The Source - October 24, 2018

As the California crop finishes up, the pressure turns back to Washington. Currently, we are having a difficult time getting small fruit this year as most varieties are sizing in the 113ct and larger. The other apple-producing states will fill the void but for how long is yet to be seen. The granny smith crop out of Washington is 20 to 20 percent smaller this year. So we are already feeling the effect of the lack of supplies. This market will be much higher than last year. All other varietal supplies are steady. Although getting your orders in advance will be a big advantage to getting the sizes you need. Quality is excellent form all growing regions with good sugar levels and decent pressure tests.

Alerts:
This years granny smith crop will be 20 to 25 percent smaller than last year. Also we are experiencing a difficult time getting small size fruit out of Washington. Particularly 125ct and smaller due to the fact that storage crop is finished. Combined with the hew crop bins are sizing heavier into the 113ct and larger.

Weather and production have remained unchanged from last week in Southern Baja (Constitucion). Cooler afternoons are expected next week as we slowly see the fall weather start. Weather in Northern Peru (Trujillo) has remained cool and should continue this way for the next seven days. Production is lower due to the weather. In Southern Peru (Ica) the weather has continued to warm up, production is on the rise, and should continue to increase over the next couple of weeks. Markets in the west are down due to better volume than demand. The Market on the east coast is higher due to airfreight being up, and cooler weather in the northern region in Peru.

Temps this week in Michoacán Mexico are in the upper 70s to lower 80s with rain and thunderstorms. We are not aware of any delay or setback as far as harvesting this week. There is plenty of fruit available on all sizes. Overall quality is good and with a steady to lower market. Fruit is cutting and eating well. Market price this week on fruit out of Mexico is in the low $20s to low $30s depending on size preference. We are seeing a stronger supply and volume on Chilean fruit with reports of fair quality fruit. Chilean fruit will be available on the market into November. Consistent seasonal rain is leading to a high percentage of fruit with lenticel spotting on the surface, standard for this time of year. Lenticel spotting on the surface does not affect the internal quality of the fruit. An avocado with lenticel will ripen as normal, and as the skin darkens, the lenticel will become less apparent. Lenticel is caused when fruit has taken up water before harvest.

Bell pepper supplies continue to be tight. Georgia and South Carolina are supplying most of the product for the east coast with a few small deals in New Jersey and Virginia hanging on and cleaning up fields. Supplies have remained tight in Georgia. Cool weather has moved in slowing growth and causing shippers to delay harvest. With the cold weather forecast for the next ten days and Florida two weeks from harvest, expect supplies to stay tight for the next two weeks.

Alerts:
Supply is still tight and will remain that way this way. Bell Pepper should be in peak availability but it is not.

Green Bell Peppers – Green bell pepper volume has stabilized. Some Grower/Shippers are now harvesting moderate to good volume out of the Coachella Valley. The quality of the peppers are good. Currently, supply meets demand. Price should remain steady through the remainder of the week in the teens for a choice grade pepper and low to mid 20’s on #1 pepper. Green bell peppers from Mexico are also available to load in McAllen, TX.

Red Bell Peppers – Moderate supply of red bells being harvested at this time in Fresno and coastal areas. California Growers are getting ready to make the transition to the Coachella Valley by the last week in October, moving into November. Red bells are also available to load out of San Diego, with hothouse peppers being grown in Baja California. Volume out of Baja will start to decrease as we move out of October and into November. Few hothouse red bells are crossing through Nogales From Jalisco, Mexico. The quality of the peppers in all districts remains good. Pricing has remained steady on #1 and choice grade peppers. Supply meets demand. Red peppers are currently shipping from San Diego, Fresno. Hothouse red bells from Mexico are also available to load in McAllen, TX and Nogales, AZ.

Yellow Bell Peppers – Hot house peppers are available to load in San Diego, from Baja California. Few Hothouse yellow bells are crossing through Nogales from Jalisco, Mexico. The market is higher along with pricing. Demand is steady along with supplies. The quality of the pepper remains good. Shipping districts are San Diego, Fresno. Hothouse yellow bells from Mexico are also available to load in McAllen, TX and Nogales, AZ.

All domestic production continues to wind down as Mexico was slowly ramping up. However, due to the extreme weather expected this week, we can expect to see further delays in production. Although most of the crops in Mexico are under hoops, the heavy rains, wind and cold weather are expected to have a major impact on the upcoming production of Mexican blackberries. A 20% decrease in harvest is expected over the next 7-10 days. There is a high potential for quality issues after these events due to the fruit being moist and cool. Berries tend to soak up the moisture and become inflamed and delicate to touch. The cool weather is not allowing fruit to dry off. Therefore residual effects may include bruising, soft berries, wet and leaky fruit.

Alerts:
Extreme weather in Mexico will delay harvest and have an impact on quality for the next 7-10 days.

Blueberry supplies are expected to improve by the weekend. Shippers are anticipating good arrivals of Peruvian and Argentinean fruit in Miami, Philly and Los Angeles. However, Mexican production is expected to get delayed due to weather. The expectation is to have enough fruit arrive from Peru and Argentina to make up for the decrease in production from Mexico. Depending on how much fruit arrives via air and boat, we may see some markets start to come off slightly. This will all be dependent on the extent of loss from the storm in Mexico. Shippers will be transferring fruit from the east coast to California to help fill the pipeline.

Alerts:
Extreme weather is expected to slow Mexican production for the next 7-10 days.

Consistent supplies, quality, and markets on raspberries. We have both Domestic and Mexican production currently. The domestic harvest will start to wind down, but Mexico will continue to improve. As we transition loading locations to Oxnard and Yuma, we do not foresee any disruption in supplies. McAllen is also an option for loading at this time. Market prices have been steady and will continue to be flat until we see our first peak in Mexico over the next 3-4 weeks.

Transitions:
Mexico production is slowly ramping up.

Supplies remain consistent but on the lighter side. Speaking with shippers, there doesn’t seem to be much concern of a push of product from the recent warmer weather. The varieties that are currently being harvested are designed to be grown in cooler weather. However, with the forecasts in all growing regions calling highs in the mid 80’s and lows in the high 50’s, the fruit is not being exposed to the proper amount of chill hours for the berries to firm up and grow. Rather, with the hot temps, it is forcing the plants to shut down and go into survival mode. Essentially, cutting off nutrients to the berries and producing small fruit with light color. As most shippers will choose to drop this fruit as they pick through the field, production yields are decreasing. As a result, market prices are remaining firm with occasional increases. Quality will continue to be a challenge if the weather does not cool down. We can expect to see some bruising and discoloration. All areas (Salinas, Watsonville, Santa Maria, and Oxnard) continue to be in production. Salinas / Watsonville are expected to last through November or until the first major rain. Santa Maria will continue to overlap with Oxnard for the next several weeks, and we will see a transition into primarily Oxnard and Mexico by mid-November. Florida is expected to start by Late November.

Transitions:
Mexico will get started in the next 2 weeks

The broccoli market continues to be tight as the colder nights have slowed the growing process in the Salinas Valley and Santa Maria areas. The crowns and bunch market are both higher this week. Quality is fair with slight purpling, some mechanical damage, and occasional yellow cast. Look for supplies to continue to remain tight going into next week.

The Brussels Sprouts market has come off in Salinas, Santa Cruz, and Watsonville areas. The temps have been relatively mild, which the Brussels Sprouts like, so fields are at budget if not slightly ahead of schedule. Quality has been affected by insect pressure particularly the Diamondback Moth and will be an ongoing battle this season. Look for Brussels Sprouts to be plentiful going into next week.

The carrot market remains steady. Quality is good, and supplies are adequate to meet current demand. We see no change in the carrot market until we switch to the southern growing regions around the end of November.

Cauliflower market has come off as more supply is in the pipeline. Overall, the quality has been good with minor bruising and some yellow cast with weights in the 25 to 28-pound level. Look for this market to continue to stay steady going into next week.

Supplies have tightened up both north and south. Small sizing is the tightest in availability and is commanding a higher price compared to large sizing. Demand has picked up for this commodity. Fewer suppliers are flexing compared to past weeks Availability looks to be moderate at best for the entire week. Good quality overall continues. The weights continue to average between 46-53 pounds.

Jalapeño – Supplies still available from Baja California, in San Diego and Los Angeles from Santa Maria. Moderate supplies of Jalapeno being harvested from both growing regions. The quality of the pepper is fair at best out of both regions. Nogales started with very light numbers this. The market is high and along with pricing, and should remain high for the next two week until Nogales starts to see better numbers. Currently, supplies meet demand. Jalapenos are also available to load in McAllen, TX.

Pasilla -Moderate supplies of Pasilla available from the Baja California and Santa Maria growing areas. The quality of the pasilla remains fair out of both regions. Pasilla market along with pricing remains steady. Nogales has started to receive light volume of pasilla this week from Sonora, Mexico. Good quality being seen in Pasilla from the Sonora growing region. Pasilla are also available to load in McAllen, TX.

Anaheim – Low to Moderate supplies of Anaheim available from Baja California and the Santa Maria growing areas. The quality of the peppers from Santa Maria and Baja California remains fair. Anaheim demand currently exceeds supply. The market is higher along with pricing and should remain high for the next two weeks until Nogales starts with better volume from the Sonora region. Anaheim peppers are also available to load in McAllen, TX.

Tomatillo – Supplies remain low on both husked and peeled tomatillos from Baja California and the Santa Maria growing region driving prices on both commodities up. The market and demand is high. Currently, tomatillo demand exceeds supplies on both peeled and husk tomatillo. Quality is Fair from tomatillo being harvested in Santa Maria. Quality issues being seen from product out of Baja due to the recent rains that hit the growing region last week. Tomatillos are also available to load in McAllen, TX.

Serrano – Supplies are still available from Baja, in San Diego and L.A. Low volume of serrano pepper available to load in Santa Maria. The quality of the pepper has been mostly fair to good from both growing areas. Nogales has started to receive serrano from Sonora, Mexico this week. Supplies meet demand. Pricing remains steady. Serrano peppers are also available to load in McAllen, TX.

The Cilantro market continues to remain steady as growers are coming in with slightly higher yields than previous weeks. The cilantro quality continues to be good. Look for the cilantro market to continue to stay steady going into next week.

We continue to see better supplies of lemons from district 3 / Yuma AZ & Coachella CA. Although the size profile is leading towards the 165 count and smaller. The market is still trying to settle to a common ground. Quality is really nice out of district 3, but out of the Oxnard growing region we are still experiencing brown spotting, mold, and some soft rot.

Heavy rain and thunderstorms in Veracruz growing region has set back and delayed the harvest this week. With constant rainfall, the out layer on the limes softens and can very easily bruise if harvested during these conditions. We can expect limited supplies this week on all sizes. More rain on the way this weekend so we might be limited next week as well. Current market price this week ranges from $7-$16 depending on size. The market remains steady with overall good quality.

We have finally started navel season. As the week's progress we will see supplies increase dramatically. So we are out of the woods as far as the limited supplies of small fruit. There will be plenty of 113ct and 138ct navels for the season. The market is trending lower as the navel supplies increase. There are still valencias available through the end of the month. Quality on the navel crop is typical for the start of the season. The fruit will have a high acidity level but decent sugar levels. It will also taste very tart, to begin with, but should adjust as the season continues.

Cool weather is causing tight cucumber supplies. The hurricane last week hurt supplies, and the cool temperatures that came behind it have slowed production. Georgia is still producing good supplies, but shippers are over the peak of the season. Florida started light volume a week ago, and more growers are beginning this week. Shorter days and cooler temperatures will be better for quality, creating much better color. Florida will pick up in volume for the weekend but expect the market to stay strong.

Alerts:
Cooler weather has slowed production.

Transitions:
Cucumbers are starting to transition to Florida.

Good supplies of cucumber available in San Diego from Baja California. Supplies should remain consistent through the end of October. Volume will start to decrease moving through November on every cucumber size. The quality of the fruit is good. More Nogales shippers have started receiving cucumber from the Hermosillo, Sonora growing district. Volume should continue at a steady pace from the Sonora, Mexico area as we end the month of October and increase as we move into November. Cucumber shipping areas include San Diego and Nogales. Light supplies of cucumbers are also available to load in McAllen, TX.

Eggplant demand has gotten better, this should be peak season, but because of hurricane Michael, some acreage was lost. Cooler weather is slowing harvest this week and demand is traditionally good in late October and early November. The market is steady after sliding over the past ten days, expect the market to stabilize and possibly rise over the rest of the week. Georgia and South Carolina are the primary suppliers this time of year with Florida still a good two weeks away from harvest. Some quality issues have shown up since the storm but expect quality to get better this weekend.

Alerts:
Cool weather and hurricane Michael causing tighter supply

Eggplant continues to come out of Fresno. Quality being reported fair to good. Growers are packing more choice grade fruit. Volume is decreasing rapidly due to colder weather in the area. Eggplant from Fresno is expected to finish within the next two weeks. Coachella has also started to harvest their Fall Crop where quality is being reported as good. Eggplant currently meets supply. Market and price remain steady.

We continue to see excellent quality and supplies of green grapes. There are several varieties currently being harvested. All sizes are available. Market prices have remained flat with plenty of promotional opportunities and spot buys available.

We continue to see excellent quality and supplies of red grapes. There are several varieties currently being harvested. All sizes are available. Market prices have remained flat with plenty of promotional opportunities and spot buys available.

The Green Onion market continues to remain extremely tight. The wet weather in Mexico and labor issues have caused product to be extremely snug. The recent heat followed with rain has been causing some occasional leaf minor and some mechanical damage. Growers are assessing the wet fields daily to see if they can even harvest. The green onion market will continue to stay strong going the next few weeks.

The kale market has picked up a little as supplies have come off a bit in the Salinas Valley. Quality continues to be good with good color, full bunches, and only an occasional yellow leaf being reported.

Huron production has picked up, and Salinas begins winding down as this month begins to finish. The quality in Huron is better as new crop always shines over a finishing crop, like in Salinas. Weights are average to low, ranging from 37- 41 pounds on palletized. The weights in Huron is a few pounds heavier. Shippers are attempting to stretch the Salinas deal until the first week in November, but multiple suppliers will struggle to finish up this month. This market is gaining strength and likely to continue throughout the week. Some quality issues that have been reported upon arrivals include misshapen heads, light weights as well as puffiness. Lettuce in Yuma will begin the first week to the second week in November, pending the shipper. Huron will continue for 2-3 weeks. Production will be light out of Santa Maria.

Transitions:
Production on lettuce is in Huron, Santa Maria and Salinas. Yuma begins the first to second week in November.

Romaine is very active, and supplies are expected to be light throughout this week in all the growing regions. Demand is up. Quality issues on romaine that have been reported have been mechanical fringe burn and twisting. The weights are averaging 32-35 pounds. Supplies have picked up on green and red leaf as demand is average at best. Butter supplies will be on the moderate all week. Romaine hearts will be moderate to light throughout this week. The quality on all leaf items has been fair, overall. Yuma is expected to begin harvesting the second week in November. Huron will not have production on any leaf items including romaine.

The Tender Leaf market continues to remain steady on spring mix, arugula, baby spinach, and cello spinach. The recent warmer weather has caused some quality issues such as minimal yellowing and bruising of the tender leaves. This spinach market will continue to stay steady into next week.

We continue to see cooler weather conditions in the San Joaquin Valley growing region. Very few shippers still harvesting in California and we will see volume continue to decrease as we wrap up the season. Overall quality is good, and the market is steady. Sugar/brix levels are holding at 12%. Market price on California fruit ranges from $$9-$10. Maricopa growing region continues to see better volume and overall quality this week. The forecast shows no rain this week with temps in the 80s-90s. We need Warmer weather in the desert for the fruit to come on quicker. Market price on fruit loading in the Maricopa area ranges from $10-$12. Larger size cantaloupes seem to be tighter than any other size (9s &jumbo 9s). Arizona will be our primary source for melons in about a week or 2.

We continue to see cooler weather conditions in the San Joaquin Valley growing region. Very few shippers still harvesting in California and we will see volume continue to decrease as we wrap up the season. Overall quality is good, and the market is steady. Sugar/brix levels are holding at 10%. Market price on California fruit ranges from $10-$12. Maricopa growing region continues to see better volume and overall quality this week. The forecast shows no rain this week with temps in the 80s-90s. We need Warmer weather in the desert for the fruit to come on quicker. Market price on fruit loading in the Maricopa area ranges from $10-$12. There are also some Mexican melons on the market loading out of Arizona with market price ranging from $5-$7.

Seedless watermelons are available to load in Nogales, from Sonora, Mexico. Watermelon is currently being harvested in the Hermosillo, Sonora growing area. Demand on watermelon has increased this week. Pricing is steady and should remain steady through the week in both carton and bins.

Markets are steady with light to moderate demand on all colors. Sizing continues to peak on Jumbo's and larger. Quality is very nice. Look for these conditions to continue through the balance of this month. Transportation is starting to tighten up and will only get worse as the holiday season is upon us.

California pear season will finish up by the end of the week with maybe a few pallets to load Monday. This will put pressure on the other growing regions to fill in with their supplies. The markets should remain steady at current rates. Washington still has plenty of supplies of Bartlett's, Anjou's, Bosc, and Crimsons as well. Quality is really nice with good sugar levels and pressure testing.

There has been a steady supply of pineapples coming from Costa Rica, Honduras, and Guatemala. We have supplies out of Delaware, Gulf Coast, Freeport, and Long Beach. We have both conventional and organic pineapples available. As well as crownless pineapples out of all ports of call. The market remains steady. Overall quality is really nice with good sugar levels and minimal overripe arrivals.

The potato market has firmed slightly as most supplies are coming out of storages. Wisconsin and Idaho should finish with the last of their fields by next week. Overall the crop is being reported as very nice with sizing peaking on 70 count. Wisconsin is the only area that the condition of their crop will need to be watched due to wet weather during their harvest. We could see shortages as we get into summer out of this growing area. Norkotah are the main variety being packed with hand full of Burbanks. This will continue into the end of January then Burbanks will start to be the main variety. Look for small cartons to tighten up as we enter the holiday season. Transportation will start to tighten up over the next couple of weeks.

Red, White and Gold potato markets continue to be steady shipping out of Washington and Idaho. All colors are peaking on A size. Quality is good with no issues reported upon arrivals. Wisconsin is close to finishing with their harvest except for the growing area of Muck. This area could be a could be a complete loss due to rain and the cold weather that has moved in. Condition and appearance will vary from lot to lot. Supplies will be good into the New Year with light supplies of Red B's. Golds out of Wisconsin are all in storages, but the appearance is going to sub-par this season due to the rains. North Dakota is still trying to finish harvest with some growers with 25% of their crop still in the ground. Supplies that have made into storage to this point look to be sound. Condition on the potato being harvested going forward will not be known until they have gone through the sweat. This will be something to keep an eye on as if they don't hold up we will see supplies tighten later in the season.

Wind from Hurricane Michael hurt squash, especially yellow squash. Many plants were tossed around and beat up causing fruit to scar and bruise. Cool weather has slowed production this week and that trend will continue through the weekend. More production is expected in Florida this weekend and next week, early quality reports are good. Expect supplies in Georgia to get tighter as the week goes on and supplies in central Florida to get slightly better.

Alerts:
Zucchini supplies steady, Yellow squash supplies tighter.

Transitions:
Squash is transitioning to Florida.

Zucchini and Yellow S/N – Moderate supply of Italian squash being harvested in Santa Maria. Quality of Italian squash being reported fair to good. Italian squash supply expected to finish up within two weeks out of this district. Italian and Yellow S/N are also crossing through Nogales where there is currently more #2 labels being packed on Yellow squash than Italian due to recent rains in previous weeks. Squash market has firmed up on #1 label. Squash supplies currently meet demand. Cooler weather in this growing district will slow down production this upcoming week. Grey squash is also available through Nogales. Squash supplies from Mexico are also available to load in McAllen, TX.

Nectarines are done for the season. Very few peaches are left with limited sizes available. We continue to have decent supplies of both Black and Red plums. However, we do expect to see black plums become more limited in size as we move forward over the next two weeks. Supplies of black plums will phase out as we approach mid-November and we will have red plums last through mid-December.

Alerts:
Nectarines are finished for the season. Peaches are very limited.

The market may have peaked last week with supply relief beginning to come out of Central Florida. The Ruskin/Palmetto crop has started harvesting this week helping to ease the recent rising market tone. However, yields are typically light at the beginning of the season and may remain light through the first half of November providing the landscape for double-digit tomato prices through Thanksgiving. Round tomatoes are steady and projected to slowly improve through the beginning of November. Roma tomatoes remain extremely limited in the east with nearly all demand remaining on California and Mexico until Florida comes into promotable volume in the second half of November. Grape and Cherry tomato volumes are increasing in central Florida helping to curb the recent rising markets stabilizing price this week. Quality is excellent, and supply is expected to continue improving through the rest of the month.

Tropical storm Sergio was not a significant wind event but a slow-moving storm that brought torrential rains over widespread areas over southern Baja and western Mexico. New crops are expected to start out of these regions this week. However, it is not clear how strong the yields will be considering the amount of moisture and heat in the area over the past several weeks. Grape tomatoes may be the item slower to recover with a bulk of grape tomato harvests coming out of Vizcaino, Baja where Sergio made landfall. Hurricane Willa made landfall over Sinaloa Mexico yesterday with winds near 120 miles per hour flooding some of the region. Willa has downgraded to a tropical storm and forecasted to bring more rain traveling from Mazatlan up through Laredo Texas, which may affect crossings at McAllen through the rest of the year. California is near the end of their summer crops and winding down for the season. The central valley continues to produce tomatoes while crossings from Mexico have been reduced from hurricane weather systems, Rosa and Sergio. Round tomato prices in California have begun to ease as Florida begins their winter season. However, supplies continue to contract as they near the end of the season. There is currently decent production of Roma tomatoes, but the demand is particularly heavy due to limited crossings from Mexico and those supplies are sold out for the week. Mexico has endured weeks of rain and currently assessing damage from Hurricane systems Rosa, Sergio, and now Willa, reducing crossings at the border. Both Baja and the east are in very short supply on Roma, grape and cherry tomatoes at this time and the market is expected to stay active on these items heading into the beginning of November until farming operations can recover.