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The Source - May 26, 2016 | Page 1 www.proactusa.com May 26, 2016 www.freedomfresh.com Weather Update Weather in the Salinas Valley will continue to be mild with temperatures anywhere from 65º to 75º. Foggy mornings burning off in the late morning and returning in the afternoon. In the Oxnard area, for the rest of the week, will have similar weather patterns with temperatures from 68º to 72º. Weather in the Plant City region of Florida for the weekend will be hot and temperatures in the high 80s to low 90s. Also, chance of thundershowers for the weekend. Weather in the Mexico region remains hot with temperatures in the high 80s to low 90s. Market Alerts Broccoli: Much lighter supplies and the market is active. Cauliflower: Cauliflower supplies remain limited and the market is still at high levels. Grapes (Red): Aggressive prices available in Nogales. Onions: New Mexico onions growers are starting up a couple weeks late due to the heavy rains last week in the growing area. Stone Fruit: Aggressive prices are available on smaller size fruit. Plenty of promotional opportunities on larger fruit.

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Page 1: May 26, 2016The Source - May 26, 2016 | Page 2 May 26, 2016 Truckin’ Along California trucks remain tight due to the Memorial Day holiday pull and look to remain tight into next

The Source - May 26, 2016 | Page 1

May 26, 2016

www.proactusa.com

May 26, 2016

www.freedomfresh.com

Weather UpdateWeather in the Salinas Valley will continue to be mild with temperatures anywhere from 65º to 75º. Foggy mornings burning off in the late morning and returning in the afternoon. In the Oxnard area, for the rest of the week, will have similar weather patterns with temperatures from 68º to 72º. Weather in the Plant City region of Florida for the weekend will be hot and temperatures in the high 80s to low 90s. Also, chance of thundershowers for the weekend. Weather in the Mexico region remains hot with temperatures in the high 80s to low 90s. Market Alerts

Broccoli: Much lighter supplies and the market is active.

Cauliflower: Cauliflower supplies remain limited and the market is still at high levels.

Grapes (Red): Aggressive prices available in Nogales.

Onions: New Mexico onions growers are starting up a couple weeks late due to the heavy rains last week in the growing area.

Stone Fruit: Aggressive prices are available on smaller size fruit. Plenty of promotional opportunities on larger fruit.

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Truckin’ AlongCalifornia trucks remain tight due to the Memorial Day holiday pull and look to remain tight into next week as well. Washington and Idaho potato trucks remain steady. The National Average for diesel is currently at 2.357 per gallon, an increase of .06 from last week. A difference of .557 from this time last year. California prices are up as well and are currently at 2.673 per gallon. Crude oil rose remained steady and is now at 49.65 per barrel.

The Source

Transitions & TemperaturesCherries: Washington is just getting started. Supplies are limited.

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Commodity Updates Apples

Washington - Red delicious are steady but the market remains firm on all sizes. Most suppliers are still peaking on extra-fancy 72/80/88s. Most shippers are still subbing up to the extra-fancy grades to cover volume orders of the fancy grade. Golden Delicious are steady on all sizes and grades and are still peaking on Wash-Extra 100/113s. Most suppliers don’t have much larger than an 88-size Golden. Granny Smith are also steady on all sizes and they continue to peak on 88-113s. Most suppliers still don’t have much larger than an 88 or smaller than a 125. Galas are steady but firm due to light supplies. The market will continue to slowly rise until the end of the season. Most Gala suppliers still don’t have much fruit larger than an 88. Fujis are steady on all sizes but firm due to light supplies. The Fuji market will also continue to slowly climb until the end of the season. Washington Fujis continue to peak on extra-fancy 80-100’s. Pink Lady’s remain steady but firm due to very strong demand. The quality for all varieties has been good. Michigan - Red delicious are steady but firm and supplies remain limited. Reds continue to peak on 80/88s. McIntosh, Galas, Jonathans, and Red Rome are still available but supplies are extremely short. The quality for all varieties has been good. New York - Red delicious, McIntosh, and red Romes are all steady but supplies are very limited. Small fruit remains very short for all varietys. The remaining McIntosh are very large. The fruit quality has been good. Chile - Chilean Galas are steady to slightly lower on both sides of the country. Imported Galas are peaking on 100-size and larger, the quality has been good. Imported Braeburns and Pink Lady’s having started coming in and they are peaking on 90s and larger.

AsparagusVolume from California is slowing down. Washington, Peru, and New Jersey are still strong. Markets are steady.

Avocado (California)California will be peaking over the next few weeks with good volume. Size is skewed to small fruit, creating a supply issue for the mid-sized and large fruit. Demand and supply is beginning to match ounce again.

Avocado (Mexican)Mexico’s shipments to the US has stabilized some, but is still down nearly 40% from what it was just a few weeks ago. Demand has back off and we are staring to catch up with supplies even though key sizes of 40s/48s/60s remain tight. Markets are stabilizing. We are still looking at late June to the beginning of July when Mexico starts their Flor Loca crop, before any real volume increase is expected.

Bell Peppers (Eastern)The bell pepper market is steady. There is a range of prices, with the better Georgia pepper bringing 2 to 4 dollars more per box. Central Florida is still producing with a wide range of quality. More shippers are starting in Georgia all the time with good quality and good demand. There are reports of lower than normal yields in Georgia so even with more shippers starting there is not an overwhelming supply.

Bell Peppers (Western)Green bell pepper. Southern California is shipping good size and quality, volume is improving with very good demand. Red bell peppers- Mexico is winding way down with most shippers finished. Southern California is shipping good supply with Quality much improved. Yellow bell pepper-. California has started with good quality and all sizes being offered.

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Commodity Updates Berries (Blackberries)

Mexican production has already passed peak for this season and has begun to decrease in volume. California production out of Watsonville has started in a light way and will continue to increase over the next several weeks. Quality has improved, fewer reports of red cell and soft berries. Earlier reports of a possible gap period seem to have diminished. It now looks as if CA production will ramp up just in time to replace the diminishing volume out of Mexico.

Berries (Blueberries)Domestic production is increasing with good availability out of California’s Central Valley, Georgia, Carolinas and many of the smaller (regional) areas as well. With higher volumes, more shippers are packing into larger clamshells of pints, 18oz, 1# and 2#. FL production has slowed down. Overall, good volumes are reported again this week. Mexico continues to produce steadily. Availability and quality remain good in all areas. Promotional opportunity is available. Memorial Day ads are increasing demand this week and should continue with better demand into the first of June.

Berries (Raspberries)Central Mexico production is beginning to decrease but California production is beginning to increase out of Watsonville and Santa Maria. Oxnard is also producing raspberries. Quality has been good out of all areas.

Berries (Strawberries)California strawberry production continues to increase in Watsonville and Salinas. Santa Maria has passed peak production and some shippers are diverting some ranches into freezer/processing due to weaker demand and weaker markets over the past few weeks following Mother’s Day and the high volume production out of the northern districts. Demand has increased some this week as Memorial Day ads and retail demand increase through the first of June. Quality has been good out of all areas. Salinas and Watsonville sizing in the low-mid teens and Santa Maria sizing in the mid-upper teens per 1 pound clamshell.

BroccoliBroccoli supplies vary form shipper to shipper as well as growing regions. There are much lighter supplies from Mexico and they are continuing to see hallow heart. Quality is still very nice out of Salinas and Santa Maria with dark green color and minimal yellowing. The market continues to be strong and has an upward daily pricing trend.

Brussels SproutsSupplies have been increasing weekly out of Mexico. Oxnard is right around the corner for the domestic crop. The market is finally getting to reasonable prices. Quality is still fair out of Mexico with inconsistent sizing, black to brown discoloration, and mechanical damage.

CarrotsThe Coachella and Imperial Valley crop is done. The Bakersfield crop has begun and is picking up in production. Growth rate is also showing some improvement and starting to yield a better percentage of Jumbo size, still a low percent, but improving. Supply of baby peeled carrots are good.

CauliflowerThe cauliflower market remains at high levels. Supplies are sporadic from all shippers. There have been minimal quality issues upon arrival but some have shown bruising and brown discoloration. Most suppliers continue to have light supplies. Look for this trend into next week.

CeleryDemand has leveled off, and this market is steady, overall. Supplies continue to be strong on large sizing in Oxnard and Santa Maria. Production in Salinas will begin next week with a few suppliers. Small sizes have tightened up, and is demanding a higher price. Good quality is being reported from all shippers. Michigan is in production and this region is packing heavier to large sizing. All sizing is expected to be moderate to good for the rest of the week.

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CherriesThe Washington cherry season is just getting started. Product is being picked out of the Yakima region and only dark sweet varieties are available. This week’s harvest was very light and availability has been extremely limited. As we move through June, production will gradually increase, but the peak of the season is not expected to hit until the beginning of July. Quality has been reported as good and market prices are expected to remain firm. Rainier variety cherries are estimated to start the week of June 6, also in Yakima.

Chili PeppersSerrano - Some growers are finishing and others are starting new fields. Quality remains good with better demand. Anaheim - Sizing and quality remain good. More product being offered. Excellent size and color. Pablano - Slightly lighter supply with some growers finishing. Good quality and condition expected to continue. Tomatillo - Very good supply and quality. Extra large sizes available. Jalapeno - good quality and condition are available with excellent size.

CilantroCilantro supplies remain steady from the Salinas Valley, Santa Maria, Oxnard, and Mexico. The market varies from shipper to shipper depending on the loading area. Quality reports have been minimal yellowing, dehydration, and black leaves.

Citrus (Lemons)The central valley crop is 96% harvested and winding down their season and the Ventura crop is our main supplier. Demand is very strong and continues to build. We are seeing 140s/165s/200s supplies clean up daily and many shippers sold out for the week by mid week.

Citrus (Limes)The lime market remains high on the 110 & 150ct but they are coming down a bit. Demand is good on all sizes across the board. The peak size has remained in the smaller sizes such as 250ct and 230ct. This is the time of year where overall supplies are low and will remain at lower levels until the third or fourth week of May. The overall long term upward market trend has broken and lower prices are happening. Quality is good overall. The overall supplies are now increasing. The market is lower on the 175 - 250ct limes.

Citrus (Oranges)Shippers have good supplies of large sizes with crop peaking on 72s/56s. Smaller sizes (88s/113s/138s) have reached demand exceed supply. Some shippers have been packing new crop Valencia oranges for export and have began packing some small sizes for domestic use, but availability is very limited until more shippers come on line. Labor to harvest fruit is beginning to be an issue for some growers.

Cucumbers (Eastern)The cucumber market is showing signs of strengthening. Central Florida is winding down and production in Georgia has decreased after last weeks cloudy damp weather. Some growers have stop picking on older field because the cheap carton and select markets did warrant expense. With warmer temperatures and some new fields starting next week production should increase slightly after the holiday. North Carolina will start next week.

Cucumbers (Western)Supply on cucumbers has decreased as the season comes to an end in Mexico. There are less supply from the northern district. Quality is only fair all sizes and pack styles, peaking on Select. The color is good. Euro cucumbers are available with limited supply in number one and number two pack styles.

Commodity Updates

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Eggplant (Eastern)The eggplant market is steady. Supply is good, quality varies in the central Florida region where most of the supply is concentrated. Weather has cleared and temperatures are up through out the southeast. Georgia will start a few eggplant this weekend with Plant City continuing through the first week of June. We look for a jump in the market next week as supplies in Florida wind down and production in Georgia will still be light.

Eggplant (Western)Eggplant has finished in Mexico and is now being harvested in Southern California Excellent color and condition on new crop product. more growers offering product this week.

Grapes (Green)There is excellent supplies of green grapes in all loading locations. Mexican green grapes are available to load in Nogales and Los Angeles. Californian green grapes are available to load in Coachella. Quality has been very strong in all areas. Markets prices have been gradually declining with some aggressive offers being quoted in Nogales. There continues to be a noticeable price difference between domestic and Mexican fruit. Next week we expect supplies to remain consistent and we may see another small drop in market, but the price spread between CA and MX will still be there.

Grapes (Red)Mexican and Californian red grape supplies continue to increase. We saw the market drop in both areas at the beginning of the week with a slight difference in price between CA and MX crop. However, as the week moved on, Mexican product loading in Nogales has taken another plunge in price; where as the California product loading in Coachella has remained steady in price. This split market is an effort to attract more orders to load down south. We expect to see these aggressive deals in Nogales to be available all next week. Coachella fruit is expected to remain fairly steady in price. Quality has been strong in both areas. If loading in Nogales is an option, it may be worth a separate pick.

Green OnionsNot much change here as supplies are plentiful. The market is flat with deals for volume orders. Quality is really nice with little yellowing of the tops.

KaleKale remains the staple of the super food trend. And with that more acreage has been devoted to this commodity. Supplies remain stable and the market varies from each supplier. Quality has been excellent with good sizing, little yellowing, and dehydration.

Lettuce IcebergThis market is active as demand has picked up. A few suppliers are sold out for the rest of the week on open market business. The weather has been cooler and rain is a possibility at the end of the week. Defects on on lettuce continues. Expect to see defects like irregular size heads, puffy, ribby and slight insect damage. The weights are averaging 41-45 pounds on wrap. Expect this market to get stronger for the rest of the week.

Lettuce LeafThis market has softened on all leaf items. Defects continue to effect growers at harvesting time. These defects include fringe burn, insect damage and slight mildew. Yields are still lower in the fields. Demand has fallen off, however. Salinas and Santa Maria are the main growing regions for these items. The romaine heart production has increased and a few suppliers are flexing on volume type orders, so promote this commodity as much as possible.

Commodity Updates

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Melon (Cantaloupe)The offshore melons are done being harvested now and the last supplies are being cleaned up this week. The desert has been shipping for a few weeks now and supplies are continuing to increase. Quality out of the desert is very nice while the remaining offshore supplies are acceptable in quality. The market is steady currently for domestic supplies and lower to steady for the offshore supplies.

Melon (Honeydew)The desert started shipping honeydews a few weeks ago. Supplies are increasing as the offshore supplies finish up this week. Mexico has good supplies and quality. The desert quality is good also. Offshore quality is acceptable. The market is lower on all sizes.

Melon (Watermelon)Product is now being shipped from Northern Mexico, Western Arizona and Southern California The supply has increased along with the demand. Warm weather has increased production. Shippers are promoting to increase the movement for the Memorial Holiday. Quality condition and brix are all very good. All sizes being offered in both bins and cartons, peaking on larger fruit (36s, 45s, and some 60s). Personal watermelons are being offered in all sizes with good quality and condition being reported.

OnionsSouthern California is the main shipping point for yellow, red and white onions currently. They have hit their peak volume last week and are winding down just in time for Central California to start. Supplies out of Central California will not build till the end of next week or the start of the following week. Quality is still being reported as good out of both areas. New Mexico supplies have been push back a couple of weeks from the heavy rain storms that rolled through the growing area last week. Supplies will start with a few grower late next week and with all growers by the week of June 13th. Quality will start out with some staining which will clean up quickly as long as mother nature stays

away. Few growers have started up in Uvalde, Tx with supplies peaking on mediums. Quality is currently showing staining from the rain last week. Markets are firm but steady the middle of this week. I see the markets staying at these levels for the next couple of weeks.

PearsWashington - D’anjou pears are steady on all sizes but the market is very strong. Supplies of 110s and smaller are still very short. The remaining C.A. fruit is peaking on large US#1 fruit so expect the smaller sizes to remain limited until the season ends. The quality on D’anjous has been good. Chile - Chilean Packhams are steady and continue to peak on US#1 80/90/100s. Chilean Bosc & Argentinian Bosc are both steady and are peaking on 70-100s. The quality on all of the imported varieties has been good.

PineapplesSupplies are good for most shippers, but still tight for others that are still hoping to see better volume in a couple of weeks.

PotatoesLarger-sized russet out of Idaho, Colorado and Wisconsin continue to gain strength as supplies tighten with good demand. The Washington growing areas is still packing some large cartons. The over all market out of all areas had few changes. Quality is still being reported as good out of all areas. Idaho has reported some lots showing internal bruising which sounds like will spread throughout Idaho. All growing areas have already planted next years crop.

Commodity Updates

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Potatoes (colored)Bakersfield, California - All colors are steady and the availability is good for all colors. Golds, reds, and whites are all peaking on A-size. The new-crop quality has been good. Phoenix, Arizona - Both red and gold potatoes are steady and both colors continue to peak on A-size. The quality has been good. North Florida - Reds, whites, and gold potatoes are mostly steady and the availability is good for all colors. The quality has been good. Pearsall, Texas - The red market is steady and the availability is also good for all sizes. The quality has been reported as good.

Squash (Eastern)The Squash market is steady. Good yellow squash is on the tight side, green squash continues to produce a lot of volume. Central Florida and south Georgia are still producing good supplies of squash with some pockets starting in South Carolina and North Carolina. Georgia will continue for another two weeks if the market permits. North Carolina volume should pick up this weekend with warmer weather finally reaching the area.

Squash (Western)Hard Squash is finishing in Mexico and is transitioning to southern California. Yellow and Italian squash are being harvested with limited supply as they are also winding down to a finish in Mexico. Some lots of yellow squash are showing condition issues with Italian squash being mostly larger sizes. Mexico will finish shipping very soon. California is just getting started with good Quality and supply.

Stone FruitCome and get it! Plenty of Peaches, Nectarines, Plums, Apricots and Pluots are available. Shippers have been pressing for business on smaller sized volume fill fruit this week as schools are finishing up and summer starts. If you have any opportunity for smaller sizes, there are many aggressive offers available to grab. Larger sizes are also in good supply, but market prices have remained fairly steady. Quality has been excellent. Promotional opportunities and advanced pricing is available from all shippers.

Tomatoes (Eastern)Rounds - The market is steady. Supplies continue to look good, however, additonal rains in the east have slowed up harvest. Out west, Mexico also continues to see good numbers, with plenty crossing. If current weather continues back east, look for the market to get stronger. Quality is Good. Roma - The market is steady. Still plenty of product, in all areas in th east and west. Florida continues to harvest in several areas. More and more product is crossing from Baja in the West. Sizing continues to be tighter on the smaller sizes, but, plenty of XLG and jumbos available. Quality is Good. Cherry - The market is steady. Supplies continue to be strong in Florida, with afforable pricing. Mexico is crossing a few cherry’s through Texas and Baja, but, FOB’s are higher out west. Quality is Good. Grape - The market is steady / higher. Supplies still a bit ligher in the East, until South Carolina begins. Mexico also looks to be lighter with grapes, with the FOB’s a bit higher as well. However, Torreon and Baja should start to pick up. Look for the market to continue to tick up a bit. Quality is Good.

Tomatoes (Western)Rounds - The market is steady. Mexico continues to look good on supplies, with several areas in production. Back east, additional rains have slowed up harvest, with more rains in the forecast. However, west coast has plenty of supplies, if production does slow up back east. Roma - The market is steady. Supplies on the roma’s also continues to be strong. More and more volume is crossing from Baja. Back east, Florida also has a few areas in production. Sizing however continues to be lighter on the smaller sizes, with more XLG and jumbo’s available. Quality is Good. Cherry - The market is steady. Few cherry’s out of Mexico continues, with higher FOB’s. Back east, supplies continue to be strong and pricing is affordable. Quality is Good. Grape - The market is steady / higher. Supplies continue to be lighter, with growers finishing up in Mexico. Back east, supplies also are lighter, intil South carolina picks up production. Look for te market to continue to tick upwards. Quality is Good.

Commodity Updates

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Commodities at a GlanceCommodity / Region Market Quality

Apples

Chile Steady Good

Coopersville/Belding/Sparta, MI Steady Good

Hudson/Pleasant Valley/Red Hook, NY Steady Good

Wenatchee/Yakima, WA and Hood River, OR Steady Good

Asparagus

San Joaquin Valley, CA Higher Good

Salinas Valley, CA Higher Good

Yakima, WA Steady Good

Ica, Peru to Trujillo Lower Good

New Jersey Steady Good

Avocado (California)

Temecula/Escondido, CA Steady Excellent

Oxnard/Ventura, CA Steady Excellent

Avocado (Mexican)

Michoacan, Mexico Steady Good

Bell Peppers (Eastern)

Hillsborough / Western Collier County, FL Steady Fair

Lee / Grady County, GA Steady Good

Bell Peppers (Western)

Coachella Valley, CA Steady Good

Berries (Blackberries)

Central Mexico Steady Good

Watsonville, CA Steady Good

Berries (Blueberries)

North Carolina Steady Good

Georgia Steady Good

Central Valley, CA Steady Good

Central Mexico Steady Good

Berries (Raspberries)

Watsonville, CA Steady Good

Santa Maria, CA Steady Good

Oxnard, CA Steady Good

Central Mexico Steady Good

Berries (Strawberries)

Salinas Valley, CA Steady Good

Watsonville, CA Steady Good

Santa Maria, CA Steady Good

Commodity / Region Market Quality

Broccoli

Salinas Valley, CA Higher Good

Oxnard/Santa Maria, CA Higher Good

Celaya Guanjuato Mexico Higher Fair

Brussels Sprouts

Northern Baja California Norte, Mexico Steady Fair

Carrots

Bakersfield/Santa Maria, CA Steady Excellent

Cauliflower

Salinas Valley, CA Steady/Higher Good

Oxnard/Santa Maria, CA Steady/Higher Good

Celery

Oxnard/Santa Maria, CA Steady Good

Salinas Valley, CA Steady Good

Michigan Steady Good

Cherries

Yakima, WA Higher Good

Chili Peppers

Coachella Valley, CA Steady Good

Cilantro

Salinas, CA Steady Good

Oxnard/Santa Maria, CA Steady Good

Baja, MX Steady Good

Citrus (Lemons)

Merced/Bakersfield, CA Steady/Higher Good

Oxnard/Ventura, CA Steady/Higher Good

Citrus (Limes)

Veracruz, Mexico Lower Excellent

Citrus (Oranges)

Merced to Bakersfield, CA Steady Good

Riverside, CA Steady Good

Cucumbers (Eastern)

Lee / Grady County, GA Steady Good

Hillsborough / Western Collier County, FL Steady Good

Cucumbers (Western)

Northern Baja California Norte, Mexico Steady Good

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Commodity / Region Market Quality

Eggplant (Eastern)

Hillsborough / Western Collier County, FL Lower/Steady Excellent

Eggplant (Western)

Southern CA Steady Good

Grapes (Green)

Sonora, Mexico Lower/Steady Good

Coachella Valley, CA Steady Good

Grapes (Red)

Sonora, Mexico Lower Good

Coachella Valley, CA Steady Good

Green Onions

Mexicali, Baja Steady Good

Kale

Salinas, CA Steady Excellent

Oxnard/Santa Maria, CA Steady Excellent

Baja, MX Steady Excellent

Lettuce Iceberg

Oxnard/Santa Maria, CA Higher Fair

Salinas Valley, CA Higher Fair

Lettuce Leaf

Oxnard/Santa Maria, CA Lower Fair

Salinas Valley, CA Lower Fair

Melon (Cantaloupe)

Maricopa, AZ Lower Excellent

Brawley, CA Lower Excellent

Melon (Honeydew)

Maricopa, AZ Lower Excellent

Yuma, AZ Lower Excellent

Hermosillo, Mexico Lower Excellent

Melon (Watermelon)

Northern Sonora, Mexico Lower/Steady Good

Onions

Calipatria/El Centro, CA Steady/Higher Excellent

Huron/Metler, CA Steady/Higher Good

McAllen/Uvalde, TX Steady/Higher Fair

Las Cruces, NM Steady/Higher Fair

Commodity / Region Market Quality

Pears

Wenatchee/Yakima, WA and Hood River, OR Steady Good

Chile Steady Good

Pineapples

Alajuela, Costa Rica Steady Good

Heredia, Costa Rica Steady Good

Limon, Costa Rica Steady Good

La Ceiba, Honduras Steady Good

Retalhuleu, Guatemala Steady Good

Peten, Guatemala Steady Good

Potatoes

Hamer/Rupert, ID Steady/Higher Good

Quincy/Hermiston, WA Steady/Higher Good

Eastern Colorado Higher Good

Plover/Bancroft, WI Higher Good

Potatoes (colored)

Bakersfield, CA Steady Good

Phoenix, AZ Steady Good

Hastings/Bunnell/East Palatka, FL Steady Good

Pearsall, TX Steady Good

Squash (Eastern)

Lee/Grady/Echols County, GA Steady Good

Hillsborough / Sarasota County, FL Steady Good

Henderson / Bucomb County, NC Steady Good

Squash (Western)

Coachella Valley, CA Steady Good

Stone Fruit

Madera south to Arvin, CA Lower/Steady Excellent

Tomatoes (Eastern)

Southern Florida Steady Good

Northern Florida Steady Good

Tomatoes (Western)

Northern Baja California Norte, Mexico Steady Good

Northern Baja California Sur, Mexico Steady Good

Central Sonora, Mexico Steady Good

Commodities at a Glance