The Source - August 10, 2015

Weather Update

Slight cool down to seasonal averages expected out west early this week as a deep upper level low system slides down the west coast. The approaching front brings a deepening marine layer and drizzle to coastal regions as overnight temperatures look to remain above normal thru the week. Coastal temperatures remain in the 70s with 80s to mid 90s in the interior valleys. The warm humid overnight temperatures will continue to push crops ahead of schedule impacting yields, quality and shelf life of future harvests.
Excessive heat continues in the Southwestern deserts stretching into Baja and Northern Mexico with scattered showers possible each day. Slight cooling and coastal marine layer today into midweek due to a passing trough to the north. Excessive heat is also expected across the south from Texas and Oklahoma into the Florida panhandle.
The Southeast region will continue with scattered showers as a frontal system moves thru the northern half of Florida into North Carolina Tuesday into midweek. Temperatures look to remain in the upper 80 to mid 90s thru the week.

Freight Update

California trucks remain steady but look to tighten up toward the end of the week. Washington and Idaho trucks look to be steady for the week. The national average dropped .05 cents again this week and is currently 2.617 per gallon. A difference of 1.226 from this time last year. California prices dropped as well and are now 2.960 per gallon. Crude oil remains steady at 44.96 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples

California galas are steady to slightly lower and are still peaking on 100/113s with good color. 80 and larger Galas remain short.
Washington Red Delicious are steady to higher on most sizes and the market remains firm. Most shippers are still peaking on 88s and larger in the higher grades. Small red supplies remain short. Earligolds & Gingergolds are steady on most sizes and evenly sized from large to small. Granny-Smith are steady on all sizes but the market remains firm due to light supplies and strong demand. The fruit is still peaking on 72s and larger while 100s and smaller supplies are limited. Lower grade Grannys are also short. CA finished or close for the season. Washington is starting to pack new-crop Galas and they are heavier to the smaller fruit. The shippers will size and color pick the early fruit so expect more WX#1 and WX Premium 80/88/100/113's with light availability in the other sizes and grades.

- pa_admin

Transitions:
Michigan and New York will start packing Paula Reds next week.

Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Stockton, CA Steady Good
Asparagus

The market on this commodity is steady. Jumbo packs are still the lightest in availability and this size is commanding a premium price. Production out of Peru is moderate to light. Supplies are better on standard and large packs. Production out of Mexico has fallen off. This product can be loaded in Salinas or LA. This market has a good chance at getting stronger by the end of the week.

- pa_admin
Growing Region Market Quality
Caborca, Mexico Steady Good
Ica, Peru to Trujillo Steady Good
Avocado (California)

California harvest is declining and is expected to continue to decrease gently through August to season end. The Southern region is already wrapping up its harvest. Peak sizing is on 40s and 48s with very little smaller fruit. Very good demand is keeping supplies on all sizes tight. Quality and flavor are both excellent.

- pa_admin
Growing Region Market Quality
Oxnard/Ventura, CA Steady/Higher Excellent
Avocado (Mexican)

Mexico's Flora Loca crop harvest is going well, with good volume coming in on 40s and 48s with limited supplies on 60s and smaller. Limited volume on #2 fruit as quality is very good. Expect Flora Loca to have less maturity than the old crop with lower oil, brighter green color and will be slower to break. Ripe fruit could still be green in color as the skin isn't mature enough for it to darken. Color is not an indication of ripeness, pressure is.

- pa_admin
Growing Region Market Quality
Michoacan, Mexico Steady Good
Berries (Blackberries)

Availability has improved this week and we are seeing better volumes of fruit coming on. Some supply gaps are still affecting day to day availability as a few shippers are reporting being in between fields and subsequent harvests. Quality has been good overall. Peak season and volume are just around the corner and should hit by mid August.

- pa_admin

Peak Seasons:
Peak season and volume are just around the corner and should hit by mid August.

Growing Region Market Quality
Salinas, CA Steady Good
Watsonville, CA Steady Good
Santa Maria, CA Steady Good
Berries (Blueberries)

Overall volume has begun to decrease sharply. Larger packs such as 18oz, pints and bulk packs are all becoming very scarce to non-existent. Shippers will continue to pack into smaller clamshells as the volume continues to decrease. Many of the regional areas are finishing or are packing storage fruit from their middle and late season varieties. Some reports of disease and insect pressure coming out of the Pacific Northwest regions. Weather has also been a factor in decreasing volume. Rain followed by heat and humidity decreased available fruit. Labor has also been an issue as pickers try to beat the declining crop and move to regions with more work. Availability will become even more challenging as we move further into August. Demand is requiring both storage and fresh product to supply current orders. Some shippers are now reporting a major historic production gap may hit by mid-late August. They are expecting failure in service by late August. We will continue to monitor and update on this situation.

- pa_admin
Growing Region Market Quality
Mossyrock, WA Steady/Higher Good
Salem, OR Steady/Higher Good
Pitt Meadows, BC Steady/Higher Good
Grand Junction, MI Higher Good
Berries (Raspberries)

We have good availability and overall good quality in raspberries. This is an excellent time to promote fresh California raspberries as the current crop is in peak season!

- pa_admin

Peak Seasons:
This is an excellent time to promote fresh California raspberries as the current crop is in peak season!

Growing Region Market Quality
Salinas, CA Lower/Steady Good
Watsonville, CA Lower/Steady Good
Santa Maria, CA Lower/Steady Good
Oxnard, CA Lower/Steady Good
Berries (Strawberries)

Market is active with good demand and light availability. We have passed the peak of the spring/summer season and we're expecting the volume to now continually decrease in this area until season's end. Warm and humid weather continues, most notable are the warm overnight temperatures in the Salinas/Watsonville strawberry growing regions and quality continues to suffer. Bruised, soft and full-red to overripe berries are prevalent in all labels, industry wide. Fruit is very small and more susceptible to bruising occurring as it is harvested and packed or while in transit. Bruising will lead to early decay. Mildew has also been reported with the ongoing high humidity. Mold may occur if the berries are exposed to warm temperatures, so it is of utmost importance to maintain the cold chain and keep the fruit between 32-34* at all times. Strawberry shippers are quoting quality issues at loading and they're increasingly more particular about where they will ship their fruit. Expectations must be adjusted to the current quality available as shippers are putting the best available fruit into the fresh packs. Shelf life expectations must be adjusted at this time as fruit will not last as long as you are used to. Order for very quick turns. There are no other available loading locations or different growing regions to go to that will offer better quality at this time. Santa Maria's new fall crop is still several weeks away, possibly mid-September before we see good volume from that area.

- pa_admin
Growing Region Market Quality
Salinas Valley, CA Higher Fair
Watsonville, CA Higher Fair
Broccoli

This market is softer on the bunched product. Suppliers continue however to be light in availability on crowns. This pattern of production will likely continue throughout the week. The warm temperatures has not affected the quality of this commodity. The main production continues to be out of the Salinas Valley. The Southern California region will have moderate to light production all week. Production out of Mexico is moderate. Texas is in production as well.

- pa_admin
Growing Region Market Quality
McAllen, TX Lower Good
Oxnard/Santa Maria, CA Lower Good
Salinas Valley, CA Lower Good
Carrots

Bakersfield crop is in full summertime production. Size in the fields is dropping some and the percentage of Jumbo size carrots is falling off a little. With good demand for Jumbo size and this fall off in size, look for the market to firm up. Quality is good.

- pa_admin
Growing Region Market Quality
Bakersfield/Santa Maria, CA Steady/Higher Excellent
Cauliflower

This market has remained unchanged. Good supplies exists with most suppliers, and offers are being listened to. This is a good time to promote this commodity. Demand is expected to be moderate to light through Wednesday at a minimum. There are good offers on nine and twelve count sizing. The quality overall is good with this commodity. The Santa Maria region as well as Salinas has good production.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Celery

This market is firm. Supplies out of the Michigan region is moderate at best. Santa Maria continues to have production, with the best availability coming in small sizes, thirty six count in particular. The Salinas Valley has moderate to light supplies to start the week. The large sizing, twenty four counts specifically are highest in demand. Expect good quality from all the regions.

- pa_admin
Growing Region Market Quality
Michigan Steady Good
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Cilantro

This market is still very active. Demand exceeds supply. Contracts have been escalated. The Baja region of Mexico is only able to produce so much product. California production is light. Demand will exceed supplies all week. Some seeder has been seen in both regions so please be aware. The shortage of product will continue for two weeks minimum. As shippers harvest ahead of schedule to meet demand, the sizing of bunches may be smaller than the normal size bunching.

- pa_admin
Growing Region Market Quality
Baja, MX Higher Fair
Oxnard/Santa Maria, CA Higher Fair
Salinas, CA Higher Fair
Citrus (Lemons) Alert

Crop is peaking on 140s and smaller. Demand remains very high and is exceeding supplies on 140s and larger and on all grades of fruit. Very good demand and drought conditions in growing areas means less production of fruit and no size growth. These are the major factors for the demand exceeds supply conditions on California Fruit. Chilean imports have arrived and are helping out supplies and easing the market prices.

- pa_admin

Alerts:
Demand exceeds supply. Summertime demand and lighter production caused by the California drought. Expect lighter supplies throughout the summer and into the fall.

Growing Region Market Quality
Oxnard/Ventura, CA Lower/Steady Good
Citrus (Limes)

The lime market has firmed up on all sizes. The old crop is finishing up and new crop volume is slowly increasing. Overall supplies are going to be in light through the month of August. The overall quality is good on the new crop that is being harvested. The old crop limes are average in quality due to it being hot in the growing region. Stylar breakdown is the main defect some lots may have in the old crop. Large sizes are less plentiful and the market on them is in an upward trend.

- pa_admin
Growing Region Market Quality
Veracruz, Mexico Steady/Higher Good
Citrus (Oranges) Alert

California Valencia oranges are going with good volume on 72s, 113s. Demand is strong on 88s/113s/138s with the school push started. We are now see demand exceed supplies on 88s and smaller size fruit. Some shippers are slowing the pace of packing fruit to begin stretching out this year's lighter volume Valencia crop. Quality on Valencias is very good.

- pa_admin

Alerts:
We are now see demand exceed supplies on 88s and smaller size fruit as the school demand is kicking in for fruit.

Growing Region Market Quality
Merced to Bakersfield, CA Steady/Higher Excellent
Riverside, CA Steady/Higher Excellent
Grapes (Green)

The green seedless market has firmed up with lighter supplies and good demand. Supplies of the smaller medium large fruit, especially, have dropped. This has created a littler pressure on the large code fruit as the price gap between sizes has narrowed. Quality is generally reported as excellent.

- pa_admin
Growing Region Market Quality
Arvin, CA Steady/Higher Good
Delano, CA Steady Excellent
Fresno, CA Steady/Higher Excellent
Grapes (Red)

The red seedless market has firmed up on all sizes and varieties. We expect to see this market firm for the coming week. Quality is generally excellent as we move out of the Flame Seedless and into the Crimson's and Scarlet's.

- pa_admin
Growing Region Market Quality
Arvin, CA Steady/Higher Excellent
Delano, CA Steady/Higher Excellent
Fresno, CA Steady/Higher Excellent
Green Onions

This market has remained unchanged like in weeks past. Demand is off. Good weather in the Mexico growing regions has allowed production to be plentiful with this commodity. Good supplies are expected all week. Supplies will continue to exceed demand. All sizing is available, with the heavier availability coming in small and medium packs.

- pa_admin
Growing Region Market Quality
Mexicali, Baja Steady Good
Salinas Valley, CA Steady Good
Kale

This market remains flat. There is plenty of product available in all the growing regions. The Baja region as well as domestic product has strong quality and pricing is very competitive. Shippers are listening to offers. Expect strong quality and availability throughout this week.

- pa_admin
Growing Region Market Quality
Baja, MX Steady Good
Oxnard/Santa Maria, CA Steady Good
Salinas, CA Steady Good
Lettuce Iceberg

This market is strong to begin the week. A few suppliers have walked in sold out for the day. Yields continue to suffer due to past and current high temperatures in all the growing regions. Growers continue to evaluate damages. Internal burn is the big problem. Puffiness and insect damage are also issues with this commodity. Night time temperatures continue to be in the mid to high 50s. The weights on palletized are averaging 40-46 pounds. Salinas and Santa Maria are the two main growing areas at this time. Production in Santa Maria is moderate.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Higher Fair
Salinas Valley, CA Higher Fair
Lettuce Leaf

The romaine market is up. Suppliers are seeing lower yields due to the warm temperatures in all the growing areas. Fringe burn, insects, dehydration and internal burn will be seen upon arrival. The weights on romaine cartons continue to average 31-36 pounds. Chopped romaine as well as romaine hearts continues to show pinking upon arrival. Green and red leaf are stronger as well. Fringe burn, mildew damage and insect pressure are defects associated with red and green leaf as well.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Fair
Salinas Valley, CA Steady Fair
Melon (Cantaloupe)

The West Side is producing adequate volumes of lope 9ct and 12ct right now. The main sizes are also 9ct and 12ct. The size curve is peaking on larger sizes and smaller sizes are in a low supply situation. The West Side has very good quality and acceptable sugar contents. The current market is slightly higher on 9ct and 12ct but steady on 15ct and 18ct. We are currently experiencing decent demand for cantaloupes.

- pa_admin
Growing Region Market Quality
Firebaugh, CA Steady/Higher Excellent
Mendota, CA Steady/Higher Excellent
Melon (Honeydew)

The peak size is currently 5ct. Honeydew 8ct continue to be very scarce with 6ct being snug also. The quality and sugar contents are really good for dews right now and this trend looks to continue. The market has moved upwards a little on dews. We continue to experience good demand on honeydews right now which is causing their price to move upwards given the shorter supplies we have right now.

- pa_admin
Growing Region Market Quality
Firebaugh, CA Steady/Higher Excellent
Mendota, CA Steady/Higher Excellent
Onions

Onions are being shipped out of California, New Mexico, Washington, Idaho and Colorado. Markets are steady on Red and white onions out of all areas. The yellow onion market is starting to weaken slightly due to more supplies coming on line. Quality is good out of all areas. Yellow Super colossal and Colossal onions are starting to tighten up in New Mexico as this season is slowly winding down. California and New Mexico will finish for the season in about two weeks. Weather has been good out of all growing areas. Demand is moderate.

- pa_admin
Growing Region Market Quality
Huron/Metler, CA Steady Excellent
Las Cruces, NM Steady Excellent
Ontario, OR to Nampa, ID Steady Excellent
Quincy/Hermiston, WA Steady Excellent
Pears

California Bartlett pears are still peaking on US #1 80-100s. The market is steady on all sizes along with demand but there is some price flexibility on certain sizes. Stark Crimson pears are peaking on 35-55 count half cartons and they are also steady. California Bosc pears are peaking on smaller fruit. The quality has been good for all varieties.
Washington Bartlett pears are peaking on 90/100/110's and the market mostly steady to slightly lower. 80-count and larger are steady but supplies are limited while the availability of the 90s and smaller is much better.
Washington D'anjou pears are still available but the supplies are light and they are cleaning up.
Chilean pears are available in certain sizes but are almost finished.

- pa_admin
Growing Region Market Quality
Stockton, CA Steady Good
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Potatoes

Idaho storage crop will finish up by the end of this week. New Crop Norkotah supplies are building with good quality and sizing being reported. Market is steady. Supplies of # 2 potatoes are limited as the Norkotah crop mainly produces #1's. The #2's market will be strong for the next two months.
Washington new crop Norkatah are peaking on 70 count and smaller with limited supplies of 40-50 count. The size should slowly improve as each week moves on. Quality is looking very good. Market is steady on larger cartons with some deals being made on 90 count and smaller. Demand is Moderate.
Colorado/Wisconsin are slowing finishing up with their storage crop with the sizing peaking on 90 count and smaller. A few growers have started new crop which is also peaking on 90 count and smaller. The sizing should slowing improve as each week moves on. Market are steady but firm. Quality is being reported as good.

- pa_admin
Growing Region Market Quality
Hamer/Rupert, ID Steady Excellent
Quincy/Hermiston, WA Steady Excellent
Eastern Colorado Steady/Higher Good
Plover/Bancroft, WI Steady Good
Potatoes (colored)

Bakersfield, California has finished packing reds and golds but they have whites. The market is steady on all sizes and they are peaking on A-size. The quality has been good.
Stockton, California continues to pack reds, whites and golds. All are peaking A-size and the markets are mostly steady. Premium and baker golds are limited due to smaller potatoes. The quality has been good on all colors.
Western/Central Idaho reds and golds are steady and both are peaking on A-size.
Wisconsin reds and golds are peaking on A size but they have good volume of B-size reds also. The markets for both colors are steady but there is volume-flex on large Red A and B orders. There are very few if any C-size golds in Wisconsin. The quality is good.
Minnesota reds and golds are steady to slightly lower and are also peaking on A-size. The quality has been good. Gold supplies are relatively light but are improving.

- pa_admin
Growing Region Market Quality
Bakersfield, CA Steady Good
Stockton, CA Steady Good
Rupert to Rexburg, ID Steady Good
Plover, WI Steady Good
Big Lake Minnesota Lower/Steady Good
Stone Fruit

Supplies of peaches and nectarines have tightened up with very little small fruit available. Nectarines in particular are tightening up as many growers are now only 2-3 weeks away from finishing for the season. Large size tray packs still make up the majority of fruit being harvested. Quality overall is reported as very good. Plums, both black and red, have tightened up on supplies. The market is firming up with good demand on all sizes. Quality on plums is being reported as generally good.

- pa_admin
Growing Region Market Quality
Madera south to Arvin, CA Steady/Higher Good
Tomatoes (Eastern)

Rounds - The Market remains strong in the East. Most volume coming out of Virginia and Tennessee but not enough to ease the market. Quality is good. Some suppliers going west for product which could bring some relief in the east on rounds. Look for the rest of the week to remain tight.

Roma - The market on Romas is tightening up a bit. Still available volume out of Tennessee. This should allow pricing to hold steady for the week. Quality is fair/good. Some suppliers getting volume out of Texas if you can find the right deal.

Cherry/Grape - Cherry market remains tight with limited supplies and quality issues coming out of Virginia. High prices will continue for another two weeks. Quality is poor/fair. Grape market will remain steady. Availability in Virginia/Maryland although still may see a slight price increase toward the end of the week. Quality in the north east is good, otherwise Fair.

- pa_admin
Growing Region Market Quality
Exmore, VA Steady Good
Benton Harbor/Byron Center, MI Steady Fair
Charleston, SC Steady Good
Tomatoes (Western)

Rounds - The market in the west is still tight with little volume coming out of California. Small growers are helping as they continue to come on. Together with Mexico's volume the market should remain steady. Quality is good.

Romas - Market will remain steady. Good supplies coming out of Mexico and some from California. Some east coast suppliers looking to buy but market will stay steady through the week. Quality is good.

Cherry/Grapes - Cherry market continues to be strong. Elevated pricing should cause demand to fall. This should allow for availability but with a high price. Grape market continues to be on the rise due to poor quality/gapping. Mexico is nearing a transition. Quality will remain an issue for another couple of weeks.

- pa_admin
Growing Region Market Quality
Northern Baja California Norte, Mexico Steady Good
Southern San Joaquin Valley, CA Steady Good
Coachella Valley, CA Steady Good

Things You Should Know

Citrus (Lemons)
Demand exceeds supply. Summertime demand and lighter production caused by the California drought. Expect lighter supplies throughout the summer and into the fall.

Citrus (Oranges)
We are now see demand exceed supplies on 88s and smaller size fruit as the school demand is kicking in for fruit.

Transitions and Temperatures

Apples
Michigan and New York will start packing Paula Reds next week.

A Peak at Peak Seasons

Berries (Raspberries)
This is an excellent time to promote fresh California raspberries as the current crop is in peak season!

Berries (Blackberries)
Peak season and volume are just around the corner and should hit by mid August.

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