Market Report: July 18, 2017

DRY VEGETABLE MARKET REPORT July 18, 2017

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

 Tomatoes

East

 •    Rounds- Virginia tomato product is producing a fairly good quality product considering the weather and a decent volume for the area. TN, NC, and AL are having a sluggish start due to weather conditions. Demand is still strong which is putting upward pressure on FOB prices. Quality at times can be sparing. For that reason, we continue to recommend keeping your inventory on the tight side.

 •   Romas- Romas are extremely active this week as well as moving into next week. As we are seeing with the rounds, roma production is very unhurried to start this season. Thus resulting in an upward spike in FOB prices. We advise to err on the cautious side with inventory as quality can be questionable at times due to the frequent showers.

 •   Grapes- NC and VA crops are not quite at full harvest, however, supplies are improving. There is a quality spread in the marketplace. Although pricing remains somewhat stable, the better quality product results in having to pay a higher FOB.

 •    Cherries- There is a small amount of upward pressure on FOB prices, however, supply and demand remain in symmetry.

West/Mexico

 •   Rounds- Week after week, western tomatoes remain in battle with the tremendously hot temperatures. Growers are walking away from fields due to not being able to pick them in the heat before the fruit ripens. Though supply is steady for now, there is potential for a slight gap due to not having enough time in the day to harvest before temps reach 100+. In addition, there is a significant range in quality, resulting in a range in FOB prices. We still highly recommend to keep inventories tight due to the tenderness and shorter shelf life.

  •   Romas- Volume from eastern MX and Baja is moderate as best. There is a significant range in quality due to the extreme heat, which directly corresponds with the wide spread in FOB prices. The higher quality fruit is costing a few dollars more on the FOB side.

  •   Grapes- Prices are fairly stable, however, better quality will result in a slightly higher than average FOB price. Volume is steady coming from the Baja region.

•      Cherries- Western supplies and FOB prices remain secure moving into next week.

NOTE: All the eastern growing regions continue to experience rain in the form of heavy afternoon thunderstorms. The weather forecast calls for additional rains this week for all growing regions. This type of weather almost always causes less than ideal quality and suspect shelf-life. Therefore, we suggest that dry vegetable inventories be kept as tight as possible until we work through this product.

Green Bell Pepper

         East- The NC and NJ crops continue to produce a fair volume, but not enough to meet demand. MI is looking to start in 10-14 days which should give much needed relief. FOB prices for extra large and choice are up while large remains steady. Quality is decent despite the spotty rain.        West- Supplies remain short and quality is showing to be subpar. The heat is limiting harvest hours which means more pepper staying in the fields. Thurs, a quality concern when it comes time to pick. Look for higher FOBs from the west.

Red Bell Pepper

         West- As supplies improve, FOB prices are showing downward pressure.

Yellow Squash

         East- All eastern growing regions, NJ, MI, NC, and SC, are producing a good volume with FOB prices slightly lower. However, quality challenges are present due to the pop up showers.

         West- FOB prices remain weak as the west harvests good volume from Santa Maria, Watsonville, and Fresno. Quality is good coming from these areas despite the heat.

Green Squash

         East- FOB prices are expected to remain steady. Quality is proving to be good despite the rainy weather pattern.

         West-. Stable quality and pricing is reflective of the good volume harvested in the central area.

Cucumbers

         East- MI and NJ have good supplies and FOB prices are fairly stable with a possible slight decrease. Quality is generally good from both regions, however, there is still questionable product in the marketplace. We continue to recommend to keep inventory tight.

         West- Supply from Baja is plentiful with improvement in quality. Look for a gentle decline in FOB prices.

Eggplant

         East- FOB prices are active and moving up as volume has declined in NC, SC, and NJ. Quality remains good from the region.

         West- Fresno is in production, however, the heat is showing less favorable quality. Look for Brentwood to begin in the next week which should give relief to pricing and quality.

Jalapenos

East- Prices are steady despite the lower supply from the east this time of year.

West- Santa Maria is starting to pick up their volume which is helping maintain steady market prices. Despite this, overall supplies are still fairly limited for another week or two.

Beans

East- The market continues to gently fall as production increases from NC & SC.

West- Light supplies from Brentwood and Watsonville are keeping the FOB price high from the region. Quality is showing some indications of trouble due the high temperatures.

         Market generally with-in normal ranges and steady from last week for both pricing and quality. Any price changes can be expected to be $2.50 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 $2.50 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.