REPORT FARMER S. market trends

Transcription

1 FARMER S REPORT market trends This notice is subject to change. Information printed is based on last received market data. Subject to change without notification US Foods. All rights reserved.

2 BEEF Live cattle traded mostly at $158 last week which was up $4 from the previous week. Prices are higher this week due to the live costs and the continued lower production levels. Pricing should move lower once the packers increase production in summer. Rounds Insides: Prices were up again this week and we will likely see the same next week. The market should fall going into the middle of summer. Flats: The price on bottom round flats followed the rounds once more, and were up as well this week. Pricing will most likely be higher next week, but should see the market decline moving into summer. LOINS Strips: Choice strips were up and select fell last week, and we will probably see some fluctuation in pricing for a couple of weeks until the market weakens with increased slaughter moving into summer. Top Butts: Choice top butts were flat, but selects were actually a bit higher last week. We could see some price fluctuations until we move into summer and production levels increase. Ball Tips: Ball tips were up last week mostly due to live cattle costs, but product is available, and pricing should move lower shortly. Chucks Chuck Rolls: Chucks increased slightly last week once more with lower beef production, and interests from export markets and grinders, and tighter supplies. We should see them weaken going into summer. thin meats & grinds Flap Meat: All grades of flap were lower last week. They may still have some price fluctuations with lower production, but should start drifting downward shortly. Briskets: Brisket pricing was up slightly week over week. The market will most likely be steady to weaker and we should see the market modestly decline going into late summer. Grinds: Grind pricing was up sharply week over week and we may see this for another week. Expect this market to decline afterward. Skirt Meat: Outside skirts moved downward this week and you can expect some fluctuations in pricing until production levels increase in summer and then they should drift lower. Tenderloins: Tenders again moved lower last week. Pricing is expected to move downward moving into summer and reach bottom near the end of July. ribs RibEyes: All ribeyes moved upward last week except for select lights which barely moved lower. They may have another week of price fluctuation before they start to modestly come off in summer. 2

3 pork Base hog prices traded steady to higher across major markets as packers bid on a smaller number of available hogs for next weeks production. Tighter supplies of live animals are prompting packers to pay more money to cover their weekly needs. This week is a shortened kill week with most packers down for the July 4 holiday. Slaughter numbers are running 8-9% below year ago levels and packers are expecting reduced schedules through the July/August timeframe. Buyers are focused on live hog price and hog weights. Hog weights continue to decline week over week but remain above year ago levels. Warmer temperatures and slightly higher feed costs should have a negative effect on weight gain as we move through the summer season. On the demand side, last week pork prices were mixed with hams, bellies, spare ribs and pork butts moving higher week over week and the loin complex moving lower. This week, prices for ribs and loins are trending lower, while butts remain steady and bellies and hams trade higher. In the upcoming weeks, expect prices for commodity pork items to begin trending lower as product demand weakens. Conversely, prices for hams and bellies are expected to move higher through mid to late August. Supply disruptions could support higher prices and create increased market volatility. Loins The market for bone in loins moved lower last week but has rebounded in early week trade. Demand for mid to late July retail features along with tight supplies is supporting higher prices for bone in product. Boneless loins were steady last week and remain steady to slightly lower in early week trade. Tighter product supplies are supporting current price levels. Prices for both bone in and boneless loins are expected to move lower mid July through August. tenders Pork tenders traded steady last week and earlier this week on improved demand from foodservice. Prices are expected to trade steady to slightly higher through mid July then begin moving lower late July/early August. Prices may move higher mid August as retailers book product for Labor Day features. Prices are expected to remain above year ago levels. Butts Prices for bone in and boneless pork butts moved higher on increased domestic and export demand. Prices are expected to move higher through mid July then gradually move lower through the summer timeframe. Prices are expected to continue trading above 2013 levels through the fall. Ribs Spare Rib prices moved higher last week as retail buyers bought additional product for last minute fill- ins. Back Rib prices traded steady to lower last week as buyers stepped out of the market to assess their inventory levels. Prices for both Spare Ribs and Back Ribs are expected to move lower through early August then trade steady in anticipation of Labor Day promotions. Light Spareribs, St. Louis ribs and Back ribs, are expected to remain in limited supply due to heavier hog weights. Bellies/Bacon Bacon/Belly prices traded higher last week on improved demand from processors and tight supplies of fresh product. Belly prices continued higher in early week trades and are expected gradually move higher through mid to late August as retailers begin their bacon features from mid July through the mid August timeframe. Supply constraints may create increased volatility and support higher prices. Hams Ham prices traded higher last week and are steady early this week on strong export demand and tight supplies. Ham prices are expected to trade steady to slightly higher through mid July then trade steady through late July. Prices are expected to remain above year ago levels through late fall. Trim The following market dynamics will impact finished goods pricing during July. Pork trimmings are starting to decline from their record highs, however, remain above year ago levels. Processors are expected to balance their inventories after the July 4 holiday, then may begin to slow down if product movement slows. Picnics Pork Picnics prices traded steady to lower last week as processors stepped out of the market to assess their inventory levels of finished products. Prices are expected to trade steady to slightly lower through July then hold steady early August if product is needed for Labor Day promotions. Demand for exports and tight supplies could support higher prices. 3

4 Turkey The whole bird Turkey market remained flat this week. However, bid quotes, due to limited supplies, were normally a few cents over market price. This market should start advancing due to growers concentrating on growing birds heavier to take advantage of the prosperous turkey parts and boneless markets. poultry The price on small bird WOGS increased again this week. The market is $.05 over the previous historical high, illustrating the shortage of small bird supplies. With the exception of the traditional QSR outlets that rely on bone in fried chicken, the use of jumbo birds is becoming a necessity for both boneless and retail needs. With the damage created by the weather the first part of this year, and now hot weather in the south, the industry remains in a non-growth stage. It has been known for a while that the industry was planning to use heavier bird weights to help cover the ever increasing demand for chicken. However, that plan is not coming together. With the shortage of eggs, processors have to use up to 100% of hatched birds, instead of the normal condition of culling out over 10% of the chicken hatched due to small sizes, thus the average bird weights are not being obtained. Many of the jumbo bird operations planned on moving to a live bird weight of 8.5 to 9.0 pounds; however the average jumbo live weight remains closer to 8 pounds. DOA s and bird stress are on the rise due to the heat. Bird stress inhibits the growth of the flock. The month of July is normally a time where demand decreases and the boneless breast market trends down. That trend may not happen this year as demand appears to remain high due to the cost of rival meat proteins. Hatcheries in the United States weekly program set 212 million eggs in incubators during the week ending June 28, 2014, up 1 percent from a year ago. The average hatchability for the eggs remains at 83%, below the historical rate. Hatcheries in the United States weekly program set 212 million eggs in incubators during the week ending June 28, 2014, up 1 percent from a year ago. Boneless SKInless turkey BreastS The boneless market continues to advance, actually topping the $4.00 mark for the first time in the history of the market. Finding product is almost impossible on the open market. Further processors are utilizing more trimming and scapula meat, pushing those markets to record high levels. The ceiling for these markets should be obtained soon as the processors are putting the last push on inventory for the deli season. Boneless Skinless Breasts The market continued on the pattern of the past few weeks as it stayed flat with supply easily being covered by demand. With the processors yield less product due to bird weights being down, this market shows indications of continuing the sideways trend. Chicken Tenderloins The chicken tender market remains flat as demand is barely being covered at most points of sale. Small bird tenders are being sold over market prices and jumbo tenders are trending flat. Like breast meat, this market is normally in a deflationary slide during this part of the summer. There are no signs of deflation in sight unless the retail segment starts discounting the rival proteins. Wings The jumbo wing market is gaining strength every week. Though the market gained just a little, there is a strong demand which will continue pushing this market higher. The QSR segment has moved to promoting wings instead of breaded tenders and chunks due to the relative value the wing represents at the present time. Boneless Skinless Thighs Supplies of boneless thigh meat were found to be better due to retail features limiting the use of the dark meat complex in an effort to raise the check out prices at the register. Import demands remain strong, as the market trended sideways. commodity grocery Oil Last week s crop rating report put the soybeans at 72% good to excellent which is better than a 5 yr average of 63% during this time. Weather is the near term focus. Current U.S. weather forecasts remain favorable. The planting estimate is the largest on record, 7% higher than the largest soybean crop ever planted. Maintain a bearish posture; the most recent information may keep pressure on the market for the short term. Keep sights set on lower prices ahead, until the new crop arrives. Statistics Canada updated their 2014 acreage report on Friday. Cold and very wet weather in parts of Canada is beginning to trim yield ideas there. 4

5 dairy Butter The butter market recently reached the highest point in almost 16 years. Cream availability continues to be tight and butter producers continue to sell off cream instead of manufacturing it. Domestic pricing is substantially higher than international prices which is greatly reducing export demand. Butter prices are expected to remain high through the remainder of the year. Cheese Cheese has become very stable here in the $2 dollar range although markets did dip below for a few days. Export demand was 15%above year-ago levels for the month of June, which means there could be some upside risk, however domestic demand is noted as normal so most indications are that markets are comfortable at the current level. Shell Eggs Egg markets continue to show strength this week as supplies are running tight on select sizes. Demand continues to be steady. Milk/Cultured Milk prices are still at record highs, although there has been some relief in Fluid Milk pricing for the month of July. Cultured Dairy products saw significant increases impacting all segments due to higher butterfat prices. seafood Shrimp, Domestic (Whites and Browns) The Domestic brown and white shell on shrimp complex is full steady to firm on sizes 16/20 and smaller. Supplies continue to erode at the supplier level causing price to rise on those sizes. The opening will happen mid July - sizes outages will continue until that time. Texas announced today that their Gulf of Mexico commercial shrimp season for both state and federal (from 9 to 200 nautical miles offshore) waters will open 30 minutes after sunset Tuesday, July count and larger PUD s are barely steady to weak while smaller count shrimp are steady. P&D tail-off count and smaller are The Domestic PUD Market is currently unstable with prices barely steady to weak and the undertone very unsettled. The shrimp are sizing up or growing resulting in the 36/40, 41/50, and 51/60 sizes now being a bigger part of the catch and as a result price is dropping as supply increases. Prices continue to drop moderately on 61/70 91/110. Conversely, because of the grow out, prices are strengthening on and smaller as they are now a smaller percentage of the catch. Shrimp, Latin Central AmerICa (Whites) HLSO white Latin shrimp complex is steady for the most part, with 51/60 thru seeing some limited discounting.. Overseas offerings are generally firming. Shrimp, Imported (Black Tiger and Whites) TIGER: The HLSO market was steady this week. The Cooked and P&D markets were also steady. 16/20 and higher sizes are very firm based on supply as well as dwindling supply of 16/20 whites. WHITES: The Asian White HLSO was mostly steady this week, with 16/20 and higher adjusting upward. Processors are firming on their pricing to US importers based on active demand on future delivery for the retail market. 16/20 size is full steady to firm with supply tightening as very little is being harvested now due to ponds being pulled earlier with the Spring harvest product was not left on the ponds to grow out to the 16/20 size. The P&D tail on and off complex followed the same pattern with upward adjustments on 16/20. P&D 21/25 and 26/30 also adjusted upward (21/25 P&D comes from a 16/20 shell on). CatFIsh, Domestic & Imported DOMESTIC: The domestic catfish was steady this week but supplies remain tight. Harvests are slightly improved but it is all going into the fresh market leaving little for the frozen market. IMPORTED: The market was stable this week however the underlying tone for pricing is very firm. Inventories in the US are getting tighter as the Spring harvest was considerably lower than LY. Next harvest will be late Summer/early Fall and that will be limited based on the amount of fish in the water at this time. The limited amount of fish in the water is due to the 2014 Farm Bill which will make exporting catfish to the US virtually impossible. 5

6 seafood (Cont d) Salmon Chilean Farmed Salmon: Fresh fillets remains unsettled, with supplies adequate to fully adequate for a quiet demand. Frozen portions remain full steady to firm. Wild Alaskan Salmon: The net king market continues to adjust lower; supplies are fully adequate for a moderate to fair demand. The troll king market is unchanged; however, the undertone is about steady for a quiet demand. The sockeye market is full steady; supplies range adequate to barely adequate for a moderate to active demand. The chum market is weak; a few still lower offers are noted. Net cohos are now being quoted. Mahi Mahi The market was stable this week on mahi portions. 6 & 8 oz portions demand continues strong and supplies are limited. Scallops SEA: The market was steady this week. U10 s remain in short supply and this will continue based on quotas and fishing areas open for catch BAY: The market was unchanged this week. Tilapia As has been pointed out in the past, most of the production in China stays in country. Moreover, there has been a significant demand locally for smaller fillets, which prompts the farmer to remove the fish earlier than usual. This has pushed the pricing upward on the bigger sizes and we probably won t see any relief until the end of summer. This has not hurt demand for this species but just making it more difficult to find. No changes to this situation are anticipated until new season production makes its way to the US in the early Fall. Whitefish Complex (Cod, Pollock, Haddock) Cod: The market for Atlantic and Pacific Cod was stable this week. Pollock: The market remains stable on both domestic and imported Pollock fillets. Haddock: The market was steady this week. King Crab RED: The market for red crab was steady this week after adjusting lower on many sizes last week due to fully adequate supplies and a dull demand. The overall market is stagnant. golden: Crab was stable this week after adjusting higher on most sizes last week. Supplies are adequate to barely adequate for an active demand. Tuna, Yellowfin (CO treated) Markets remained stable this week, and 4oz & 10oz remain at yearly lows. We have talked about shortages in the Western Pacific those are closer to becoming reality. In addition, thinning inventories have caused the market to firm. Crabmeat (Blue & Red, Pasteurized) Both Blue and Red markets are stable this week. Both categories remain tight on supply and pricing has a very firm undertone. This situation will be consistent throughout the Summer as supply will not improve until the Fall. Expect pricing to get firmer. Snow Crab Canada: The market continues to rise, with all sizes increasing this week. Overall market tone is firm. Supplies are adequate to barely adequate for active demand. 8+ size continues to lag rest of smaller size market due to sluggish demand. 10+ & 12+ will be exceptionally short supplied this year. At this time the quota is 85-90% caught and it is expected that the quota will be caught by the 4th of July. Alaska: The market was stable this week with quiet demand. LOBster TAIls Warm water: Brazil season opened June 1 and the market is currently unsettled. Prime sizes 3 oz through 8 oz remain full steady at this time, while 9 oz and larger tails are barely steady. The Caribbean season in Honduras and Nicaragua will starts July 1 supplies are very light on prime sizes at this time. Cold water: The market was mostly quiet this week with pricing stable. AmerICan Tails: The market for both tails and lobster meat was steady this week. Demand remains steady and with good volumes. Canadian season closing in some areas this week Maine production later in July into mid August. 6

7 produce vegetables potatoes Russets: Idaho market has stabilized this week but the growers are still looking to move product before the new crop comes in. At this point we think there will be an overlap of new crop and old crop. We have been seeing a few quality issues but that is normal for this time of the year. Russets are still available from Wisconsin, Colorado and Washington, but that market remains a higher levels then Idaho because there is less volume there. Reds: Red potatoes in Florida are finishing up but there is good volume from California and North Carolina. Virginia and Texas will have product next week. Quality is very good. Minnesota should have product in early August. White, Yellow and Fingerling: The Florida white crop has come to an end. North Caroline has good volume as does California. Quality is very good on the white potatoes. The yellow market has increased as there is a lack of product from Florida finishing and North Carolina won t have product for another week. California does have good volume and quality. Sweet Potatoes: The sweet potato market is very unstable. Volumes are down on old crop between 30-40% from last year. At this point many sheds are running out of sized product with some sheds almost completely out of all sweet potatoes. New crop will be available in September but there are very strong concerns that old crop will be finished before the new crop is ready. GarlIC Supply and demand for fresh Garlic are steady with prices expected to go up in the next couple of weeks. Peeled garlic prices and supply are steady. CABBage Markets and demand continue to be steady. There are moderate supplies out of Virginia, Michigan and Canada. Qualities are good in all growing areas. 7 Leaf lettuce Romaine lettuce remains very limited due to the quality issues which are a result of the heat several weeks back. Our field inspectors are reporting a lot of fringe burn on the product. Red and Green leaf markets are much more stable and there is good quality.. Iceberg Lettuce Currently the lettuce market is unstable but has been improving. The market remains at elevated levels because fewer lettuce items are being planted and those fields are now strawberry fields or organic product. Additionally, famers are planting less due to the market being so depressed over the winter. The third factor influencing the markets is the drought out west. We are expecting the markets to stay at higher levels for several weeks. Onions Onions are mainly coming from New Mexico and California. Both of these areas have experienced extreme heat so we are hearing that there are some quality issues. The product coming from Texas is last of product from that region and the quality is very questionable so the price will reflect that. The red onion market has increased slightly because demand has increased and supplies are lower than anticipated. ChilE Peppers Chili peppers are still transitioning to new growing areas. The market is steady and quality is improving with some peppers available from the Baja growing area. California production is starting with Pasillas next week. Cucumbers Cucumbers remain short nationwide. Product is being harvested in Michigan but there are issues with quality due to all the rain they have been receiving. In the East, eastern North Carolina is wrapping up. In the West volumes continue to increase from Baja but still cannot meet current demand. We are expecting supplies to remain short and markets high for the next few weeks. Squash With both green and yellow squash the markets are steady with good volume and good quality. We expect markets to remain stable for several weeks, weather permitting.

8 produce Tomatoes Rounds: The tomato market continues to decrease as more growing regions are harvesting. Luckily Hurricane Arthur did not cause any major damage to the tomato crops. In the East Quincy has finished and eastern South Carolina is almost done. Ample suppliers are coming from North Carolina and Western South Carolina. Virginia will start harvesting in a few days. Quality is very good. In the West California has very good volume on all sizes. We are expecting issues in the West in a few weeks due to the heat they continue to experience. This will result in smaller tomatoes for the market will increase on the larger sizes. Currently the quality is very good. Mexico is also crossing product over with good quality.. Cherry and Grape: Supplies in the West should improve by next week. This week the market was up slightly mainly due to Hurricane Arthur ending parts of South Carolina early. Cherry tomatoes are stable. Quality on both cherry and grape tomatoes is very good. Romas: In the east Quincy and South Georgia are finishing and the quality is questionable. Hurricane Arthur delayed the growing regions in the East slightly but no major damage was done to the crops. In the West product continues to cross over in McAllen and Baja in addition to the Romas available from California. The market is up slightly because sizing is very inconsistent. Green Beans Bean markets are steady. There are moderate supplies out of North Carolina, Tennessee, Indiana and coastal California. Quality is good in all growing areas. Eggplant The eggplant market is stable with good volumes coming from North Carolina. Quality remains good and we don t foresee any issues in the near future with this commodity. Bell Peppers Red Bell peppers remain extremely limited across the country. Product from the West cannot meet the demand nationally and the heat in the west has been decreasing the suppliers that were expected. We expect this to continue a couple of more weeks. The green bell pepper market has increased this week over last due to the rains in the East. 8 Carrots Carrot supplies and markets remain steady. Bakersfield is continuing to produce good quality and sized carrots. Arizona crop is winding down which might cause prices to go up in the upcoming weeks. Celery Salinas California is the primary locations for Celery along with light supplies available from Santa Maria. Quality is good with steady supplies. Market is slightly up due to the improved of demand for West Coast Celery. Green Onions Supply and demand for Green Onions is steady comparing to last week. Look for this market to be active until Salinas get started in 1 to 2 weeks. CaulIFlower Cauliflower supplies continue to be light this week with most shippers selling out daily. The market is strong and is expected to stay steady for the week. Quality is good. Look for supplies to remain light in the upcoming months due to lighter plantings for summer. Asparagus Prices were up sharply this week. With the domestic deal finished, everyone has turned to Peru and Mexican products. Supplies are light from both growing areas. The market has become active with a shortage of products from Mexico due to continued rains. Look for prices to remain active this week. Supply is expected to stay light through August. Broccoli Demand for broccoli continues to be light and the market has subsided compared to last week. Supply remains light and shippers are anticipating a gap in supply at the end of July. Quality is mostly good. Virginia Broccoli crops are finished and Maine expected to start July 20-25th.

9 produce tropical Pineapples The weather in the pineapple regions of Costa Rica continues to affect the growing areas. Fruit issues related to humidity at the farms are mainly on the external appearance of the pineapples. Some volume reduction anticipated through mid-july, returning to normal production after that timeframe. USDA reports demand as moderate, and market about steady. Bananas This market is steady and unchanged from last week. The rainy season in the tropics is over. Ecuador is the main supply country. Avocados Mexico is supplying around a third or less of the current U.S. demand. Product has good flavor, high oil content, and the fruit is ripening fast with good quality. Most of the small sized fruit is staying in Mexico. Fruta negra is coming to an end from Mexico, volume on large and #2 fruit have declined. Pricing on large sized fruit has firmed up even though it was competing with Peruvian entering the country. New crop Flor Loca will be starting very soon with some volume. This typically lasts about a month and then enters what in Mexico is known as Aventajada, meaning the first fruit that comes from the regular crop. California: The harvest continues to be good with great fruit profile; eating good, and time for ripening. The weather has been favorable and steady. 60s and 70s are in high demand size and shippers have very limited supplies. Market is firming up on large fruit; there is still a lot of pressure from Peruvian fruit entering the market. We expect a smaller California crop this year compared to last year. Peru: The supplies are imported and entering in to the east and west coasts with higher volumes, there is fruit entering via Houston, Texas as well. Sizing for Peruvian fruit is 48 and larger with very few 60s. The fruit quality was reported as good. The price structure on large fruit has made the California and Mexico fruit come down on pricing. Some 60s are available, but smaller fruit is extremely limited to nonexistent. We expect Peruvian fruit will be going all this month, but will decrease or end by the third week in August. Melons Cantaloupes The cantaloupe availability in California is starting to open up with steady supplies. We are seeing sizing mainly to the Jbo 9ct and 9ct size with limited 12ct. There will be multiple growers with fruit in the Mendota/Huron, California area. We expect to see good supplies on 9ct cantaloupes in July. The quality with the westside growers has been very good. HONEYDEWS Honeydew supplies remain tight with limited availability in the Mendota/Huron area in California. We are seeing sizing packing out mostly with a 5ct with minimal 6ct. Most growers are harvesting minimal amounts of honeydews this week and we expect to start seeing supplies become more available in the next couple of weeks. Watermelon Currently the supplies are very good. Georgia is in peak production and expected to have supplies for the next couple of weeks. The main size in Georgia is 36ct and 45ct seedless with seeded watermelons seeming to be a little tight. There are small crops in North Carolina, South Carolina, Mississippi and Missouri for the next two to three weeks. Indiana and Delaware look to be starting at the end of the month with limited supplies. Texas has new fields starting and we expect these areas will ship for the next three weeks. We anticipate Brownfield, Texas will start the first week in August and Phoenix, Arizona will go a couple more weeks. California is also going with some supplies, but our overall acreage is down due to the water restrictions. Washington and Oregon look to start at the end of the month. July and August. 9

10 produce Berries Blackberries Blackberry production has shifted solely to Guatemala. The quality is fair on current Guatemalan product. The market will remain tight on blackberries for the next couple of weeks. Strawberries The strawberry demand is strong. The Salinas/ Watsonville fruit is firm, with occasional bruising, misshapen, irregular sizing and green tips. Counts are averaging 18 to 20. Raspberries Supplies have improved slightly this week keeping the market steady. Quality is being reported as good. Blueberries Blueberry production has shifted along the coast into New Jersey, with some production still coming out of North Carolina as well. The later season varieties have begin; we are still anticipating British Columbia and Michigan harvest to begin the second week of July. The British Columbia crop this year looks to be double in volume versus last year. Grapes The excessive heat seems to be here for another week. With many growers only able to have their crews in the fields for half days, production is significantly off from early projections. Because of this, product is still somewhat limited on all varieties and markets remain elevated over normal levels. The long term outlook is difficult to project as we are still waiting to see what the overall effects will be from the extended heat. We anticipate early volume numbers will be off, specifically in the Arvin, California district. HANGIng FRUIT Apples Washington: Early crop estimates are still suggesting a very large, potentially record breaking apple crop for the fall. The million case number is being repeated with many growers/shippers. Last season 10 crop is projected to finish around the million case range. The demand for Gala apples continues to be strong week over week versus targeted volume. Many growers are running low on Galas but we anticipate new crop Gala s to start a little early this year, around the middle of August. CHERRIES Northwest - Markets on cherries are gaining some strength as the crop peaks on larger row cherries row cherries are tight as current varieties tend to grow in the larger sizes. We anticipate volume to continue to be steady for the next couple weeks but we will see some volume drop as we get to the end of the month. The quality reports have overall been very good and should remain so as long as the weather remains favorable. citrus Lemons Lemons of all shapes and sizes have extremely limited availability and we anticipate it will continue for the next 4-6 weeks. The market is up on 200 ct. lemons. We expect production to be light out of District 2 (Coastal). Sizing is on the smaller size as they are peaking on 140/165 and 235, heaviest to standard, Fancy and Choice grades are very limited. District 1 (California central valley) is coming to an end. District 3 (California desert) is now finished until August. Chilean lemons should start arriving in the next two weeks, which will help alleviate pressure on the domestic market. Oranges Valencia supplies are good. Sizing continues to be in the 88 s/72 s/113 s sizes. With the long, hot days of summer, we are seeing re-greening of the fruit. This is a normal occurrence in the summer. Australian and Chilean Navels are currently available on both coasts and quality is very nice. Limes Limes continue to be imported from eastern Mexico with good green color. The size is currently peaking on 175s and 200s with good availability on all other sizes. Very good supplies anticipated through the month of July.