Market trends For week ending juLY 12, 2019 - Performance Foodservice

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Market trends For week ending juLY 12, 2019 - Performance Foodservice
market trends
For week ending juLY 12, 2019
Market trends For week ending juLY 12, 2019 - Performance Foodservice
market trends
WEek ending juLY 12, 2019

Beef, Veal & Lamb
Cattle carcass weights remain under a year ago but are on the rise seasonally. But, the year-over-year weight disparity continues
to temper total weekly beef output. The Choice cutout continues to trend modestly lower, but the break down has been consid-
erably lighter than history would suggest. More aggressive downside potential for beef prices is expected heading deeper into the
summer. Middle meat and trimming prices should begin to fade as summer interest wanes. Lower priced competing proteins are
likely to pressure beef prices downward in the coming weeks, with limited interest anticipated until Labor Day.

         Description           Market Trend   Supplies       Price vs. Last Year
Live Cattle (Steer)               Steady       Short               Higher
Feeder Cattle Index (CME)       Increasing     Short                Lower
Ground Beef 81/19               Decreasing     Good                Higher
Ground Chuck                    Increasing     Good                Higher
109 Export Rib (ch)             Increasing     Good                Higher
109 Export Rib (pr)             Increasing     Good                Higher
112a Ribeye (ch)                Increasing     Good                 Lower
112a Ribeye (pr)                Increasing     Good                Higher
114a Chuck , Shlder Cld(ch)     Decreasing     Good                Higher
116 Chuck (sel)                 Decreasing     Good                 Lower
116 Chuck (ch)                  Increasing     Good                 Lower
116b Chuck Tender (ch)          Increasing     Good                Higher
120 Brisket (ch)                Decreasing     Good                 Lower
120a Brisket (ch)               Decreasing     Good                 Lower
121c Outside Skirt (ch/sel)     Decreasing     Good                 Lower
121d Inside Skirt (ch/sel)      Increasing     Good                 Lower
121e Cap & Wedge                Decreasing     Good                 Lower
167a Knckle, Trimmed (ch)       Increasing     Good                Higher
168 Inside Round (ch)           Increasing     Good                Higher
169 Top Round (ch)              Increasing     Good                Higher
171b Outside Round (ch)         Decreasing     Good                 Lower
174 Short Loin (ch 0x1)         Decreasing     Good                 Lower
174 Short Loin (pr 2x3)         Increasing     Good                Higher
180 0x1 Strip (ch)              Decreasing     Good                 Lower
180 0x1 Strip (pr)              Increasing     Good                Higher
184 Top Butt, boneless (ch)     Increasing     Good                 Lower
184 Top Butt, boneless (pr)     Increasing     Good                Higher
184-3 Top Butt, bnls (ch)       Decreasing     Good                 Lower
185a Sirloin Flap (ch)          Increasing     Good                Higher
185c Loin, Tri-Tip (ch)         Increasing     Good                Higher
189a Tender (sel, 5 lb & up)    Decreasing     Good                 Lower
189a Tender (ch, 5 lb &up)      Increasing     Good                Higher
189a Tender (pr, heavy)         Increasing     Good                Higher
193 Flank Steak (ch)            Increasing     Good                Higher
50% Trimmings                   Decreasing     Good                Higher
65% Trimmings                   Decreasing     Good                Higher
75% Trimmings                     Steady       Good                Higher
85% Trimmings                   Increasing     Short               Higher
90% Trimmings                   Increasing     Short               Higher
90% Imported Beef (frz)         Increasing     Good                Higher
95% Imported Beef (frz)         Decreasing     Good                Higher
Veal Rack (Hotel 7 rib)           Steady       Good                Higher
Veal Top Round (cap off)          Steady       Good                Higher

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Market trends For week ending juLY 12, 2019 - Performance Foodservice
market trends
WEek ending juLY 12, 2019

Grains
The USDA released their updated domestic acreage estimates Friday with corn plantings at 91.7 million and soybeans at six-
year low of 80 million. But it is likely that these numbers will be adjusted lower later this summer. The U.S. corn and soybean
supply situation remains volatile. But corn prices could move lower in the near term.

       Description         Market Trend   Supplies   Price vs. Last Year
Soybeans, bushel            Decreasing      Good           Higher
Crude Soybean Oil, lb       Decreasing      Good           Lower
Soybean Meal, ton           Decreasing      Good           Lower
Corn, bushel                Decreasing      Good           Higher
Crude Corn Oil, lb            Steady        Good           Lower
High Fructose Corn Syrup    Decreasing      Good           Higher
Distillers Grain, Dry       Increasing      Good           Higher
Crude Palm Oil, lb BMD      Decreasing      Good           Lower
HRW Wheat, bushel           Decreasing      Good           Lower
DNS Wheat 14%, bushel       Decreasing      Good           Lower
Durum Wheat, bushel         Increasing      Short          Lower
Pinto Beans, lb               Steady        Good           Higher
Black Beans, lb               Steady        Good           Lower
Rice, Long Grain, lb          Steady        Good           Lower

Dairy
The cheese markets are the highest since November 2016. Strong domestic demand and tight milk supplies for cheese mak-
ers are supporting prices. Since 2014, the average move for the cheese block market from now through mid-August was up
11.5%. The spot butter market remains near the 13-month high ($2.420). Cream supplies for butter manufactures this sum-
mer are limited due in part to smaller milk output and competition for cream from ice cream producers. Butter prices usually
rise during the summer, but this year’s increases may be tempered due to slowing exports.

        Description        Market Trend   Supplies   Price vs. Last Year
Cheese Barrels (CME)        Increasing     Good            Higher
Cheese Blocks (CME)         Increasing     Good            Higher
American Cheese             Increasing     Good            Higher
Cheddar Cheese (40 lb)      Increasing     Good            Higher
Mozzarella Cheese           Increasing     Good            Higher
Provolone Cheese              Steady       Good             Same
Parmesan Cheese             Increasing     Good            Higher
Butter (CME)                Decreasing     Good            Higher
Nonfat Dry Milk             Decreasing     Ample           Higher
Whey, Dry                   Decreasing     Good            Higher
Class 1 Base                  Steady       Good            Higher
Class II Cream, heavy       Increasing     Good            Higher
Class III Milk (CME)        Increasing     Good            Higher
Class IV Milk (CME)         Decreasing     Good            Higher

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Market trends For week ending juLY 12, 2019 - Performance Foodservice
market trends
WEek ending juLY 12, 2019

Pork
Last week pork production eased from the prior week but was more than 9% over a year ago. Production schedules are slat-
ed to take a step back throughout July after aggressive output the past few weeks influenced pork prices lower. Last week,
the USDA pork cutout was down more than 14% from last year, and during June, averaged near 3.5% under a year ago. This
compares with May production running more than 15% over last year. Pork belly prices remain counter seasonally weak as a
summer peak usually comes in late July.

         Description           Market Trend   Supplies   Price vs. Last Year
Live Hogs                       Decreasing     Ample            Lower
Sow                             Decreasing     Ample            Lower
Belly (bacon)                   Decreasing     Good             Lower
Sparerib(4.25 lb & down)        Decreasing     Good             Lower
Ham (20-23 lb)                  Decreasing     Good            Higher
Ham (23-27 lb)                  Decreasing     Good            Higher
Loin (bone in)                  Decreasing     Good             Lower
Babyback Rib (1.75 lb & up)     Decreasing     Good            Higher
Tenderloin (1.25 lb)            Decreasing     Good             Lower
Boston Butt, untrmd (4-8 lb)    Decreasing     Good             Lower
Picnic, untrmd                  Increasing     Good            Higher
SS Picnic, smoker trm box       Increasing     Good            Higher
42% Trimmings                   Decreasing     Good             Lower
72% Trimmings                   Decreasing     Good             Lower

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Market trends For week ending juLY 12, 2019 - Performance Foodservice
market trends
WEek ending juLY 12, 2019

Poultry
For the week ending June 22nd, young chicken harvests were up 2.6% year-over-year, with the six-week average running
near the same. Bird weights have been on the rise for the past three weeks and pushed ready-to-cook (RTC) output up
3.6%, with the 6-week average up just shy of 3% (yoy). Amid increasing production, chicken prices have started to soften,
with breast meat prices failing to catch a pre- 4th of July bump. Wing prices remain elevated but are forecasted to weaken
from here as higher prices curb enthusiasm for wing features. Higher feed costs are expected to temper late summer broiler
production schedules which could support prices during late-August.

        Description            Market Trend    Supplies    Price vs. Last Year
Whole Birds WOG-Nat             Decreasing      Good              Lower
Wings (jumbo cut)               Decreasing      Good             Higher
Wing Index (ARA)                Decreasing      Good             Higher
Breast, Bnless Skinless NE      Increasing      Good              Lower
Breast, Bnless Skinless SE      Decreasing      Good              Lower
Breast Boneless Index (ARA)     Increasing      Good              Lower
Tenderloin Index (ARA)          Decreasing      Good             Higher
Legs (whole)                    Increasing      Good             Higher
Leg Quarter Index (ARA)         Decreasing      Good             Higher
Thighs, Bone In                 Increasing      Good             Higher
Thighs, Boneless                Decreasing      Good             Higher

        Description            Market Trend    Supplies    Price vs. Last Year
Whole Turkey (8-16 lb)          Decreasing      Good             Higher
Turkey Breast, Bnls/Sknls        Steady         Good             Higher

Eggs

        Description           Market Trend    Supplies    Price vs. Last Year
Large Eggs (dozen)             Decreasing      Short             Lower
Medium Eggs (dozen)            Decreasing      Short             Lower
Liquid Whole Eggs               Steady         Short             Lower
Liquid Egg Whites               Steady         Short             Lower
Liquid Egg Yolks                Steady         Short             Lower
Egg Breaker Stock Central       Steady         Short             Lower

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Market trends For week ending juLY 12, 2019 - Performance Foodservice
market trends
WEek ending juLY 12, 2019

Seafood
The snow crab markets are elevated. The Newfoundland snow crab fishing season is winding down with 93% of the quota
landed as of June 30th. The total Canadian snow crab quota this year is 59.4 million pounds which is 10.8% bigger than the
previous year but still historically small. Limited snow crab supplies are projected to persevere into 2020.

         Description          Market Trend   Supplies   Price vs. Last Year
Shrimp (16/20 frz)              Steady        Good             Lower
Shrimp (61/70 frz)              Steady        Good             Lower
Shrimp Tiger (26/30 frz)        Steady        Good             Lower
Snow Crab, frz                   Steady       Good            Higher
Tilapia Filet, frz               Steady       Good            Higher
Cod Filet, frz                   Steady       Good            Higher
Tuna Yellowfin, frsh             Steady       Good            Lower
Salmon Atlantic Filet, frsh      Steady       Good            Higher
Pollock Filet, Alaska, frz       Steady       Good            Higher

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Market trends For week ending juLY 12, 2019 - Performance Foodservice
market trends
WEek ending juLY 12, 2019

Paper and Plastic Products
           Description             Market Trend    Supplies      Price vs. Last Year
                                 WOOD PULP (PAPER)
NBSK- Paper napkin                    Steady        Good               Lower
42 lb. Linerboard-corrugated box      Steady        Good               Higher
                           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         Decreasing      Good             Lower

Retail Price Change from Prior Month

           Description                 May-19        Apr-19            Mar-19
Beef and Veal                         Increasing    Increasing       Increasing
Dairy                                 Increasing    Increasing       Increasing
Pork                                  Increasing    Decreasing       Increasing
Chicken                               Decreasing    Increasing       Decreasing
Fresh Fish and Seafood                Increasing    Decreasing       Increasing
Fresh Fruits and Vegetables           Decreasing    Decreasing       Increasing

Various Markets
Nearby Arabica coffee futures this week hit the highest level since November. Brazil’s current harvest is reported to have poor
coffee quality due in part to earlier weather challenges. This factor and solid demand suggest that higher coffee prices can
still materialize in the coming weeks.

          Description                Market Trend   Supplies     Price vs. Last Year
Whole Peeled, Stand (6/10)             Steady        Good              Higher
Tomato Paste-Industrial (lb)           Steady        Good              Higher
Coffee lb ICE                         Increasing      Good             Lower
Sugar lb ICE                          Decreasing      Ample            Lower
Cocoa mt ICE                          Increasing      Short            Higher
Orange Juice lb ICE                   Decreasing      Good             Lower
Honey (clover) lb                     Decreasing      Good             Lower

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Market trends For week ending juLY 12, 2019 - Performance Foodservice
market trends
WEek ending juLY 12, 2019

Produce

Market Overview
Due to the rainfall followed by extreme heat in our Salinas growing                     MARKET ALERT
region a few weeks ago, many of our crops have experienced yield           • Avocados – EXTREME
loss and quality issues. We are currently experiencing shortages on        • Berries (Blueberries, Blackberries,
iceberg, romaine, spinach, spring mix, and leafy greens. We expect             Raspberries, Strawberries) - IMPROVING
limited supply well into July. Growers are working to increase supply      • Cabbage (Red) – ESCALATED
and return to normal as soon as possible. Smaller-sized lemons are still
                                                                           • Celery – ESCALATED
very EXTREME. Celery is improving quickly. Berry quality has started
to improve some in the northern part of CA.                                • Green Beans - ESCALATED
                                                                           • Lemons (small sizes) -EXTREME
                                                                           • Lettuce (Iceberg, Romaine, Green/Red
Apples & Pears
Demand is strong for Golden Delicious and Granny Smith apples;                 Leaf, Butter) – ESCALATED
125- and 138-count storage supplies are limited. Washington Fuji,          • Parsley: (Curly, Italian) – ESCALATED
Gala, Granny Smith, and Red Delicious Apples are available. Braeburn       • Onions (Red, Yellow, and White):
and Honeycrisp volume has been depleted. Quality is excellent: fruit           ESCALATED
is crisp and juicy. Sugar levels range from 14 to 18 Brix. The market
                                                                           • Snow Peas – ESCALATED
is unchanged; supplies are sufficient. D’Anjou Pears are available, as
                                                                           • Sugar Snap Peas - ESCALATED
well as Bosc stocks. Sugar levels range from 12 to 14 Brix. California
Bartlett’s will hit the market in mid-July.

Artichokes                                                                                 WATCH LIST
Supply industry-wide is fair. Demand is fair and prices are steady to      •   Baby Squash-East
higher.                                                                    •   Red Bell Pepper
                                                                           •   Spinach
Arugula                                                                    •   Spring Mix
Supply and quality are fair due to the recent heat wave.                   •   Sweet Potatoes and Yams

      Good Buys:
      Here are some good commodities to look at based on how favorable pricing, quality, and supply are in the
      market. Stay ahead of the trends and look to these good buys for their stellar performance in the fields!

       Salinas Forecast

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Market trends For week ending juLY 12, 2019 - Performance Foodservice
market trends
WEek ending juLY 12, 2019

Produce (continued)

Asparagus                                                            Raspberries
Standard has good volume; the larger sizes have limited              Prices are level. Summer production is focused in California
volume.                                                              and Baja, Mexico; stocks will increase as the season
                                                                     progresses. Quality is very good: berries are plump and juicy
Avocados                                                             with mildly sweet flavor. Sugar levels range from 13 to 14 Brix.
EXTREME – Mexico field prices remain at historic levels as old
crop supply and quality dwindles. The Flor Loca has started          Strawberries
with some slight volume this week and that is helping some.          The market is steady. California growers are harvesting in
However, it will most likely be a slow ramp up as concerns           California’s Salinas/Watsonville and Santa Maria regions
about fruit reaching dry matter still linger. California continues   through the summer months; supplies are abundant. Quality
to harvest at a much faster rate than expected and should            is very good: berries are plump and juicy with sweet flavor.
have consistent production relative to original projections.
Peru arrivals have peaked, showing good quality and big              Bok Choy
sizing. Despite solid flow from California and Peru, it’s not        50# are in short supply and prices are steady.
nearly enough to offset the decline in Mexico. This means
we expect to see very strong market conditions for July, as          Broccoli
supply outweighs demand. The strength in the market could            The market is low; summer supplies are plentiful. Quality is
very well continue into August, as expedited harvest from            very good despite erratic California weather: reports of mildew
California may strip the state of fruit by the end of July.          and yellow discoloration are diminishing.

Bananas                                                              Brussels Sprouts
Conditions are relatively stable with inbound supplies as we         Supply is plentiful and quality is good.
enter into the summer months. Volumes are declining slightly
from all importers, but this is normal for the time of year. Fruit   Cantaloupe
quality is very good.                                                We are going on the California and Arizona Desert regions
							                                                              with descent volumes on the 12’s and larger, light volumes
Beans                                                                on the 15’s. also the Westside has started. The overall quality
EAST: Still somewhat short in the east, Coastal farms have           is very nice with good sugars and nice clean net. The brix
been impacted by weather, but are finally starting to rebound.       has been 13-14 so fruit is eating well, and internal color is
TN is about to start, so supply is expected to get a little better   excellent with a tight cavity. The market is fairly strong due to
but remain a bit snug until the 2nd week of July.                    cooler temperatures and volumes not coming off at a rapid
WEST: There are several areas in production, but no                  rate. Weather has warmed up this week and now we are
significant volume is available from any given region. Eastern       seeing better volumes.
WA just began, so ask us about local deals for the Pacific
Northwest! Baja is still about 3 weeks away. FOBs are steady
and quality is fair to good.

Berries:
Blackberries
The market is steady; California yields are increasing. Quality
is very good: berries are deeply colored, juicy, and sweet.
Sugar levels range from 12 to 13 Brix.

Blueberries
Prices are high; stocks are tight in California and Mexico.
East Coast production is moving north. Quality is very good:
berries are plump, deep blue/black, and juicy. Sugar levels
range from 12 to 16 Brix.

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Market trends For week ending juLY 12, 2019 - Performance Foodservice
market trends
WEek ending juLY 12, 2019

Produce (continued)

Carrots                                                          Garlic
Supply and quality on carrots is good. Supply is now available   Supply is firming up and markets are active due to trade tariffs
in Georgia as well.                                              being imposed on products from China.

Cauliflower                                                      Ginger
Supply is expected to be very good this week.                    Chinese ginger markets are mixed, but quality is good. Also,
                                                                 product is available at higher costs from Brazil, Peru and
Celery                                                           Thailand.
ESCALATED The market is improving quickly. We can expect
to keep seeing improvements weekly.                              Grapes
                                                                 We are in full swing out of Mexico and Coachella things are
Cilantro                                                         finally starting to get better as crossings have increased and
Supply is tight due to quality issues.                           plenty of availability across the board, and prices are finally
                                                                 starting to ease. The Mexico fruit has been fighting sugar, but
Corn                                                             weather has helped to bring it on. The overall quality of the
Markets are down, with good supply available on yellow,          fruit out of both regions is very clean, firm, and good color.
white, and bi color out of Florida and the desert.               The sugars will continue to get better in the next week to
                                                                 10 days. The expected volume out of Mexico is 22 million
Cucumbers                                                        compared to last year’s crop at 14 million and they are about
EAST: NC & SC are done for the most part. NJ and a few           2-weeks later than normal so we for sure will not have a gap
other local deals have started up and should show good           when we transition to the Central valley by the end of this
volume soon. MI has started in a small way. If they experience   week.
any delays, or any area sees weather, we could experience a
small supply concern, impacting FOBs. For now, things are
status quo.
WEST:Nogales still has product crossing, but this will most
likely wind down quickly with last week’s heat wave expected
to impact quality. Baja’s volume is picking up. FOBs are
mostly steady with good to excellent quality available.

Eggplant
EAST: There is ample supply to go around, but this isn’t a
good thing. With well below break-even FOBs, we could see
some growers call it quits earlier than expected. Eastern CA
is expected to get starting this week and a few other local
players will come to the table soon as well. FOBs remain low
with excellent quality.
WEST: The CA desert is about ¾ of the way through their
summer season. Fresno and Stockton will soon pick up
their volume over the next few weeks as they start to see
warmer weather. FOBs are moderate with fair to good quality
available.

English Cucumbers
There is a steady supply available from Georgia, Texas, and
Canada. Markets are stable.

Fennel
Supply on fennel will be short for the next few weeks due
to frost damage and the Yuma season finishing with light
supply. We will continue to see a majority of smaller fennel
this week - 18s and 24s will remain limited.
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market trends
WEek ending juLY 12, 2019

Produce (continued)

Green Cabbage                                                    Jicama
Supply and quality are good.                                     Storage product available--will see blemishing due to the fact
                                                                 it’s storage fruit. Good supply available.
Red Cabbage
ESCALATED Supply is very tight this week.                        Kale (green)
                                                                 Supply and quality are good.
Green Onions
The market is slightly better and eastern demand is picking      Lemons
up. Lighter supply is coming from Mexico due to reduced          We are still picking some fruit out of Dist. 1(Central Valley)
summer plantings.                                                and have started to pick Dist. 2 (Coastal Regions) fruit, just
                                                                 primarily size picking to relieve the trees of some stress. We
Honeydew                                                         are peaking on the big sizes and 165’s and smaller are very
Market is a bit stronger than the Cantaloupe Market as we        limited and market much stronger and will continue to see
are harvesting in Mexico, Arizona and the Desert region of       this heading into the summer due to all the rains, fruit has
California. There are lighter supplies across the board due      been growing and peaking on 95’s,115’s. The overall color is
to much less planted acreage in the regions this year. The       excellent as well as juice content. The moisture has also been
overall quality out of all regions has been good with a clean    creating spores in the fields as well and we will hope that it
and green to cream cast. The internal color and sugars look      is not to extensive on the clear rot, but it is inevitable, and
good as a well as a nice cavity. We are expecting to see good    we are doing all we can to help slow the spores down in the
quality going forward through all these regions barring any      field and in the packinghouse. Again, we are blessed to have
major weather. Also, we will start the Westside up here by the   the moisture, we will get through it one way or another. Also
end of this week as well.                                        starting to see a few Chilean imports arrive but bigger volume
                                                                 starting around the mid of July as Mexico will start about the
                                                                 same time as well.

                                                                 Lettuce:
                                                                 Butter
                                                                 ESCALATED The market is up this week. Supply is tight due
                                                                 to quality issues caused by the previous poor weather.

                                                                 Green/Red Leaf
                                                                 ESCALATED The market is up this week. Supply is tight due
                                                                 to quality issues caused by the previous poor weather.

                                                                 Iceberg Lettuce
                                                                 ESCALATED There is extremely light supply this week due
                                                                 to the previous hot weather. Yields have been down 20-25
                                                                 percent. The market will continue to be very active for the rest
                                                                 of the week. Quality is fair.

                                                                 Romaine
                                                                 ESCALATED We have shortages in supply and higher prices.
                                                                 Quality is fair with some tip burn and mildew stains.

                                                                 Romaine Hearts
                                                                 ESCALATED Supply for the week is low. Quality is fair due
                                                                 to some cupping and twisted rib. Overall color and texture
                                                                 are both good. Demand is increasing due to the heat wave
                                                                 coupled with short supply.

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market trends
WEek ending juLY 12, 2019

Produce (continued)

Limes                                                                Green Bell Pepper
The market is steady to slightly higher compared to last week.       EAST: Georgia has a small amount of pepper left as heat and
Rain in Mexico reduced the volume of shipments into South            rain have greatly impacted quality and yields. Expect GA to be
Texas. Quality is good with occasional issues of scarring and        done by the first of next week. Eastern NC has begun, and
yellowing.                                                           the crop quality is excellent. SC has lightly started, but the
                                                                     crop may be impacted due to heat during the growing cycle.
Napa                                                                 Following this, it will begin to spread out all over the eastern
Supply is light this week. Quality and supply are good.              region with programs in places such as KY, MI, TN, NJ, and VA
                                                                     to name just a few. Quality is dependent upon region. FOBs
Onions                                                               are also split by growing region.
ESCALATED The onion market has increased rapidly due to              WEST: There are still a few trickling in from Nogales, but for
reduced supply in all three growing regions. The North Texas         the most part, consider them done with the weak quality.
Uvalde region has had limited supply overall, but weather has        Bakersfield is the primary producer where they are flushing with
further stunted shipments. Additionally, both New Mexico and         crown pics. LeGrand will begin soon, about 2 weeks ahead of
CA are hitting gap situations between the early plantings and        schedule, with Fresno and Oxnard right behind that. Things are
spring seeded onions, which is causing limited supply in these       shaping up nicely out west, let’s hope Mother Nature continues
areas as well. CA is expecting this for roughly 7 – 10 days          to play nice! FOBs are steady to slightly down and quality is
and New Mexico for 5 – 7 days. On top of this, the concern           excellent with great shape and strong color.
remains that the cooler temperatures and rain that California
experienced a few weeks ago are going to lead to higher levels       Jalapeños (Chiles)
of shrink and a stronger market for the tail-end of their shipping   EAST: GA has basically finished up this week. Look for the
season. It is the expectation that the market will stay pretty       scattered eastern deals to be alive and well for a while. FOBs
firm throughout the summer due to planting delays as well as         are steady with good quality available.
cooler weather and storms. Typically, the Northwest begins           WEST: Mainland MX production is transitioning growing
shipping around the first or second week of August and has           regions, resulting in a wide variety of quality coming through
an overlap with what remains in New Mexico and California;           Nogales. Old crop is very weak, with new crop being much
however, due to 2-4-week planting delays, we expect them to          better but higher priced. Baja is also going with excellent
be later than normal this year.                                      quality available. Better quality demands a higher price point!

Oranges
We are still running navels; quality is a bit rough due to nearing
the end of the season. You will see some soft fruit with
puff and crease, also some clear rot due to all the moisture
this season. We have also started some Valencia’s and will
continue through the summer, the overall crop volume is of
normal size and peaking on 88’s,113’s. The overall quality of
the Valencia’s looks good now, but fruit will have a tinge of
green with good internal juice and sugars are 12-13 so eating
good, and keep in mind they are a Valencia that has been on
the tree for about 15 months.

Parsley(Curly, Italian)
ESCALATED Supply is tight due to recent quality and
weather-related issues.

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market trends
WEek ending juLY 12, 2019

Produce (continued)

Red & Yellow Bell Pepper                                           Snow Peas
EAST & WEST: Little to no field red pepper is available in         ESCALATED Many areas are still shut down, but we should
the east. Demand is turning to the west or to Canada’s             start to see some product in the next weeks.
hot house season to fill the gap. Western Canada is in full
production, but demand is quite high, especially with Eastern      Sugar Snap Peas
Canada’s lighter production not adding much to the mix. MX’s       ESCALATED Many areas are still shut down, but we should
production has also been a slow start. Look for things to turn     start to see some product in the next weeks.
around in the next 7 - 10 days.
                                                                   Spinach (Bunched)
Pineapple						                                                    WATCH LIST Spinach supply and quality are fair due to the
The market is unchanged; supplies are expected to remain           recent heat wave.
adequate through the summer months. Overall quality is very
good: fruit is juicy with tangy, yet sweet flavor. Sugar levels    Spinach (Baby)
range from 13 to 16 Brix.                                          WATCH LIST Supply and quality are fair due to the recent
                                                                   heat wave.
Idaho Potatoes
The remaining supply in Idaho looks pretty small based on          Spring Mix
the lack of movement on small cartons. 70cts and larger are        WATCH LIST Supply and quality are fair because of recent
up again this week with tight supplies across the state. Most      rain followed by hot weather.
Growers are projecting a new crop start date of the second
week of August. Quality still looking pretty good for this of      Sweet Potatoes and Yams
year.                                                              WATCH LIST The sweet potato market continues to be tight
The red and Yellow colored potatoes across the country             after many growers were affected by Hurricane Florence in
are in very short supply. This in affect has skyrocketed the       North Carolina last September. Increasing demand and heavy
costs. The only area shipping right now is California. They are    rains in Mississippi, Louisiana, Arkansas, and Alabama also
in a demand exceeds supply situation. They reduced their           created challenges for the other major growing regions, but
acreage this year due to the lack of sales the last few years.     luckily quality and size is still good. We will continue to see
There will be a little relief coming in the next couple weeks as   the price of sweet potatoes rise month by month over the
Texas and Kansas will start having some Red new crop come          summer until we get to next season’s harvest.
off. Washington will have some new crop start in Late July
with Minnesota and Wisconsin coming on the second week
of August. I do not see any relief price wise until August when
the main producers of reds start up again. Normally, there is
product in the Carolinas that helps to offset the East Coast
needs. However, due to the rain effects from the hurricane,
there is no crop this year. However, Virginia has begun to dig
and have some product available. The dry hot weather in VA
has also affect the crop and we are seeing some pretty thin
skin potatoes.

Radishes
Markets are firming up due to heavy precipitation and wind
damage to fields.

Salad Blends
Prices have inched up; iceberg and romaine yields are low.
Quality is fair: heat-related quality problems are prevalent in
all growing regions. Inspectors are closely monitoring finished
cartons for defects, as well as chunks and cores, to achieve
the best packs.

                                                                                                                                     14
market trends
WEek ending juLY 12, 2019

Produce (continued)

Yellow Squash/Zucchini                                               Grapes
EAST: Not much change from last week! Eastern production             South Carolina farms are producing a steady supply the last
is scattered all over, but no source has a significant amount        few weeks. Virginia will start harvesting this week. FOBs are
of volume. Many regions experienced weather, both rain and           unchanged with the steady stream of product. South Carolina
cooler temps, which is impacting quality. FOBs are varied            quality is mostly good, but we have seen some struggles
within the fragmented regions and subpar quality available,          recently from prior rain events. Early reports from the fields in
especially on yellow. Michigan will be starting soon.                Virginia are that product is looking great.
WEST: Baja, Santa Maria, & Fresno are all producing steady
numbers. CA seems to have the better quality, but as usual,          Cherries
yellow is showing more scuffing that we’d like to see. WA is         Steady as she goes, there is good availability from the
also starting to add to the mix. FOBs are flat to down just          southeast region. FOBs are steady with good quality available.
slightly with relatively good quality available, outside of the
issues with yellow.
                                                                     WEST/MEXICO
TOMATOES                                                             Rounds
                                                                     Western supply continues to be driven by vine ripes, but mature
EAST                                                                 greens are quickly picking up steam, as production started this
Rounds                                                               week in CA. Vine ripes are coming in strong from Eastern MX &
Eastern production is close to their next transition to the very     Baja as the primary producing regions. Volume has been heavier
fragmented growing season, with no gaps expected. Quincy             on bigger fruit, 4x4 and 4x5 size, with less availability in 5x5 and
will wrap up in the next 7-10 days as size, quality and volume       5x6 sizes. FOBs vary at this time. Vine ripe quality is good to
are all declining. South Carolina is working through crown picks     excellent. Early reports on mature greens is that quality is good,
and if the market allows will go back to 2nd picks. Quality          but it is a “typical California tomato”. This tomato is a softer seed
overall is excellent, but there is some scarring on the fruit from   variety, so expect some give when comparing against an eastern
prior weather events through the growth cycle. Tennessee and         tomato.
Alabama will begin the first week of July, Virginia is looking to
start the 2nd week of July, and North Carolina and Alabama           Romas
are also starting their local seasons. FOBs are steady as we roll    Strong volumes are coming from Eastern MX & Baja this week.
into next week and will be driven primarily by the western region    Northern CA has begun in a light way and we will see this
throughout the summer season.                                        continue to ramp up through July 1. No shortage of romas at
                                                                     this time. However, with demand perking up from the eastern
Romas                                                                users, we are seeing FOBs feel some upward pressure. Quality
There is no volume at all in the east. Eastern demand is turning     is mostly good to excellent.
west for pricing & demand needs. See western update.
                                                                     Grapes/Cherries
                                                                     Similar to rounds and romas, Eastern MX & Baja are in the
                                                                     driver seat right now. FOBs are steady and quality is good to
                                                                     excellent.

                                                                     Tree Fruit
                                                                     Shippers are going good on Peaches, Plums and Nectarines
                                                                     but market is still strong as the cool weather has slowed
                                                                     growth, but we are looking at hot temperatures starting today
                                                                     and fruit volume will really start to increase and markets should
                                                                     ease a bit. Cherries are also tight due to the rains that caused
                                                                     some major damage.

                                                                     Watermelons
                                                                     Weak prices dominate the market; volume is high in most
                                                                     regions. Although the Mexican season is winding down, there
                                                                     are several domestic areas in production. Quality is very good:
                                                                     sugar levels vary from 10 to 12 Brix.
                                                                                                                                             15
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