This a national report that I found to be very accurate. It is broad based and intended to show trends and reasons why certain item prices are moving. It is not     intended to be a price sheet, just a source of weekly information....

Weekly Market Review

March 4, 2010

 Weather UpdateThe rain continues in Central & Southern California, although this week has brought heavier amounts of rainfall, by comparison, to Central California coastal districts.  The current pattern of wet weather will continue well into next week.  Clear skies and mild temperatures will continue in the desert regions of Southern California and Western Arizona.  Daytime highs in the desert will be in the 60’s, with lows around 50.  Temperatures are cooling once again in Florida, with mid-week highs in the Orlando area dropping into the 50’s and lows in the 40’s.  Mild weather continues in the growing areas near Guadalajara, Mexico, with highs in the 80’s and lows in the 40’s.    TransportationTight availability continues for trucks in California and Arizona; freight rates are trending higher.  It appears that marginal carriers have been unable to survive the economic downturn, creating a capacity shortfall in transportation equipment.  We may be facing significantly higher freight rates and truck shortage situations during the upcoming spring and summer shipping seasons. 

California Lettuce & Mixed VegetablesIceberg & Leaf:  A split market exists for iceberg lettuce, with over-mature, jumbo sized lettuce being sold to local markets at a discount to premium quality palletized iceberg.  Shipping-quality iceberg is in tight supply as the end of the desert growing season is in sight; prices are on the rise.  Availability has tightened for romaine and leaf items also.  Looking ahead, early indications for the transitional lettuce crop in the Central San Joaquin Valley (Huron), with harvesting scheduled for late March, forecast various quality issues including mildew and small head size.  With the ongoing wet weather in the Salinas Valley, and to a lesser degree, Huron, the transition northward may not be smooth; current price trends support that possibility. 

Broccoli, Cauliflower, Celery, Carrots:  Price levels continue to climb for broccoli and cauliflower, as production volume for broccoli and cauliflower is on the decline as we near the end of the season in the desert growing areas.  Broccoli crowns and cauliflower are in particularly tight supply.  Broccoli crowns in Santa Maria show damage from water spots.  We expect to see continued tight market conditions going into spring due to weather related planting gaps in Central California coastal districts.  Celery supplies continue to tighten; with limited availability on the 30-count celery; 30’s are a popular size with the retail chain stores.  Carrots in are in good supply in California and Arizona.

Mixed Vegetables:  Rain and wet fields in the Salinas Valley and San Joaquin Valley has not affected the new crop asparagus harvest; production will be well on the way to full volume by the end of next week.  Mexican asparagus is available for shipment from Western Arizona.  The overlap in production areas and resulting plentiful supplies will continue through Easter.  Mixed vegetable items are in good supply, including green onions, leek, curly parsley, Italian parsley, snow peas, bunched spinach and cilantro.  Prices have advanced for bok choy and napa.  Spring mix is in plentiful supply, while availability is tightening on baby spinach as we approach the end of the desert harvest season.  Arugula is in tight supply due to continuing issues with mildew affecting the organically grown product.  

 Strawberries    Once again weather dominates the supply picture for strawberries.  Cold weather will provide a temporary setback for Florida strawberry growers, while rain is again in the forecast for Southern California coastal districts, extending through early next week.  The Oxnard strawberry harvest has experienced a significant delay in getting to full production, leaving growers in Southern Mexico to fill the shortfall in the market.  The good news is that weather conditions are expected to moderate by late next week, a warming trend in Florida and an end to the rain in California.  This will provide the impetus for a significant increase in strawberry production in all growing areas, which will continue through Easter.  For current late-week shipments, however, expect availability to remain very tight. Raspberries and blackberries from Mexico are in adequate supply, although prices remain high.  Blueberry availability has not yet been affected by the recent earthquake in Chile. Prices will remain steady, despite the potential for disruption in supply beginning in mid March, when the last vessels to ship prior to the earthquake arrive at U.S. ports. 

California-Arizona Citrus Wet weather conditions have had little effect thus far on the California Navel orange harvest.  Storms have been spaced apart to the extent that growers have been able to harvest with adequate volume to satisfy current moderate demand.  Small sized Navels (138’s) are the only size currently in short supply.  Lemons are in good supply for all sizes.  The season is quickly winding down for growers in Western Arizona.  The current size profile for the lemon crop in the San Joaquin Valley is heavy to the larger sizes, while new crop lemon availability in Ventura County is skewed toward the small sizes.  Ventura County (District 2) is fast becoming the primary lemon producing area…this will continue through summer. Variety citrus items are in plentiful supply, with volume price discounts available for small sized Minneola tangelos, large sized Cara Cara oranges, selected sizes of Moro Blood oranges, all sizes of Murcott mandarins and Sweetie clementines.  Florida citrus production has returned to normal, including Valencia oranges.  Grapefruit and Navels are available in Texas, along with Valencia’s from Mexico.  Availability for pineapples from Cost Rica has tightened, with heavy ad commitments currently in place. 

Melons  The market is very active for both cantaloupes and honeydews from Central America.  Honduras is currently the primary growing area, followed by Guatemala and then Costa Rica.  We expect to see an increase in production in Guatemala, which will temper any additional upward pressure in prices.  Quality is excellent on cantaloupes, only fair on honeydews.  Previous rainfall in Southern Mexico has resulted in quality issues on watermelons…prices have advanced to even higher extreme levels.  We will not see any break in this market until early April, when harvesting will begin in the northern district of Hermosillo. Apples and PearsApples from the Northwest are in adequate supply for Braeburn, Golden Delicious, Fuji, Gala, Granny Smith and Red Delicious.  

 Grapes & Soft Fruit           The greatest effect from the 8.8 magnitude earthquake that occurred off the coast of Southern Chile will be on the grape harvest, which is just coming into peak season production.  Growers are attempting to find alternate routes to ports that are still in operation in order to resume export shipments as soon as possible.  Vessels that departed just prior to the earthquake are expected to arrive in Southern California by March 12^th.  After that, we can expect to have a gap in supply of at least 7-10 days.  Prices for red seedless grapes are on the rise, as the current shortage will now be exacerbated; the current availability situation is less critical for green seedless grapes.  Chilean soft fruit items will also be in short supply, including peaches, nectarines and plums.  The kiwi transition later from California and Italy to Chile will be smooth, although the first arrivals of Chilean kiwi have been pushed back from late March to mid April. California growers will have good supplies of 36’s and larger prior to the arrival of new crop shipments from Chile. 

Avocados  Although we are in the late stages of the Chilean Hass avocado season, moderate late-season exports are expected to continue into early April.  Because the harvest for California Hass is now ramping up to full production, we do not anticipate any significant reaction in prices and no disruption in supply.  Plentiful supplies of Mexican Hass will also replace any shortfall caused by the situation in Chile. 

Eastern & Western Vegetables The shortage of green bell peppers in Florida, caused by the January freeze, continues to be felt by Mexican growers who are unable to satisfy the resulting increase in demand; prices continue to advance to higher extreme levels for all sizes.  We have good availability on red bells; however prices are very reasonable by comparison.  Yellow bell peppers are in tight supply.  Demand is strong for Mexican cucumbers…prices have advanced significantly, however cucumbers from Central America are available for shipment from Florida, tempering any additional increase in prices.  Zucchini is in adequate supply in Nogales, while yellow squash is in very tight supply due to a reduction in planted acreage this season, combined with a wide variation in quality…prices will remain at the extreme.  The market remains at the extreme for green beans, with only two shippers in Nogales currently.  Prices have jumped sharply for eggplant. 

Tomatoes- Availability has improved for Roma tomatoes; prices have begun to ease slightly.  The market remains firm for round slicing tomatoes, with planted acreage in Mexico substantially less compared to Romas.  Prices for round tomatoes are expected to remain at current levels through late March.  Grape tomato prices will remain at the highs also. Florida growers do not expect to recover from the January freeze with any significant volume until mid-April.    

Potatoes We have seen a subtle increase in prices for the larger sizes due to limited availability.  Very little demand for consumer packs and small sizes has made availability tight as 70ct and larger are by products of running up the consumer orders.  Profile of the crop is mid to small sizes for the most part. 

Onions  Prices for yellow onions remain at the highs, as growers in the Pacific Northwest allocate the remaining storage crop onions to ensure availability through the end of the season.  The red onion market remains very strong, while white onions from Mexico are prices at record levels…well over $50 FOB South Texas for a 50 lb sack; new crop yellow onions from Mexico also carry a substantial price premium.  The supply outlook for spring is not encouraging.  Winter rains have caused significant damage to the Mexican onion crop and to the upcoming onion crop in Texas; full scale harvesting will not get underway until early April.  An unprecedented shortage of onions exists worldwide. Chilean onions are being exported to Asia, while New Zealand is currently supplying Europe.  The onion markets will remain firm, with the potential for additional upward price pressure.