Canned Fruit and Vegetables - These categories continue to be a challenge, and it looks like there will be numerous supply shortages, which will present challenges for the upcoming pack year. Canned vegetables appear to be less than 100% of supply on 6/10 beans, corn, and peas. It is too soon to determine some of the other canned vegetable items. Canned fruit items continue to follow suit and there is a short supply on applesauce.  We have also just been notified that sliced apples will be out of stock until September. The final item is the 6/10 canned peach crop. This looks to be a disaster and we are concerned with the supply for the upcoming pack year.

Cheese - This market continues to confuse everyone as one week we see a $.07-$.10 down market followed by a $.08-$.15 up market the next week. Most of our suppliers continue to feel that the cheese market will remain strong and will continue to make new highs.

Crabmeat - My opinion is the supply of all Portunus species raw material from all southeast Asia origins continues very tight with inflated costs getting passed on to packers passed on to importers. Landings are estimated to be about 50% below 2007 levels possibly due to more fishermen suffering from the anxiety of coming back to dock empty, the unfeasible cost of fuel, or climatic factors of a cyclical nature suppressing the biomass or all factors combined. Compounding the weak output is smaller crabs with lighter meat yield. Look out for undersized Jumbo Lump this year as a result and Colossal hard to find. The dismal production forecast for mid to end of 2008 seems to justify prices escalating to unprecedented levels but difficult to sustain given the state of the US economy going into an election year and a weak dollar that just can't compete versus the Pound and Euro.The demand for swimmer crab meat in UK and Europe is rising and, leveraging their stronger currencies, is making them the preferred destination for this year's meager Asian exports that once flooded us ports in abundance not long ago.

Flour - It is uncertain of the wheat crop due to the recent flooding. The damage is unknown at this point.

Frozen Fruit - The blueberry market continues to soften. We recommend that you only buy week-to-week for your normal needs. The red raspberry market has now more than doubled in price since the first of the year. The California strawberry crop had problems at the end of this year's pack, which will cause a short fall in supply; however, with the carryover from the 2007 pack, there should be just enough supply to cover needs for this pack year.


Frozen Potatoes - The commodity potato market continues to see supply issues. Price increases will be coming up in September.

Frozen Vegetables - There continues to be concern with the supply of frozen vegetables. The main item, frozen peas, which also affects peas and diced carrots, mixed vegetables, and other items, will see continued price increases as well as supply challenges. With the most recent hurricane in south Texas, it is unknown at this time what the effects of this storm will have on any of the southern vegetable items that are produced in Texas.

Imports - The weak dollar continues to have an effect on the price of most canned imported products. The olive market continues to be in tight supply on both green and ripe olives, and pricing has moved up over 10% in the last quarter. The canned mushroom market has stabilized with adequate supply and it appears lower pricing may be forthcoming. The canned tuna market continues to still make market highs.

Oil - We are now approaching the critical time for corn and soybeans to make this year's crop. The Midwest weather conditions appear to be ideal and this has affected the oil market, which has dropped over 500 points in the last week. This along with the commodity traders selling has made for a very volatile market. The experts are still unsure which direction this market could go.

Peanuts and Peanut Butter - The new crop is about two weeks away from setting new pricing. We anticipate an adequate crop, much better than last year, which will hopefully allow for lower pricing as we come in to the September and October time frame.

Pecans - It is now clear the pecan market is very firm in price, has a tight supply, and will be a short crop for the coming year.

Shrimp - Black Tigers are remaining steady as demand is improving. Spot shortages are occurring as importers have held back buying until business improves. White shrimp both small and large are hot as product is very short. Replacement remains difficult to find. Overseas tiger prices have bottomed and are starting to move up. Whether they can get the new prices will determine what the market does this summer. Best values remains P&D Tail-on and tail-off.

• U.S. Shrimp imports rose 3.7% in May—YTD imports now just .7% below prior year
• Imports from Indonesia, Malaysia and Vietnam surging YTD
• The struggling U.S. economy and higher fuel costs continue to impact the shrimp industry worldwide
• Firm pricing for large Black Tiger shrimp due to higher fuel/energy costs and limited raw material availability
• Vannamei white costs continue to climb due to strong baht and Thailand’s 20-30% decline in output
• The Texas shrimp season opened July 15th
• Tariff Update—final results for India: 1.69% duty rate

Sugar - The sugar market has a more defined direction and it appears that the beet crop is very short on supply and new crop will also be in short supply. This is putting pressure on the industry and has now forced the market price higher with Domino leading the price increases with no relief in sight. We expect a tight supply and increased pricing in the coming months.


**With the record fuel prices, we continue to do everything possible to maintain pricing and to be as competitive as possible in this environment. We do, however, expect to see more increases if fuel continues to hold current price levels. We are trying everything possible to control costs and provide our customers with the best market based pricing available.**

DISCLAIMER: This contains our opinions on direction of markets based on our knowledge of the markets and information received from manufacturers. The information is a forecast and does not guarantee inventory or price points within these markets.

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