Market Trends: Week of 16 November 2015

Tomatoes

East

Rounds- The Palmetto/Ruskin fields are in full production.  FOB prices have fallen by several dollars again this week on all sizes.  However, this may be the low-water mark for FOB prices for the remainder of the year.  Growers do not forecast any dramatic increases in prices through December but we do see upward pressure on prices for the remainder of 2015.  Warmer than normal temperatures over the past several weeks has caused the Florida crop to come to maturity a little quicker than normal and anticipated.  This has caused a flush of supplies here at the beginning of the season but may result in less volume from these fields as we finish up the year.  Also, and maybe more importantly, as we have reported in past weeks, the Mexican yields are below average due to earlier weather conditions.  The West will have to go East to meet demand.  For how long and how much the West will have to go East will have large factor on Eastern FOB prices.  And finally, we are seeing increased demand nationwide for tomatoes since prices have been fallen.  How this demand responds to any future price fluctuation will also have a bearing on the direction and strength of any price changes.  Quality continues to be good.

Romas- Romas is the one tomato commodity to see higher FOB prices this week compared to last week.  Even though supplies continue to be tight in the East, the main reason for higher roma prices nationwide is the shortage of roma yields out of Mexican fields.  These low Mexican yields have been reported for several weeks.  Because of tight supplies on both coasts, we look for romas to continue to run higher compared to the other tomato categories for the remainder of the year.  Quality in the east is good.

Grapes- FOB prices have fallen substantially again this week on both bulk and pints.  Quality is good.  

Cherries- FOB prices are down substantially again from last week.  Quality is improving and is now generally good.

Weather forecast- Palmetto/Ruskin- Daytime highs will be in the mid-80s with lows in the low to mid 60s.  Skies will be mostly sunny with little chance of rain through the weekend.  Immokalee- Partly cloudy skies with highs near 90 and lows in the mid to upper 60s.  Turning a little cooler later this weekend.  Little chance of rain.

 

West/Mexico

Rounds- CA growers have finished for the season.  The West is going to Florida to meet their demand for mature greens.  Nogales crossings should start next Tuesday.  Vine-ripes continue to cross at Otay Mesa, McAllen and Nogales.  Cooler than normal weather has caused yields to suffer and volume at all crossings points is generally light.

Romas- The cool weather has cut severely into Baja crossings and orders are now being pro-rated.  Supplies are also tight at Nogales and McAllen.  We have previously reported on the abnormally low yields from these Mexican roma fields and we expect the lack of supplies will put upward pressure on romas for the remainder of the year.  The level of demand will be a large factor on future FOB prices.  Quality is variable.

Grapes- We are still seeing a very wide range in quality and corresponding FOB prices.  Grapes are crossing at Baja and Nogales but most repackers are sourcing out of Florida due to pricing and quality issues.

Cherries- Limited supplies continue and there continues to be a wide range of prices due to a wide range of quality.  But like the grape tomatoes, most repackers are sourcing out of Florida due to pricing and quality issues.

 

Green Bell Pepper

East- Demand is stronger this week as we near the holidays.  The GA crop is finishing up and we are seeing quality issues in the form of wall and stem decay.  The Immokalee crop is looking much better.  FOB prices are slightly higher compared to last week with continued upward pressure due to the increased demand.
West- FOB prices are steady to higher this week compared to last week on all grades and sizes.  Cool weather is causing a dip in yields and continued upward pressure on prices will probably continue through the weekend.

 

Yellow Squash

East- FOB prices continue to be weak but are off the floor prices of last week by a couple of dollars.  Quality continues to be good.
West- Good volume continues to cross at Nogales.  Like the east, FOB prices continue to be weak but are off of the floor by a couple of dollars.  Quality is good.

 

Green Squash

East- Same report as yellow squash.
West- Same report as yellow squash.

 

Beans, Green

Georgia prices increased this week and will continue to increase through next week. The California market is much higher even though the demand is down.

 

Cucumbers

East- Stronger demand with good steady supplies.  Prices remain low but we are seeing upward pressure.  Quality remains good.
West- Good volume is crossing at Nogales.  FOB prices are generally steady.  Quality is good.

                                                                                                                    

Eggplant

East- FOB prices are steady to higher.  Quality is good. 
West- FOB prices are steady but better supplies by the weekend may put downward pressure on those prices.  Quality is general good.

                                                                                            

Jalapenos

East- FOB prices are generally steady and quality is generally good.
West- Supplies have become much tighter and FOB prices are higher this week.