The Source - August 7, 2019

Eastern Region:
New York- Ginger Golds are expected to start 8/13-8/16. ‘Early’ Reds (Polar, Jersey Macs) to start 8/15-8/20 with ‘Late’ Reds (Jonamac, McIntosh, and Gala) coming mid to late September.
Michigan- Golds expected to start 8/22 with Gala and McIntosh expected 9/10. We should see Red Delicious and Fuji late September and Jonagold the first or second week of October.

Western Region:
Washington-Stressful times in the world of apples with lean inventories and higher prices. Most shippers are struggling on Golden Delicious and the overall market availability is gapping next to NONE AVAILABLE. Ginger Golds should be available next week with a light inventory. Many shippers are reaching the end of their stored product (ie. Golden Del., Granny, Fuji, and Gala); the need to sub sizes, varieties, and increase the number of picks (2-3) is, for the most part, unavoidable.

Schools are re-opening in some parts of the country and we will continue to see smaller shippers ‘clean up’ on certain varieties—adding pressure to the large shippers who have year-round fruit. Pre-booked orders are increasing and so are FOB/Delivered prices. Some shippers are holding off on selling to other shippers in an effort to fill regular orders and increase market value.

Wildfire Galas have started, but the few shippers who have them do not have many. Of course, this will change in the coming weeks. Ginger Gold apples and early Honeycrisp to start the week of August 12 (light volume). SEND ORDERS EARLY. Flexibility on subbing sizes/grades/varieties is essential—especially on smaller, foodservice sizes (113ct, 125ct, and 138ct).

California
The new crop, CA Gala apple is now available and commands lesser money than its Washington counterpart. CA Fuji apples are expected mid-August and Granny Smith apples should start late August/early September.

Chilean Braeburn – 70ct XFCY (available)
Chilean Pink Lady – 70-90ct XFCY (available)
*High color—FOB L.A.

Alerts:
Washington Golden Delicious apples are extremely tight (not available) with light-volume Ginger Gold apples available next week.

Central Mexico (Guanajuato) production is better this week and will continue to increase for another 2 weeks. Production is still limited on the larger sizes and will continue throughout the remainder of the season. Southern Peru (Ica) still has low production due to colder temperatures in the region. Northern Peru (Trujillo) has a little warmer weather and better production than the south. The larger sizes are also limited in Peru due to the cold temperatures. Markets on both coasts are still active, especially on the larger sizes.

As we approach the tail end of summer, we are seeing the California crop taper off. As the month progresses, we will see less fruit in the pipeline. With Mexico's new crop on the market and Peruvian still available, domestic fruit will cover the demand on the west coast. Quality remains excellent as fruit cuts good and eats excellent.

Alerts:
As the month progresses, the industry will see a downward trend in volume.

The growing region on Michoacan, Mexico continues to get hit with rain. This does not affect the quality of the actual fruit itself but can delay the harvest at times. Rainfall is expected throughout the month. Pack outs on this new crop fruit are heavy on smaller and #1 grade fruit. The fruit will retain green skin color as it ripens. Color is not an indication of ripeness. Gently squeeze the fruit to determine the stage of the fruit.

Peru- The season will wrap up mid-August as arrivals will continue into early September.

Green bell pepper supply is getting much better, the bulk of the supply in the east is in New Jersey, Michigan, and Ohio. There some small supplies coming from the mountains of North Carolina and Tennessee. Pennsylvania and Connecticut have small supplies, most of the smaller deals ship within their region. New Jersey is over their peak but Michigan and Ohio are coming into their peak season in the next two weeks. Quality in most cases is good with product trending to bigger sizes. Availability will get better through this week and next as more growers start for the season in the mid-west.

•Green Bell Pepper- Moderate supplies of green bell pepper being harvested in Bakersfield and in Fresno, CA growing areas. Mostly choice grade continues to be packed. Very light supplies of large and extra-large retail grade bell pepper are being packed. Quality on green bell pepper from these areas has been good. Choice grade green bell pepper supply meets demand. Retail grade green bell pepper demand currently exceeds supply. Green bell pepper from Mexico is also available to load in San Diego, CA and McAllen, TX.

•Red Bell Pepper- Light supplies of red bell pepper being harvested in the Bakersfield and in the Fresno growing area. Mostly choice grade is currently being packed from these districts. Quality from Fresno and Bakersfield is mostly good with a few showing the after-effects from the heat a few weeks back. Market on red bell pepper is steady to strong. Light supplies of red bell pepper are also available to load in McAllen, TX.

•Yellow Bell Pepper- Light supplies of yellow bell pepper being harvested in the Bakersfield and Fresno growing area. Majority of yellow bell is being packed into choice grade. Steady supplies of choice grade yellow bells are expected to continue through the week. Market on yellow bell peppers is expected remain strong. Yellow bell pepper quality has been fair to good. Moderate supplies of yellow hot house bells are also available to load in McAllen, TX.

Blackberries are in light supplies as we rely almost entirely on the West Coast production to satiate demand. Some product is arriving from Guatemala in a small way to help fill orders. Quality has been good with some problems of leakers and breakdown being reported on arrival on some older fruit. The Market should begin to ease up as production begins to pick up slightly next week.

Blueberries are plentiful with several growing regions to choose from. Quality has been good and demand has been steady. Look for this market to remain easy as several districts compete for business.

Peak Seasons:
Blues are in peak season in several locations East and West

Raspberries are steady with light supplies coming out of Baja Mexico and Central California. Quality has been fair as some lots have been arriving looking aged along with having transfer damage.

Strawberries remain steady with quality expected to improve as we finally move away from the weather events of early June. Which caused bruising and limited shelf life. Plants in the field are showing much better potential for quality.

The broccoli market has leveled out as the recent warm weather has brought fields forward the last couple of weeks. Quality is fair with slight purpling, some mechanical damage and occasional yellow cast.

The brussels sprouts market continues to get stronger as fields are currently gapping from the recent warm weather. Internal Decay is also causing lower yields. Look for the Brussels sprouts market to continue to adjust going into next week.

Alerts:
Brussels Sprouts market continues to get stronger as fields are gapping and producing low yields due to internal decay.

The California carrot market is steady as she goes with optimum weather and increased school demand on the horizon. Mexican jumbo markets are slightly down as production increases and some business is lost to the new crop carrots coming out of Eastern Canada. Quality in all locations is good.

The recent gap we experienced has now started to close as fields are now current and supply is back to filling demand. The quality is good with minor bruising and yellow cast with weights in the 25 to 28-pound level. Look for the market to continue to adjust going into next week.

Many shippers are done packing cherries for the season. The few shippers remaining will finish this week.

Alerts:
Washington cherries are done for the season

•Jalapenos- Good supplies of Jalapeno available to load in Los Angeles from Mexico and California. Jalapeno is being harvested in Baja California where the quality is fair to good. Domestic jalapeno is also being harvested in Santa Maria, CA. Mostly medium to large size are available from both regions. Market on jalapeno has maintained in teens this week. Jalapenos from Mexico are also available to load in McAllen, Texas.

•Pasilla- Good supply of Pasilla peppers available to load in Los Angeles from Mexico. Pasilla is being harvested in Baja California. Quality on Pasilla from this region is mostly good. Size on the pepper is mostly medium to large. Market on Pasilla is higher/steady. Pasilla from Mexico also available to load in McAllen, Texas.

•Anaheim- Moderate supply of Anaheim available to load from Baja California and Santa Maria. Quality from Baja and Santa Maria is mostly good. The market for Anaheim is in the mid-teens and is expected to stay there through the week. Anaheim from Mexico also available to load in McAllen, Texas.

•Serrano – Moderate supplies of Serrano peppers available to load in Los Angeles, from Mexico. Supplies are expected to remain steady throughout the week. Supplies currently meet demand. Price on Serrano pepper is currently in the high teens and is expected to remain the same through the week. Serrano supplies also crossing through McAllen, Texas.

•Tomatillo – Husk tomatillos are available to load in Los Angeles, from Mexico. Quality of husk variety is good. Good supplies on husk tomatillos are expected to continue through the week. The tomatillo market has remained steady on both husked and peeled. Both husked and peeled tomatillos have remained steady in the teens. Both varieties of tomatillos also available to load in McAllen, TX

The cilantro market continues to increase as growers are currently gapping. The recent warm weather has brought fields forward and now shippers are not able to get the supplies they need. The cilantro quality is fair with an occasional yellow leaf. Look for the cilantro market to continue to adjust going into next week.

Alerts:
Cilantro is in a demand exceed situation. The recent weather has hurt the yields out of the fields.

California domestic supplies continue to remain tight on 140’s and smaller, this will continue for most of the summer. Market prices on small size fruit seem to continue to soften up, looking at mid $20’s to low $30’s on choice and fancy fruit. Offshore supply continues to improve weekly on inbounds on both coasts which have been helping offset domestic supplies. We’re hearing great feedback on the export quality. Please let us know if you have any interest.

Lime supplies will continue to be snug for the next two weeks until the new crop begins. The market is steadily increasing due to lower crossings and decreased availability. Markets have jumped to the high teens, low twenties on the 40lb. The 10lb market is in the high single digits to low teens. Expect markets to continue to rise, especially if importers continue to have issues with replacing existing supplies.

We’ll have plenty of Valencia supplies this week. Markets remain steady on both grades in the mid to low teens. With school demand picking up we may experience a slight jump in markets by mid-August. Import Navels continue to increase weekly on both coasts, please contact us for any interest import on Navels. On Specialty Citrus, the Bloods have about a week left, supplies on import Clementine Mandarins on both coasts are limited. They didn’t receive inbounds they expected, we should see better supplies in a week. Grapefruit supplies are looking plentiful through the summer, plenty of opportunities to push volume.

Cucumber supply is coming from every direction this time of year with many small shipping deals and local farmers outside every city. The main commercial cucumber growing regions are Michigan, Ohio, New York and Canada this time of year. Pricing has come down over the past few days as supply has gotten better. Quality is good in most places, there have been issues in older fields last week but with new production starting, farmers are dropping older fields. Supply will continue to get better as the week goes on with new fields become ready for harvest.

Peak Seasons:
cucumbers are in peak season.

The cucumber market has decreased this week and remains steady. West coast cucumbers are currently being harvested out of Baja California with good supplies being produced. All sizes and pack styles currently being packed. Supplies are currently meeting demand on both retail and foodservice quality. Quality from Baja is good. Moderate supplies of Mexican cucumbers continue to cross through McAllen. Cucumber quality from McAllen is good.

Eggplant supply is getting better with light supply starting in Ohio and Michigan. New Jersey and Pennsylvania continue to ship steady volume, most of which stay in the northeast. Demand this time of year has been weak with the dog days of summer upon us and many people taking the final vacations before school starts. Supply will continue to get better through the weekend and next week.

Transitions:
Eggplant are in transition to the mid-west.

Good supplies of eggplant are available to load in Los Angeles from the Bakersfield and Fresno, CA districts. Mostly choice grade supplies of eggplant are expected to be packed through the week. Light supplies fancy grade eggplant expected to be packed. Quality on domestic eggplant is currently fair on retail grade and good on choice grade and improving.

California green grapes continue to be in excellent supplies. The recent heatwaves have caused some amber color and soft berries, but that fruit is being separated and sold at a discounted price. Most shippers have moved past that rough patch and are into the new harvest. We expect cooler weather and good quality moving forward. All sizes are currently being packed. We have a few different green varieties available at this time, but Ivory is the leader. Market prices have slowly been dropping and have leveled off this week. We expect to have an excellent California season with plenty of promotional opportunities.

Alerts:
The recent heat wave caused some light amber color and softer berries, but these grapes are being separated. We expect good quality moving forward.

Domestic red grape supplies continue to be steady. We have Flame and Scarlet Royal varieties available currently. All sizes are being packed. Overall quality has been good with consistent size, good color, and high sugar. However, due to the heatwave that hit the central valley growing regions last week, we have seen some softer berries on the less expensive grapes this week. That being said, on good quality grapes, the market has leveled off and seems to be steady. With the production volumes expected moving forward, we do not foresee any disruptions in supply or spikes in market prices in the near future. There are volume and promotional opportunities available. We expect a solid California season as we approach fall.

Alerts:
High temps caused some softer berries, but product is being priced accordingly. Good quality grapes are plentiful.

The green onion supply continues to be plentiful with the recent nice weather in Mexico and Salinas. The cooler weather in April/May is causing occasional leaf minor. The market will continue to stay steady going into next week.

The kale market continues to remain steady as supplies continue to stay plentiful. Quality is fair with full bunches and an occasional yellow leaf being reported due to the recent heatwave.

The market has become stronger on romaine. The quality continues to be above average from most shippers. Multiple suppliers are reporting moderate to light supplies to be harvested for the entire week. Romaine hearts have remained steady but expect supplies to be tighter next week. Green and red leaf, as well as butter, are ample in availability to take care of all demand. The quality of green and red leaf has been reported to be good. Aside from occasional fringe burn, mildew, and insect damage, multiple reports show the defects are minimal and the overall quality is strong industry-wide. The weights on romaine are averaging 32-38 pounds and green and red leaf range from 22-26 pounds.

Tender Leaf supplies continue to be plentiful as the weather in the Salinas Valley continues to spur growth and produce better yields. Curly parsley, spinach, and arugula have reacted to the recent warm weather and supplies look to be in good shape going into next week. Quality is good with occasional yellowing and bruising of the tender leaves.

San Joaquin Valley continues to come up short on small fruit. Some growers breaking new fields while others are on their second or third passing on fields that have already been harvested. There is a good demand for fruit this week with a steady market. Quality has been good to excellent.

The San Joaquin Valley is producing good quality fruit internally and externally. There is good demand this week and a steady market. Small fruit (6ct/8ct) remains limited and that will be the trend for the next few weeks. Size curve has leaned towards large fruit (4ct/J5ct).

Watermelon is currently being harvested in Phoenix, Arizona. The seedless watermelon market is steady with steady demand. Watermelon quality out of Arizona is good.

Onion markets are lower as the Northwest has started up on supplies in Idaho/Oregon as well as Washington. California and New Mexico are winding down for the season and dropping prices to push out the remaining product and make way for the transition. Northwest has started up with a few suppliers and will continue to ramp up over the next few weeks with more shippers coming into the mix. Yellow onions have started in the Northwest with limited volume and leaning to jumbo size and smaller. Red onions are in excellent supply with limited volume on white onions. Quality is very good to start off the Northwest season. Expect markets to continue to decline over the next several weeks while California and New Mexico wind down.

Alerts:
Markets are dropping as Northwest starts up for the season while California and New Mexico wind down.

Transitions:
Northwest areas of Idaho/Oregon and Washington have started up and will increase in supply over the next several weeks.

Washington:
With Green Anjou pears being the only pear available in Washington and quality issues discovered on arrival, demand is shifting to new crop. California Bartlett pears have better quality and price. We should see the new crop, WA Bartlett pears the week of 8/19 or 8/26.

California:
The overall market is softening as more pears become available. Load volume on CALIFORNIA BARTLETT pears is currently available. CALIFORNIA BOSC pears will be available next week (pallet volume) with load volume expected the following week. ASIAN PEARS are starting up; 10ct-18ct available to load in the San Joaquin Valley.

Transitions:
CA Bartlett currently available. CA Bosc will be available next week, along with Asian pears.

Heading into the month of August pineapple supplies will continue to remain tight. The crownless pineapples, on all sizes, will be very limited on the out of the east coast. Subbing orders around will be limited if shippers are able to do so. Industry-wide both coast are expected to be in very tight situations until the first week of September. Most customers have been understanding of the situation and flexible with subbing sizes around to fulfill orders in full. Quality continues to be an issue. We’re seeing occasional browning on the interior of the fruit which is usually attributed to excess water absorption from when the pineapples were in the fields. Markets steadily increasing weekly due to limited supplies, we’ll continue to take it week to week.

Idaho potato markets are steady to slightly higher with limited volume, especially the larger size 40 count through 70 count. Limited volume of new crop Norkotahs has started up and will continue to increase as more suppliers come into the mix over the next several weeks. Markets will remain firm over the next several weeks as we make the transition. Washington and Colorado's markets are on the rise with limited volume and high demand. Kansas and Nebraska have started with Wisconsin russets expected to start in the next couple of weeks. Advanced orders are needed over the next several weeks to ensure coverage.

Alerts:
Markets will remain active over the next 4-5 weeks. Supplies will be limited; especially larger sizes. Advanced lead time on russet orders crucial during this time period.

Transitions:
New crop Idaho Norkotahs have started with limited volume. Kansas and Nebraska have started with light volume. Wisconsin will begin mid-August.

Color potatoes remain active as demand is high for both red and yellow potatoes. Stockton, CA continues to produce all three colors. Markets are steady but demand is high for B size and #2 reds as well as premium size yellow. Texas is winding down for the season and pushing to get through August with supplies of red and yellow. New crop in Washington is starting with some red and yellow with very good quality. Minnesota has started but struggling to get off the ground with limited supplies and active demand. Wisconsin is expected to start mid-to-late August with Idaho expected to kick in early September. As we move through August we expect a slow decline in markets as suppliers ramp up.

Alerts:
Color potato markets remain firm to slightly lower. B size, #2 reds and premium yellow are limited.

Transitions:
Washington and Minnesota red and yellow potatoes along with Delaware reds have started. Wisconsin starting mid-August.

Squash supplies are very good across the eastern half of the country. Like cucumbers, squash supplies are coming from all direction with many small local farms in peak season. Michigan, Ohio, New Jersey, New York, and Canada are shipping the bulk of product on the market this time of year but the mountains of North Carolina and Tennessee, Pennsylvania, and Virginia are also shipping squash. Quality has been good in most regions with an occasional scare on yellow squash.

Peak Seasons:
Squash is in peak season.

Both Italian and yellow straight-neck squash continue to be harvested in Santa Maria, Fresno and Baja California with good supplies on both but lighter volume from the Fresno growing region. The market on soft squash continues to remain steady. Quality from the California growing districts on both Italian and yellow s/n is mostly fair to good due to recent heat last week. Quality from Baja is mostly good. Good supplies are expected to continue on both Italian and Yellow S/N through the week. Both Italian and yellow s/n are available to load in McAllen, TX where markets are steady and quality on both varieties are good.

We have definitely seen an uptick in demand this week. This is industry-wide as schools have started. As discussed last week, we can expect to see smaller size fruit become increasingly limited as more commitments are secured for future school menus. Additionally, we will see yellow peaches start to become lighter in supplies over the next few weeks as a result of seasonal transitions. Overall, we expect to see good volumes of nectarines, white peaches, and plums for the next week. As demand picks up, we may see prices start to climb slightly, but most have remained steady thus far. Quality is still being reported as strong. We expect to have a good early fall season, then peaches and nectarines will begin to fade out by late September with plums expected to last through October.

Alerts:
Smaller size fruit will become limited as school demand continues to pick up.

The eastern market has strengthened this week and forecasted to improve during the second half of the month. Mature greens out of North Carolina are in a small gap from a heat-induced bloom drop 6 weeks ago. Virginia is in the last of their crop rotation coming back into volume the first week of September with new plantings. Alabama and Tennessee will remain in production until the first frost of the season. Michigan is expected to break ground as soon as next week.
Roma tomatoes are steady and feeling the pressure of an upward market as rounds contract. North Carolina and Tennessee have a steady supply with the brunt of demand western focused on imports.
Virginia grape tomato FOBs continue their slow downward trend amidst weather challenges. The heat has accelerated the crops helping to bring more fruit on the vine, but it has also presented its challenges with quality. Similarly, Cherry tomatoes are experiencing the effects of harsh weather. As usable fruit is harvested, the finished product is limited mostly because less acreage is devoted to the crop.

Californian is currently experiencing the effects of a heat-induced bloom drop that occurred during June. More heat the last weeks of July may also produce a shortage during the month of September. Triple-digit temperatures have produced quality issues and directly affecting the shelf life of tomatoes inhouse/in transit. Sizing has been trending large but as the heat increases farms will be challenged to pick fruit before it begins to color up and mature on the vine. Vine ripe tomato supply has improved with new farms harvesting in Baja. Eastern Mexico will have decent volume for summer out of Jalisco, San Luis Potosi, and Torreon.
Romas out of Baja are crossing steadily to help meet demand. California has consistent availability, but the quality is mixed. Heat in the valley is causing some scarring, sun scold, and advancing the condition of fruit in transit causing rapid maturity in color and firmness.
Overall, western grape tomato supply is still light in both CA and Mexico. Mainland Mexico is steadily harvesting while Baja continues to produce better quality as they move into new fields. Production has been moderate as a whole and will gradually decline as growers work through current plantings.