MARKET ALERT BERRIES (BLACKBERRIES, BLUEBERRIES, STRAWBERRIES) NAPA CITRUS (LEMONS) PEAS (SNOW, SUGAR SNAP) CELERY LETTUCE GARLIC-PEELED PEPPERS, RED FRESNO GREEN CABBAGE PEPPERS, RED BELL GREEN ONIONS TOMATOES (CHERRY,ROUNDS,GRAPE) HERBS (CHERVIL,CHIVES,LEMON THYME,SAVORY,TARRAGON) TRANSPORTATION & WEATHER Trucks are in good supply in most districts. A warming trend is in the weekend forecast for Central & Southern California, followed by below-average temperatures by early next week. Rainfall and windy conditions are predicted Monday for Central California coastal and inland districts. A cooling trend and belowaverage temperatures are in the forecast next week for the desert regions of Southern California and Northern Mexico. Highs in California will range from the 70 s to low 80 s, declining to the 60 s next week. Desert districts will see highs in the 80 s this weekend, with 70 s next week. Daily thunderstorms will continue in the high elevation districts of Central Mexico; highs will be in the 70 s, with lows in the 50 s. www.producealliance.com Weekly Market Review Oct. 29, 2015 1
FRUITS & VEGETABLES AVOCADOS Best buys for this week are 32s/36s/40s #1. BANANAS Supplies are much better, and quality is good. BLUEBERRIES Continued tight availability; the harvest in the Pacific Northwest has finished. Argentina is now the primary growing area, with Mexico beginning to come into production. BLACKBERRIES Extremely tight supplies due to rain in Mexico. Mexico will start increasing the supply in November. RASPBERRIES Steady availability in Central and Southern California. Oxnard and Central Mexico will be top producing regions. STRAWBERRIES The current tight-supply situation will soon begin to improve, as production increases in Santa Maria and Oxnard. The harvest in Mexico will be underway by late October; Driscoll will then begin shipping from McAllen, Texas. Florida will begin production by the end pf November. CALIFORNIA-ARIZONA CITRUS GRAPEFRUIT BeeSweet is picking some desert Rio Grapefruit which should have a little better color; not many larger sizes however. LEMONS Yuma s fruit is big and beautiful. Running about 65% fancy grade and peaking 115/140/95/75/165/200. Smaller sizes are fruit from Mexico and Chile. Mexico is running smaller than the California/Arizona desert. We are also bringing some of that fruit into Santa Paula for those who cannot pick up in Texas. D1 (Central Valley) will start picking in mid-october. Preliminary estimates have this fruit running large and heavy fancy as well (55-60%). The El Nino will affect the sizing and availability of fruit; how much remains to be seen. We expect tight product throughout October. LIMES (PERSIAN) Pricing is steady. Supplies are in line with movement. ORANGES We are seeing improvement as Navels are coming in to the market. Quality is good. TEXAS/FLORIDA CITRUS Florida has started grapefruit and oranges in a very small way. Texas has started Earlies and navels; grapefruit next week. www.producealliance.com Weekly Market Review Oct. 29, 2015 2
PINEAPPLE 7s are still short and should remain so through October. SPECIALTY CITRUS ITEMS Satsumas will start soon and a few pummelos. CALIFORNIA LETTUCE GREEN & RED LEAF Supplies are below average on Green and Red leaf this week. Green and red leaf are both weighing 22-24 lbs. per case and are 9-10" long. Green leaf and red leaf are seeing fringe burn and and wind burn. ICEBERG LETTUCE Supplies for the next two weeks will be extremely tight. We are getting very close to the end of the Salinas season. Huron is projected to start 10/26. Yuma is projected to start 11/2. Markets are high and quality is poor, including issues with mildew, weak tip and insects. ROMAINE Supplies are expected to be below average this week. We are expected to be on the lighter side the next few weeks; 10-13 days ahead of schedule. Product is being sorted through so only the best quality gets packed. Quality has improved overall with nice coloring this week. Product is weighting 37-38 lbs. and 12-13" long. ROMAINE HEARTS Supplies are expected to be average. Quality is fair, we will continue to see some of the issues that result from the past heat. For example: fringe burn, occasional twisting and seeders. The product is clean inside. Please note as a result of harvesting two weeks ahead of schedule during the end of the Salinas season, there will be gaps and shortages in supplies. EASTERN & WESTERN VEGETABLES GREEN & RED BELL PEPPERS Green bell peppers are in adequate supply, with continued late-season production in Central California, along with good supplies in Coachella. The transition to Northern Mainland Mexico in mid-november is expected to be smooth. Availability in Georgia is steady. Extreme market conditions continue for red bell peppers; a supply gap is currently in progress, with minimal supply in coastal Southern California. The Coachella Valley harvest will not begin until mid-november. The size profile will be skewed toward small sizes, the result of abnormal weather that occurred during August and September rain and heat. Weather effects will also be felt in the Mexican crop (Baja & Mainland Mexico) through the mid-january 2016 as tropical storm activity has caused a bloom drop, which will result in belownormal production for the intermediate term. RED FRESNO CHILI PEPPERS Tight availability and high prices for Fresno and Habanero chili peppers. CUCUMBERS Availability continues to increase, with new areas coming into production, including Northern Mexico, Georgia and Florida. www.producealliance.com Weekly Market Review Oct. 29, 2015 3
ENGLISH CUCUMBERS Availability is improving, with better growers in Mexico gradually increasing production volume. GREEN BEANS Availability has improved in the West, with new crop beans now available in the Coachella Valley of California; quality is excellent in this new district. The harvest in Northern Mexico (Obregon, Sonora) will become available in Nogales around mid-november. Georgia is now the primary district in the East, with good supplies. ZUCCHINI & YELLOW SQUASH Oversupply characterizes thed market for zucchini and yellow squash in the East and West, with numeroud districts in full swing (Georgia, Florida, Northern Mexico). ACORN, BUTTERNUT & SPAGHETTI SQUASH Adequate supplies for acorn and butternut from California. Mainland Mexico will begin harvesting by early November. GRAPES Good availability will continue during October for California red, green and black seedless grapes. November appears to potentially be problematic, as we may see a supply gap by mid-november, continuing until the Chilean season begins in mid-december. Red Globes are currently in good supply. HERBS Lemon Thyme: Very limited to no supply; this herb got hit pretty hard last week. Chervil: Very limited to no supply, and the leaves turn light in color or yellow due to the heat. Flavor is still there, but not appearance. Savory: Very limited to no supply due to the heat last week. Basil: Supplies will be tight for the next two weeks. Opal Basil: Limited supply due to the heat; quality and shelf life are reduced. Tarragon and Chives: Due to recent heat wave, chives and tarragon are very short on the West Coast. This may last up to two weeks. All other herbs are steady. The Cilantro market has continued to drop. Quality is good. Demand has gone down reducing FOB prices. All shippers are seeing issues with yellowing and decay. Currently, all cilantro is out of the U.S. www.producealliance.com Weekly Market Review Oct. 29, 2015 4
HERB SUPPLIES QUALITY COUNTRY OF ORIGIN Arugula Steady Good USA Basil Steady Fair USA/MEXICO Opal Basil Limited Fair USA/MEXICO Thai Basil Steady Good USA/MEXICO Bay Leaves Steady Good COLUMBIA Chervil Limited Fair USA Chives Limited Fair USA/MEXICO Cilantro Steady Good USA Dill Steady Good USA Epazote Steady Good MEXICO Lemongrass Steady Good USA Marjoram Limited Fair USA Mint Steady Good USA Oregano Steady Good USA Italian Parsley Steady Good USA Rosemary Steady Good USA Sage Steady Good USA/MEXICO Savory Limited Fair USA Sorrel Steady Good USA Tarragon Limited Fair MEXICO Thyme Steady Good USA Lemon Thyme Limited Fair USA Lavender Steady Good USA Lime Leaves Steady Good USA Hoja Santa Limited Fair USA www.producealliance.com Weekly Market Review Oct. 29, 2015 5
MANGOS Supply is getting tight, and prices are high. Brazil has very light supplies, and Ecuador will not start until November. MELONS Steady availability for late-season cantaloupes from the Westside District of the San Joaquin Valley in California. The size profile has improved for growers in Central Arizona, with medium sized 12 s now available. Good supplies on honeydews. WATERMELONS Watermelons are in tight supply, with the season winding down in the San Joaquin Valley, and the new crop harvest in Northern Mexico having been delayed due to significant damage caused by rainfall and flooding that occurred in late September. Importers in Nogales continue to receive limited quantities of watermelons from Southern Mexico. MIXED VEGETABLES ARTICHOKES Volume is low. Most of the volume this week is expected to be 12's, 18's and 24s. Quality is excellent. Most sizes are higher in price. Volume will drop as the weather cools. ARUGULA Supplies of both baby and wild arugula are good. Quality is good with minimal yellowing and thick stems. ASPARAGUS Market is tight. Still limited on larger sizes. Quality is good. BOK CHOY Availability has tightened due to continued hot weather, causing yellow leaves and reduced yields. BROCCOLI Decent supplies of Broccoli this week with increasing demand. Many of the regional programs have either finished or will be finishing by this week. We may see shorter supplies in the upcoming weeks due to the dropping yields. Quality is less than fair, with hollow core and purple cast. CARROTS Availability is good for jumbo carrots in the Cuyama Valley of California, located at higher elevation southwest of Bakersfield. Quality is good. CAULIFLOWER Most shippers are experiencing a shortage in supply as product pulled forward last week. This shortage should be short lived as product seems to be on the move again. Quality should improve as we move through this week as well. CELERY Please be aware that the celery market continues to escalate, and quality is an issue. Recent above normal temperatures and current record highs for this year have seriously impacted the quality and supply of celery through the industry. We will continue to monitor the supply situation and keep you advised. CORN Late-season corn (yellow, white) from California is in limited supply; prices are at extreme levels. www.producealliance.com Weekly Market Review Oct. 29, 2015 6
FENNEL Supplies for the week will be average. Demand continues to be decent and should increase in the coming weeks. Sizing throughout the week looks to be predominately 18's and 24's with very nice quality. GARLIC We are now about 80% done with our harvest, and unfortunately, the situation has not improved (actually slightly worsened). We will not know where we will be with garlic for another few months due to the weather in California. The winter didn t get cold enough and the summer was too hot, so the bulbs on the garlic have not bloomed. We will be watching this weekly as the crop is very behind schedule. GINGER Chinese ginger is in good supply, offered at a substantial discount compared to ginger from Brazil. GREEN CABBAGE Green cabbage supplies remain below expected volume, due to smaller sizing and lighter weight heads in fields. Quality is an issue, prices are high. GREEN ONIONS Iced: The market remains very tight due to light volume crossing the border. We will most likely see pricing remain well above normal for a few weeks. Quality is poor. Iceless: The market remains active due to light supplies and quality issues. KALE (GREEN) Demand is steady, and quality is good with some occasional yellowing present. Supplies are good. MACHE Adequate availability. NAPA Supply issues out of Salinas will continue to be extremely low, demand exceeds supply in some circumstances due to lower than expected harvest yields. We are seeing quality issues of internal rot and discoloration due to weather related issues. We are hoping to see some relief over the next few weeks with product being available in the desert and McAllen. We will continue to monitor this situation and keep you up to date as we see any improvements. PARSLEY (CURLY,ITALIAN) This week there are average to light supplies of curly parsley. Italian parsley is plentiful. Overall quality and appearance continues to be very nice on both. RED CABBAGE Quality and sizing have been great, with great color and very little discoloration. Overall market is strong. Expect good supplies through the end of October. SNOW & SUGAR SNAP PEAS Snow and sugar snap peas are in short supply, with California shippers unable to fill orders in full; this will continue until the harvest transition to Mexico occurs in November. Prices continue to advance, including prices for imports from Peru. BABY SPINACH Baby Spinach and Clipped Spinach supplies are good. Quality is good with some thicker stems, some occasional weaker texture and inconsistent leaf-sizing. BUNCHED SPINACH Steady volume. Quality is good. The market has come off a bit but still staying strong. www.producealliance.com Weekly Market Review Oct. 29, 2015 7
SPRING MIX Spring Mix quality is good with some oversizing in certain components. Demand and supplies are good. ONIONS The onion market remains firm on all three colors, with slightly higher pricing on red onions. With the heat this past summer, yields in the Northwest are down. Due to what appears to be a short crop, growers are not interested in shipping supplies if their asking price is not met. Growers are now finished with harvest and shipping exclusively out of storage. The first storage reports from the NOA (National Onion Association) are showing the lowest stocks on hand in the past 6 years. Distributors should pay special attention to the jumbo red deal. Pricing will move up quickly as the supply of red onions is very short. POTATOES (IDAHO) The majority of growers are finished with harvest and are now shipping potatoes out of storage. The carton supply is tight on all sizes, with demand exceeding supply on 60ct and smaller. All reports are indicating higher prices this season than it has been last season due to a decrease in supply. There are not currently any sizes or grades that growers are long on. TOMATOES Round, Roma, Cherry and Grape: Demand is very strong on rounds. Roma quality and volume are still off but improving out of the Baja through Otay Mesa as well as central Mexico through McAllen. Domestic production remains weak and continue seeing several quality issues. Smaller sized fruit volume remains light. One promising note, West Florida is beginning to scratch and production should begin to ramp up over the next several weeks. California volume will remain well below average on all varieties and sizes. Cherry and Grape Tomato production will remain very light this week. Please make certain to pre book orders out as far as possible to assure proper quality and color. TREE FRUIT The California season is quickly winding down. Late season peach varieties and large-sized red plums are available. Kiwi: The Chilean season is quickly winding down; new crop California kiwi is now available. Prices have firmed. Although heat has caused moderate damage to the crop in the Northern San Joaquin Valley, adequate production is anticipated for the upcoming California kiwi season. WASHINGTON APPLES & PEARS Demand is very good as well as movement. There are still good buying opportunities for old crop 100 larger reds, demand stronger on 113 smaller, quality remains good. Export demand is very high and causing shortages on smaller sizes, all varieties. New crop Galas, Granny Smiths, Golden Delicious, Fuji s, and Honey crisp are now in good supply as well as Bartlett s, D Anjous, & Bosc pears. www.producealliance.com Weekly Market Review Oct. 29, 2015 8
COMMODITY PRICE EXPECTED PRICE TREND QUALITY Avocados Avocados-California End of Season Avocados-Mexican Moderate Varies by Size Good Berries Blackberries Extreme Steady Good Blueberries Extreme Steady Good Raspberries High Steady Good Strawberries High Steady Fair California-Arizona Citrus Grapefruit Moderate Steady Good Lemons High Steady Good Limes Moderate Down Excellent Oranges-Navels Some CA Vals/Chilean navels Up Poor-Vals/ Good-Navs Pineapple Moderate Steady Good California Lettuce Green and Red Leaf Moderate Steady Good Iceberg Moderate Down Fair Romaine Moderate Down Good Romaine Hearts Moderate to High Up Good Eastern & Western Vegetables Cucumbers Moderate Down Good Green Beans Moderate to High Steady Good Green Bell Peppers Moderate to High Steady Good Red Bell Peppers High to Extreme Up Fair to Good Yellow Squash Low Steady Excellent Zucchini Low Steady Excellent www.producealliance.com Weekly Market Review Oct. 29, 2015 9
Grape & Tree Fruit Gapes-Green Seedless Moderate Steady Good Grapes-Red Seedless Moderate Steady Good Plums Finished Melons Cantaloupes Moderate Steady Good Honeydew Moderate Steady Good Mixed Vegetables Artichokes Moderate to High Steady Excellent Arugula Moderate Steady Good Asparagus Moderate to High Up Good Bok Choy High Up Fair Broccoli Moderate to High Steady Good Carrots Moderate Steady Good Cauliflower Moderate to High Up Good Celery Moderate Down Good Frisee Moderate Steady Good Fennel/Anise High Steady Very Good Garlic, Peeled Extreme Steady Good Green Cabbage High Steady Excellent Green Onions High Up Fair Kale (Green) Low Steady Very Good Mache Moderate Steady Good Napa High Up Fair Parsley (Curly/Italian) Moderate to High Up Very Good Red Cabbage High Steady Excellent Snow and Sugar Snap Peas High Up Poor to Fair www.producealliance.com Weekly Market Review Oct. 29, 2015 10
Spinach (baby) Low Steady Good Spinach (bunched) High Steady Good Spring Mix Moderate Steady Good Onions Red Moderate Up Good White Moderate Lower Good Yellow Moderate Lower Good Potatoes (Idaho) Idaho Russets Variable Steady Good Tomatoes Round, Grape Moderate Up Good Romas Moderate Up Good Red and Golden Delicious, Granny Smiths, Pinks Washington Apples & Pears Moderate Steady Good Golden Delicious, Fujis New Crop Higher Steady Good Galas, Honeycrisp New Crop, D Anjous, Bosc Pears High Steady Good Bartlett Pears High/Moderate Steady Good www.producealliance.com Weekly Market Review Oct. 29, 2015 11
Atlanta 5400 Laurel Springs Pkwy Suite 1002 Suwanee, GA 30024 Phone: 678.947.3000 Nashville One Vantage Way Suite B-440 Nashville, TN 37228 Phone: 615.259.0290 Buffalo Grove 100 Lexington Drive Suite 201 Buffalo Grove, IL 60089 Phone: 847.808.3030 Chicago 230 W. Huron Street Suite 200 Chicago, IL 60654 Phone: 312.573.7610 Salinas 60 West Market Suite 130 Salinas, CA 93901 Phone: 831.455.7800 www.producealliance.com Weekly Market Review Oct. 29, 2015 12