Newsletter 8/21/19

Market surged forward primarily due to back to school food service demand. Production continues overall steady although varying among shippers. Weather continues to be ideal other than the hotter inland areas away from the coast resulting in a variance of sizing, solidity, color and Weights. Acreage is expected to increase early September to correspond with anticipated improved demand.

Mix Leaf
Romaine Heart demand continues to surge as well as Romaine. Many growers continue to push acreage towards heart production to avoid quality issues in the field. Increased mildew stain, tip and wind burn have reduced overall supply resulting in firmer pricing.  Green leaf prices have remained steady while Red leaf and Boston continue to lag behind.

Brussels Sprouts
Production is mainly from Central California The market has settled with strong demand but additional volume is available.  Quality has been varied although Increased insect pressure has hindered overall quality as the weather heats up on the West Coast.

Supplies will remain light as plant production is declining out of Salinas and Watsonville. This decline is normal for this time of year due to the plant varieties nearing the end of their seasonal cycles. Santa Maria numbers should increase slightly to offset this reduction in numbers up North as some growers are going into some new crop fields. This production should slowly increase over the next few weeks. Quality in the Northern regions remains just fair with frequent reports of bruising and full red berries coming from the vast majority of shippers. Look for the market to remain firm with slightly higher undertones as we wait for the Santa Maria area to increase production over the next 2 to 3 weeks.

Expect a slight increase in supplies this week as we see West Coast numbers trending up accompanied by the crossing of additional fruit coming out of Mexico. Quality has been generally good, but some reports of leaky and soft fruit have been made. Look for the market to remain steady with slightly lower overtones as we move into the weekend.

Light, but steady supplies continue to be available out of the Pacific North West, California, Michigan, and North Carolina. The market remains steady with some shippers offering deals for volume orders. Quality has been good. Look for Mexico to begin production in a few weeks as well.

Better supplies this week as moderate increases out of the West Coast are helping to fill the demand. Mexico fruit is beginning to pick up in numbers as we approach September. Look for the market to remain steady through this week. Quality varies are mostly good, but some reports of red cell and early breakdown have been noted upon arrival.

Good availability from both Santa Maria and Salinas. Prices are at the bottom and shippers are looking to get rid of inventory. Run all offers by us.

Stronger markets this week as a result of schools back in session. Lighter supplies on small sizes. Good quality coming out of Salinas and Santa Maria areas. Expect slightly lighter supplies over the next 10 days.

California broccoli market remains depressed. Not only is there good availability out of the California growing regions, Central Mexico is starting to produce more volume and the East Coast is now receiving product of Maine. Markets will remain flat for the rest of this week and first part of next week. Quality out of all areas has been fair. Quality out of Central Mexico has improved the most as they move out of their rainy season and new fall plantings start to get harvested over the next month.

Production continues steady for the Summer months while demand has been tepid. Seeded or thornless are the predominant varieties available with the limited Heirloom variety returning later this Fall.

California… the last of the season in the central valley is fast approaching. With the exception of a few shippers out of Nevada the dry onion deal is over in the west by August 30th.  This was probably the best year these guys have had in the last 50 years. The combination of a late June rain and the under planting of the Desert deal made this a year to remember. Wait until next year; these guys will probably double down their acreage and kill it early.

Washington…Othello and Pasco are going and the market is weak. The real volume hasn’t started and with the way overall business is, I look for this market to continue down until it get some Fall traction.

Sweet Onions…Lots of sweet Grano type sweet onions are coming out of Washington with more starting in Oregon Idaho in the next few weeks. The Peruvian GranX onions are really starting to build in volume and the spot market is producing some very low offers to keep the inventory in line. Offers are being accepted with a few shippers to get things moving.

Red Onions in California are done for the most part. The market range is anywhere from $5.00 to $7.00 with a lot in between.

Washington crop has started and the market is in the ^4.00 to $7.00 range with not much available.

Good supplies coming out of Santa Maria, Fresno and Baja areas. Italian and Yellow are both readily available and shippers are looking to move. Quality remains strong with very few issues to report.

Stone Fruit
Peaches - good supplies on larger sized fruit. Small sizes are very limited. Quality has been very strong. Stronger markets expected on the coming weeks, especially on the smaller sizes.

Nectarines- Tight supplies this week, especially on smaller sizes. product is running larger and putting more demand on small fruit. Quality remains strong on the little fruit that is available. Supplies on larger sizes are cleaning up as a result. We expect stronger markets through the rest of the season.

Plenty of greens available and shippers are looking to move product. Multiple varieties are now available and volumes have increased substantially over the past 2 weeks. Quality is very strong. Red grape supplies are lighter as the season finishes on some varieties in California. New varieties are starting, although higher pricing. Current pricing is stable at the moment and there is plenty of product available on the market.

Green Onions
Production continues exclusively from Mexico with moderate supplies. Reduced Summer plantings have led to lighter volume but demand remains light and the market remains uninspired.  Any hint of demand will result in higher prices after sustained bottom level pricing. Overall quality is good with some insect pressure and mechanical damage.

Oranges – Markets are strengthening as schools begin and labor day flurry approaches. There will be lighter supplies on small fruit over the coming weeks. Some offshore product is arriving on both coast, but mostly larger sizes. Expect higher pricing through the remainder of the month.

Lemons- Good supplies on domestic and import product, especially on small sizes. Both choice and fancy available. Quality is very nice on both coasts.

The market on Mexican asparagus crossing from Baja has started in Constitueon will be building through the month of September with a lot of it going to cover contracts. The spot market is in the $32-$34 range and building. Volume will start to rise mid-September and be a competition to Peru, which is in the low $30’s right now,.

Still not much new to report. Prolific production and tepid demand kept the market depressed this week. Sizes shifted a bit as of this writing and are skewing a bit smaller, still peaking on regular 9s count but with less jbo 9s count and more regular 12 count, which is the size voted most likely to be deeply discounted off of already low prices. Quality remained good for most part. Next week appears to hold nothing dramatic in the offing. Weather in the central valley will continue to be quite hot and full of sun. Sizes should continue to peak on regular 9s and with 12s next and then Jbo 9s. There seems to me no major retail ad activity on tap either, keeping demand as underwhelming levels.  We look for little change in the market ahead.

We could cut and paste our last report and we would still be accurate. Little has changed and little looks to change. Volume is steady and adequate for the sleepy demand. Quality is good. Sizes are running mostly to 5 and 6s with some jbo 5s and very few 8s. No major events look to suddenly perk demand. Market should remain steady next week.


Organic Items

OG Broccoli and Cauliflower
Cauliflower   Production has improved and pricing has eased. Quality has been good with some variations in color

Broccoli    Production remains steady and prices appear to be sustainable at current levels. We expect supplies to remain good to begin the month but could be affected by increased insect pressure as the weather heats up.

OG Herbs & Bunch Greens
Most Herbs and Bunching Green production remain varied with some quality issues affecting supplies but improved weather has helped improve quality. Expect supplies to remain steady.

OG Leaf and Iceberg Lettuce
Leaf, Iceberg & Romaine   Production has been steady and quality has improved. Demand continues to be strong for local homegrown production although the market continues steady. Expect insect pressure to increase heading into September as the weather traditionally heats up.

OG Citrus
Lemons:   Steady, Light production with sizing profile continuing to lean towards larger fruit. The market continues to be strong especially the smaller, foodservice sizes. Offshore fruit has helped feed strong demand.

Oranges  Valencia’s offerings continue strong as with most citrus  larger sizes continue to be prevalent. We expect prices to remain competitive on Larger fruit although smaller sizes will remain limited at elevated pricing.

Limes:  Supplies are lighter with strong demand especially on larger sizes. Production is expected to improve in a couple weeks with Mexico new crop.

Quality has improved but overall is just fair.

Grapefruit:  Predominantly Large sized fruit continues to be available with limited smaller fruit.

OG Avocados 
Mexico: Strong demand with improved supplies are expected to continue through September. Production will transition later next month and the market is expected to firm once again.

California: Season is winding down with limited production. Quality continues to be good.

OG Root Vegetables
Carrot Production has been steady with improving supplies . Demand has been very strong. Continue to plan ahead to get full coverage. Some damage to the tops is expected from recent high temperatures.

Potato Production has transitioned out of California with strong demand on Gold, Red and Russets.

Onion production is transitioning to the Northwest with anticipated improved supplies.

OG Grapes
California: Supplies from Central Valley of California have peaked with most shippers starting to get into their specialty varieties with exceptional color and favor. We anticipate pricing to settle near current levels especially for best quality and sizes.

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