Market trends For week ending juLY 12, 2019 - Performance Foodservice
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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 3
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 4
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 5
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 6
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 7
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 8
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 9
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. 10
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. 11
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. 12
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. 13
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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