VALUE ADDED: Raw product with romaine continues to have production problems. There have been issues with chopped romaine breaking down. Processors are working very hard to use only high quality romaine but there are issues. Green onions continue to have lots with some decay present but the quality is getting better overall. Spinach processors continue to fight mechanical damage and excessive wetness from the spinach that is being harvested. These issues had existed the previous week. Processors are working very hard to get the very best raw product available.
APPLES:
Apple demand in the United States is higher than it has been in decades, and prices are expected to be higher than ever due to short supplies.
Several factors contributed to the state of this year's apple market. The 2007- 08 apple crop ran short, limiting its usual year-round supplies. Then, just as producers were weeks away from initial harvests for the coming year's crop, multiple hailstorms pummeled the Northeast, and extensive damage in some areas reduced projected volumes. Also, import supplies are down because of the weakened dollar.
Most industry professionals agree that it is going to be a very unusual apple year.
Small sized red apples remain in a demand-exceeds-supply situation even with the production of California Galas. Washington is quickly running out of storage apples and especially in what little remains for small sized red. Washington Galas are not scheduled to start for at least another two weeks.
MELONS: Cantaloupes: Demand tailed off considerably from last week, and the market has eased back down on the large sizes. The market on the smaller sizes remains depressed, and shippers are looking for movement.
With the slowing demand and production still high, inventories are up again to start this week. There has been some 100-plus-degree heat in California's Central Valley's melon growing regions over the last four to six days, and there is some slight softness showing up in the cantaloupes. Otherwise, expect quality to remain very good and sugar levels to remain high as slightly cooler weather settles in over the next few days.
ORANGES: Very strong back-to-school business has created a demand-exceeds-supply market on 138s with excess demand spillover to 113s and 138s. Shippers are sold out on a daily basis, and buyers are highly encouraged to place their orders well in advance. The current Valencia crop will continue well into October, and new-crop Navel supplies will start in late October to early November.
Valencia oranges experience a phenomenon called re-greening during the hot summer months. Heat causes the oranges to reabsorb chlorophyll at the stem end resulting in a green cast on the outer skin. This natural process is cosmetic only and does not affect the internal sugars or eating quality of the fruit. Re-greened oranges are fully ripe, sweet and delicious.
LEMONS: California lemon shippers are experiencing an unusually high rate of quality problems for two reasons: the July heat wave stressed the crop, and the summer season is beginning to wind down and the fruit naturally weakens. The result is a higher incident of blue/green mold. Looking down range, the upcoming desert crop, which starts lightly the week of Aug. 25, is projected to be 127 percent larger than last year. Sunkist will have a 70 percent market share and expects to ship between 8.2 million and 8.9 million cartons during the autumn and winter seasons.
Chilean imports are currently peaking. The United States has received 500,000 cartons to date and will receive another 500,000 over the next four to six weeks. Chilean sizing is medium to small. Mexican imports are just beginning to arrive at the rate of 50,000 cartons per week. Mexican fruit is heavy to the choice and standard grades.
BROCCOLI: Central coast shippers foresee heavier supplies in late August resulting in another round of very reasonable prices. Overall quality is excellent. Competition remains strong from eastern Canada and Maine. Near-term prices will remain very affordable unless harsh weather and/or poor quality in the East sends unexpected demand to California.
LETTUCE: Shippers have purposely planted fewer acres for August in anticipation of slow demand, and their hunch is paying off. Shippers are bewildered by the arduous string of poor demand stretching back to May of this year. Thankfully, light production has nearly equaled the light demand, thus preventing a long run of negative returns to local shippers and farmers.
Shippers say that a noticeable outbreak of mildew has developed, which further lightens overall production. This problem will persist until the cooler night temperatures in September break the spores' life cycle.
Despite slow demand, continued light supplies will keep the lettuce market fairly steady near current levels through August. The balance between supply and demand is delicate, and prices would respond quickly higher if processors found the need to buy extra product on the open market.
LEAF LETTUCE:
Romaine and green leaf prices have escalated dramatically since early August due to a combination of reduced acres in production and sub-par yields.
As with Iceberg lettuce, leaf shippers purposely reduced their August acreage in anticipation of strong competition from regional deals across the nation. Shippers didn't plan on the July heat wave producing poor quality and very light yields in August.
Yields are so light that processors are actively buying Romaine on the open market. This delays the eventual return to a normal market because growers are anxiously entering their fields ahead of schedule to capture the high prices that processors are currently willing to pay on the open market. Current estimates suggest that the leaf markets will remain very expensive the weeks of Aug. 25 and Sept. 1.
AVOCADOS: The California Haas market remains strong and is expected to hover near current levels through August. California production is tailing off as the southern district is winding down as expected and Oxnard (the northern district) volume is down 10-20 percent compared to one year ago.
New-crop Chilean supplies are just beginning to arrive in the United States and will reach peak production in mid-September. Mexico continues to export its Flora Loca crop and will start its new-crop season in October. California supplies will be exhausted in early October. Shippers expect a noticeable price increase in mid-September.
BERRIES: There is a very wide range of quality within the industry, which is driving selective buyers to search for the best available fruit. The upcoming cooler night temperatures in September will increase shelf life. Driscoll said that production will continue to decrease into mid-September. Demand is very strong, and Driscoll is prorating orders.
The market has recently increased and is expected to hold near current levels through August. Driscoll just started harvesting Oxnard's autumn crop. Production will remain very light until mid-September and peak in mid- to late October.
CELERY: The size profile in the Salinas Valley remains large as shippers have good production of 24s and even a few 18s. Prices of 24s remain substantially less than 36s and 48s. Overall quality is excellent. Santa Maria shippers are still trying to lure orders and trucks away from Salinas with discounts.
ONIONS: The biggest stories of the summer remain the exorbitant cost of freight and limited availability of trucks. California and New Mexico shippers are competing with each other on a delivered basis rather than f.o.b. It's a contest of who has access to a truck, what is the delivered price and which district will offer the better delivered value. Buyers are encouraged to stay ahead of inventories and take advantage of trucks as they become available.  Washington has started with reds and yellow and limited availability on whites. The yellow onions are running jumbo and smaller with most shippers having no availability on Colossal and Super Colossal.
POTATOES: New-crop russet Norkotah supplies are available in Idaho, Washington and Colorado (via Kansas). Idaho sizing is heaviest to the mid- and smaller cartons. Shippers cannot keep pace with the exceptionally strong consumer bale demand. Idaho shippers forecast peak sizing to change to larger cartons beginning in three to four weeks.
Prices are at the top of the current market cycle and will adjust lower over the next three to four weeks. Buyers are encouraged to keep inventories light and purchase quantities which can comfortably be sold in the near term. Early season Norkotah quality is excellent from all districts. Buyers may find light skin feathering.