Market Report

February 23, 2017
OVERVIEW
Thepreviousmonth’sadverselyunstableweatherconditionsintheYumagrowingregionarestillcausingquality
problems,loweroverallweightsandyields.Theunusualweatherhascreatedindustrywideshortagesinsupplyon
multipleitemsincluding:broccoli,cauliflower,andcilantro.Avocadosarebackinanextrememarketassupplyis
limitedandpricesarehigh.
FORECASTFORNEXTMONTH:
Overthenextthreetofiveweeks(nowthroughtheendofMarch)theindustrywillexperienceissueswithsupplyfor
romaine/mixlettuce,romainehearts,broccoliandcauliflower.Theseissuesarearesultofthewarmerthannormal
weatherconditionsthathavetakenplacesincestartofYumaandproductbeing1-2weeksaheadofschedule
(broccoli/cauliflower)andasfaraheadofscheduleas2-3weeksonahighside(romaine/mixandromainehearts)
throughouttheentireYumagrowingseason.Growershavetriedtodowhattheycantoslowproductgrowthand
minimizethesupplyshortagebutunfortunately,itseasiersaidthandonewhenmothernaturebringstheproduct
forwardinYuma.
InregardstoSalinas,theextremelywetandcolderthannormalweatherduringtheSalinasplantingseason
(January/February)hasourgrowersaredoingalltheycantotrytobringproductforwardasmuchaspossibleto
mitigatethepotentialsupplygap,butthishasbeenextremelychallengingwithtemperaturesranginginthemid50’s
tolow60’splusJanuaryandFebruarybeingsomeofthewettestmonthsonrecord.Inthenext5weekswewillsee
shortagesonproduct.Wewillkeepyouupdatedweekly.
MARKET ALERTS
ASPARAGUS-EXTREME
CAULIFLOWER-EXTREME
AVOCADO-EXTREME
CILANTRO-EXTREME
LEMONS(SIZING)
CELERY-QUALITY
GARLIC-EXTREME
GOOD BUYS
TOMATOES–ROUND,CHERRYANDROMA
Didyouknowthattomatoesareconsideredoneoftheworld'shealthiestfoods.Tomatoesareatreasure
ofricheswhenitcomestotheirantioxidantbenefits.Intermsofconventionalantioxidants,tomatoes
provideanexcellentamountofvitaminCandbeta-carotene;averygoodamountofthemineral
manganese;andagoodamountofvitaminE.Inregardstophytonutrients,tomatoesarebasicallyoffthe
chart.
WithalltheraininCaliforniaandshortagesinofcauliflowerandbroccolitryatomatosalad!Youcanmake
agreatCapresesaladwithfreshtomatoesandmozzarellathathasnevertastedbetter.Yum!Tryafresh
saladwithamixoflettuce,basil,andgrapeorplumtomatoes.Forameal,servewithchickenorfish
drizzledwithavinaigrette.OrtryTomatoGalette-tenderparmesan-pepperpastrycradlesheirloom
tomatoes,shallots,goatcheeseandfreshherbsinafold-overtartthat'sidealforweekendbrunch.Serve
itwarmoratroomtemperature,thoughtheleftoverstastegreatcold—ifyouhaveany!
TENTATIVE TRANSITION SCHEDULE
COMMODITY
Lettuce
Romaine/GreenLeaf
Broccoli
Cauliflower
Celery
FINISHSALINAS
Nov2nd
Nov20th
Dec7th
Dec10th
Dec1st
STARTYUMA
Nov4th
Nov15th
Nov20th
Nov25th
Jan15
STARTIMPERIALVALLEY
th
Dec7 th
Nov14 th
Nov20 th
Dec14 Oxnard-Nov15th
TRANSPORTATION & WEATHER
TrucksareinadequatesupplyinalldistrictsincludingtheNorthwest,Southwest,TexasandFlorida.
MorewindandrainareintheforecastthisweekendforCaliforniadistricts.Theheaviestprecipitationwill
occurincentral&northernCalifornia,with1–2inchesatthecoastand¾-1½inchesintheinlandvalleys.
SouthernCaliforniawillseeabout¼inch,withlessinthedesert.Acoolingtrendwillcausedaytimehighs
todeclineintothe50’sincentralCalifornia,withlow’sat-or-belowfreezingonFriday.High’swillbeinthe
60’sinthedesert,withlow’sinthe40’s.ClearskiesandmildtemperatureswillcontinueincentralMexico,
withhighsinthe80’sandlow’sinthe40’s.WeatherconditionsinsouthFloridawerecoolonWednesday,
accompaniedbyaninchofrain.Significantrainfallhasalsocurtailedthestrawberryharvestincentral
Florida.TheremainderoftheweekwillbringgenerallyclearskiesandmildtemperaturestoFlorida
districts,withhighsintheupper70’s&low80’sandlow’sinthe40’s&50’s.
FRUITS & VEGETABLES
AVOCADOSEXTREMEMARKETWecontinuetoseeashortageinsupplyandpricesrising.Weexpect
thistocontinuetogetworseparticularlyonlargerfruitasthesizemixshiftstotheheavierfruit.
BANANASDemandandqualityaregoodandsupplyissteady.
GRAPESSuppliesareimprovinganddemandislighterthanexpected.SugraoneandFlamepricingisdown
thisweek.
BLUEBERRIESQualityisoutstandingonblueberriesfromCentralMexico.Peakproductionwillcontinue
throughFebruary,withtheseasonfinishingbyJune.BajaCalifornia,OxnardandSantaMariawillbeginto
increasetheirvolumemovingforward.Chileisfinishedfortheseason.
BLACKBERRIESCoolerweatherincentralMexicohasdelayedtheanticipatedincreaseinproduction.We
expecttohavegoodsuppliesbylateearlyMarch.
RASPBERRIESProductionvolumeremainsstrongincentralMexico,supplementedbyBajaCalifornia.
OxnardavailabilitydeclinedthisweekduetotheheavyrainthatoccurredlatelastweekthroughTuesday
ofthisweek.ProductionisexpectedtorecoverbyearlyMarch.Overall,raspberriesareingoodsupplythat
willcontinuetoincreasegoingforward.
STRAWBERRIESAvailabilityoverallhastightenedduetoweatherconditionsinvariousgrowingareas.
RainfalltotalsforWednesdayincentralFloridahavebeenhigherthananticipated,causinggrowersto
curtailharvesting.MorethanfiveinchesofrainfellinOxnardduringthesix-dayperiodthatended
Tuesday.ThisleavescentralMexicoasthestrawberrydistrictthathasbeenleastaffectedbyweather.
Priceshavereboundedinresponsetoincreaseddemand.Additionalprecipitationisintheweekend
forecastforOxnard.
CALIFORNIA-ARIZONA CITRUS
**RainhascontinuedtohindercitrusharvestsinCalifornia.Thereisanothercoupleinchesofrainexpectedbytheupcomingweekend.Smaller,
choicegradefruithasbeenveryhardtocomeby.Mostsuppliesareofthelarger,fancygradefruit.
GRAPEFRUITTexasgrapefruitispacking,goodsuppliesof40sandsmaller.Floridaredanddarkred
grapefruitwillbefinishingupattheendofFebruary.Grapefruitqualityhasbeenverygoodthisyear.
LEMONSVolumeisexpectedtobelowforthenextcoupleweeks.Verytighton165sand200s.Mostly
large,fancygradefruit.
LIMES(PERSIAN)Limesareavailableingoodsupplies,packinginTexasandCalifornia.Greatqualityand
color.
ORANGES
Navels:Suppliesareexpectedtoincreasebythebeginningofnextweek,dependingonthe
weather.Quality,flavorandinternalcoloraregood.Larger,fancygradeduetorecentweather.
Specialties:
MinneolaTangelosandmandarinsareavailable,greatqualityandcolor.
Bloodorangesareingoodsupply,greatcolor.
CaraCarasareavailable,excellentcolorandquality.
Pummelosareinthefinalweekofharvesting.
PINEAPPLESupplywillbetightthroughnextweek.Pleaseorderahead.
CALIFORNIA LETTUCE
GREEN&REDLEAFSuppliesongreenleafarebetter.Weareseeingalotofdirtduetotheheavywinds,
seedersandtipburn.Weareseeingveryshortsupplyonredleaf,howeverqualityisgood.Pricesarehigh
onboth.
ICEBERGLETTUCESuppliesoficeberglettuceareaverage.qualityisgoodtoaverage,andweareseeing
somemildewduetotherain.Expectshortagesandhighprices.
ROMAINELightsupplies.Qualityishitormisswithepidermalpeeling.
ROMAINEHEARTSSuppliesarelight.Weareseeingtwistingwithaveragequality,andpeeling.Pricesare
rising.
EASTERN & WESTERN VEGETABLES
GREEN&REDBELLPEPPERSMoresuppliesarecominginfromcentralMexico(Sinaloadistrict)ongreen
bellpeppers.Priceshaveeasedinthewesthowever,wearestillseeingashortageinsupply.Availability
remainstightinFloridaduetorainthatoccurredonWednesdayofthisweek.RedbellsfromMexicoare
plentifulinsupply.
CUCUMBERSCucumbersareingoodsupplyfromNogaleswithfavorableprices.Importvolumeon
cucumbersfromcentralAmericaissteadyandtheirqualityisvariable.
ENGLISHCUCUMBERS(EURO)SupplieshaveincreasedinNogalesandpriceswillcontinuetoease.
GREENBEANSAvailabilityhasimprovedinFlorida.BeansareintightsupplyinNogaleswherepricesare
trendingup.
ZUCCHINI&YELLOWSQUASHProductionisonthedeclineinthewestastheseasonwindsdownincentral
Mexico(Sinaloa).Pricesaremovingsharplyhigherforzucchiniandyellowsquash.ShippersinNogales
anticipateimprovedavailabilitybymid-March,whennewcropswillbecomeavailablefromnorthern
Mexico(Sonora).PricesarefirminFlorida.Qualityisvariableintheeastandwest.
ACORN,BUTTERNUT&SPAGHETTISQUASHSquashesarereadilyavailableandmarkettrendspointto
supplyexceedingdemand.ThereisamplevolumeofdarkgreenzucchinisinFloridaandGeorgia,anda
reallyniceyellowsquashcropforthistimeofyearaswell.Withthepressurefromthewhitefliesthat
plaguedGeorgia’searlyfallcropwaydown,theyellowsquashvolumeisincreasingandthequalityismuch
moreconsistent.Georgiaisstartingonitslastnewfieldsthisweek,withFloridarampingupbytheendof
themonth.
MANGOESSupplyandqualityareexpectedtobeinshortsupply.PeruhasfinishedandNicaraguaisstarting
nextweekwithverylowvolume.Mexicoisbeingdelayedaswell.
MELONS
AbovenormaltemperaturesthroughouttheNorthernRegionhaveincreaseddemandduringtheholiday
week.Qualityhasbeenveryconsistentwithbettercolorstartingtoappearonthemelonsasthedaysget
longerinthegrowingareas.Wewillstarttoseethespringmeloncropbytheweekof3/6andallindicators
sayitshouldbeastrongspringcycleinregardstoquality.
Cantaloupe:Themarketremainssteadyandshouldremainsoaswefinishthemonth.Alittlemorevolume
isexpectedtocontinuehittingthemarket.
Honeydew:Honeydewproductionhasbeenpeakingon6/8soverthepastweek.Watchfor5stoshorten
upuntilthenewgrowingareaofGuatemalabeginsinearlyMarch.Qualityhasbeengoodwithbrixlevelsin
the10-12%range.
WATERMELONSTheseedlesssupplyhasincreasedoverthelastweekasnewareasinHonduraskickinto
heavierproduction.WatermelonsshouldremainfairlysteadythroughthemonthofMarchfromoffshore.
HERBS
Qualityonalltheotherherbsisverysteady.Wearehavingnoissueswiththecoldtemperaturesaround
thecountry.Pleasekeepusinformedifthereareanychangesthatweneedtobemadeawareof.
SAVORY:Thisistheonlyherbthatisshort.Removelastsentence
CILANTRO:EXTREMEMARKET-Supplyisverylight.Qualityisvariable,thereisstillyellowingwithsome
decay.Pricesarehighandweareseeingshortages.
HERBS
HERB
SUPPLIES
QUALITY
COUNTRYOFORIGIN
Arugula
Good
Good
USA
Basil
Good
Good
USA/MEXICO
OpalBasil
Good
Good
USA/MEXICO
ThaiBasil
Good
Good
USA/MEXICO
BayLeaves
Good
Good
COLUMBIA
Chervil
Good
Good
USA
Chives
Good
Good
USA/MEXICO
Cilantro
Good
Good
USA
Dill
Good
Good
USA/MEXICO
Episode
Good
Good
MEXICO
Lemongrass
Good
Good
USA
Marjoram
Steady
Good
USA
Mint
Good
Good
USA
Oregano
Good
Good
USA
ItalianParsley
Good
Good
USA
Rosemary
Limited
Good
USA
Sage
Good
Good
USA/MEXICO
Savory
Good
Good
USA
Sorrel
Good
Good
USA
Tarragon
Good
Good
MEXICO
Thyme
Good
Good
USA
LemonThyme
Good
Good
USA
Lavender
Good
Good
USA
LimeLeaves
Good
Good
USA
HoraSanta
Good
Good
USA
ARTICHOKESWeareseeingveryhighpricesandveryshortsupply.Qualityisgood.
ARUGULASuppliesofbothbabyandwildarugulaarelightduetomildew.
ASPARAGUSJumbosarestilltightandpricesarestillescalatedduetotheendoftheseason.We
expectthistoimprovenextweek.ThereiscurrentlyawidespreadprobleminCaborca,Mexicothatis
resultingindelayedharvestproductivityinfieldsrangingfrom50–55%BELOWthelevelsforecastfor
thistimeofyear.CurrentweatherisexcellentandgrowersaretryingtofigureoutWHATfactorsare
causingthedelayedinitiationof“normal”productivityandharvestlevels.Growersareunableto
providevolumeforecaststocoverpre-plannedpromotional(ad)commitments.Thereissolittle
volumecrossingoutsideof“priorcommitments”thattheUSDAhasalmostnoopenmarketvolume
onwhichtoreportpricing.ThereisalotofactivitywithimportersSEARCHINGforvolumetocover
commitments.
BOKCHOYQualityisgoodandweareseeingsomehigherquotesonWGAcartons.
BROCCOLIBroccoliisinshortsupply.Weexpectthismarkettogettighteraswemoveintonextweek,
asaresultofwarmerthanusualweatherpatternsplustheamountofrainthathasfallen.Weare
seeingagapinharvestschedulesandsupplies.
BRUSSELSPROUTSThemarketandsuppliesaregoodthisweek.Qualityisgood.
CARROTSGeorgiacarrotshavearrived.Carrotshaveimproved.
CAULIFLOWEREXTREMEMARKETDuetoweather,weareseeingshortagesandveryhighprices.
Qualityisaverage.Pleaseexpectpriceincreasesandshortsupply.
CELERYQUALITYISSUESandshortageinsupply.Wecontinuetoexperienceraineventsthroughout
California,withFebruaryhistoricallybeingour“rain”month.InOxnard,theseconstantrainshavecaused
thecelerytodevelopmanydefectsintheacrescurrentlybeingharvested.Theouterpetiolescontinueto
getwaterlogged(becomingtranslucent),andalthoughwetrytostripthesepetiolesfromthestalkswhile
harvesting,thisisnotalways100percenteffective.Morerecently,weareexperiencingalevelofpith
muchhigherthanwewerethreetofourweeksago.Pithathighlevelscanbeamajordefectastheinsideof
thecelerywilltendtobreakdownquickerandturnintodecay.Itbecomesveryapparentattheendsofthe
celerywheretheceleryhasbeencut.Eventheuseofourwaterjetcuttingtechnologycannotminimizethe
effectsofhighamountsofpithweareexperiencing.
Someoftheotheroverallqualityissuesthatceleryisexperiencingundertheseconstantrainconditionsare
listedbelow:
1.
2.
3.
4.
5.
Outerpetioles–Waterlogged(translucency)
Lightcolor/pale
Mudinsidepetioles.
Reduceshelflife(17daysmax)
Brownends.
Itisveryimportantthatourcustomersmakeeveryattempttoordertheminimumamountofproduct
necessarytofillordersandavoidanyexcessinventory.Withreducedshelflifeandthepotentialhigherlevel
ofpiththanusualthistimeofyear,thisisnotagoodtimetostockupforpromotionsorintroducethis
productforthefirsttime.Wewillupdatethisinformationasweseeanysubstantialshiftsinquality.
CORNFloridasweetcornhasseenaspikeinpricingthisweek.Therehasbeenlessavailabilitythanin
previousweeksduetoplantinggapsandthecoolerweatherhinderingmaturity.
FENNELSuppliesfortheweekwillbelight.
GARLIC:EXTREMEMARKET-Wesawanotherincreaseinprice.Thesupplyofdomesticgarlicremainstight.
Pricingondomesticpeeled4x5sisstillhigh.Inthepastweekortwo,wehaveobservedaslightreliefin
demand.ThisisfairlynormalfollowingtheNewYear.
InregardstoChinesegarlic,thereisanincreaseinsupplyespeciallyontheEastCoast.Duringthistimeof
year,itisnormalforChinatoexportallpoundsthatwerenotplacedintocoldstoragefortheyear.A
percentageoftheloadsreceivedintheUSthispastmontharebecauseofthis,thegarlicwasnotputinto
coldstorageandmustbesoldinlateNovember/Decembertoavoidexpiration.ApercentageofChinese
peeledlbs.receivedinthelastmontharechallenged(especiallyontheEastCoast).Issuesincludeexcess
translucency,pinkandyellowaging/stressmarks,mold,etc.
Withtheadditionalsupplycompoundedwiththequalityissues,thepriceofChinesegarlichasdecreasedin
thepastmonth.ThisweekweareseeingitriseagainduetotheChinesesupplydecreasing.
Aswemoveintothenextthreemonths,weexpecttheChinesesupplytocontinuetodecreasewhichwill
leadthemarkettoreturntoabnormalhighs.SomeChineseshippershaverecentlyreceivedhigherduty
ratesfromUSCustoms.ThereareindicationsthatthesecompanieswillnotbeexportinggarlictotheUSfor
theforeseeablefuture.
GINGERChinesegingerisingoodsupply.Itisbeingofferedatasubstantialdiscountcomparedto
gingerfromBrazil.
GREENCABBAGEGreencabbageisingoodsupplyandshouldbesteadythisweek.Qualityisgood.
GREENONIONSThegreenonionsupplyfortheindustryisgettingbetter.Weareseeingpricescome
down.
KALE(GREEN)Demandissteadyandqualityisaverage.Weareseeingsomemildew.
MACHEAdequateavailability.
NAPAsuppliesaregoodandqualityisexcellent.
PARSLEY(CURLY,ITALIAN)Pricesarenormalandqualityisaverage.
RADISHESQualityisgoodandsupplyisplentiful.
REDCABBAGEQualityandsizinghavebeengreat,withgoodcolor.Overall,themarketisstrong.
SNOW&SUGARSNAPPEASSnowandsugarsnappeasareinhighdemandwithgoodquality.
BABYSPINACHBabyandclippedspinachsuppliesarelight.Qualityisfairtogood,withgoodprices.There
aresomereportsofmildew.
BUNCHEDSPINACHSupplyisaverage,qualityisonlyfair.Wearestillseeingsomemildewinthisproduct.
SPRINGMIXThereisplentyofproductwithqualitybeingaverage,butithasimproved.
ONIONSPricinghasremainedsluggishasMexicansupplieshavecontinuedtoincreasevolumeonallthree
colors.Thenorthwestisbacktonormalshippingandsuppliesareplentifulfortheamountofseasonthey
haveremaining.ThesizeprofileontheMexicanproductisheavieronmediumsandjumbos.Largesize
onions(colossalandsupercolossal)willneedtocontinuetobesourcedinthenorthwest.Qualityremains
stronginthenorthwest.
POTATOES(IDAHO)Demandonconsumersisverylight,40'sthru70'sfairand80'sthru100'slightalso.
Wecannotseemtogetpotatoestograbholdandgetdemandbackto"normal."Itwillprobablybeanother
fewweeksbeforeweseedemandpickupforsuppliers.Youshouldbeabletomakegooddealson
consumerpacksalongwiththesmallercartonsinIdaho.Growersareintheearlystagesoftryingtofigure
outtheirplansonupcomingplantings.Thesmartmoveatthistimewouldbetoseeapushtodecrease
acreageinIdaho.Grower'scannotcontinuetooperateatbelowproductioncost's,it'sjustnotsustainable
forthem.Noissuestoreportonthetransportationside.
TOMATOES
East:
•
•
•
Rounds–Suppliesintheeastremaingooddespitetherecentweatherevents.FOBpricesaremostly
unchangedthisweekwithexcellentqualitybeingreported.
Roma–Harvestforecastsaremostlyunchangedandqualityisgood.Pricingwillbemostlyunchanged
thisweek.
Grapes–Suppliesaregoodandqualityisexcellent.FOBpricesremainunchangedthisweek.Quality
remainsverynice.
Cherries–Suppliesaresteadyandqualityremainsgood.FOBpricesareremainingmostlyunchanged.
•
West/Mexico:
•
•
•
•
Rounds–Vine-ripeproductionisgoodthroughNogalesandMcAllen,stilllightcrossingsthrough
Otay.FOBpricesaremostlyunchangedthisweek.Overallqualityisveryniceonallsizesthroughout
Nogales,McAllenandOtay.
Romas–SuppliesaregoodthroughNogalesandMcAllenwithgreatqualityexpectedoverthenext7to
14days.
Grapes–GoodsuppliesarecrossingthroughNogalesandqualityremainsexcellent.
Cherries–Suppliesaregood,butthequalityisoffabitthisweek.Weexpecttoseeatickupinthe
pricesasdemandisdrivingmorepulloutoftheEast.
WASHINGTON APPLES, PEARS & TREE FRUIT
Apples:Demandandmovementissteadywithsuppliesreadilyavailableinmostsizesandgradeswiththe
exceptionofgoldsandgranny’s.Supplyremainstighton100sandsmalleronallgradesexceptpremium.
125sandsmallersizesinallvarietieswillcontinuetobetightallseason.
Pears:Demandandmovementaresteady.MostsuppliesarenowcomingoutofCalifornia.Pricesremain
highonD’Anjous,100sandsmallerwhereasBartlettshaveamuchbettervalue.
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60 West Market Suite 130
Salinas, CA 93901
Phone: 831.455.7800