Market Trends : Week of 02 Nov 2015

Note:  Finally some good news to report.  In the west, Hurricane Patricia weakened dramatically before it came on land and was mainly a rain event with relatively little damage reported.   In the east, the high water mark on tomato FOB prices has probably been reached as the price of rounds, grapes, cherries and romas are all lower this week compared to last week.  Very weak demand has also put downward pressure on prices.  Prices for next week are still above trigger points and Act of God clauses of most contracts but we can expect  that the new Palmetto/Ruskin fields will soon be producing enough supply to bring FOB prices to more normal levels.   We are seeing some improvement in quality but it is still variable and shelf-life is still suspect.  Therefore, we recommend that inventories continue to be kept as tight as possible as we continue to work through this situation.

 

Tomatoes

East

Rounds- Weak demand and a few more supplies out of Florida fields have caused the FOB prices of all sizes to fall slightly.  We look for prices to continue to fall during the month of November as more supplies come on-line out of the Palmetto/Ruskin fields.  Quality is improving but shelf-life is still suspect.

Romas- Quality continues to be variable.  Weak demand and slightly more supplies have caused FOB prices to fall on all sizes.

Grapes- Weak demand has caused FOB prices to fall on both bulk and pints.  Quality continues to be variable but is improving.  

Cherries- Supplies continue to be tight as they have been for several months but demand has been weak.  FOB prices are currently down slightly from last week.  Quality is variable.

Weather forecast - Quincy- Partly cloudy skies with highs in the near 80 and lows near 60.   A chance of rain is being called for this weekend. Palmetto/Ruskin- Partly cloudy skies with highs in the mid-80s and lows in the mid to mid-60s.  A good chance of storms tomorrow.

 

West/Mexico

Rounds- All but 4 CA growers have finished harvesting and are only selling product from their rooms. FOB prices are generally steady for good quality 5x6s and are down on 6x6s and 6x7s. 5x6 sizing continues to be on the small side and Mexican product must be used for 4x5 and larger sizes.  Vine ripes continue to cross at Otay Mesa, McAllen and Nogales.  Volume at all crossings points is generally light.  Demand is weak.

Romas- Demand is weak.  Supplies continue from CA but are tight.  Crossings continue at Otay Mesa and McAllen.  FOB prices are lower out of CA fields and at MX crossing points.

Grapes- We are still seeing a very wide range in quality and corresponding FOB prices.  However, weak demand has caused FOB prices to be generally lower this week.

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

  

Green Bell Pepper

East- Supplies continue out of GA and we continue to see some quality issues, mainly in the form of stem decay, out of those fields.  Our Immokalee crop is starting. FOB prices this week are steady to lower on all sizes and grades.  Demand has been weak.
West- We are seeing good volume this week from the desert growers.  FOB prices are lower this week compared to last week on all grades and sizes.

Yellow Squash

East- FOB prices are generally lower this week.  Quality continues to improve.
West- Good volume continues to cross at Nogales.  FOB prices on fancy grade product are lower and mediums are steady.
 

Green Squash

East- FOB prices are generally lower this week and quality is improving.
West- Market prices steady to lower in the west as good volume continues to cross at Nogales.

 

Cucumbers

East- Immokalee fields have started.  FOB prices are lower on all grades 
West- Good volume is crossing at Nogales.  FOB prices are lower.
 

Green Beans 

Supplies out of Georgia is improving and quality is improving. California is still firm in pricing and quality is suspect.   

                                                                     

Eggplant

East- FOB prices are steady to higher.  Quality is good. 
West- FOB prices are steady to lower with good quality.

                                                             

Jalapeños

East- FOB prices are slightly higher and quality is generally good.
West- FOB prices generally lower.  The Baja region finished earlier than normal this year.  Quality is good.