Market Watch

SPRING MIX: Quality is good. All of our supply going forward will be spinach free as a result of the current scare. FYI the product that looks most like spinach in that mix is Tatsoi and has also been removed because of the likeness. Arugula would be the other one and that is in the blend.

LETTUCE: Quality is just fair with moderate supplies. Look for pricing to stay on the high side for this time of year.

LEAF LETTUCE: Quality is just fair with lots of tip burn being reported. Prices continue to be on the high side.

RED/YELLOW PEPPER: Markets have settled down some with supplies on the increase.

GREEN PEPPER: Quality has been nice with steady demand. Northern Cal is under way and local peppers are available with nice quality being reported.

ASPARAGUS: Supply is now back up as Peru is in full production. Mexican grass is done. Quality is reported as nice.

AVOCADO: Fruit has been very nice and is of good quality. The supplies are good and pricing should stay consistent.

BROCCOLI: Markets are stabilizing as supplies improve. Prices are still on the high side but coming down as supplies improve.

CAULIFLOWER: Markets have gained some strength due to planting gaps. Markets will trend up some.

YELLOW SQUASH/ZUCCHINI: We are into local green and yellow at this time both are looking very nice. Local Cucumbers are now in stock as well.

TOMATOES: Well the market has reached the $40.00 level as predicted. Quality is fair at best. Expect high markets for the next couple of weeks. Be sure and communicate to those operators that will want to move into #2 or utility grade product to save some dollars. If the #1 product is just fair do not expect much out of the #2 product.

GRAPES: Quality is very nice and supplies are good at this time.

STRAWBERRIES: Berry quality is fair with the cool cloudy days slowing down production. Expect some light colored fruit as we wind up the season in the valley.

CANTALOUPE: Markets are starting to come off some with the demand down. There is lots of fruit out there and some shippers are starting to make deals.

HONEYDEW: Quality is excellent with good supplies. There starting to be a lot of old fruit out there with demand slowing down.

Citrus: Orange supplies are finally starting to improve (but still ugly). Most fruit is peaking on the small side of the scale and we will not be in label for the remainder of the season. Lemons however will continue to rise as we move districts. Projected harvest for the next district is 40% of normal.

CHEESE: Cheese markets are unsettled. What appeared to be a weakening market, suddenly gained strength toward the end of last week. Barrel market pricing spent most of the time above the block price. This seems to point toward tightness being mainly on the barrel side of the markets with blocks moving in reaction to barrel increases. A similar increase happened in 2002; however, most of the price movement was done on the block side as a reaction to some short term tightness ahead of holiday orders.

BUTTER: Butter markets are mostly steady. Supplies continue to be more than sufficient for current needs, but buyers and sellers continue to speculate where inventories will be at the end of the year. Cream suppliers are reported to be more available, and as a result butter manufacturers are increasing production. This should help to slow the drawdown of inventories, at least temporarily until holiday orders start to increase in the coming weeks.

The holidays are right around the corner, so let’s start planning now. Start getting an idea about your customers needs for turkey. There are a variety of turkey products out there, besides the traditional whole bird, such as; the airline breast, netted breast, breast in the bag/foil, and the netted breast and thigh roast. So start planning with your customers for their holiday needs.

Interest in fresh pork was price supported throughout the week, volumes were said to be light however prices did not suffer much as a result. Fresh hams (pork steamship rounds) are due to increase as packers start to produce their smoked hams for the holidays. Again start planning your holiday ham needs with your customer.

Sharply declining boxed beef prices and concerns about record cattle on feed inventories put a lid on live cattle prices. The industry is currently producing too much beef for both at home and abroad. Exports sales to Japan remain slow to develop and will likely be very small the rest of the year. Exports to South Korea might start shortly but won’t be a significant market factor. So packers are looking to a stronger domestic market in October to move beef prices higher again. Carcass weights are still record high averaging 789lb.; so expect larger Sub-Primals in the future.

OYSTERS: Most harvest areas in Washington have been cleared to reopen as test for vibrio continue to come back clean. The expectation is that all beds will be back in full production by the first or second week of October. Shucked stock continues to be unaffected by the closures.

SHRIMP: We have seen some slight increases in cost on smaller tigers as demand continues to exceed supply. Larger sizes (31/35 and up) have remained stable so far but will probably go up slightly as we approach the holiday season with the usual increased demand. We expect to have a commodity program in place in October as well as a Mexican White wild program.

HALIBUT: Alaskan fresh season ends November 15 but we will probably see supply tighten up around mid October as quotas are met and weather becomes a factor. Prices on Alaskan fish both fresh and frozen remain at historic highs with no relief in sight. Twice frozen “Chinese” fletches in the 1/3# range remain the best bet at this time with good pricing and consistent supplies.

OLIVES: Crop size for the 2006 Olive crop have now been reduced to 38k to 39k tons. This number is down from the 50K tons that were expected. This re-forecasted olive crop shrinkage is do to an extremely brief bloom period, excessive heat and further olive bud loss during the June Drop” time frame.

THAI JASMINE RICE: Prices remain firm because of the effects of the government intervention program, a weak dollar and a jump in packing costs. We expect a very short supply of this year’s quality paddy rice available rice in the near –term, thus keeping prices firm until new crop.

INDIAN BASAMATI RICE: This market remains fairly steady to firm at this time. World wide and domestic demand has increased to such a level that prices have shot up rapidly over the last month. Though predictions for the new crop are of a favorable size, the eventual outcome will most likely be less than the previous harvest.

ITALIAN ARBORIO RICE: The summer weather in Italy was not as favorable as many had hoped. There was little rainfall in June and July and it was cold in august with a hail storm occurring at the end of August. And even though the overall cultivation area has increased 3% to 4% this year, this is not enough to make up for the effect the poor weather has on the yield of the rice.

CALIFORNIA MEDIUM CAL ROSE: New crop is just now getting harvested. Expect to see new crop shipments around the early October

FOOD SERVICE SUPPLIES:

Chinet Molded Fiber Products “Environmental Attributes”

· Biodegradable Products Institute has certified Chinet Molded Fiber Products, printed and unprinted, as compostable.

· This product meets ASTM D6868 and is intended to be composted in a municipal or commercial facility operated in accordance with best composting management practices.

FROZEN FOOD UPDATE:

Still missing spinach? Head for the freezer case and rediscover frozen spinach. Frozen or canned spinach has the FDA’s blessing for safety, because both are cooked to a temperature sufficient to kill the problem bacteria during processing. Plus, SYSCO’s frozen products are in stock and ready to go.

TIS THE SEASON:

The Fall Holiday decorations are here. Make the most of this festive and beautiful time of the year with these stock items.

FOOD SERVICE SUPPLIES:

Chinet Molded Fiber Products “Environmental Attributes”

FROZEN FOOD UPDATE: