Chinese Currency Strengthens Vs Dollar – Bullish for Exports
The Chinese yuan traded stronger than 6.10 per dollar for the first time in 20 years after the central bank raised its daily fixing rate to a near record high and the nation stepped up efforts to increase the Chinese currency’s global use reports China Daily this month.
“The yuan strengthened for three consecutive days and closed at a record high of 6.0995 against the US dollar in Shanghai on Wednesday amid the ongoing impasse over US debt talks, China Foreign Exchange Trade System prices showed.
It touched 6.0965 earlier, the strongest level since the government unified the official and market exchange rates at the end of 1993.”
The move supports increased US ag exports like milk powder, citrus and nuts from the Valley to China with products being cheaper to consumers there in their currency.
Milk Exports Increasing 25 Percent
The U.S. Dairy Export Council (USDEC) projects that by the
end of this year the value of U.S. dairy exports will total $6.5 billion, up more than 25 percent from 2012. Barring a dramatic change in market conditions, 2013 will mark a fourth consecutive record year for U.S. dairy exports
Pistachio Exports Bulge in September
California’s pistachio nut crop came to harvest this summer and the first shipment of the new crop year were recorded in September. The numbers are and the results are eye popping. The industry shipped 17.8 million tons in September compared to 11 million tons last year,13.7 million tons Sept 2012 and 6.1 million tons in Sept 2011. Of the 17.8 mil tons shipped this Sept – 12.7 mil tons went to the export market – double last year’s number.
Strawberries Still Number 1
Strawberries remain the favorite fruit of U.S. households according to a study by the California Strawberry Commission, which found increased recognition of the berry’s health benefits in the past three years the Packer reported.
Ninety-six percent of consumers are eating strawberries, and more than half of those are eating them once or more each week, the Watsonville, Calif.-based commission found. Women and younger adults are the heaviest users, according to a news release. Heavy users are 52% of eaters vs 35% in 2010.
OJ Consumption Way Down
US consumers are drinking less OJ particularly concentrate reports the Wall Street Journal recently.
“Frozen concentrated orange juice is melted and mixed with water before being consumed. It and juice mixed from concentrate before hitting supermarket shelves comprise 44% of total U.S. retail sales of orange juice. That is down from 53% 10 years ago” says a recent Wall Street Journal article. But “Not-from-concentrate orange juices, such as Coca-Cola’s Simply Orange or PepsiCo’s Tropicana Pure Premium, also have risen in popularity. Not-from-concentrate juice is perceived as healthier and fresher because it is pasteurized instead of frozen. The category comprises 56% of the domestic retail orange-juice market.”
Labor Issues In Olives
Olives in the San Joaquin Valley haven’t sized as well as expected because of a lack of rain, said Adin Hester, president of the Olive Growers Council of California in Visalia. This years crop picking is about finished in Northern Calif and will be complete in Central Valley by first of November.
Hester says California is now down to probably less than 25,000 acres of table olives from a high in the 1980’s of nearly 40,000.
Crop was reasonably good in Tulare County (60%) of California acreage and short in the north.
Prices were identical as past three years. ”Labor continues to be an issue. Always on the short side and some coyote contractors who bid harvest on cheap side, then put the gun to the grower’s head for more money. Frustration in grower community is rampant. Some growers, after harvest, brought in bulldozers and pushed their trees out. Getting tired of fighting labor, paying 50- 60 % of gross for labor when changing over to mechanically harvested nut crops that are doing well also reduces labor need and cost.”
Hester says California is now down to probably less than 25,000 acres of table olives from a high in the 1980’s of nearly 40,000.
World Processing Tomato Crop Is Low
Tomato curly top virus in the San Joaquin Valley has helped cut this year processing tomato crop here by 1 million metric tons or 8.4% lower than estimates made in June.The new estimate by World Processing Tomato Council is about 10.9 mm. A world crop if 32.8mm would be the smallest since 2007 but some carryover to relieve shortages they say.