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Happy 4th of July!

Market Update




Trucks in California remain as tight as they have ever been and market trucks are asking for and getting top dollar with July 4 approaching on Friday. Teams remain tighter than normal. Trucks in the Northwest and Idaho are tight as well with many trucks deadheading to California. The National Average went down slightly again to 4.643. Diesel in Salinas continues to hover near the$5.00 a gallon mark and is currently $4.939 at the Pilot Truck Stop, which is the same as last Monday. Crude oil has risen today $3.27 a barrel and closed at $144.24 on news of a drop in inventory supplies last week of 1.9 million barrels.

 

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The Flour Report

Futures prices are near last week's levels with the exception of spring wheat futures, which are higher. The big new is that the winter wheat harvest found momentum as the weather cleared.

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Honey Industry

More than a quarter of the country’s 2.4 million bee colonies have been lost — tens of billions of bees, according to an estimate from the Apiary Inspectors of America, a national group that tracks beekeeping. So far, no one can say what is causing the bees to become disoriented and fail to return to their hives.

As with any great mystery, a number of theories have been posed, and many seem to researchers to be more science fiction than science. People have blamed genetically modified crops, cellular phone towers and high-voltage transmission lines for the disappearances. Or was it a secret plot by Russia or Osama bin Laden to bring down American agriculture? Or, as some blogs have asserted, the rapture of the bees, in which God recalled them to heaven? Researchers have heard it all.

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Crop Outlook

As many are well aware, the competitive pressures on agricultural land continue to make life very interesting for vegetable and fruit production. Wheat, soybeans and field corn are setting the standards for pricing on all commodity crops. Growers across the USA have made clear their expectation to be compensated for their crops at a level which would give them a return equivalent to what they can attain for wheat, in particular. At this still fairly early stage in contracting for product, raw product prices per crop nationwide are showing increases of 10% to 40% and more. Processors who are unwilling to contract at competitive levels will simply not have acreage available for processing. Growers throughout the Northwest, but particularly in the Columbia Basin, are difficult to pin down as they weigh their crop options. For many growers who raise crops on rented ground, which is a significant portion of Northwest vegetable production, the decision has been taken out of their hands as landlords turn to more profitable options.

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Global Market Report

Raw material pricing has move up to 1300 +MT levels this week as a result of the continued supply shortages. Canneries are reporting that fish deliveries have been delayed. Some canneries have reduced the number of work days per week and reduced production shifts to 1 instead of 2. Small quantities of Kinkai fish is now being offered to Thailand, however pricing stays high. Incoming volume is too small and do not expect to create any effect on overall supply situation. There are reports that Ecuador and Mexico will stop catching during August and September and canneries from these areas will start sourcing more from other catching areas.

 

Outlook: Very firm Market conditions.

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Bean Market Update


As we have previously discussed the demand for Ethanol and the resulting price increase in Corn and other grain markets have had an impact on the Dry Bean Markets across the board. The USDA released their first "guesstimate" earlier this week. The report indicated that Dry Beans as a category would be down 8 % this year. We are still anticipating that the decrease in Canada and Mexico will be at least this large and some would argue that the decrease may actually be higher.

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Olive Crop Update

On July 18, 2007 the California Olive Committee met to discuss and forecast the size of the upcoming state harvest. Those in attendance included olive growers, suppliers and staff personnel.

The California olive harvest will commence in less than two months and at this point the outlook is favorable for a respectable crop. Following the second lowest state olive harvest in 2006 (16,968 tons) the estimate for 2007 has been established at 112,000 tons by the grower and supplier community.

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Rice Update

The market continues to be firm and shows little sign of coming down in any way. Supply shortages along with high demands are keeping prices high and unstable. In this volatile market nothing is for sure and anything can be expected. Recent world events have stirred the price of rice to keep firm and may even spark more highs. The future of rice is still very uneasy but we need to keep the faith. For now reports from news sources tell us of the impact the Burma cyclone has had on rice.

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