market trends October 29, 2016

Transcription

1 For week ending OCtober 29, 2016

2 Beef, Veal & Lamb Beef production last week dropped.5% but was 3.2% larger than the same week last year. Despite this, the weekly average for the USDA choice boxed beef cutout declined to its least expensive level since the summer of This market hasn t traded appreciably below the existing levels for an extended period of time in six years. This factor and seasonally building demand suggests that the downside is limited in many of the beef markets from here. That being said, the upside price risk in beef prices may only be modest due to an ample supply of alternative proteins. The five-year average move for the USDA choice boxed beef cutout during the next two weeks is an increase of just 2.5%. Live Cattle (Steer) Decreasing Short Lower Feeder Cattle Index (CME) Decreasing Short Lower Ground Beef 81/19 Decreasing Good Lower Ground Chuck Decreasing Good Lower 109 Export Rib (ch) Increasing Good Lower 109 Export Rib (pr) Increasing Good Higher 112a Ribeye (ch) Decreasing Good Lower 112a Ribeye (pr) Decreasing Good Lower 114a Chuck, Shlder Cld(ch) Decreasing Good Lower 116 Chuck (sel) Decreasing Good Lower 116 Chuck (ch) Increasing Good Lower 116b Chuck Tender (ch) Increasing Good Lower 120 Brisket (ch) Increasing Good Lower 120a Brisket (ch) Decreasing Good Lower 121c Outside Skirt (ch/sel) Increasing Good Lower 121d Inside Skirt (ch/sel) Decreasing Good Lower 121e Cap & Wedge Increasing Good Lower 167a Knckle, Trimmed (ch) Increasing Good Lower 168 Inside Round (ch) Increasing Good Lower 169 Top Round (ch) Increasing Good Lower 171b Outside Round (ch) Increasing Good Lower 174 Short Loin (ch 0x1) Decreasing Good Lower 174 Short Loin (pr 2x3) Decreasing Good Lower 180 1x1 Strip (ch) Decreasing Good Lower 180 1x1 Strip (pr) Decreasing Good Lower 180 0x1 Strip (ch) Increasing Good Lower 184 Top Butt, boneless (ch) Increasing Good Lower 184 Top Butt, boneless (pr) Decreasing Good Lower 185a Sirloin Flap (ch) Decreasing Good Lower 185c Loin, Tri-Tip (ch) Decreasing Good Lower 189a Tender (sel, 5 lb & up) Decreasing Good Lower 189a Tender (ch, 5 lb &up) Decreasing Good Lower 189a Tender (pr, heavy) Decreasing Good Lower 193 Flank Steak (ch) Decreasing Good Lower 50% Trimmings Decreasing Good Lower 65% Trimmings Decreasing Good Lower 75% Trimmings Decreasing Good Lower 85% Trimmings Decreasing Short Lower 90% Trimmings Decreasing Short Lower 90% Imported Beef (frz) Decreasing Good Lower 95% Imported Beef (frz) Decreasing Good Lower Veal Rack (Hotel 7 rib) Steady Good Lower Veal Top Round (cap off) Steady Good Lower 2

3 Grains Soybean oil futures are trending higher with the nearby futures contract this week reaching its most expensive level in 26 months. A trade dispute between China and the world s largest soybean oil exporter Argentina is partly behind the recent firmness in soybean oil. Soybean oil prices are unlikely to move notably higher from here. Soybeans, bushel Increasing Good Higher Crude Soybean Oil, lb Increasing Good Higher Soybean Meal, ton Decreasing Good Lower Corn, bushel Increasing Good Lower Crude Corn Oil, lb Decreasing Good Lower High Fructose Corn Syrup Increasing Good Lower Distillers Grain, Dry Decreasing Good Lower Crude Palm Oil, lb BMD Increasing Good Higher HRW Wheat, bushel Increasing Good Lower DNS Wheat 14%, bushel Increasing Good Higher Durum Wheat, bushel Increasing Short Lower Pinto Beans, lb Steady Good Higher Black Beans, lb Steady Good Higher Rice, Long Grain, lb Steady Good Lower Dairy The butter market continues to decline with CME prices falling to their least expensive levels since April of last year. Butter stocks are ample and exports remain lethargic. However, domestic demand should expand in the not-so-distant future which could bring support to prices. The five- year average move for the CME butter market during the next three weeks is an increase of 3.6%. The CME cheese markets have found some recent support. Domestic cheese demand remains solid and export order interest is picking up for the winter. The downside price risk in cheese may be nominal. Cheese Barrels (CME) Increasing Good Higher Cheese Blocks (CME) Increasing Good Higher American Cheese Decreasing Good Lower Cheddar Cheese (40 lb) Decreasing Good Lower Mozzarella Cheese Decreasing Good Lower Provolone Cheese Steady Good Lower Parmesan Cheese Steady Good Lower Butter (CME) Decreasing Good Lower Nonfat Dry Milk Increasing Ample Lower Whey, Dry Increasing Good Higher Class 1 Base Steady Good Higher Class II Cream, heavy Increasing Good Lower Class III Milk (CME) Increasing Good Lower Class IV Milk (CME) Decreasing Good Higher 3

4 Pork Pork output last week declined 4.7% and was down 1.7% from the same week a year ago. However, the production decline was due entirely to Hurricane Matthew slowed output in the mid-atlantic. Hog supplies are ample and expected to remain so through the fall which should encourage solid year over year production expansion. As a matter of fact, hog supplies are so burdensome that the nearby hog futures market this week traded at its least expensive level in 14 years. Generally lower pork prices are expected this fall. Live Hogs Steady Ample Lower Sow Decreasing Ample Lower Belly (bacon) Decreasing Good Lower Sparerib(4.25 lb & down) Increasing Good Lower Ham (20-23 lb) Increasing Good Lower Ham (23-27 lb) Increasing Good Lower Loin (bone in) Increasing Good Lower Babyback Rib (1.75 lb & up) Decreasing Good Lower Tenderloin (1.25 lb) Decreasing Good Higher Boston Butt, untrmd (4-8 lb) Increasing Good Higher Picnic, untrmd Decreasing Good Higher SS Picnic, smoker trm box Increasing Good Higher 42% Trimmings Increasing Good Lower 72% Trimmings Increasing Good Lower 4

5 Poultry Chicken production for the week ending October 8th rose 2% from the prior week, was up 6.5% from the same week last year and a record. Year over year chicken output expansion is anticipated during the next few months. The USDA is forecasting fall chicken production to be 1.6 % more than This forecast is affirmed by recent chick placement data where the six week moving average is up 1.7% from the previous year. Chicken tender prices continue to decline. The weekly ARA Chicken Tender Index has fallen $.55 lb. or 25% since the beginning of September to its second lowest level for this time of the year since History suggests that the chicken tender markets may have more downside in the near term. Whole Birds (2.5-3 GA) Increasing Good Lower Wings (whole) Steady Good Lower Wings (jumbo cut) Decreasing Good Higher Wing Index (ARA) Decreasing Good Higher Breast, Bone In Decreasing Good Lower Breast, Boneless Skinless Decreasing Good Lower Breast Boneless Index (ARA) Decreasing Good Higher Tenderloin Index (ARA) Decreasing Good Higher Legs (whole) Decreasing Good Higher Leg Quarters Steady Good Lower Leg Quarter Index (ARA) Increasing Good Higher Thighs, Bone In Increasing Good Higher Thighs, Boneless Increasing Good Higher Whole Turkey (8-16 lb) Decreasing Short Lower Turkey Breast, Bnls/Sknls Decreasing Short Lower Eggs Large Eggs (dozen) Steady Short Lower Medium Eggs (dozen) Increasing Short Lower Liquid Whole Eggs Steady Short Lower Liquid Egg Whites Steady Short Lower Liquid Egg Yolks Increasing Short Lower Egg Breaker Stock Central Steady Short n/c 5

6 Seafood The elevated value of the U.S. dollar has continued to encourage solid shrimp imports. During August, the U.S. imported 24.7% more shrimp than the prior year marking the largest total for the month in at least five years. Shrimp prices may edge lower during the next few months. Shrimp (16/20 frz) Steady Good Higher Shrimp (61/70 frz) Steady Good Higher Shrimp Tiger (26/30 frz) Steady Good Higher Snow Crab Legs (5-8 oz frz) Steady Good Higher Snow Crab Legs (8oz & up frz) Steady Good Higher Cod Tails (3-7 oz frz) Steady Good Lower Cod Loins (3-12 oz frz) Steady Good Lower Salmon Portions (4-8 oz frz) Steady Good Higher Pollock Alaska, Deep Skin Steady Good Lower 6

7 Paper and Plastic Products WOOD PULP (PAPER) NBSK- Paper napkin Decreasing Good Lower 42 lb. Linerboard-corrugated box Decreasing Good Lower 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 Sept 16 Aug 16 July 16 Beef and Veal Decreasing Increasing Decreasing Dairy Increasing Increasing Decreasing Pork Decreasing Increasing Increasing Chicken Increasing Decreasing Decreasing Fresh Fish and Seafood Increasing Decreasing Increasing Fresh Fruits and Vegetables Increasing Increasing Decreasing Various Markets The Florida orange crop this year is projected by the USDA to decline 14% from Further, 2017 orange juice output is expected to be historically small. Still, orange juice futures are due for a modest correction lower. Whole Peeled, Stand (6/10) Increasing Good Higher Tomato Paste-Industrial (lb) Increasing Good Higher Coffee lb ICE Increasing Good Higher Sugar lb ICE Decreasing Ample Higher Cocoa mt ICE Increasing Short Lower Orange Juice lb ICE Decreasing Good Higher Honey (clover) lb Steady Good Lower 7

8 Produce Hurricane Matthew basically ended the mid-atlantic tomato harvest with the eastern growing areas shifting to Florida. Fortunately, supplies from California and Mexico have been solid. The total tomato supply in the U.S. last week rose 3.1% from the previous week and was 12.3% larger than the same week last year. Still, the tomato markets could be erratic during the next few weeks as the chief harvest areas continue to transition. The main lettuce production regions are seasonally shifting as well with Huron, California, in full production and the Yuma-Imperial Valley expected to get underway soon. Garlic, tomatoes, and grapefruit are all light in supply and we are seeing high prices. The berry market seems to be back and forth. Lettuces, salad mixes, broccoli, and cauliflower remain in good supply and are steady. Avocados are still very high in price, but we are hoping this gets better each week. Limes (150 ct) Decreasing Good Higher Lemons (95 ct) Decreasing Good Lower Lemons (200 ct) Decreasing Short Higher Honeydew (6 ct) Decreasing Good Lower Cantaloupe (15 ct) Steady Good Lower Blueberries (12 ct) Decreasing Good Lower Strawberries (12 pnt) Increasing Good Lower Avocados (Hass 48 ct) Steady Good Higher Bananas (40 lb) Term Steady Good Lower Pineapple (7 ct) Term Decreasing Good Lower Idaho Potato (60 ct 50 lb) Decreasing Short Lower Idaho Potato (70 ct 50 lb) Decreasing Short Lower Idaho Potato (70 ct ) Term Decreasing Short Lower Idaho Potato (90 ct 50 lb) Steady Short Lower Idaho Potato #2 (6 oz 100 lb) Increasing Short Lower Processing Potato (cwt) Steady Short Lower Yellow Onions (50 lb) Decreasing Good Higher Yellow Onions (50 lb) Term Increasing Good Lower Red Onions (25 lb) Term Decreasing Good Lower White Onions (50 lb) Term Increasing Good Lower Tomatoes (lg case) Increasing Good Lower Tomatoes (5x6 lb) Term Increasing Good Lower Tomatoes (4x5 vine ripe) Increasing Good Lower Roma Tomatoes (lg case) Decreasing Good Lower Roma Tomatoes (xlg case) Decreasing Good Lower Green Peppers (lg case) Decreasing Good Lower Red Peppers (lg 15 lb case) Steady Good Higher Iceberg Lettuce (24 ct) Increasing Good Lower Iceberg Lettuce (24 ct) Term Increasing Good Lower Leaf Lettuce (24 ct) Increasing Good Lower Romaine Lettuce (24 ct) Increasing Good Lower Mesculin Mix (3 lb) Term Steady Good Lower Broccoli (14 ct) Increasing Good Lower Squash (1/2 bushel) Increasing Good Higher Zucchini (1/2 bushel) Decreasing Good Lower Green Beans (bushel) Increasing Good Higher Spinach (flat 24) Increasing Good Higher Mushrooms (10 lb lg) Term Steady Good Higher Cucumbers (bushel) Decreasing Good Lower Pickles ( ct) Term Steady Good Lower Asparagus (sm) Increasing Good Higher Freight (truck CA-Cty Av) Decreasing Good Lower 8

9 Produce Apples & Pears New crop Washington Braeburn, Fuji, Gala, Golden Delicious, Granny Smith, and Red Delicious Apples are on the market. New crop fruit is dominated by 80- to 100-count stocks. Quality is at its peak. Sugar levels are high, ranging from 14 to 18 Brix. New crop Washington Bartlett and D Anjou stocks are available; the crop is dominated by 110- to 135-count sizes. Sugar levels range from 12 to 14 Brix. Artichokes We expect good supplies of artichokes this week; supplies industry-wide have increased. Better volume is expected in the upcoming weeks. Demand is off a bit, but that is typical for the summer. Prices are steady to lower on some sizes. Arugula Supplies of both baby and wild arugula are good. Quality is fair and improving. Asparagus The market is high. Mexican supplies are tight; demand is strong. Peruvian stocks are increasing. Quality is best in Baja, Mexico. Avocados Prices will ease and supplies will increase over the next few weeks, but the overall market is expected to remain higher than in previous seasons. Bananas An unseasonably strong demand has developed for growers in Central America, as supply has been disrupted from the Philippines. Berries: Blackberries The market is low; supplies are adequate. Quality is best in Mexico. Rain will reduce Salinas Valley production this week, but volume should remain sufficient. Sugar levels range from 12 to 13 Brix. Blueberries Prices are starting to inch down; availability is increasing from Mexico and South America. Quality is very good: new crop berries are sweet, plump, and juicy. Raspberries The market is level and stocks are tight, while the demand is continuously weak. Quality is average and recent rain may increase problems with softness. Sugar levels range from 13 to 14 Brix. Strawberries The market is climbing. Rain-related problems are reducing supplies. Quality is fair. The Salinas/ Watsonville season is wrapping up; growers are transitioning to Santa Maria. Overall stocks are extremely limited. Bok Choy Availability is good. Broccoli Stocks are plentiful in all regions. Quality is good: flowering, oxidation on cut ends, and pin rot are minimal. Brussels Sprouts The market is good. Supplies are getting good this week. Quality is good, although there is occasional insect damage and discoloration. Cantaloupe Market has strengthened up on the Westside and have transitioned down to the desert. The desert fruit will start out with mostly a green to straw cast and sugars are good to start and hopefully quality stays strong, the fruit has a nice tight cavity and beautiful internal color. We will keep you posted as we progress in the desert, and will hopefully have enough fruit to get through November and then transition to offshore fruit. Sugar levels range from 11 to 12 Brix. Carrots Great quality and good supply! Cauliflower The market is level; volume is high. Quality is very good: mechanical damage and rice-like texture are improving. Celery Prices are weak, but will inch up as the holidays near; supplies will tighten. Quality is very good. Cilantro Supplies are average and quality is fair, we are seeing yellowing and decay. Corn Midwest Sweet is still available but the prices have gone up and stabilized. Quality is still good but production will be finishing up over the next few weeks. New Crop Georgia Sweet Corn will be starting next week, with Florida to follow soon after. Colorado Corn is still available, finishing up in October. 9

10 Produce (continued) Cucumbers East: Harvesting continues in the south GA and FL fields and FOB prices are generally steady from last week with upward pressures on supers and downward pressures on selects. The FL crop is better quality. West: Supplies have improved with product crossing at Baja and Nogales. Prices are down again this week on all grades and sizes. English Cucumber Continued tight availability from growers in Eastern Canada. Steady availability from Central California coastal districts; Nogales shippers will not have consistent supply until early November. Eggplant East: FOB prices are steady with downward pressure. Quality is good. West: FOB prices are seeing downward pressure this week. Rains in Fresno is causing quality concerns. Nogales crossings should begin mid-november. Fennel Supplies for the week will be good. Garlic The garlic market continues to be volatile. Demand exceeds supply. The CA harvest finished last month, and crops were down 15-30% from where we had hoped it would be. We are uncertain where the supply on garlic from China will be, we are hearing that it will get even tighter, but we are uncertain. Quality remains good and we will keep you posted as we hear what China will be doing. Ginger Chinese ginger is in good supply and being offered at a substantial discount, compared to ginger from Brazil. Grapes Market is steady with good to fair demand. We are harvesting all throughout the San Joaquin Valley and we will continue to do so through November. The overall quality of the fruit has been very good. There is excellent color on the reds and the greens are nice, firm and clean, as well as high sugar content. We have several different red varieties available that have some excellent flavor. It also looks like we will have very good supplies of fruit going forward that should last us from now until the end of December. Green seedless sugar levels range from 18 to 19 Brix, while the red seedless levels are 20 to 21 Brix. Green Beans Supplies have tightened and prices are moving higher in the east as growers in North Carolina suffer the effects of Hurricane Matthew. In addition, a white fly infestation has caused significant crop loss in Georgia, with no relief expected until December when the Florida harvest will be in full swing. Coachella is the primary district in California, with moderate availability. Prices are firm at extreme levels in the east and west. Green Cabbage Average supplies. We should be steady this week. Prices are climbing a bit; quality is good with some reports of insects. Red Cabbage Quality and sizing have been great, with good color. Overall, the market is strong. Green Onions The market is improving. We are still seeing a very high percentage of smalls being packed. Prices are moderate and supplies are getting better. Honeydew Market has also strengthened and on the verge of finishing on the Westside, there is some fruit from northern California that has been looking very good with nice green to cream color and excellent sugar content as well. The desert has also started in a light way and volumes will continue to increase daily and should have fruit down there through November. Quality is good. Sugar levels have fallen to 9 Brix. Kale (Green) Demand is steady and quality is average, we are seeing mildew in this product. Lemon Market steady as we are still harvesting out of Mexico, and there is still some Chilean arriving on both coasts and will probably continue to arrive for another 3-4 weeks from Mexico and about another 2-weeks on the Chilean fruit.. We have started the D-3 new crop lemons in and are packing 3-+4 days a week so our volume has started to increase and we will continue to have good volume going forward. The overall quality on the new crop looks good, but we are gassing the fruit for 4-5 days to bring on the color so some of the choice will show some spotting and checker- 10

11 Produce (continued) board color which will continue to get better in the coming weeks. We will also try to start D-1 lemons by the middle of November and we are all looking forward to these new crop lemons. Lettuce: Green Leaf/Variety Lettuce Prices remain low; volume is high. Quality is very good: this week s rain may increase mildew. Iceberg Lettuce The market is weak; volume is high. Quality is very good, but this week s rain may cause mildew problems. Romaine Prices are unchanged; stocks are abundant. Quality is very good, but rain may increase problems with mildew and thick ribs. Romaine Hearts Supplies are plentiful!! Demand has slowed with quality remaining good. Limes The market is unchanged; demand is weak and stocks have increased. New crop quality is very good: scarring and yellowing are minor issues. Mangos Supply and quality are good, prices are rising slightly. Napa Supplies are good. Demand is strong with lower prices. Quality is good, with increased reports of internal defects, primarily with seeders. Prices are high. Idaho/Oregon Onions There just is not enough demand on the supplies at hand to get the prices moving upward. Harvest should be completed within the next 7-10 days at which time shippers will have the option of holding back supply. This is a common strategy but it must be monitored constantly as to make sure you don t hold so many back that it causes an oversupply situation at the end of the season. Looks like a rough year for the northwest onion grower. Oranges We are still going on a few Valencia s and should be done in 7-10 days and then we will be all new crop California navels, we are still in a demand exceeds supply on 113 s and smaller, but as we get rolling on navels by next week that will change and we will have good supplies of fruit across the board. The overall quality of the Valencia s is still rough externally due to the end of the season and that fruit being 18 months old on the tree as tree is carrying next year s crop as well. The overall quality of the first navels look fair to good as we are gassing them about 120 hours so you will see some spotting. The brix is running and light to moderate acid so they are edible. The internal color is a light orange and juice content is fair, but fruit will continue to gain internal and external color due to our cooler nights and the mild days. The overall outlook is the crop is a bit lighter in volume than last year s so as we get to the middle of the season the smaller fruit will probably be a little tight. We will keep you posted as we progress into the California navel season and we are all thankful it is starting. Sugar levels range from 13 to 15 Brix. Parsley (Curly, Italian) Prices are normal and quality is excellent. Green Bell Pepper East: Product remains plentiful this week with the southern GA and FL crops in full production. FOB prices are generally steady with continued downward pressures. Quality is good. West: FOB prices are lower again this week as more supply comes online. Quality remains good. Jalapeño Pepper East: FOB prices are steady. Quality is good. West: FOB price are steady. Quality is good. Red & Yellow Pepper Prices will rise over the next two to three weeks. Harvesting in California s Coachella Valley and Northern Mexico is slated to start by mid- November. Quality is excellent. Peppers are brightly colored and crunchy with slightly sweet, zesty flavor. Pineapple Prices are weak. Stocks are ample, especially large sizes. Sugar levels range from 13 to 16 Brix. Idaho Potatoes The fob markets remain depressed on both the Burbank and the Norkotah varieties. Many sheds in the state are running partial weeks filling orders for regular business only as they battle losses due to poor market returns. At most grower shippers the Norkotahs are now out of the sweat while out Burbanks are still field run. We should be getting into our storage Burbanks in about 5 weeks. 11

12 Produce (continued) Radishes Quality is good and plentiful supply. Salads & Blends Prices are level; supplies are plentiful. Quality is good: romaine color is light and ribs are thick, but shelf-life performance is normal. Rain may cause premature pinking in finished packs. Snow and Sugar Snap Peas Snow and sugar snap peas currently have high demand with good quality. Spinach (Bunched) Supply is good and demand is strong. Quality has improved. We are still seeing some sun scalding and tip burn, but this has improved. There have been some reports of insects, but this is getting better. Spinach (Baby) Baby Spinach and Clipped Spinach supplies are light. Quality is fair to good with good prices. There are some reports of insects. dictated by the west. FOB prices for eastern round tomatoes are up again this week with the larger sizes increasing the most. We expect the Ruskin region to start harvesting toward the end of next week but yields will be very light until we get into the 3rd plantings which we forecast will be around the middle of November. We do not see much improvement in quality and shelf-life until that time. We advise to keep inventories as tight as possible until then. Romas Unlike rounds, the supply of Romas has increased in the east and the west. Therefore, FOB prices are lower this week on all sizes by a couple of dollars. A few growers in Immokalee have begun to harvest in a light way. Quality varies. Grapes Supplies are still tight but is are able to meet demand at current prices. Therefore, little to no change in FOB prices this week. Quality continues to be variable. Spring Mix The market is steady; stocks are sufficient. Quality is good, but recent rain may cause issues. Cold-chain maintenance is critical to quality. Green Squash East: FOB prices are generally steady this week. Quality continues to be generally good. West: FOB prices are lower again this week on all grades and sizes. Crossings at Baja and Nogales. Quality is good. Yellow Squash East: FOB prices are generally steady from last week. Supplies are fragmented all up and down the eastern seaboard. Quality is variable but improving. West: Crossings have begun at Nogales. Supplies continue to be plentiful causing FOB prices to be lower again this week. Quality is good. Tomatoes East Rounds Supplies are continuously light. As previously reported, adverse growing conditions in the Quincy region due to weather and a white-fly issue has caused much lighter than normal yields out of those fields. Quality also continues to be variable and shelf-life suspect. Sizing remains on the minimum side of specs. Pricing in the east continues to be 12

13 Produce (continued) Cherries Supplies continue to be light and FOB prices are up slightly from last week. Quality and shelf-life continue to be variable. West/Mexico Rounds Vine-ripes continue to cross at Baja, Nogales and McAllen. Supplies should continue to cross at Baja until mid-november at which time more volume should begin to cross at Nogales. CA mature-green growers are expected to continue to harvest for no more than two more weeks. Quality and shelf-life of this product remains variable and suspect. As forecasted last week, the growing regions did receive some rainfall over the weekend but had little detrimental effect on harvesting. Sunny skies have returned. FOB prices are seeing continued upward pressure, especially for the better quality product. Prices for the largest sizes crossing from MX are also higher compared to last week. Volume is light and we expect it to remain so until January when the Culiacon crop should begin. Grapes Sourcing primarily from Baja. Quality is extremely variable. Supplies are tighter and FOB prices are up from last week for the better quality fruit. Cherries Supplies remain extremely tight and market FOB prices remain generally steady from last week. Quality is fair to good. Watermelons Expect lower prices over the next few weeks. The California season has ended, but volume is rising in the Arizona desert and Mexico. Quality is very good: fruit sweet and juicy. Sugar levels range from 11 to 13 Brix. Romas Supplies are more plentiful this week. Product continues to be available out of Baja and CA with a wide range in FOB prices which correspond to the quality of the fruit. Supplies are tight out of CA but Baja and new product crossings at Nogales is putting downward pressure on FOB prices. 13