| Market Report 08-22-08
|  | MARKET REPORT
Weather Update:
A warming trend is in the late week forecast for the San Joaquin Valley, where highs will reach 101 by Saturday. Salinas hit 77 on Wednesday; however temperatures will cool by the weekend.
Transportation:
Demand has eased slightly for trucks in California, as the harvest is in full swing for many items that are grown regionally. Trucks are in tight supply for product being harvested in the Midwest (Ohio, Indiana). The upcoming Labor Day holiday will cause some disruption in the availability of transportation equipment in California.
California Lettuce & Mixed Vegetables
Iceberg & Leaf: Tight supplies and high prices continue for romaine, and green leaf prices have also spiked to the upside. Lower yields caused by quality issues (burn, mildew), and a seasonal reduction in planted acreage, have caused the current shortage. High demand for romaine from the packaged salad processing industry continues to lend strong support to the market. Some easing in the current shortage is expected to occur; however the question is when? We do not see any significant drop in prices coming in the near term.
Broccoli, Cauliflower, Celery, Carrots: The recent upward price momentum for broccoli crowns has subsided. Prices are generally firm at current levels. Bunched broccoli is in plentiful supply along with cauliflower. Celery continues with oversupply and favorable prices with regional growing areas in full production. Carrots are in good supply also with product being harvested in California, Michigan, Washington, and Mexico.
Mixed Vegetables: Asparagus is in good supply with Baja California and Central Mexico currently the primary growing areas. Conventionally grown spinach is in tight supply, although the recent shortage situation for organic spinach has improved. Spring mix is in good supply. Availability has improved for cilantro, while bok choy, napa, and snow peas are in good supply.
Strawberries:
We are now experiencing the effects of the down-cycle that has followed the peak strawberry production that occurred during July. Strawberries are in tight supply for premium quality fruit, with no significant relief to the shortfall occurring until late August. Late season new crop strawberries from Oxnard will be in sufficient volume by early September. Blackberries and raspberries are in tight supply. Driscoll continues to mitigate some of this shortfall in the conventionally grown blackberries and raspberries by substituting organic berries. Blueberries from the Northwest are in steady supply.
California-Arizona Citrus :
Valencia oranges are in tight supply, with many packing facilities having curtailed operation during August for maintenance work. Production is expected to increase by mid-September. New crop Navels will begin in November. At present the transition is expected to be smooth. The season has essentially finished for Navels from Australia; however South African Navels are available for shipment from the East Coast.
Lemons are in oversupply with heavy imports coming in from Chile and Mexico; in addition to late season lemons in Ventura County. Harvesting will begin in Western Arizona and Southern California desert districts by early September. Limited harvesting has already started in the Coachella Valley of California.
Cara Caras from New Zealand are available along with Navels. Clementines from Peru are in good supply with Minneolas coming soon. New crop limes from Mexico are in adequate supply with the early season harvest yields heavy to the large sizes. Pineapple from the Caribbean is in tight supply with a seasonal increase in production expected in October. Summer Ruby grapefruit is available in Southern California.
Melons:
Cantaloupes and honeydews are in oversupply, particularly for honeydews. The mid-sized cantaloupes (12s & 15s) are in greatest abundance, while all sizes of honeydews are available at bottom level prices. Watermelons are in good supply coming from numerous growing areas, and quality is generally very good.
Avocados:
Production is steady for California Hass with a gradual increase in volume beginning for Mexican and Chilean Hass. The “Flora Loca” off-season Hass from Mexico are comparably priced with California. Early season Chilean Hass is available at a moderate discount, however oil content is lower compared with the premium quality, late season Hass from California.
Grapes & Soft Fruit:
Green seedless grapes are in plentiful supply (Thompson & Princess) while the season is winding down for Flame seedless. The late-variety Crimson seedless will become available soon. Red Globes are in good supply along with Black seedless.
Kiwi supplies continue to tighten as we approach the end of the Chilean season. The California harvest will not begin until September, and prices will continue to strengthen. Peaches and plums are in good supply. Nectarine availability is improving. California Bartlett pears are available along with limited availability on Bosc.
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