sonora growers are beginning to wrap up. Baja California is shipping with good quality, but at higher FOBs. EGGPLANT: Eastern Eggplant: Janine Baird This market is weak but quality remains good. Eggplant will start showing up in South Georgia by the weekend. Western Eggplant: Jaime Contreras Market is steady/ higher as some Mexican growers are close to wrapping up.
We anticipate market to go up as Mexico supplies dwindle. Once Mexico wraps up, Southern California will be the next source for eggplant. Light production has started in Southern California with excellent quality.
GRAPES: Brad Tremblay Green: The green grape market is steady out of Mexico with good demand. Sizing continues to improve as the Perlette deal is peaking. Sugarones are set to start in about a week with early reports on size and quality as excellent. The green grape market out of Coachella continues to be strong with limited availability due to the lower than normal temperatures for this time of year. Red: The red grape market out of Mexico is adjusting downward in response to light demand and much better volume. Volume is heavy to the medium large flames and this is where the shippers are offering out the best buying opportunities.
The Coachella market on red grapes has adjusted downward due to the dropping market in Mexico. However, the volume available out of Coachella is still limited by comparison and this market continues to demand a premium over the Mexican fruit. GREEN ONIONS: Gabe Romero/Mike Pacheco This market continues on a steady path. Most of the production for this commodity is being produced out of the Baja region of Mexico. Supplies will be strong throughout the week. All sizing is available. Light supplies are being harvested in Salinas. The heavier abundance of product is coming in small and medium size packs.
LETTUCE: Gabe Romero/Mike Pacheco This market is softer. There continues to be a gap in pricing among the different shippers by as much as five dollars. The Salinas Valley continues to produce the bulk of the lettuce supplies with Southern California also in moderate production. Local production continues in the U.S. The weights are ranging from 41-47 pounds for California product. Issues include ribbing, insect damage, rusting and puffiness from California. LEAF LETTUCE: Gabe Romero/Mike Pacheco Romaine is stronger. Quality issues continue. Tip burn, wind burn and mildew are common defects with this commodity.
These issues are industry wide. Insects are not as big an issue as
PRO* ACT The Source Commodity Updates Continued in past weeks, but they are still seen sporadically upon arrivals. The weight have dropped to 30-32 pounds as suppliers peel back to have a cleaner product. These same issues are also evident in green and red leaf items. Green and red leaf continue to be very light in availability with all suppliers. Both of these commodities are on escalated pricing and will be tight in availability all week. Demand continues to exceed supplies. Shippers are holding customers to averages. MELONS: Jim Murphy Cantaloupe: Cantaloupe supplies are continuing to decrease regarding offshore melons and are expected to finish by the end of this week.
The desert crop has good supplies which are increasing each week. Nogales supplies are finished for the season. Cantaloupe sizing overall from all areas is lighter on small sizes and more plentiful on larger sizes. Arrivals of offshore melons on the west coast are finished now. Demand is good on all sizes. Quality is excellent on the domestic lopes. The offshore lope quality is still acceptable with some shipments coming in soft. The desert region experienced some rainfall last Friday and Saturday. The showers disrupted harvesting and some lopes may have a little dirt on them because of muddy conditions.
The market is currently holding steady.
Honeydew: Offshore honeydew supplies continue to remain lighter than previous weeks and will be finished before the end of this month. Some offshore shippers have already finished for the season. Demand is not very good on offshore dews because of lower quality. Supplies out of Mexico are tapering off now from their peak production levels. The desert has started with volume picking up nicely and the dews are excellent quality. The quality on Mexican and domestic dews are very nice and they all have high sugar contents too. The peak size is 6's on all dews coming in. The dew market is steady on all domestic and Mexican dews while deals are being made on the lower quality offshore product.
ONIONS: Mike Gorczyca The onion market continues to rise on all colors and sizes as supplies wind down out of Texas and Southern California. The markets will stay active until New Mexico and Northern California get up to speed which will be the middle of June. Northern California has started in a very light way this week with yellows and whites. Reds will not start till late next week. New Mexico will break ground in a light way next week on Yellows onions followed by red onions the following week. Southern California and Texas growing areas received rain last week which has hurt the quality of the onions.
Staining and dirty onions are the main issue out of California. There is some decay showing up in the onions out of Texas. The forecast is calling for slight chance of Rain Friday in California.
POTATOES: Mike Gorczyca Little change in demand or pricing out of all growing areas (Idaho, Washington, Colorado and Wisconsin) this week. Larger potatoes continue to demand a premium with limited supplies out of Idaho. Washington, Colorado and Wisconsin are in larger shortages and are producing large cartons currently. Quality is good out of all areas. All shipping regions are not concerned about running out of storage potatoes before fresh crop arrives at this time. COLORED POTATOES: John Tole Bakersfield, California continues to pack all colors and all are peaking on A-size. There are some volume deals available on red A's.
The quality has been good.
Phoenix, Arizona continues to pack reds and golds. All sizes are available in the reds and they are peaking on A-size but the B supplies are good as well. The golds are heavier to B- size. The quality has been good. Pearsall, Texas is still packing reds but is still rained out. Northern Florida (Hastings) is also packing all colors. The Red A market is stronger again
PRO* ACT The Source Commodity Updates continued due to strong demand, all other sizes and colors are fairly steady. The size-profile is heavy to A-size for all colors. The Florida quality has been good.
SQUASH: Eastern Squash: Janine Baird Squash is still readily available throughout South Georgia and Central Florida. However, with the market being on the floor for so long, many growers will quit and by the front of next week the market will firm up accordingly. Watch for a gradual increase in price and limited availability on green next week. Western Squash: Jaime Contreras Italian squash is mostly steady along with yellow squash. Yellow squash has wide range of quality and better lots are selling at the higher end of the quotes. Sonora is approaching wrapping up the growing season. Southern California is shipping and Santa Maria is also starting.
STONE FRUIT: Brad Tremblay The peach and nectarine market is about steady with select buying opportunities on a variety of sizes (depending upon the specific shippers needs). Quality is reported as very good. The plum market is good with more shippers coming into the early season harvest daily. Sizing is running heavily to the 60 series on both red and black plums. The apricot market is steady with a wide range of sizes available. Cherries: The cherry market is about steady with excellent quality. The southern San Joaquin deal has peaked and is cleaning up as the Lodi / Stockton area continues with good supplies.
The northern San Joaquin will overlap with the Washington cherry deal the last week of May.
TOMATOES: Aaron Aliotti Eastern/Tomatoes: Palmetto/Ruskin growers are harvesting heavy volumes of round tomatoes this week. Quality remains very nice on both rounds and romas. Roma available in the Southeast however most the volume is crossing in the West. When it comes to cherry and grape tomatoes, product availability by region continues to drive pricing on both items. Florida grape and Cherry tomatoes are past their flush and have slowed down in production allowing for a small increasing in pricing with no major shifts in demand.
Western/Mexico: There are good supplies of round tomatoes coming out of the west right now.
Hearty supplies of minimally-priced fruit are still available daily, though typically only western buyers have interest in this product. The fright rates keep the supply regional to shipping point, but given Florida's low pricing, even some western buyers have been looking east for their procurement needs. Production has begun in the California desert and the Central Valley is expected to begin as we head into next month also. Mexico continues to harvest romas in strong volumes. With more growers starting production in Baja the outlook is good for supply and availability. Grape production is increasing in Baja with good supply crossing into southern California where supplies should be ample through the rest of the year.
WATERMELON: Jaime Contreras Most production is coming from Sonora. Market is steady as demand and commitments made for Memorial Day holiday is keeping product moving. Most product coming in bins cartons packed upon request. Some light supplies from Southern California. Southern Texas has also started.