The Source - April 7, 2016

Weather Update

Very hot temperatures are on tap for California today with record highs possible throughout the state. Rapid cooling begins Thursday as a broad low pressure system brings scattered showers to much of the region into the weekend. The pattern looks to continue into next week as a series of weak fronts move through the west.
Central Mexico will see average a cooling trend into the weekend with scattered showers as moisture from the Gulf of Mexico moves into Central Mexico.
A weak cold front moves into the southeast mid week with scattered showers possible the latter part of the week mainly north of Florida. High pressure bring dry conditions and warming temperatures late this week into next week.

Freight Update

California and Arizona trucks have tightened slightly due to transition from Yuma to Salinas. Washington and Idaho potato trucks remain steady. Idaho onion trucks remain tighter than normal. The National Average for diesel remained steady and is now 2.115 per gallon. A difference of $0.669 from this time last year. California prices remained steady as well and are currently 2.426 per gallon. Crude oil remained steady and is now $37.65 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples

Washington - red delicious are steady on all grades and sizes and they continue to peak on 72/80/88s. Lower grade reds remain limited and most suppliers are still subbing up up to cover orders. Golden delicious are steady on all sizes and grades. The Golden market is steady on all sizes and grades. Goldens continue to peak on Wash-Extra 100/113s and most suppliers don't have much larger than an 88-size. Granny-smith are steady on all sizes and they are continue to peak on 88-113s. Most suppliers still don't have much larger than an 88 or smaller than a 125. Galas are steady on all sizes and grades but the market is firm due to strong demand. Most Gala suppliers still don't have much fruit larger than an 88. Fujis are steady to higher on all sizes due to light supplies. Washington Fujis continue to peak on extra-fancy 80-100's. Most packers are finished with Jonagolds and Braeburns. The quality for all varieties has been good.
Michigan - Red delicious are steady on all sizes but there is some volume flex on 113s and larger. Reds are peaking on 80/88s. McIntosh are steady on all sizes but supplies are very light. Galas are steady to higher on all sizes but supplies are also very short. Golden delicious are steady to higher but the market remains firm due to light supplies. Jonathans are steady to on all sizes but supplies remain short. Jonathans are still peaking on 150/138/125s. Fujis are steady to higher due to light supplies. Red Romes are steady on all sizes but supplies are light.
New York - Red delicious, Red Romes, and Empires are all steady. Gala supplies are light and the market is firm. Empire volume is hit and miss but there are occasional deals. Small fruit availability is much less now on all varieties. The fruit quality has been good for all.

- John Tole
Growing Region Market Quality
Coopersville/Belding/Sparta, MI Steady Good
Hudson/Pleasant Valley/Red Hook, NY Steady Good
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Asparagus

Caborca is for the most part finished and this is putting pressure on the California crop. There are supplies slowly coming in from Peru as well. The market has a upward trend and looks to be going up daily. We are also 2 to 3 weeks away from Guanajuato Mexico. Quality from California is excellent. But the heat has brought on seeding in the tips from Mexico.

- Gabe Romero
Growing Region Market Quality
Caborca, Mexico Steady Fair
Salinas Valley, CA Steady/Higher Excellent
San Joaquin Valley, CA Steady/Higher Excellent
Avocado (California)

California harvest picked up a bit last week and looks to be consistent this week. Volume looks to build through April. We still continue to see smaller fruit than we would typically would see this time of year. Fruit is just not sizing up as growers had hoped due to the lack of water in the southern growing area.

- Tim Kelley
Growing Region Market Quality
Temecula/Escondido, CA Steady Good
Avocado (Mexican)

Volume from Mexico is still very good. Inventories are building after the dip down from Easter. The size curve continues to be an issue with larger fruit being plentiful, and smaller fruit at a relative premium.

- Tim Kelley
Growing Region Market Quality
Michoacan, Mexico Steady Good
Berries (Blackberries) Alert

Supply has improved some to start this week. Some grower-shippers are still struggling with availability and transfers from MX but others have better supplies than we've seen in the last 2-3 weeks. We are seeing less issues with red cell and soft, broken berries.



- Tom Smith

Alerts:
Supplies are still lighter but are improving with most shippers.

Growing Region Market Quality
Central Mexico Steady Good
Berries (Blueberries) Alert

Chile has ended major blueberry production for the season. There is still some storage product in the pipeline but it is drying up very quickly. Central Mexico and Baja are still in steady production and FL and CA are beginning to produce on a small scale. Supplies will continue to be short over the next 2 weeks at least and markets continue to get stronger. Supplies are very limited, demand exceeding. Domestic production is not coming on quick enough to avoid a supply gap.

- Tom Smith

Alerts:
Supply is still very limited, demand exceeding. Domestic production is not coming on quick enough to avoid a supply gap. This current shortage is expected for another 2 weeks.

Growing Region Market Quality
Oxnard, CA Higher Good
Central Florida Higher Good
Southern Chile Higher Fair
Baja California, Mexico Higher Good
Central Mexico Higher Good
Berries (Raspberries) Alert

Supply got very tight by mid-week and looks to remain short for the near future, demand is exceeding. We are right on the cusp of production increasing and availability being better but we are not there yet. Quality has been good overall, with a few reports of sun scald.

- Tom Smith

Alerts:
Limited availability, demand is exceeding supply this week.

Growing Region Market Quality
Central Mexico Steady/Higher Good
Oxnard, CA Steady/Higher Good
Berries (Strawberries)

Demand for fresh CA strawberries has increased as more customers come back to the west coast for berries. The few FL and MX grower-shippers that were still operating have wrapped up commercial production for the season. Weather has been cooler in CA for the past week but we experienced a considerable warming trend that peaked in the mid-90s on Wednesday. By Thursday, daily temperature highs have already dropped more than 20 degrees, back into the high 60s and low-mid 70s. There are chances of rain in the forecast for all CA growing regions as we head into the weekend. Precipitation levels are predicted to be low but any rain event could affect availability of labor, production and subsequent quality concerns.

- Tom Smith
Growing Region Market Quality
Santa Maria, CA Steady/Higher Good
Salinas Valley, CA Steady/Higher Good
Watsonville, CA Steady/Higher Good
Broccoli

Broccoli supplies are still plentiful with several growing regions packing. The market is flat with offers for volume. Quality is really nice with little to no yellowing. Also good crown size with tight beads.

- Gabe Romero
Growing Region Market Quality
Celaya Guanjuato Mexico Steady Excellent
Oxnard/Santa Maria, CA Steady Excellent
Salinas Valley, CA Steady Excellent
Brussels Sprouts Alert

Brussel Sprout supplies remain extremely limited. Shippers are still struggling to cover orders and the processors are feeling the same pinch. The market remains active at extremely higher prices. Look for this situation to last for the next few weeks. Quality is fair at best with some lots arriving with discolored sprouts and black leaves.

- Gabe Romero

Alerts:
Brussel Sprouts continue to be in short supply and remaining very expensive.

Growing Region Market Quality
Northern Baja California Norte, Mexico Higher Fair
Carrots

Size is coming back very slowly on the crop coming out of the Coachella and Imperial Valleys of California. Carrots are still small, and still not getting what was hoped for on Jumbo size carrots. Jumbo size still very tight, and still looks like it will be awhile before any real improvement of size is seen. Supplies of medium size and baby peeled carrots are is good.

- Tim Kelley
Growing Region Market Quality
Coachella Valley, CA Steady Good
Cauliflower Alert

Cauliflower supplies are limited in the Salinas and Santa Maria growing regions. Yuma is done for the season. The Salinas Valley is heavier to 16 count but limited supplies of 12 count and 9 count. Santa Maria is following in suit. Quality is very nice out of both growing regions with little creamy to yellow discoloration. The market in the Salinas Valley will be active for the rest of the week.

- Gabe Romero

Alerts:
Limited Cauliflower supplies and active markets

Growing Region Market Quality
Oxnard/Santa Maria, CA Higher Good
Salinas Valley, CA Higher Good
Celery

Celery in Yuma will be finished by the end of the week. Overall, this market is flat. Large sizing is heavily available and this is where the best offers are available. Small sizing is slightly higher in price. Demand is minimal, however. Quality is generally reported as good. Moderate supplies continue out of the Florida region. Expect pricing to be competitive for the entire week.

- Mike Pacheco
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Good
Yuma, AZ Steady Good
Belle Glade, FL Steady Good
Cilantro

Good supplies continue and this is keeping the market at reasonable levels. Quality is still an issue with arrivals showing dehydration and yellowing of the leaves.

- Gabe Romero
Growing Region Market Quality
Baja, MX Steady Good
Oxnard/Santa Maria, CA Steady Good
Salinas, CA Steady Good
Citrus (Lemons)

The central valley and the Ventura crops are going and both are peaking on 140s and smaller size fruit. Larger sized fruit is tight and strong demand for 165s has them cleaning up daily. Demand remains very strong.

- Tim Kelley
Growing Region Market Quality
Merced/Bakersfield, CA Steady Good
Oxnard/Ventura, CA Steady Good
Citrus (Limes)

The lime market has continued higher on all sizes. Demand is good on all sizes across the board. The peak sizes are shifting towards smaller sizes now. This is the time of year where overall supplies are low and will remain at lower levels until the first or second week of May. The overall long term upward market trend will likely continue with the lower supplies through to first part of May. Quality is excellent overall. Supplies continue to remain extremely short. The short supplies will carry into the end of next week.

- Jim Murphy
Growing Region Market Quality
Veracruz, Mexico Higher Excellent
Citrus (Oranges)

Good picking this week. Shippers have good in inventory. Eating excellent and look beautiful, with peak sizing on 72s/56s/88s. Demand is back up on 113s/138s as school demand begins to tighten the supplies of these smaller sizes.

- Tim Kelley
Growing Region Market Quality
Merced to Bakersfield, CA Steady Excellent
Grapes (Green) Alert

Green grape supplies are tightening up. Size options are becoming limited and quality is playing a big role in available fruit. Market prices have remained firm all week, but are expected to start climbing this weekend for the front part of next week. The last of the arrivals are expected this weekend before we start the storage crop period next week. We expect to see a sudden steep incline in price next week and remain firm for the next month until we start the Mexican / CA grapes mid May.

- Sean Azzelio

Alerts:
Storage crop green grapes are expected to begin next week. Market prices will jump up drastically and remain firm for the next month.

Growing Region Market Quality
Coquimbo/Valaparaiso/Santiago/Rancagua, Chile Higher Good
Grapes (Red)

Red grape supplies continue to be steady. Quality has been solid and markets have remained flat. Shippers are anticipating good supplies of red grapes for the next couple weeks. We may see a slight increase in price, but there is enough supply of quality fruit that we will avoid a drastic and sudden spike. Mexican / CA harvest is expected to start mid May.

- Sean Azzelio
Growing Region Market Quality
Coquimbo/Valaparaiso/Santiago/Rancagua, Chile Steady Good
Green Onions

Green Onion supplies are at steady levels. Also with that being said iceless green onion supplies mirror the iced. Some quality issues upon arrival have been yellow to brown tops. The overall market is steady with no fluctuation in price from last week.

- Gabe Romero
Growing Region Market Quality
Mexicali, Baja Steady Good
Kale

The kale market is steady even with the transition to Salinas. Supplies out of Oxnard are also steady. The market is relatively flat with steady demand. Quality is excellent with little dehydration and yellowing.

- Gabe Romero
Growing Region Market Quality
Baja, MX Steady Excellent
Oxnard/Santa Maria, CA Steady Excellent
Salinas, CA Steady Excellent
Lettuce Iceberg

Production is winding down in Yuma by the end of the week on this commodity. Santa Maria has started with a few suppliers. Huron will continue through next week. Insects are seen along with some irregular shaped heads in Huron. The weights have been good however. Salinas will have better production expected next week. The market has remained unchanged and shippers are looking for business and offers are being listened to.

- Mike Pacheco
Growing Region Market Quality
Huron, CA Steady Fair
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Yuma, AZ Steady Fair
Lettuce Leaf

The Yuma region will be finished on all leaf production by the end of the week. Huron will go for another week then likely be finished. Salinas and Santa Maria currently has good production and this will continue next week as well. To summarize next Monday Salinas and Santa Maria/ Oxnard will be where leaf items will be predominately harvested. Quality is generally good out of Salinas and Santa Maria while the other areas are having insect issues, mainly in Yuma.

- Mike Pacheco
Growing Region Market Quality
Huron, CA Steady Fair
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Yuma, AZ Steady Fair
Melon (Cantaloupe)

The quality is good overall with some lots being exceptionally nice. The peak size is currently 9ct. The current market has turned lower on all sizes. Demand has increased with more schools coming back in and warmer weather but supplies are larger than current demand. 15ct lopes being packed now with virtually zero 18ct coming over.

- Jim Murphy
Growing Region Market Quality
Choluteca, Honduras Lower Excellent
Zacapa, Guatemala Lower Excellent
Melon (Honeydew)

Demand has picked up on honeydews but supplies have increased causing the market to come down a bit. The peak size for the offshore is 6ct and the small amount of Mexican dews are peaking on 6ct. All sizes are available now. Honduran and Guatemalan grown honeydews are really good. Mexican dews ship out of Nogales AZ and the volume is beginning to pick up. The Mexican dews are also very nice. The market is lower across the board.

- Jim Murphy
Growing Region Market Quality
Obregon, Mexico Lower Excellent
Choluteca, Honduras Lower Excellent
Zacapa, Guatemala Lower Excellent
Onions

Onions are still coming out of storage in the Northwest (Idaho, Washington) With new crop Mexican and Texas onions shipping out of South Texas. Northwest Storage onions are starting to show their age with Transparency showing up in the outer layers. Transparency looks to most people like the onions where exposed cold. Quality is good out of South Texas. Markets are steady on all sizes and colors. Demand is light to moderate which is expected to see minimal change with the next couple of weeks. Southern California will start up with New crop Yellow onions the middle of the month followed by red onions about a week after the yellow start up. Quality is being reported as Good.

- Mike Gorczyca
Growing Region Market Quality
Ontario, OR to Nampa, ID Steady Fair
Tampico/Sonara, Mexico Steady Good
McAllen/Uvalde, TX Steady Excellent
Quincy/Hermiston, WA Steady Fair
Pears

Washington - D'anjou pears are steady and they are peaking on 80/90/100's. US#1 110-count and smaller supplies have improved, and smaller remain short along with all sizes of the fancy grade. Bosc pears are steady and continue to peak on US#1 90/100/110s. Fancy grade Bosc remain short in all sizes. Bosc will finish up in mid to late April. Red pears are steady on all sizes and they are peaking on half carton 45/50s and full carton 90/100s, but supplies remain light. Red pears will also finish in mid April. The quality on domestic D'anjous, Bosc, and red pears have been good.
Chile - Chilean Bartlett pears are finished coming in and supplies are limited. Packhams are steady and continue to produce US#1 80/90/100s. Argentinian Bartletts are steady and are peaking on US#1 70-100s. The quality on all of the imported varieties have been good.

- John Tole
Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Coopersville/Belding/Sparta, MI Steady Good
Hudson/Pleasant Valley/Red Hook, NY Steady Good
Pineapples

We are back to a more normal demand for the lighter, but steady supplies that we have. Still looking for supplies start to come back as we move through April.

- Tim Kelley
Growing Region Market Quality
La Virgen, Costa Rica Steady Good
Heredia, Costa Rica Steady Good
Guapiles, Costa Rica Steady Good
La Cieba, Honduras Steady Good
Retalhuleu, Guatemala Steady Good
San Luis, Guatemala Steady Good
Potatoes

Potatoes are still being shipper out of storages from Idaho, Washington, Colorado and Wisconsin. Pricing and demand remains steady. Quality is still being reported as good.

- Mike Gorczyca
Growing Region Market Quality
Hamer/Rupert, ID Steady Good
Quincy/Hermiston, WA Steady Good
Monte Vista, CO Steady Good
Plover/Bancroft, WI Steady Good
Potatoes (colored)

Bakersfield, California - new crop white potatoes are steady on all sizes. The whites are peaking on A-size. Tomorrow is the first day of packing for new-crop reds and golds. The quality on the whites has been good.
Idaho - reds and golds are steady but supplies remain limited. Both colors continue to peak on A-size. One Idaho supplier will finish next week and the other two will pack through April. The quality has been good on all colors.
Wisconsin - reds and golds are both higher and they continue to peak on A-size but supplies are very limited. Gold supplies are exceptionally short. Suppliers here continue to buy bulk from N.D. and repack it. The quality has ranged from fair to good.
North Dakota - Reds and gold's are steady but the market remains firm. Some suppliers have finished with golds. The remaining Reds are peaking on A-size. The quality has ranged from fair to good.
S. Florida - reds and gold's are steady but the market remains firm due to light supplies. Both reds and golds are peaking on A-size. Whites are still not available. Poor yields are keeping the Florida market up. The quality has ranged from good to fair.

- John Tole

Transitions:
California will start packing new-crop red and gold potatoes between tomorrow and next week.

Arizona will begin packing new-crop red potatoes the week of April 20. Gold potatoess will be two to three weeks behind.

Growing Region Market Quality
Bakersfield, CA Steady Good
Rupert to Rexburg, ID Steady Good
Plover, WI Steady Fair
Red River Valley, ND Steady Fair
Imokollee/Palm City/Punta Gorda, FL Steady Fair
Stone Fruit

Supplies of Chilean fruit will remain steady as we prepare for the beginning of the domestic season. Early varieties of apricots are expected to start in CA as early as April 15th with supplies ramping up to promotable volumes by the week of the 25th. Peaches and nectarines will start shortly after with promotional opportunities available at the beginning of May. Prices are available for discussion now.

- Sean Azzelio

Transitions:
The Californian stone fruit season is expected to start April 15th. Promotional opportunities available.

Growing Region Market Quality
Coquimbo, Valaparaiso, Santiago and Rancagua, Chile Steady Good
Tomatoes (Eastern)

Rounds - The market is steady/lower. Supplies are more available in Florida, with Ruskin / Palmetto a couple more weeks away from full production. Mexico is also looking better on supplies. Market looks to be adjusting. Quality is Good Fair.
Roma - The market is steady/lower. Florida is looking to see better numbers in all areas. New crops also looking to harvest. In the west, Mexico is crossing additional supplies as well. Market looks to be adjusting down as well. Quality is Good / Fair.
Cherry - The market is Steady/lower. Florida looks to be increasing supplies, with a few more shippers out there with available product. Mexico is also looking good with supplies. Quality is Good / Fair.
Grape - The market is steady/lower. Supplies looking better in both Florida and Mexico. Market is also adjusting lower with more supplies and demand down. Quality is Good / fair.

- Rene Juarez
Growing Region Market Quality
Southern Florida Steady Good
Northern Florida Steady Good
Tomatoes (Western)

Rounds - The market is steady/lower. Supplies are looking better in Mexico. More product coming across. Florida also looking to see better numbers. Market is adjusting lower, however, with warmer weather due, demand should turn back upwards. Quality is Good / Fair.
Roma - The market is steady/lower. Volumes are looking better and better out of Mexico. More product available coming across. Florida also continues to look better with supplies. Quality is Good / Fair.
Cherry - The market is Steady/lower. Supplies coming from Mexico and Florida looking good. More supplies in all areas, with additinal shippers coming on-line this week in Florida. Market adjusting lower. Quality is Good / Fair.
Grape - The market is steady/lower. Supplies looking better in all areas. More supplies continue to cross. Florida is also looking better with supplies. Market also adjusting lower, with demand lower. Quality is Good / Fair.

- Rene Juarez
Growing Region Market Quality
Northern Baja California Norte, Mexico Steady Good
Central Sonora, Mexico Steady Good
Southern Baja California Sur, Mexico Steady Good

Things You Should Know

Berries (Blackberries)
Supplies are still lighter but are improving with most shippers.

Berries (Blueberries)
Supply is still very limited, demand exceeding. Domestic production is not coming on quick enough to avoid a supply gap. This current shortage is expected for another 2 weeks.

Berries (Raspberries)
Limited availability, demand is exceeding supply this week.

Brussels Sprouts
Brussel Sprouts continue to be in short supply and remaining very expensive.

Cauliflower
Limited Cauliflower supplies and active markets

Grapes (Green)
Storage crop green grapes are expected to begin next week. Market prices will jump up drastically and remain firm for the next month.

Transitions and Temperatures

Stone Fruit
The Californian stone fruit season is expected to start April 15th. Promotional opportunities available.

Potatoes (colored)
California will start packing new-crop red and gold potatoes between tomorrow and next week.

Arizona will begin packing new-crop red potatoes the week of April 20. Gold potatoess will be two to three weeks behind.

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