The Source 6-11-2012

PRO* ACT The Sour ce

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The Source

June 11, 2012 © 2012 PRO*ACT, LLC LLC

T H I N G S Y O U

S H O U L D

K N O W :

Cantaloupe remains

limited on small sizes

Freight: Mike McIntire

Trucks in California remain tighter than normal with rates rising each week. Trucks in the Northwest remain steady. Crude oil continues to fall and is currently at 83.30 per barrel. The National Average dropped again last week to 3.846 per gallon and should drop slightly again this week when it comes out later today.

Weather: High pressure out west will keep the Central California region warm through mid week. A mid week cool down (5-10 degrees) and a return of the marine layer is forecast as a weak system moves in from the north. As this high pressure system moves east Tuesday, strong winds especially in Southern California are expected. High pressure returns late this week with warming into the weekend.


Commodity Updates

APPLES/PEARS John Tole New York is still packing light volumes of Empires, Rome’s, and Red Delicious but they will only be packing for a couple more weeks. Washington Reds are peaking on 88/100’s and the higher grades. The lower grades are still very limited. Golden delicious are still heavy to the higher grades and the 88 & 100 sizes. Lower grade Golden’s remain limited as well. Granny-Smiths are peaking on extra fancy 88/100 sizes and are also limited on the lower grades. Galas are heavy to 88’s and smaller and the higher grades but remain very short. Washington Fuji’s are peaking on extra fancy 72/80/88’s and they are still very short as well. D‘Anjou pears continue to peak on the US#1 grade and are evenly spread across the size spectrum but supplies are limited especially on the fancy grade. Washington Bosc pears are essentially finished. There are a few Red Pears still available but they are also almost finished as well. California will have new crop Bartlett Pears at the end of July. ASPARAGUS Gabe Romero/Mike Pacheco This market is firm. Supplies continue to be very light. Most packs are the eleven pound with very few 28s being packed, due to light availability. Supplies out of Mexico continue to be very light. Production from Peru shows light availability as well. Domestic grass will go until early July with one supplier in Salinas. Demand exceeds supplies. Jumbo grass is at a premium price. AVOCADO Tim Kelley Mexican supplies are declining weekly, with decent volume through June. California volume is increasing; peaking on 60ct, with 48ct and larger in short supply. California fruit has good maturity, flavor and oil content. BELL PEPPERS Western Bells: Jaime Contreras Green bell market is very active and trending up as growers will transition from Coachella to Bakers field and other northern districts. Colored unsettled and trending up. Upcoming transition to other districts is impending. Eastern Bells: Janine Baird With persistent rain hitting South Georgia for the last several days, pepper is tightening up.

With marginal quality and limited supplies, expect this market to creep up this week.

Commodity Quality Market

Apples Excellent Higher

Asparagus Fair Steady

Avocado (Mexican) Excellent Steady

Avocado (California) Excellent Steady

Bell Peppers (Western)

Good Steady

Bell Pepper (Eastern) Good Steady

Berries: Strawberries Good Higher

Berries: Raspberries Good Steady

Berries: Blackberries Good Higher

Berries: Blueberries Good Steady

Broccoli Good Higher

Carrots Good Steady

Cauliflower Fair Higher

Celery Fair Steady

Citrus: Lemons Good Steady

Citrus: Oranges Good Steady

Cucumbers (Western) Good Steady

Cucumbers (Eastern) Good Steady

Eggplant Good Steady

Red Grapes Good Higher

Green Onions Fair Steady

Lettuce: Leaf Good Steady

Lettuce: Iceberg Fair Steady

Melons: Cantaloupe Good Steady

Melons: Honeydew Good Steady

Onions Excellent Steady

Pears Good Higher

Potatoes Excellent Steady

Squash (Western) Good Steady

Squash (Eastern) Good

Steady

Stone Fruit Good Steady

Tomatoes (Western) Good Steady

Tomatoes (Eastern) Fair Steady

Watermelon Good Steady

Commodities at a glance…


Commodity Updates continued

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BERRIES Mike Gorczyca Strawberries: The market is slightly firmer the start of this week due to lighter supplies which could continue for next week or so till the next push of fruit comes on. A lot of the Santa Maria and a few of the Salinas grower have switched their fields to freezer due to a good market and with the fresh market being depressed last week. Quality is being reported as good with a few fair lots showing up. The main growing area currently for strawberries is the Salinas/Watsonville areas. Strawberry counts are running large 11 – 16 count with 95% full color. Santa Maria growing area has hit their peak a few weeks ago. Strawberry counts out of this growing area are running 18-22 count with 95% full color. Quality is good to fair. Raspberries: The market is steady with good quality fruit being harvest currently. Blackberries: The blackberry market is still tight. Local supplies out of California have started but are very limited and will not get up to speed for a few more weeks. Quality is being reported as fair to good. Blueberries: The blueberry market is steady on both coasts. The main pack sizes are 6oz and larger. Quality is reported as good. BROCCOLI Gabe Romero/Mike Pacheco This market is active on bunched product as well as crowns. Bunched product and crowns are about equal in availability, a sharp contrast compared to previous weeks. Salinas and Santa Maria are the main growing regions for this commodity. Demand looks to be higher throughout the week. There are no major issues to report in terms of quality. CARROTS Tim Kelley California carrot supplies remain good. Sizing of the carrots are improving with steady warm weather, with availability of jumbo size carrots improving. CAULIFLOWER Gabe Romero/Mike Pacheco This market is stronger as supplies will be lighter throughout the week. The main sizing continues to be twelve counts. Demand is stronger. Light brown spotting is being seen upon arrivals, so please be aware. Most shippers continue to deal with this issue. Expect pricing to be active throughout the week.

CELERY Gabe Romero/Mike Pacheco There is no change in the market. Things are steady. Supplies continue to be best on 24s and 30s. Smaller sizing is commanding a higher price. Salinas has begun production and more will be available next week. The option for Salinas, Oxnard, and Santa Maria exists. This will save some trucks from going down South. CITRUS Tim Kelley Lemons: Ventura crop harvest is going at full production. Demand is exceeding supplies on 140 and 165 lemons which are normal this time of year. We will not see much relief until Chilean imports begin sometime around mid July. Oranges: The Navels production and supplies are light and coming to the end for many shippers. The Valencia orange harvest remains steady, with sizing peaking on larger sizes – 72’s/88’s. Heavy demand on small sizes is keeping market firm. Limes: Supplies are good on all sizes. CUCUMBERS Western Cucumber: Jaime Contreras Market is settling, fancy product light supplies, production is increasing. Eastern Cucumbers: Janine Baird The cucumber market continues its slump as the Carolinas start to work new crops. This market should stay at the lower levels until Georgia finishes up in another couple of weeks. EGGPLANT Western Eggplant: Jaime Contreras

Market is active and trending up. Supplies are lightening up as transitions will start soon. Eastern Eggplant: Janine Baird Georgia is in full swing on eggplant now and with minimal demand, the market continues to slip. Quality is fair. GRAPES: Amy Grolnick The market on the red grapes is higher in Nogales and Coachella both. The market will remain active through the end of the month as the Caborca area starts up in Mexico and Coachella continues. Sugarones are in good supply with a steady market in both areas. Black Seedless has good supplies and Red Globe is starting off in a light way.


GREEN ONIONS Gabe Romero/Mike Pacheco This market is steady. Supplies continue to be light to moderate out of Mexico with most suppliers. The quality continues to have a few issues with decay upon arrival. Pencil sizing will have the best availability. Supplies are expected to be light to moderate throughout the week. LEAF LETTUCE Gabe Romero/Mike Pacheco The leaf market is steady. Supplies will strong throughout the week. Warm temperatures this past week has made supplies stronger. Supplies out of Santa Maria are expected to be good, but Salinas will have the best availability of product. Green and red leaf and romaine will be plentiful throughout the week. LETTUCE Gabe Romero/Mike Pacheco The lettuce market is steady to start the week. Most suppliers have more lettuce to sell, and offers are being listened to. Decay, pink ribbing and brown outer leaves continue to be an issue. Although the quality has improved compared to past weeks, the lettuce is not diamonds. Santa Maria has production also available, with weights similar to Salinas’s lettuce. The weights on palletized lettuce will be 38-44 pounds. MELONS: Amy Grolnick Cantaloupe: Mexican cantaloupe is done for the season. Arizona domestic fruit is limited on 12’s and smaller with fruit still running very large. The market is steady. Honeydew: Mexican fruit continues to cross over into Nogales where both volume and quality are good. There is good availability of all sizes. The Imperial Valley has good quality and availability of honeydew with mixed melons available as well. Arizona is getting better supplies with good quality. ONIONS John Tole Yellow are steady to lower in both California and New Mexico. Both areas are still peaking on jumbo and medium yellows however some suppliers have finished their smaller early onions and are getting better size now. Reds are steady to lower in both areas and supplies are up on the jumbos while mediums are

limited. Whites are steady to lower and both areas have good supplies. The quality reports are good on all colors in both the new areas. POTATOES John Tole Cartons are steady in Idaho and the demand remains light. Most shippers are still peaking on 80-count and smaller Burbanks and they are shorter on the larger counts. Most shippers are still discounting for volume orders of 60-count and smaller. The Washington market is steady to lower and they are peaking on 60-80’s. Most Washington shippers will also flex for volume. The Colorado market is steady to higher due to light storage supplies and they are still peaking on 50-80’s. The Colorado shippers are conserving there bulk so they don’t run out early. California is packing its first russets today! The russet quality has been excellent in all areas. Bakersfield is still packing red, gold, and white potatoes and the availability is good for all colors. California is heavy to A-size now but there is no shortage of B’s. Florida is only packing a few reds now and they are mostly large. North Carolina and Alabama are supposed to start packing reds this week. SQUASH Western Squash: Jaime Contreras Italian and Yellow S/n very active trending up and demand outpaces production. Yellow squash especially is wide range of quality. Yellow squash is extreme demand exceeds. Windy and inclement weather has affected yellow squash quality and production. Availability ought to improve latter part of this week start of next week. Eastern Squash: Janine Baird With the Carolinas ramping up on squash and Michigan starting this week, demand is off. However, with quality issues in South Georgia resulting from all of the wet weather, there is still limited availability down south, particularly on yellow. Quality is fair. STONE FRUIT Amy Grolnick California peaches are now in full swing with good sizing and promotable volume. Both the nectarine and plum market remains strong as demand exceeds supplies. Bing cherries are


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going now with good availability and quality. Rainiers are starting off with a high price point but good quality and availability. Apricots have good size and quality. TOMATOES Jay Martini Western: The thrust of the tomato deal out west will shortly turn to the San Joaquin Valley in California. Presently, in Nogales, AZ only 4x4 / 4x5 flats and Romas remain available, albeit sporadically, and crossings at McAllen, TX have dwindled. In California, the short-lived Imperial Valley deal near Indio has ended due to extreme heat, and the first fields in the central valley from Bakersfield to Firebaugh will commence harvest in about a week. From there, Merced County will start about the 18

th

with potentially decent volume by the week of the 25

th.

Eastern: The Palmetto/Ruskin tomato deal is all but finished, and intermittent rains have affected the northwest Florida deals from Chief land to Quincy, but pickings have continued with a run of sizes and generally good quality. Meanwhile, the Charleston, SC district is gearing up with good supply and mainly x-large size, although recent reports have size dropping off, which could possibly bring a higher amount of large & medium mature green tomatoes over the next few days. VALUE ADDED Gabe Romero/Mike Pacheco

The lettuce quality continues to have some issues of decay. Availability will be good throughout the week. The Romaine supplies are good. Broccoli supplies are light but as of now, all orders are being filled to its entirety. The cauliflower supplies should be light to moderate for the entire week. Occasional brown spotting has been reported on this commodity.

WATERMELON: Jaime Contreras

Markets are steady. Continues demand exceeds on s/less watermelon. Current availability on Seedless watermelons is light but, supplies are improving as Northern growing district is in full production. Most availability will be in bins on s/less. Lighter production from Northern Growing areas is keeping FOB’s strong. Availability on seeded

watermelon is sporadic as those growing districts wind down in production. We will continue shipping w/melon from Nogales for minimum two more weeks. Next district to ship from will be in Phoenix.

The Source 6-11-2012

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