The Source - April 25, 2018

Washington still has a good amount of most varieties of Apples available. Honeycrisp, Braeburn, and Jonagold will be the first to finish up for the season with these varieties down to 20% or less. Red Delicious movement has been great due to export causing the lower end prices to firm up as availability get tighter. Sizing is peaking on 88 -113s. Gold Delicious movement is steady with sizing peaking on Prem/Waxf #1 80-100s. Pricing is steady on these sizes. 125 count Golds and smaller have seen a slight increase in pricing due to limited availability. Regional shippers (Michigan, Pennsylvania, and New York) are winding down for the season which is putting more presser on retail bags that take 125 and smaller. Granny Smith movement is strong with most pricing steady except for the 100 count and smaller which have a soft market due to large volumes left in storages. The Gala market continues to be good. Look for this market increase on the smaller sizes in coming weeks. Fiji demand and markets are steady with sizing peaking on 88-100 counts. Quality on all flavors has been good with few reports of issues.

Peak Seasons:
Most varieties of Apples out of Washington are in peak season.

Ciudad Obregon, Mexico has slowed down on crossings due to heat in the fields. Asparagus from this region is showing heavy seeding, and spreading due to the heat. Gonzales, CA still has good volume with their weather pattern staying the same. Washington State has started with better volume with cool nights and warm days in the growing area. Volume in both Ica, and Trujillo, Peru are about the same as last week. There is less air asparagus with more growers starting to ship by sea to combat the high airfreight due to Mother's Day rush. Markets are up this week with less volume from Mexico, higher airfreight from Peru, and Washington State just starting up.

California harvested good volume last week and will also this week in preparation for Cinco de Mayo pulls. Volumes are expected to back off some as we get into May. Export demand is strong. The crop is currently peaking on 48s & 60s. Fruit is ripening well and has good flavor.

Mexico's harvest volumes are expected to start to decline some this week and continue to taper off in the coming weeks. They still are reporting good supplies, but we are in the last couple of months of their main crop. Demand is strong, and we are still seeing tighter supply situation on 48s & 60s #1 fruit.

There are good supplies of green pepper for now. The crop is transitioning to central Florida, but there is not a lot of acreage in that region. Quality is good in all regions, but we are starting to see less jumbo and extra large in south Florida which signals, the end of their season is coming. Growers are reporting they are working on the tail end of their last plantings. The pepper market has been very reasonable, but we look for a quick turn around when south Florida finishes. Georgia's start date has been delayed by cool weather. It is looking like the 3rd or 4th week of May.

Alerts:
Good supplies for now.

Transitions:
Supplies are starting to transition to the central part of Florida.

Peak Seasons:
Green Bell Pepper is in peak season.

No change in blackberries this week, availability continues to be very limited. Mexico is now past peak production and will continue to trend down moving forward. Domestic harvest is still 2-3 weeks away. We do not expect to see any major disruption in coverage through mid-May, but we may see some more severe shortages late may as we wait for the transition between Mexico and California to take place. Depending on the weather, shippers are expecting Salinas, Watsonville and Santa Maria areas to ramp up mid to late May. Supplies are not expected to fully rebound until June. Market prices will be higher.

Alerts:
Supplies are very limited and market prices are higher. Shortages are expected until domestic harvest increases.

Transitions:
Domestic harvest is expected to increase over the next 2-4 weeks.

Domestic blueberry supplies continue to improve. California is slowly ramping up with more harvest expected week over week as we move into the summer season. Florida and Georgia have been consistent on production, but rain in Florida may slow down harvest this week. Quality is being reported as good in all areas. Demand seems to be a little lighter, as we wait for markets to adjust down with the anticipation of more volume. Mexico production is trending down. Quality is fair, and prices are lower. We expect to see domestic harvest continue to improve with promotable volumes in California over the next 2-4 weeks.

Transitions:
California will ramp up with promotable volume over the next 2-4 weeks.

No changes on raspberry supplies this week. Availability is becoming increasingly limited. Domestic harvest has yet to ramp up, leaving Mexico as the primary source of production, and they have passed their peak. Demand continues to exceed supply. Market prices are higher. This shortage will continue until Santa Maria, Salinas and Watsonville areas start up. We expect shippers to begin to scratch the surface of California harvest this weekend and gradually increase moving forward. We expect supplies to continue to be short for another two weeks.

Alerts:
Supplies remain very limited and market prices are higher.

Transitions:
Domestic harvest is expected to start slowly over the next week and gradually improve over the next 2-4 weeks.

Supplies are improving. The weather looks to be ideal for the next week in all growing regions. Oxnard will be trending down as we move forward, but Santa Maria, Salinas and Watsonville will be increasing. The transition between growing regions has been slower this year due to late season cold weather, but we expect things to change rapidly over the next two weeks. More shippers are ramping up harvest in Salinas / Watsonville this week, and we will see good availability by next week. Santa Maria harvest will continue to increase, and the quality is expected to be good. Market prices have been up and down over the last two weeks, but will level out this week and we will see aggressive volume opportunities by the weekend. All shippers expect to have good availability and quality as we approach the Mother's Day pull.

Transitions:
Oxnard will trend down as Santa Maria, Salinas, and Watsonville areas will be ramping up production.

Broccoli supplies are abundant from all growing regions. The markets are also competitive with volume deals to be negotiated. The overall quality is really nice with minimal yellowing, decent crown size, and little dehydration. We will continue to see this trend into next week.

The brussel sprout market is competitive from all suppliers. Supplies are plentiful as well. The quality is really nice with a range of all sizes, vibrant green color, and no decay or spotting. This will trend into next week.

California carrot supplies are good on value-added packs and medium-size carrot. We are now seeing a better percentage of jumbo sizes coming out of the fields.

We have plenty of supplies of cauliflower from Salinas and Santa Maria. The market is competitive and will continue into next week. The quality has been nice with little bruising/brown spotting, weights in the 26 to 29-pound range, and a full range of sizes.

This market remains steady like the previous week. All sizing is available, with the best quantities coming in large sizing, twenty-four counts in particular. All reports indicate the overall quality continues to be strong. This commodity is an excellent commodity to promote. Supplies and pricing will be steady. Some shippers are flexing.

Cilantro supplies from all growing regions are plentiful. The market although varies from shipper to shipper. The quality has been really nice with occasional arrivals with iceless cilantro showing dehydration. But we have seen minimal yellowing or brown discoloration of the leaves.

Good availability in both the Central Valley and the Ventura/Oxnard areas. Central Valley is peaking on 140s and larger sizes; heavier to fancy grade. Ventura/Oxnard is peaking 140s/165s/200s: heavy to the choice grade.

Limes supplies will continue to improve gradually as we move forward. Weather forecasts call for temps in the mid 80's for the week, with a chance of light rain early next week. No major disruptions in production or availability are expected. We are seeing heavier volumes on smaller sizes (200-250ct) and less volume on the larger sizes (110-175ct). Market prices are slowly adjusting down, but no drastic swings are expected. We can expect to see supplies continue to improve and markets level out for the next 2-4 weeks.

We are now into the late varieties of navels and eating quality is some of the best of the season. Size structure is mostly large sizes 72s/56s/48s and very few of the small size fruit 113s/138s. These small sizes are extremely tight and will remain so for the balance on the Navel season. California Valencia harvest has begun in a limited way by some packers for export. Growers are size picking for 72s and larger sizes that export uses, but we are seeing some fall out of smaller sizes for domestic shipments. Volume for domestic shipments still looks to be 2 to 3 weeks away.

Alerts:
Demand exceeds supplies of small size fruit 113s/138s.

Cucumber supplies are steady; demand has been slow. Growers are reporting pack outs with a high percentage of selects, leaving a wide range in pricing. Supplies are coming from south Florida with light volume starting in the central part of the state. Quality is good in most places. Cool, windy weather has created a high percentage of select with some scaring issues.

Transitions:
Cucumbers are transitioning to central Florida.

New fields of eggplant are starting in central Florida, and South Florida is still shipping some good quality. Eggplant supplies are steady and should continue that way with more volume coming next week in Plant City. The market is steady with reasonable pricing and light demand, as we move into warmer weather demand will pick up.

Alerts:
Good supplies. Good quality.

Transitions:
Eggplant is transitioning to central Florida.

Peak Seasons:
Eggplant is coming into peak season.

We are at the tail end of Chilean green grapes with Mexico starting in the next two weeks. Supply is low, but there is not much demand, so shippers are trying to make what they have left, last until Mexico can fill orders. The quality is generally good, but everything is expensive at the moment, with premium green grapes going in the $50.00 range. Make sure to check all green grapes upon arrival, especially at the stems for any decay.

The red grape market is steady and Chilean product will last until the end of May. Mexico will be starting in the next few weeks, but most shippers will continue to sell Chilean fruit to fill orders. Quality is reported as consistent and good, with plenty of sizes and varieties available.

The supplies out of Mexico are steady with plenty of crossings through Mexico. The market is aggressive as we have either iced or iceless to choose from. The quality is really nice with white tips and little to no brown or yellow discoloration of the tops.

There are plenty of supplies of kale from all growing regions. The market is stable as well. The quality has been excellent with dark green color, full bunches, and minimal yellowing.

Production in Huron is finished. Salinas has moderate to good production, depending on the supplier. There is a gap in the marketplace. Production will continue to exist out of Santa Maria, and Salinas. Demand is up. The overall quality is good with some occasional puffiness, insect damage, and ribbing. Weights are to averaging e 42-45 pounds. This market is expected to gain in strength towards the end of the week.

Romaine has softened in the marketplace, unlike green and red leaf which is stronger. Production is finished in Huron on all leaf items. Romaine hearts have softened as well and will likely be off of escalated pricing in the next few days. Expect light availability on green and red leaf for the entire week. Production in Santa Maria is light as well. Slight mechanical and a little twisting is all to talk about regarding defects.

We are now fully transitioned to Salinas and supplies are plentiful on both organic and conventional spring mix, baby spinach, and arugulas. Quality is also very nice with minimal bruising, excessive wetness, or that slimy decay we see from time to time. The market is steady from all suppliers.

We continue to see better supplies from the import fruit from Honduras and Guatemala. Also, we have started cantaloupes out of Mexico. This will keep the market competitive. The quality is really nice with decent sugar / brix levels, no soft spots, or decay.

We have seen limited supplies of offshore honeydews coming into the U.S. That has kept the market at higher levels. This looks to be the theme for the duration of the offshore season. Mexico has begun harvesting their acreage and will help with supplies. Quality from all regions is really nice with good sugar levels and minimal spotting.

The transition from storage crop to new crop shipping out of Southern California and Texas is here. Quality is being reported good. Sizing is good on both yellow and reds out of California with Texas peaking on Jumbos and smaller. Idaho will finish for the season with flying colors by next week. They had a good run with quality and pricing most of their storage season. Washington still has a handful of shippers that will ship into the middle of May. Quality is good peaking on jumbo in both yellow and reds.

Transitions:
Supplies have shifted to California and South Texas.

Washington - D'anjou pears are peaking on 90's and larger in the fancy grades then 80/90 in the us#1 grades. Shippers are having to repack all pears before shipping due to quality issues. Small pears will continue to be extremely tight with price increase coming on 120s and smaller. Finish date will be mid to end of July. Red Anjous are down to the last 20% left in storages. Small sizes are very limited. Supplies will finish around the middle to end of May. Bosc pears are done for the season. Red pears supplies have limited availability and are only in a few hands with a firm market. Supplies should last into the start of May. Quality has been good on all flavors.

Offshore - Supplies of Bosc pears are limited on both coasts. Supplies will increase in the next two weeks this should bring pricing down slightly. Sizing is peaking on 90/100s. Quality is very nice.

Pineapple volume coming from the tropics remains good and looks to be so through May. Size continues to peak on 5s/6s.

Storage supplies are still being packed out of Idaho, Washington, Colorado, and Wisconsin. Markets on most size cartons have firmed slightly over last week with retail bags steady. This trend should continue into May. Quality is good with very few quality issues being reported upon arrival.

Western/Eastern Washington - Reds are done for the season with a few golds potatoes still available. Markets are steady. Quality is still being reported as good. Most shippers will finish packing next week.

Bakersfield, California - Reds, golds, and white are steady on all sizes and are still peaking on A's. Quality is good.

Idaho - Supplies are steady on reds and gold, Both colors are peaking on A-size. Quality is being reported as good with and occasional issue being reported. Supplies will go into the middle of May.

Wisconsin/Colorado - Supplies are winding down for the season with most shippers bring product from South Florida and North Dakota to ship with the russets. The market is steady. Quality is still being reported as good.

North Dakota - Market steady on both reds and golds, Quality is good. Supplies will go into June maybe longer.

South Florida - Market steady with good supplies of both red and golds. Gold Premium potatoes are limited Quality is very nice.

Squash supplies are very tight, temperatures across the southeast have been below normal, and it's holding squash production back. Georgia is behind schedule by two weeks and is just starting light production now. Homestead is still shipping, but production is down with the season nearing the end. Quality has been fair in Florida with rain and wind over the weekend a few issues have popped up, but quality should rebound by this weekend with sunny skies in the forecast. Georgia has very good quality on real light supplies.

Alerts:
Very tight supplies.

Transitions:
Squash is transitioning to Georgia.

The California stone fruit season has just begun with light supplies. Yellow nectarines and white peaches are the first to start, available in tray packs and very small volume filled cases (72-96ct FF). Over the next two weeks, more varieties and sizes will become available. There are also still some Chilean black plums available for another two weeks, out of both the Philly and LA area.

Eastern tomatoes remain abundant and priced aggressively to keep product moving. FOBs from the Homestead, Immokalee, and Naples districts have dipped dollars below the mandated minimums of their Mexico grown counterparts with more farms breaking ground this week in Palmetto/Ruskin further extending the supply exceeds demand marketplace. Round tomatoes are still trending large in size where XL gas greens continue to be the cheapest/best value on the size spectrum at a dollar savings against large and medium fruit. Similarly, Roma tomatoes are widely available and being offered below Mexico minimums to entice buyers. No different than the larger fruit, the grape and cherry tomatoes in the bite-size category are selling for the lowest prices of the year. Favorable weather over Florida growing regions continue to foster growth in the fields and forecasts for the rest of the month are for a flat market as farms continue to crank out excellent supply.

Tomatoes from Mexico are back to minimums where prices are forecasted to remain for April. Both gas green and vine-ripe round varieties are nearing peak production and expected to harvest through Mid April together. From then on, ripe vine tomatoes will lead the category through the end of May. Similarly, Roma tomatoes are expected to harvest all the way through May with no supply interruption pending a significant weather event. Grape and cherry tomatoes are also widely available and offered at minimums where they are forecasted to remain for the immediate future. As production tapers from mainland Mexico in mid-May, Baja will begin operations to offset any interruption in supply helping to keep western offerings even through much of the 2nd quarter.