Market News: Week of 18 May 2017

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DRY VEGETABLE MARKET REPORT

May 18, 2017

(Note: See end of report for explanation to the color codes)

Tomatoes

East

• Rounds- As we predicted last week, the yields out of the FL fields and the level of quality

supplies from the West this past week would determine the direction and severity of any

movement in the market this week. Unfortunately, yields are down in the east and quality

supplies are not available in the west as the crop transitions to new growing regions. This,

coupled with the fact that the growers planted 20% less acreage in the Palmetto/Ruskin

growing region, has caused supplies to be short of filling demand and has given rise to the

highest FOB markets in over 2 years. Trigger price points of contracts have been exceeded

and will be in effect next week. The good news is this shortage and high markets should be

relatively short-lived as the Quincey crop should be starting up around June 1 and the SC crop

should start within one week after that. The FOB market has jumped $8 or more since last

week on all sizes. Quality continues to be good but not as good as the quality we saw all

winter coming out of the South FL fields. We will keep you posted on market developments,

especially as it affects contracts.

• Romas- Supplies are tight for the same reasons as for the rounds- less acreage planted and

gaps. FOB prices for all sizes are up close to $5. We expect a higher market will continue on

romas for several weeks as the higher round prices put pressure on the roma prices. This will

probably continue into June when new supplies should start up. Quality thus far remains good.

• Grapes- Supplies are tighter and demand is good. FOB prices are up $3 on the 12/1pt grapes

and up $7 on the 20 lb. bulk. Quality remains very good.

• Cherries- Supplies are very tight and product is difficult to procure. FOB prices are up

moderately. Quality is good.

West/Mexico

• Rounds- Supplies are gapping in the west. As reported last week, one grower began

harvesting in the desert last week. However, supplies are so light that they go days between

pickings. Crossings of quality product at Nogales is practically nil. Many repackers have had

to go back east to meet demand. FOB prices of vine-ripes crossing at Baja are up for all sizes

and we expect those prices to continue to get stronger.

• Romas- Nogales crossings are at an end. Baja crossings continue to get ramped up but

cannot meet all of demand. FOB prices are up $3 to $5 depending on size. Quality is

generally poor out of Nogales but the quality of fruit crossing at Baja is generally good.

• Grapes- Supplies continue to be tight at Baja and many repackers are having to go east to

meet demand. Grape prices will be considerably higher this week due to the increase in FOB

prices and additional freight.

• Cherries- Supplies continue to be tight and repackers are once again having to go east to meet

demand. FOB prices are up moderately and additional freight will cause prices to rise even

higher this week. Quality is good.

Green Bell Pepper

East- The GA crop has begun. We are seeing lighter yields out of the Plant City fields. Quality

remains variable out of FL. We are seeing some upward pressures on FOB prices.

West- The desert crop is about all that remains. FOB prices have not moved at all or very little

from last week. The price on some sizes and grades are up; others are down. But all within a narrow

range.

Red Bell Pepper

West- No report available this week.

Yellow Squash

East- Supplies continue out of central FL and GA. FOB prices are steady to down slightly on

both fancy and medium. Quality is generally good.

West- Supplies are tight this week as we wait for new crops to start next week. Prices are up

moderately for both fancy and medium.

Green Squash

East- Good quality continues. We are seeing upward pressure on FOB prices.

West- Light crossings continue at Nogales but quality is only fair. Fresno is just starting to

harvest. FOB prices are slightly higher this week.

Cucumbers

East- FL and GA fields continue to produce. We are seeing more quality issues out of the older

FL fields. FOB prices are steady to up slightly.

West- Nogales crossing continue. Baja crossings have started but it will be 7-10 more days

before volume gets completely ramped-up. FOB prices are steady to slightly higher.

Eggplant

East- Supplies remain tight and FOB prices are slightly higher again this week

West- Nogales crossings and the desert continue. Prices are generally steady.

Jalapenos

East- Supplies remain extremely tight with continued upward pressures on FOB prices.

Quality is variable.

West- No report

Beans

East- Good supplies out of GA has caused FOB prices to fall moderately again from last week.

West- Supplies are extremely tight. Nogales is finished for the season. The quality out of the

desert fields is only fair. The northern CA fields will not start producing until the end of the month.

FOB prices are up again this week. Prices will remain high until the new crops start to come in.

• Eastern Growing Region(s) Weather Forecast:

• Western Growing Region(s) Weather Forecast:

Code to Color Alerts:

Market generally with-in normal ranges and steady from last week for both pricing and quality. Any price changes

can be expected to be $1.50 or less with no major changes in quality. Also, no change in the growing region(s) and no

news that could drastically affect pricing in the future.

Some news included concerning the market that may indicate a moderate change in pricing and/or quality. FOB

pricing is generally up or down between $1.50 and $5.00 from the previous week. It will also be used to indicate news

that may have a drastic impact on the price, quality and/or availability in future weeks (versus the following week). Finally,

this color will also be used to indicate a commodity that continues to be outside the normal range as far as price, quality

and/or availability.

News included that indicates a major change in the market from the previous week as far as pricing, quality and/

or availability. May see price changes, up or down, in excess of $5.00 per case. This color will only be used to indicate a

major change from the previous week.

Important note: This market report is only a snapshot of the various commodity markets as of the morning of the date of

the report. When we expect a trend to develop, we will express that expectation. However, commodity markets are

subject to actual supply and demand levels and can change quickly due to weather and other unforeseen factors.

Therefore, please be aware that markets may change from the time this report is published and the time prices are set for

the following week. If such changes are dramatic, we will publish a revised market report.