Market Report - Meats, Livestock

DiCarlo Weekly Market Update


August 15 - August 22, 2008

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FRESH FRUITS & VEGETABLES

Lettuce: With the summer plantings still limiting volume of iceberg lettuce, demand has increased to the point that we are starting to see double-digit pricing. This week and next week will be the lightest volume coming out of Salinas ’s valley. Weights will be down, and head size smaller than normal. With the demand high for limited amounts of romaine, iceberg lettuce sales should increase. Also with schools starting back up, the demand for processed salads will increase.

Peas: California volume is going down and Peru is having to fill in the gaps. Look for the price to increase in the next week or so as we start pulling more from South America .

Artichokes: This is an active one! Big size chox are pretty much nonexistent- and this will continue for the next few weeks. Right now we have decent supplies of small artichokes- so if you can make the switch for awhile this is what you need to do. Fall artichokes will start in another month or so and we will be back on track.

Cilantro: Quality still the best in the US ! Cooler evenings have shorten its length a bit but that is it. Oh, and it is cheap!

Bell Pepper: California cannot compete with the multitude of states producing peppers. All of California bells are staying in the west, even with the best quality of the season.

Red and Gold Bells: Too many golds and not enough reds. New growing area commences next week. Volume starts light, then in two weeks there will be huge volume.

Asparagus: The after effects of hurricane Dolly is finally starting to clean up in Mexico , which will mean better supplies and transportation for their Asparagus. Peru has had some poor weather also. Combine poor weather in both Mexico and Peru and you end up with much tighter than normal supplies.

Carrots: Just a reminder that Grimmway farms is consolidating their 1 pound units of baby peeled carrots to only carry 30 x 1’s and 40 x 1’s. So no more 20 x 1’s and 24 x 1’s.

Leaf: California has the weather, ability and probably the desire to produce the whole country’s salad needs all year but growers have learned there’s not going to be much demand in the summer. So when there’s quality issues around the country and here supplies are going to get very short and prices will soar. Don’t expect relief next week.

Broccoli: Some demand has shown up on steady but continuous light summertime plantings. Crown material is shortest but overall quality continues to improve.

Cauliflower: Relatively big numbers for this time of year and there’s some dealing going on to get it moving. A little hollow core but otherwise good weights and color.

Tomatoes: With the numerous growing districts going right now; Virginia , Arkansas , the Carolinas, Tennessee , California , Northern Baja Mexico , and Michigan , there is a glut of product on the market. It appears as though this situation will be with us for another week.

Potatoes:New crop potatoes are available out of Nebraska , Texas and now Washington . Idaho new crop will begin harvesting and packing in a limited way next week. Colorado will follow with its own new crop in a couple of weeks. Markets will remain active until all regions are into full production so don’t look for much change until mid to late September.

Onions:Good supplies, good quality and overall cheap prices! Look for Texas and California to meet your onion needs no matter what size or color.

Squash: Production from Baja will remain light; however there will be new acreage soon. The production from Santa Maria and Salinas/Watsonville areas are beginning to improve in production. The market is steady to lower.

Avocado: California avocado supply is winding down as this is towards the tail end of the season. Look for Chilean product to appear on your market if it hasn’t already. Chile will slowly increase their supply of fruit moving into the US which will continue into February. Limited supplies of Mexican product currently available, better supplies becoming available in late September.

Mango: Mangoes, Mangoes everywhere… plenty of good quality fruit available, large sizes are plentiful and the prices are low.

Melons: The Cantaloupe market has reacted to start this week, although the heaviest demand is concentrated on the large size fruit. There are still some deals on the smaller sized fruit. The larger sizes will command a higher price and supplies will be lighter through next week. The Honeydew market remains on the low side. Sizing is still sporadic from each growing region. However, quality is very good and strong. This fruit will travel anywhere you want it to go.

Watermelons: Very little change has come this past week and there is little change in sight for the week to come. Regional Watermelon production remains strong and that will keep the California market in check. Quality is excellent from all areas.

Apples and Pears: Small sized Red apples remain in a demand exceeds supply situation, and with schools starting around the country, don’t look for this to get any easier even with the start of California Galas. Washington is quickly running out of storage apples in all varieties. Washington Galas are not scheduled to start for at least another week. Pears are now predominantly California Bartlett’s and they are going very strong in both quantity and quality, and this will continue through this week. There should be the first Washington Bartlett’s starting next week. Which will keep the market at lower levels and availability very good.

Lemons: With plenty of imports making their way into the US market, the domestic lemon market continues to monetarily adjust. Smaller size fruit is where the biggest deals are to be made. But, quality on some imported lots are “shaky”. Remember: A cheap deal may not be a deal after all. Get a good report of the quality of fruit if you are buying.

Oranges : Valencia oranges are moving very well. Back to school business is exceptional. We may see smaller fruit jump in price due to this sudden increase in demand. The quality of the Valencia orange is very good now, and the sugar content is high. The fruit is eating very well right now, and should continue for awhile.

Grapes: The grape market is normal with steady seasonal demand. The quality is good to very good with excellent condition being reported. Berry size varies from small to very large. The flame seedless season is finishing, and the ruby seedless is about to get under way. The Thompson seedless grapes are moving along steadily. There are plenty of black seedless grapes available.

Stone Fruit: California brown pears are available, but mostly large sizes. Peaches and Nectarines are in excellent supplies. Both the red and black plums are also readily available. Gala apples continue, but with limited numbers. Granny Smith apples have started and demand is very good. Fuji apples will start in 2 to 3 weeks

Strawberries: This is the shortest supplied and highest priced August I can remember. It’s been rough. Quality has been a little soft, sizing a little small and the Albions are not producing at the level they should. Driscoll will have better numbers the last week of August and going into September when their summer planted fruit in Oxnard starts producing. Raspberry and Blackberry supplies have lightened up.

Provided by Fresh Network

BEEF, POULTRY & PORK

Beef: Small cattle weights and tightening supplies of slaughter ready cattle could cause beef output to track below 2007 levels in the coming months. Beef production last week declined .8% and was 2% less than a year ago. This factor and the continuation of beef exports to South Korea are bullish for beef. The beef markets are beginning to move upward with end cuts in the lead. Additional beef market increases could be forthcoming over the next week or two as buyers secure product for the upcoming Labor Day Holiday. Prices per pound

Poultry: US broiler egg sets last week marked the largest decline compared to the previous year in at least 5 years. The 6 week moving average for broiler egg sets is now 3.1% less than 2007. US chicken producers continue to restrain forthcoming chicken production plans. Chicken production is projected to fall below year ago levels by mid September which is bullish for the chicken markets. Chicken wing demand typically increases during the late summer for the upcoming football season. A $.30 increase in the jumbo cut chicken wing market is not uncommon during the next 6 weeks.

Pork: The pork markets have been nothing short of amazing. Pork production last week declined 1.9% but was 5.7% greater than the previous year. Despite notable gains in pork output compared to prior years the USDA pork cutout is trading at record highs. Its almost entirely due to exports. Export trade could wane some in the coming months but should remain historically solid. The sparerib market usually tracks upward during the next 2 weeks.