DLJ Marketing Report

DLJ Produce - Marketing Report Week of October 5th – October 11th

13260 Daum Drive City of Industry, CA 91746 626 330 – 6849

As we reach the first full week of October, this will signify the last of the California stone fruit season as growers wind down their last picks. Growers have finished harvesting yellow peach and yellow nectarines, with only a few growers in micro-climates still harvesting late season peaches in minimal numbers. White fruit will clean up this week as growers look to finish off the last of their inventories. The plum market will look to carry through the month of October thanks to oversupply and minimal demand on the late season crop. Growers will continue to harvest good volume of Crimson seedless red grapes as they race to beat any October rains. Specialty varieties of red seedless like Vintage and Scarlett Royal will remain on inventories, with harvest being finished for the season. The green grape crop will roll along steadily as growers have finished harvesting the last of their Thompson crop. Shippers are expected to break into their 16 lb. storage green grapes by the end of the week. Red Globe availability will remain consistent all the way through the end of October in good volume and Autumn Royal black seedless will continue to pick up steam as more growers continue harvesting through the last couple weeks of the month.

CA STONE FRUIT

PEACHES Peach growers in the Central Valley finished harvesting the last of their Autumn Flame crop last week. Supplies are winding down quickly as most shippers look to be finished by the end of the week. A few specialty varieties like Last Tango in the Central Valley and late season peaches in Tehachapi, CA will prolong availability through the middle of the month, but in very minimal supplies. Volume fill sizes will remain very limited for the remainder of the season thanks to the fruit large size. FOB prices will continue to increase steadily due to the lack of supplies available. The last of the September Snow white peach will clean up on inventories this week, with only limited tray packs remaining to ship. Overall, the 2010 season was a battle for the CA peach farmer as he fought heavy supplies of local peaches on the East Coast. Demand is expected to increase as growers start limiting unnecessary production by digging out orchards.

NECTARINES The last of the white and yellow nectarine crops were harvested last week and shippers will continue to clean up inventories as quickly as possible. Due to heavy volume of August Fire and September Bright yellow nectarines, good supplies of tray and volume fill nectarines have remained on inventory. The commodity is expected to slowly start cleaning up the glut of supplies and start to see a glimmer of hope by the end of the week. Yellow nectarine supplies are expected to last through mid-October, but slowly start to wind down by the end of the week due to shippers only working off of inventory. Arctic Mist white nectarines will carry through the end of the week and then supplies will become non-existent. White nectarines remain available in a much more limited amount than its yellow counterpart.

PLUMS Black plum availability will remain considerably higher than expected for an average season and this will carry through most of October. Increased volume on varieties leading up to the Angelino harvest has created a glut of supplies in late September compared to an average season. This has helped to fill the natural gap that always occurs between these varieties and will help keep FOB prices at a reasonable level. Expect FOB prices to slowly increase as October progresses. Good supplies of black plum are expected to carry all the way through the third week of the month and then slowly start to tapper off. Growers will continue to harvest their Holiday and September Yummy varieties of red plums. Expect FOB prices for red plums to remain just slightly higher than their black counterpart due to limited volume on the horizon. Supplies will remain available leading into late October, but are expected to finish earlier than the late season Angelino crop. Quality will be very strong on what remains of the crop. This will be a good week to promote both colors of plums before the end of the season. Now is a good time to push plum ads!

POMEGRANATES As more growers start to harvest their pomegranate crop, availability will become more readily available and FOB prices will continue to decline. Supplies of pomegranates have become more readily available thanks to increased acreage coming into production. Size was a struggle at the onset, but more 36 size tray packs are starting to be harvested. Early Wonderful variety is expected to start by mid-week and the heaviest volume of the season is not expected until mid-October once the Wonderful harvest gets going. Quality and crop volume is expected to be fantastic this season with an increased demand at the consumer level as more people become proponents of the pomo’s antioxidant power.

CENTRAL VALLEY GRAPES We will see another week of good Crimson red seedless volume as growers continue to harvest fresh. Vines have been covered as growers prepare for any early October rains on the crop. Vintage Red and Scarlet Royale will continue to be harvested / shipped in small numbers as we reach their last week of promotions. FOB prices will remain consistent until the end of the week and the market is expected to slowly increase on quality fruit. Growers will harvest fresh into 19 lb. cartons as well as stash fruit away in pick totes for late later house pack use in November. With good volume still hanging on some vines, Mother Nature will hold the crops fate through the month of October. Good supplies are expected to carry through December as long as there are no major weather issues.

This week will signal the transition for the green grape crop. Growers have finished harvesting the last of their Thompson and will look to clean up their 19 lb. inventory by the end of the week. Most grower / shippers will start shipping the firs tof their 16 lb. storage crop nectar week. Expect FOB prices on green grapes to remain lower than the red, at least for the time being, as volume is more prevalent. Once shippers break into their storage Thompson crop, expect FOB prices to increase and reach an equilibrium point. Less 16 lb. Thompsons have been harvested this season compared to years past due to the increased volume of the Autumn King and Luisco crops. Autumn King will begin harvest in better numbers this week, as a good Thompson alternative. The grapes naturally large size is very impressive and more acreage is planted every season. The first pick of the Luisco variety is not expected until the end of the October The Autumn Royale crop will be in full swing for the next couple weeks, with good size and color starting to arrive. Growers will slowly transition into volume on Autumn Royals as we progress through October. FOB prices will remain consistent as blacks do not see the same kind of demand as their red / green counterparts. The upcoming Autumn Royal crop looks to be outstanding in size and quality once the volume starts to arrive from the field. Expect supplies to carry the crop all the way through mid-November or possibly even December since the season saw a 10 – 14 day late start.

CHILEAN CITRUS October will see the last promotable month for Chilean Navels. All fruit being imported after the marketing order are inspected for quality and sugar levels, and the fruit has proved to be outstanding. The last arrivals of the season will hit by the end of the week and shippers will work off of inventory. Supplies are expected to carry into November, when the CA navel crop begins. Quality will remain outstanding in the time being as should create a fluid transition in growing regions. Now is your last chance to promote!