DiCarlo Weekly Market Update

        September 3 through September 10, 2010


 

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FRESH FRUITS & VEGETABLES

CELERY:  Folks just don’t eat celery when it is this warm. But think Bloody Mary! Michigan celery has issues, slight pith in Salinas, but not a real issue. 

CILANTRO: Extra supplies in California and plenty of homegrown product around the country. 

LETTUCE: Next week is a short week (Labor Day). Transportation will be problematic on Monday, but by Wednesday we should be back to normal.  Coming off of a warm weather week, we should have good supplies of Iceberg lettuce.  With demand still light, the market should be in single – digits next week. 

GREEN BELLS :  California is certainly loaded with peppers. Prime bells in Santa Maria area.  You will not find them any cheaper than now. 

RED AND GOLD BELLS :  Both on the short side, demand excellent. Inland finished. Head to the Coast for new crop.           

GRAPES: A slow moving week on all colors of grapes.  There are good supplies of everything.  For the red seedless grapes we will start seeing Crimson and Scarlet Royals next week.  Thompsons are plentiful.  Wine (juice) grapes will start next week in a small way; get orders in early. 

ORANGES: As the summer season starts to transition into the fall season, we are into the later stages of the Valencia oranges.  Small sized fruit will continue to become limited.  With schools demanding more small oranges, and most of the remaining fruit being big, pricing for 113’s and 138’s will increase weekly.  The quality of the oranges remains very high and the sugar levels elevated.   

LEMONS: Production from the desert region has been pushed back a few weeks due to small sizing, but we look forward to domestic desert lemons to commence harvest around the middle of the month. Central and coastal lemons continue to bring good money on adequate demand.  Small sized fruit is still limited but available.  Imports continue to arrive weekly on both coasts.  

ONIONS: With addition of new harvesting areas: Oregon, Washington, Colorado, Idaho and Utah, consumers have options to purchase Yellows.  California onions continue to be harvested, but the districts have moved north.  Single digit pricing for a #50 sack will still be available next week. 

GREEN ONIONS:  Adverse weather (mucho rain) in Mexico has played havoc on the green onion market.  In the green onion producing region of Mexico an abundant amount of rain has caused a stoppage of harvesting, as well as washed out a few commuting roads.  This will be short lived, as crews were returning to work by this weekend.  But the gap will carryover into next week before we see adequate supplies to adjust the market.    

STRAWBERRY: Almost 4.5 million flats shipped last week which is by far California’s  biggest August. Wide range in price and none of it’s shiny but we’re finding lots that are working. Mostly medium sized berries and stems are limited but orders are getting filled. 

Raspberries. Blackberries and Blueberries make sure to prebook.  

BROCCOLI: Still very strong demand from across the Pond on limited amounts of place packed export 38s. The rest of the market has strengthened but it won’t get crazy as long as there is so much “local”.  

CAULIFLOWER:  Our summer weather is bringing it on, unfortunately not more demand along with it. Prices will be back in half.   

LEAF:  What’s getting packed is very nice but the field is still wrestling with mildew and now burn. 

LEEKS: Good supplies available with excellent quality.   

PARSLEY, ITALIAN PARSLEY AND KALE : Excellent supply and quality.  

COLORED POTATOES:  Reds, whites and yellows one stop shop in Stockton. 

CANTALOUPES:The Labor Day ads have definitely put a dent on the availability. A majority of the ads are on 9’s but due to demand exceeds, 12’s have been the sub size. Orders through the weekend and next week look strong. Large sizes will be tight but available for advanced orders.   

HONEYDEWS:Honeydews have had good movement as well with a little more availability. Expect good quality and pricing through next week.

Provided by Fresh Network

 

BEEF, POULTRY & PORK

Beef, Veal and Lamb: Beef output last week was 2.8% less than a year ago.  Cattle slaughter weights continue to trend well below last year’s levels which is bearish for beef output.  Beef production is anticipated to remain below 2009 levels this summer.  Most of the beef markets are attempting to steady.  US beef imports during April were 22% less than the prior year due in part to a 57% decline in trade with Australia.  The value of the Australian dollar has appreciated as of late.  If this continues it could be bearish for US beef imports and bullish for US lean boneless beef trimming prices in the coming months. 
Poultry: US chicken exports during April were just 1.3% smaller than a year ago despite no trade with Russia and a 52% decline in trade with China/Hong Kong.  It appears that chicken trade with the above mentioned countries will be challenged for the foreseeable future which is bearish for chicken leg quarter prices.  With chicken wing, breast and other markets declining sharply in recent weeks chicken producer margins have deteriorated.  Usually chicken breast prices move higher soon.  If that does occur this year it may be a red flag that chicken output growth has been too strong.  We would not be surprised to see chicken production slowed later this year in an effort to drive chicken breast and wing prices higher. 
Pork:  Pork production continues to trade below year ago levels due to a decline in the hog supply.  Pork output last week was 1.9% less than the same week a year ago.  Pork production is anticipated to remain seasonally light into August.  April US pork exports were 4.9% smaller than last year and the least since January.  Ham exports during April were the second smallest in the last nine months.  After falling throughout most of May and early June the Mexican peso has appreciated which could be bullish for ham exports and ham prices.   
Dairy:  US butter exports during April were 133% bigger than the previous year due in part to a fairly deflated US dollar value.  The butter market is relatively firm but our models are suggesting that the upside risk in the butter market from here may only be modest.  April US cheese exports were 95% more than last year and a record.  The cheese markets appear to be forming a bottom.  Higher cheese prices are anticipated during the next few weeks. 
 



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