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Oct 31, 2018 Weather Update Market Alerts

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Oct 31, 2018 Weather Update Market Alerts Oct 31, 2018 Weather Update A strong high pressure system building out west brings offshore flow and above average temperatures to Central California through the week. An exiting low to the south brings slight cooling from northern Mexico and to the southwestern desert regions along with strong winds to Southern California. Central Mexico will see mostly dry conditions and seasonably warm temperatures into next week. A frontal system moves into northern Florida late this week with rain and cooler temperatures into the weekend. A couple of stronger systems look to follow early next week. Market Alerts Apples: The smaller size fruit in all varieties is extremely limited as suppliers are not risking opening up controlled atmosphere rooms to run bins in order to cover orders. Subbing into larger sizes will be the theme this year. Bell Peppers (Eastern): Supplies continues to be tight. Berries (Blackberries): Supplies are still limited due to the storms in Mexico last week. Availability is better in Texas than California. We are seeing split markets. Cucumbers (Eastern): Supplies are improving with Florida picking up production. Potatoes: Transportation starting to tighten up as we enter the Thanksgiving holiday pull. Potatoes (colored): Transportation starting to tighten up as we enter the Holiday Season. This will continue through the New Year. PRO*ACT is a National Network of Local Distributors PROACTUSA.com The Source - Oct 31, 2018 | Page 1 The SourceOct 31, 2018 A Peek at Peak Seasons Potatoes (colored): We are just starting to enter peak season Squash (Eastern): Squash is coming into peak availability. Transitions & Temperatures Bell Peppers (Eastern): Florida Truckin’ Along is starting very light supplies California trucks remain adequate with rates remaining steady. Look for capacity but the main supply is still in to remain steady throughout the Salinas season. Washington apple truck Georgia. supply is adequate as well. Idaho potato and onion trucks remain tight with rates increasing. The national average on diesel remained steady this week Berries (Strawberries): and is currently at 3.355 per gallon. An increase of .536 from this time last year. Domestic harvest will transition California prices are steady as well and are now at 4.074 per gallon. Crude oil to Oxnard over the next 2 remained steady this week and is currently at 66.02 per barrel. weeks. Salinas / Watsonville will trend down. Mexico will ramp up slowly. Florida will start late November. Cucumbers (Eastern): Cucumbers are transitioning to Florida Lettuce Iceberg: Yuma will begin production in a light way starting the end of this week. Lettuce Leaf: Yuma is expected to begin leaf production in a few weeks. Squash (Eastern): Squash is transitioning to Florida PRO*ACT is a National Network of Local Distributors PROACTUSA.com The Source - Oct 31, 2018 | Page 2 CommodityOct 31, 2018 Updates Apples Avocado (Mexican) So the focus as we finish this week is the overall crop out Weather in the growing region of Michoacán Mexico of Washington. As an industry, the crop will be at least 10 continues to get hit with rain and thunderstorms and temps to 15 million cartons down from last year. There are some in the 80s. Mexican growers want to increase the cost percentages as high as 25% down from last year which has in the field substantially which the packers are resisting. caused a significant jump in the market out of Washington. Growers have chosen to strike as of Monday, today The markets from other growing regions have taken notice. Tuesday and possibly the rest of the week. Keep in mind Although they are steady as we finish the week, they will Mexico is taking three days off starting Thursday the 1st of trend higher as their season progresses. Basically, the November for their annual Day of the Dead holiday. There reasoning is that most apple varieties are alternate bearing. is no resolution as of yet as packers and growers continue Which means one year the yields are up and the next year to hold meetings. We know there is a lot of fruit on the trees the yields drop significantly. They have had lighter blossoms with the Flora Loca crop finishing up and the Aventajada this year as well which has generated larger fruit. We have crop in full swing. Mexico is peaking on size 48s followed seen the smaller size fruit in particular 125ct and smaller take by 60s and seeing less volume on smaller fruit. Since a quick turn. They are extremely limited in most varieties. The May, Mexico has seen a good amount of rain. The rain has will remain through the whole season. There is availability of brought on larger sized fruit. With this current strike, we small fruit from other states but that will quickly turn as well. can expect higher prices and limited supplies on all sizes. Quality remains excellent with all varieties with good sugar Current market price ranges from $25-$30 depending on levels and decent pressure testing. size. Chilean fruit is available but with volume decreasing weekly as their season tapers off. Asparagus Bell Peppers (Eastern) Not much change in production or weather from Southern Baja (Constitucion) this week, demand has slowed down. Bell pepper supply is slightly better with better production The weather in Northern Peru (Trujillo) continues to be cool, in Georgia and light supplies in Florida starting this past and the warming trend continues in the South (Ica). Overall week. The first product coming from Florida is mostly production in Peru is about the same as last week, and smaller pepper with low yields and in general only fair demand on the east is still good. Markets in the west are quality. Georgia has started some fields that were planted down due to good production, and overall demand being very late because of wet conditions, those fields are down. Markets in the east are steady to lower due to similar producing better quality pepper, most of the early fields container volume arriving this week. have been left behind due to poor quality. The effects of Hurricane Michael will be felt for the remainder of the season with less supply. PRO*ACT is a National Network of Local Distributors PROACTUSA.com The Source - Oct 31, 2018 | Page 3 CommodityOct 31, 2018 Updates Bell Peppers (Western) Berries (Blackberries) Green Bell Peppers – Green bell pepper volume has We are seeing a definite divide in supplies and price on stabilized. Supplies out of Fresno should end this week. blackberries. Due to the domestic harvest finishing up and Grower/Shippers now harvesting moderate to good volume the limited production in Mexico, supplies in California out of the Coachella Valley. More choice and medium remain very limited this week. However, the fruit that is grade being packed at this time with few larger size. The being harvested, is getting transferred to McAllen and sold quality of the peppers being reported as good. Currently, at a much cheaper price than CA. As we wait for the effects supply meets demand. Price should remain steady through of the storms from last week to wear off and production to the remainder of the week in the teens for a choice grade increase, we can expect to see this split market. If loading pepper and low to mid 20’s on #1 pepper. Light supplies in McAllen is an option, you will have the best chance of available through Nogales. Green bell peppers from Mexico getting covered in full at a better price point. We expect are also available to load in McAllen, TX. supplies to improve over the next 2 weeks. Red Bell Peppers – Light supply of red bells being harvested at this time in Fresno and coastal areas. California Growers are getting ready to make transition to the Berries (Blueberries) Coachella Valley by the last week in October, moving into November with good volume expected by Mid- November. Blueberry supplies are finally beginning to improve. On the Hothouse Red bells are also available to load out of San east coast, we are seeing consistent arrivals of Peruvian Diego, from Baja growing district. Volume out of Baja has and Argentinean fruit with good availability in Miami. Quality started to decrease as we move out of October and into is being reported as good. Market prices have started to November. Few hothouse red bells are crossing through decline this week with good supplies expected for the Nogales From Jalisco, Mexico. The quality of the peppers in weekend. We can expect to see more aggressive prices all districts remains good. Pricing has remained steady on moving forward. On the west coast, air arrivals and transfers #1 and choice grade peppers. Supply meets demand. Red of import fruit are coming in on a regular basis. Although peppers are currently shipping from San Diego, Fresno. the volume is not as high as the east coast, we do expect Hothouse red bells from Mexico are also available to load to see better supplies and lower markets moving forward. in McAllen, TX and Nogales, AZ. Additionally, Central Mexico production is slowly ramping Yellow Bell Peppers – Hot house peppers are available up. Most of this fruit is being sold out of McAllen with some to load in San Diego, from Baja California. Few Hothouse transfers to California. Market prices are higher but will yellow bells are crossing through Nogales from Jalisco, decline as production picks up over the next 2 weeks. Mexico. The market is higher along with pricing but Chilean production is expected for late November. remaining steady. Demand is steady along with supplies. The quality of the pepper remains good. Shipping districts out of California is San Diego.
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