Market Trends : Week of 19 Oct 2015

Note:  Short supplies and quality/shelf-life issues continue to be problematic and will be suspect until growers can work through the situation that is the result of the weather that we reported on last week.  All of this is occurring during a time that we typically experience a “gap” situation as we transition to fields in Florida and South Georgia.  We recommend that inventories continue to be kept as tight as possible as we work through this situation.  Most tomato contracts have reached their trigger points and Act of God clauses are in effect.  At this time it appears that it will not be until around the third week of November before enough volume is harvested out the new Central Florida fields to have an appreciable effect on supplies and the high FOB prices.   

 

Tomatoes

East

•    Rounds- The two weeks of rain in the east has caused supplies of round tomatoes to be extremely tight and has caused quality and shelf-life to suffer.  New fields in Quincy have started but volume is low and we expect supplies to remain tight out of that growing region.  Local fields continue in the mountains of NC, SC and TN but all fields experienced heavy rain and yields are lighter as those crops are very close to ending and quality is suspect.  FOB prices of 5x6s and 6x6s are higher.  6x7s are steady to slightly lower.  

•    Romas- Supplies continue to be extremely tight and FOB prices are higher compared to last week.  Quality continues to be variable.

•    Grapes- Grape tomato fields were hit particularly hard by the heavy rains which have caused supplies to be very tight.  As a result, FOB prices are up sharply on both bulk and pint flats. Quality is becoming more variable.

•    Cherries- Supplies continue to be extremely tight as they have been all summer.  However, FOB prices are currently steady as demand is weak.  Quality is variable.

•    Weather forecast- NC/TN Mountains- Mostly sunny skies with highs near 70 and lows in the 40s until the weekend.  Continued sunny then but much cooler with highs in the 50s and lows in the 30s.  Quincy- Mostly sunny skies with highs in the 80s and lows in the 50s.

 

West/Mexico

•    Rounds- The CA crops are coming to a close.  Several growers are already finished and others will be finishing up this week.  Only two growers will continue until the end of the month. Quality is variable and shelf-life is very suspect.  FOB prices are steady on all sizes.  5x6 sizing continues to be on the small side.  Vine ripes continue to cross at Otay Mesa, McAllen and now Nogales.

•    Romas- Supplies continue from CA but are tight.  Crossings continue at Otay Mesa and McAllen.  As reported last week, volume out of the newer Mexican fields is down by as much as 50% compared to prior years and those fields have experienced rain.  FOB prices are higher on all sizes.

•    Grapes- We are still seeing a range in quality and the range is getting wider.  FOB prices of the better quality are sharply higher this week.  Inferior product can continue to be purchased at a discount.

•    Cherries- Supplies continue to be tight with a wide range of FOB prices depending on quality.  FOB prices for quality product are stronger compared to last week.

 

Green Bell Pepper

East- Most supplies now coming out of GA with a few still available in NC.  Rains to both regions have caused quality and shelf-life issues.  Our Immokalee crop should begin sometime late next week.  FOB prices are generally steady.
West- Quality and volume have suffered due to the rains of last week. FOB prices are higher.

 

Beans, Green

California is experiencing a small increase in their supply, but process are still higher then usual. Supplies in the west will be tight until mid-October when the Coachella Valley will begin harvesting. Georgia’s harvest is currently underway as prices begin to increase slowly.

 

Yellow Squash

East- FOB prices are higher again this week.  We are seeing quality and shelf-life issues.  GA and northern FL fields are main sources in the east.  A few continue to be available in NC and SC.
West- FOB markets probably over-reacted on the low side when the Nogales crossings started last week.  Prices have rebounded higher this week.

 

Green Squash

East- FOB prices are stronger again this week.  The rains have caused quality and shelf-life issues.
West- Like the yellow market in the west, FOB prices have rebounded this week from last week’s low prices out of Nogales.

 

Cucumbers

East- FOB prices are generally higher.  Eastern NC fields are finishing up and southern GA fields are the main source.  Good quality can still be found but is becoming more variable.
West- FOB prices are higher this week.  Quality is variable and with FOB prices reflecting the variableness. 

 

Eggplant

East- FOB prices are up slightly on the fancy grade but generally steady for the choice grade... Quality is generally good.  
West- FOB prices are generally steady. We continue to see some quality issues at crossing points.

 

Jalapenos

East- FOB prices are generally steady and quality is generally good.
West- FOB prices generally steady.  Quality is good.