The Source - April 8, 2020

Even with the ‘retail hangover’ experienced this week, retail markets continue to outpace foodservice. Last week did bring an uptick in overall foodservice volume. This could be due, in part, to the Easter-pull (yes, it is on Sunday) coupled with a good ol’ inventory replenishment. Many hoped that the momentum would carry into this week—no such luck. Most Midwest and East Coast small shippers have ended their season (great timing), while larger shippers continue to push on their CA inventory. Same goes for the Northwest, who welcome the shift in volume from the MW and EC. Naturally, larger-sized apples (64-88ct) are moving out to retail along with smaller sizes (113-138ct) packed into bags. Even with the recent retail surge, overall movement has slowed, leaving shippers with more than enough inventory to cover any and all orders.

Markets should remain steady with good quality and availability; with the exception of Honeycrisp. Domestic HC apples normally taper off this time of year and are supplanted by imported fruit (i.e. Chile).

**Cross Dock options available on Processed Apples (Sliced 100/2oz, Chunk 4/3#, etc.) in Washington. **

Production has started to drop from both regions in Mexico (San Luis/Caborca) due to seasonality. Quality remains good, we have started to see some seeding in the smaller sized product due to the heat. Both regions in Peru have started production, and we should see this trend continue as their season has just begun. The market is more active this week with less production in Mexico, and Peru just starting up.

Rain over the weekend disrupted production. The majority of the harvest crews will shut down for the week due to muddy fields and unsafe work conditions due to heavy rain. There is more rain in the forecast for Ventura County come Wednesday/Thursday. Rain does no damage to the fruit. Avocados can withstand the rain and will only help size up the fruit. Quality has been consistent and with great shelf life. A strong market will be the trend for the month of April.

Alerts:
April showers bring production to a halt. Demand and market are stronger this week.

No signs of rain in the forecast for Michoacan, Mexico with temps in the low 80's.The avocado market continues to change and as you know, there are a lot of unknowns. What we do know is that the market is starting to firm up. All that extra fruit in the pipeline seems to have cleaned up. This week is Holy Week and there is no harvest in Mexico. With demand strengthening and Mexico not harvesting this week, we anticipate this market to react. That being said, expect gradual price increases on all sizes going into the weekend. Quality has been consistent and current crop showing heavy yields on #2 grade fruit.

Alerts:
Holy Week in Mexico means, no harvest this week. Expect a stronger market going into the weekend.

Availability for green bell pepper remains plentiful from various growing regions in Florida. A slight uptick in business this week for Easter has created some demand for the larger sizes, however off-grade packs continue to be abundant. Growing conditions have been ideal with warm weather and mostly calm winds throughout Florida. Quality is very good and continues to be promotable. Look for markets to remain on the lower side until changes in the COVID-19 restrictions take place.

GREEN BELL
Green bell pepper supplies being harvested in Mexico, and crossing through Nogales have decreased this week. Mostly foodservice grade currently being harvested from both the Sinaloa/Sonoran growing districts. Supplies from Sonora are expected to continue through May if weather permits. Quality from Sonora is good. The majority of green bell crop from Sinaloa should finish up by the end of the week. Quality on product from Sinaloa is fair at best. Market on foodservice grade bell ranges due to quality. Market on retail grade bell continue steady in the high teens with lighter supplies. Domestic green bell pepper from California are projected to start Mid-April.
RED BELL
Red bell pepper supplies crossing through Nogales have decreased this week on both varieties. Mostly foodservice grade available. Hothouse red bell peppers are projected to continue through the month of April. Quality on red hot house bell pepper are fair to mostly good. La Rouge red bell pepper variety is being harvested in Sonora, Mexico and is also expected to continue through the month of April. Quality on red La Rouge bell is also fair to good. Red bell pepper market on both varieties are currently steady this week. Moderate supplies of Red bell pepper are also available to load in McAllen, TX.
YELLOW BELL
Steady supplies of Yellow bell pepper are being harvested from Mexico this. The Market on yellow bell pepper continues to remain steady this week. Quality on yellow bell pepper crossing through Nogales continues to be fair to good. Light supplies of Yellow bell pepper are also crossing through McAllen, Texas.

Blackberries are in good supplies with promotable volumes in Central Mexico and Central California. Quality has been good and the market will remain steady with lower undertones through this week.

Blueberries are readily abundant out of several growing regions. Quality has been good and promotable volumes are expected through the end of April look for the market to trend downward as shippers struggle to move volume

Alerts:
There will be very good volume coming from all areas

Raspberries are in good supply and promotable volumes are expected next week out of Mexico and Oxnard. Quality has been good

Strawberries continue to be in adequate supplies on the West Coast including the new crop coming out of the Salinas / Watsonville areas. Rains over the weekend did not seem to disrupt much in the way of harvests coming into Monday and Tuesday. Cool-weather has kept the water-related issues at a minimum. Look for numbers to increase as we move into next week with clearer weather forecasted and slightly better temperatures on schedule. Look for the market to ease up as demand falls off slightly for the weekend. Mexico is still producing but the quality is starting to wane.

Alerts:
Good Numbers on schedule for next week out of Central to Southern California

Transitions:
Salinas and Watsonville have begun

The broccoli market has started to strengthen brought on by the recent rains in the Salinas Valley. Quality continues to have slight purpling caused by the recent cold weather, some mechanical damage, and occasional yellow cast. Look for Broccoli to continue to adjust as supplies get better going into the weekend in the Salinas Valley.

The brussels sprouts market has come off recently and now is looking to adjust higher with the recent wet weather. Currently, quality is good with occasional internal decay. Look for the Brussels sprouts market to continue to strong going into next week.

Processed snack packs and other smaller pack styles are under extreme pressure from accelerated demand. Shippers are running lines to produce these at maximum capacity.
All other packs are readily available with excellent demand for cello retail packs as well. Quality remains steady and the market remains firm.

Alerts:
Processed snack pack and processed baby carrots are in extremely high demand

The cauliflower market has started to pick up given the recent rains in the Salinas Valley. Yields have slowed down due to harvesters getting through the muddy fields. The quality is good with slight bruising and yellow cast with weights in the 25 to 28-pound level. Look for the market to continue to adjust higher going into next week.

Yuma production is all but finished. Most supplies if in Yuma is been transferred from Oxnard and Santa Maria. The sharpest deals are obviously in the southern California region so please keep in mind and promote as much as possible especially on the retail end. Foodservice business continues to struggle. Mexico will continue to have light production. Heavy rains this past weekend has slowed production but demand is expected to be met throughout the week. Expect good quality throughout this week with this commodity. The weights are approximately 56-60 pounds per case.

Transitions:
Yuma is all but finished with production on celery.

California

California experienced some dormancy hours this past winter. January and February saw very light rainfall, while March delivered quite a bit more. Regarding yields, many cherry growers are optimistic about the upcoming season. Early estimates have state crops totaling 5-5.5 million cases (16lb equivalent).

Currently, the estimated start date looks to be the week of April 27; with volume peaking around May 4 (promotable volume should be available May 9). Here are a few more tentative harvest dates:

• Organic – May 6
• CV Rainiers – May 12
• CV Bings – May 19

Jalapeno- Good supplies of Jalapeno are crossing through Nogales, AZ this week. Good supplies are expected to continue throughout the week. New crop Jalapeno quality from Mexico is good. The Jalapeno market is lower/steady this week. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Moderate supplies of pasilla available through Nogales. Pasilla supplies are expected to increase with new fields starting. Pasilla quality from Mexico crossing through Nogales is good. The Pasilla market is steady this week. Pasilla from Mexico is also available to load in McAllen, Texas.

Anaheim- Good supplies of Anaheim crossing through Nogales this week. Quality on Anaheim crossing through Nogales is good. Size on the pepper is mostly medium to large. The Anaheim market is steady in the mid-teens. Anaheim from Mexico also available to load in McAllen, Texas.

Serrano – Good supplies of Serrano peppers continue to be available to load in Nogales, from Mexico. Serrano supplies are expected to remain steady through the week. Moderate serrano supplies are also crossing through McAllen, Texas.

Tomatillo – Good Supplies on both husk and peeled tomatillo. Tomatillo crop on both Husk and Peeled are being harvested in Sonora. Quality is good on both varieties. Market on both varieties remain this week.

The cilantro market has started to get stronger with the recent rains in the Salinas Valley. The cilantro quality is fair with an occasional yellow leaf. Look for the cilantro market to stay steady going into next week with the dry warmer weather we are anticipating by this weekend.

Orange supplies this week will be snug due to the rain in the Central Valley. Most suppliers will harvest ahead to get in front of the storm system but depending on the amount of rain and how muddy the fields are could affect supplies towards the end of the week and the week of 4/13. We strongly advise that we have orders booked in advance to help strategize and prepare in case we run into any harvesting or pack time issues. Overall, markets are starting to settle and movement is slowing down to a normal rate. We may see another surge of business as suppliers anticipate most will only shop once per week and buy more each trip. Fruit quality remains great with consistent brix levels and traveling with minimal arrival issues. On the specialty citrus, Mandarins continues to be a preference in choice, with steady supplies peaking on 40s and smaller. Continue pushing Cara’s, Bloods, Minneola’s and Gold Nuggets. Texas grapefruit is winding down for the season and California is ramping up, we’re seeing nice quality and steady supplies.

Lemon supplies overall out of both districts are looking good on Foodservice sizes with demand backing off. Retail sizes 95ct/115ct are snug. Lemons out of the Central Valley continue to look really nice on small sizes and quality. The Coastal Region supplies are packing out heavier numbers and seeing heavier choice grade with light wind scar. Supplies out of the CA Desert/AZ Desert Region, including the Mecca/Thermal area have concluded for the season. Please reach out for any advance pricing.

The lime market has backed off the first week of April and we are expected to have steady supplies going into “Holy Week”. Starting Monday, 4/6 harvest crews in Mexico will conclude working until the following Monday (4/13). Suppliers are doing their best to load coolers with fresh fruit to avoid any shortages. It is advised to place orders in advance before the week of Easter to help with coverage. After the week of Easter, we can expect supplies and markets to remain steady. Let us know what we can do to help service your lime needs. We have opportunities to load FOB Texas and California as well as delivered options.

Orange supplies this week will be light due to the rain in the Central Valley. Most suppliers will harvest ahead to get in front of the storm system but depending on the amount of rain and how muddy the fields are could affect supplies towards the end of the week and the week of 4/13. We strongly advise that we have orders booked in advance to help strategize and prepare in case we run into any harvesting or pack time issues. Overall, markets are starting to settle and movement is slowing down to a normal rate. We may see another surge of business as suppliers anticipate most will only shop once per week and buy more each trip. Fruit quality remains great with consistent brix levels and traveling with minimal arrival issues. On the specialty citrus, Mandarins continues to be a preference in choice, with steady supplies peaking on 40s and smaller. Continue pushing Cara’s, Bloods, Minneola’s and Gold Nuggets. Texas grapefruit is winding down for the season and California is ramping up, we’re seeing nice quality and steady supplies.

Domestic cucumber production continues to be in full swing in Florida. Weather has been great for quality; however, markets are on the lower side due to COVID-19 shutdowns. With Easter weekend approaching, retail chains are pulling more than last week, which is helping prop markets up for certain grades, although off grades remain extremely cheap with not much movement for foodservice companies currently. Look for markets to remain on the lower side until we see some restrictions lifted.

Good supplies of cucumbers continue to cross this week through Nogales from Sonora, Mexico. All pack styles and sizes continue to be packed. The cucumber market remains low this week with better supplies and weaker demand. Good supplies of cucumber are expected through the week with good weather in the growing district expected. Quality on cucumbers from Sonora is good.

Overall acreage is lower in Florida versus previous years; however, this is not creating a demand alone with current COVID-19 restrictions. New fields have started harvesting, and growing conditions have been ideal across the board. Quality is now very good from various growing regions in Florida. A push for Fancy grades has started this week with Easter weekend nearing and more retail chains pulling for ads. Look for markets to level back next week.

Lighter supplies of eggplant available this week crossing through Nogales. Eggplant crossing through Nogales, AZ continues to be harvested in Sinaloa. Smaller sizes from the Sinaloa crop are currently being packed into mostly 32ct size. Quality on eggplant crossing through Nogales is mostly fair. The eggplant market has increased this week due to lighter supplies and higher demand. Domestic eggplant from California is expected to begin harvest the third week of April.

Green grape supplies continue to be very limited. All demand is being filled by storage fruit and inventories are low. This lack of supply is pushing the market up and keeping prices firm. Quality is good with occasional dark color and soft berries. We expect supplies to remain light until Mexico gets started. Shippers are anticipating green grape harvest to begin in Mexico the last week of the month. We can expect the quality to improve, but prices will remain firm until volume increases. We should see better volume and cheaper prices by mid-May.

Alerts:
Supplies are very limited. Markets are high and quality is good.

Transitions:
We expect Mexico to start harvest the last week of April and ramp up the front part of May.

Red grape supplies remain steady, but most shippers are now utilizing storage fruit. The amount of new product coming in is very limited. The quality is fair to good depending on variety and age. We have seen reports of soft and wet berries as well as early decay. Again, depending on variety, age and of course price. Markets are fairly consistent with some cheaper deals on the older fruit. We do not expect any issues with supplies as we transition into Mexican harvest. Mexico is expected to start with red grape harvest in the beginning of May. Until then, we should not see any disruption in fill rates.

Alerts:
Supplies are steady and markets range depending on quality. There is cheaper old fruit and more expensive new fruit.

Transitions:
Mexico is expected to start harvest in the beginning of May.

The green onion market continues to stay steady with good supplies brought on by the warmer weather we've had in Mexico. Quality is good with occasional leaf minor caused by the recent cold and wet weather. The market will continue to stay steady going into next week.

The kale market has started to move up given the recent rains over the weekend. Quality is good with full bunches and some yellow leaves being reported. We're hoping this week's warmer weather after the recent rains continue to help the quality, supplies, and spur growth.

Yuma is almost finished in production for lettuce. There will be a few shippers loading through this week and that will be it. Santa Maria, Huron, and Salinas will have production, but only moderate. Heavy rains in Salinas, Huron and southern California has left fields in a muddy mess. There was little to no production on Monday and expect slow production on Tuesday at a minimum. There is little to no rain expected in Salinas for the rest of the week. Foodservice business continues to be off but retail is bouncing back from the previous week. This market is stronger. The overall quality continues to be fair. Misshapen heads, pink ribbing, lightweights, mildew, and discoloration on the outer leaves are issues being reported.

Transitions:
Yuma will be done this week. Salinas,Huron and southern California will have production.

Overall, romaine, as well as all leaf items, are more active in the marketplace. Although foodservice business continues to be minimal, retail ads have kicked in and demand is stronger. Yuma is, for the most part, finished with production. The main areas of production are now in Oxnard/Santa Maria, Huron, and Salinas. There have been issues reported upon arrivals. These issues include mildew, blister, and mechanical. These defects are being reported on romaine as well as all leaf items. The weights are being reported between 27-34 pounds on romaine while the green and red leaf has been 17-21 pounds.

Transitions:
Salinas has begun production. Yuma production is finished

The Tender Leaf market has started to strengthen due to the recent wet weather in the Salinas Valley. With the rains behind us and the warmer weather ahead, we anticipate supplies, quality, and growth to continue to improve. Quality lately has been good with occasional yellowing and bruising of the tender leaves.

The melon market is flat and demand continues to be very light. The industry continues to see an abundance of fruit in the pipeline and, with very little demand on both retail and foodservice fronts. Offshore production will start to taper off this month as we transition into domestic fruit come May. There will be some overlap as production on domestic fruit will ramp up in early May, weather permitting. Yuma will ramp up the first week of May with cantaloupes and honeydews will follow mid-May.

Watermelon supplies crossing through Nogales, AZ is being harvested in Sinaloa, MX, and Sonora, MX. Watermelon supplies are lower from both districts. Mostly cartons are currently being packed. Quality from these growing districts varies from fair to good. The watermelon market is currently steady.

Onion markets are declining as the Northwest regions of Washington, Oregon, and Idaho look to finish up the remaining storage crop supply. Retail demand continues to pull good volume on medium-size yellow and red keeping those markets higher than jumbo size. Mexican product crossing into South Texas continues to follow suit with the Northwest markets. California desert along with Texas domestic will start production late April and expect to have good supply and quality. As a reminder, when we head into fresh run onions later this month, we will experience thin, flaky skins on the new crop onions.

Alerts:
Markets lower with exception of medium sizes; retail demand active.

Transitions:
California desert and Texas domestic to start mid April.

Washington:

The overall market remains steady due to the lack of foodservice volume and retailers reducing the amount of SKU’s because of labor shortages. Bosc pears are reaching the end of the season and D’Anjous will carry the ‘pear load’ until new crop Bartletts come on in late summer.

Quality is good with good availability.

Pineapple supplies are looking good out of all loading locations and markets remain steady. Quality remains excellent with minimal arrival issues. We haven’t received many reports on the fruit being held up at the ports, they are consistently available. Please keep the orders coming and run all offers by us. Our suppliers have opportunities to push extra volume and we will make sure to get you covered.

Larger size 40 count through 70 count have declined in price as retail demand continues to pull heavy on consumer bags which typically uses the smaller sizes of 90 count to 110 count potatoes. The lack of foodservice demand has slowed down carton production and pushing many suppliers to clean up floor space with cartons produced from running consumer bag lines. Retail has also started to slow down making poly bags slightly more available. As both sides of the business slow down so does carton production which will level markets across the board on potatoes. We expect to see slightly lower prices on larger size cartons and steady to slightly higher prices on 90 count and smaller. Washington, Colorado, and Wisconsin continue to follow Idaho markets. Some lots will continue to show occasional soft rot and shoulder/internal bruising.

Alerts:
Markets lower on larger size 40 count through 70 count as well as #2 grade.

North Dakota continues to produce light supplies of red and yellow with most of the Washington and Idaho supplies having finished up for the season. Idaho will continue to see lighter production over the coming months while we look to the start of the California production out of Bakersfield. White potatoes will begin late this week with yellow starting next week and reds the week of 4/20. California crops are expected to have great supplies and will see volume by May. Southern Florida continues to produce supplies and will transition to Northern Florida later this month. Markets remain active with heavy demand for retail.

Alerts:
Markets remain elevated with heavy retail demand

Transitions:
Bakersfield, CA and Northern Florida to begin mid-to-late April.

Good supplies on both Italian and Yellow S/N squash will continue to be harvested this week in the Sonoran Growing District. Good supplies from Guaymas and Hermosillo, Sonora are expected to continue as good growing temperatures are expected through the week. The soft squash market remains low this week with light demand on both retail and foodservice orders. All pack styles are currently being packed from this district. The quality on both Italian and Yellow S/N remains good.

The import stone fruit season is now coming to an end. All peaches and nectarines are done. We will see some red and black plums continue to be available in limited sizes through the end of the month. Quality is steady on the plums and we expect prices to remain flat as well. New domestic production is expected to get started by the end of the month with light harvest of apricots and peaches. As we start May, more varieties will become available and volumes will ramp up quickly.

Alerts:
Import season is coming to an end. Peaches and Nectarines are done. Plums will last through the month.

Transitions:
New domestic harvest will start later this month.

It is a buyers’ market for Tomatoes. Spring crops are beginning to flourish while demand greatly pulls back amidst changes in consumer behavior. The lack of demand has caused some farms to halt production altogether. Quality is excellent and the abundance of tomatoes has reduced harvest to packing per order, leaving excess in the fields. Roma production is steady and light. FOB's have adjusted to seasonal lows and quality is good. Grape and cherry tomatoes are also widely available reducing the market to minimums and quality is good.

Western Mexico has begun harvesting spring crops in the north, adding to harvest that have been ongoing in the south. Production is well in excess of U.S. demand and the market has reached mandated minimum for all items. There is plenty of product available across all categories. The floor price for cherry tomatoes is higher than offerings in Florida, but quality is good. There has been wide concern since September over the newly imposed Suspension Agreement Inspections set to start this week disrupting the flow of imports into the U.S. At least for now, the current lack luster demand will greatly lighten the load for new inspectors providing more time to acclimate to the new standard.