The Source - August 1, 2018

Well, the school business has begun in a big way. The demand has definitely increased significantly after the summer lull. Supplies of red delicious and gala are decreasing weekly. The start of new crop galas will be the middle of August. The new crop market will be much higher than the storage crop that will increase in price as well. New crop red delicious apples are projected to start the first week of September. We still have decent supplies of Fuji apples and granny smith apples as well. Storage crop golden delicious supplies are limited although ginger golds are starting this week. Overall quality of the storage crop is good with decent pressure levels and brix levels. California gala apples are available as well, and quality is excellent.

The weather has remained excellent in both growing regions in Mexico, Central Mexico, and Northern Baja. Volume is about the same as the previous week; we should see a decrease in volume in the next 2-3 weeks due to seasonality in Central Mexico. Northern Baja will have production until the end of September. Production and weather are about the same as last week in Northern Peru (Trujillo). The weather in Southern Peru (ICA) has become a bit warmer; we're starting to see production of large size asparagus increase, Jumbo still remains short. Markets are overall lower with very good production, and demand being down.

The California crop lost another larger amount due to the severe heat wave that lasted several days of the first week of July. Weekly harvest estimates will continue to decline through August due to the available crop. California season is expected to wrap up for all intents by the end of August, mid-September at the latest. Markets are reacting and firming upward.

Mexico's old crop season is finished. New crop Flora Loca harvest is underway with light harvest and will peak on 60's followed by 48s and smaller fruit. This summer crop is a small crop and demand is mostly going to surpass supplies. Mexican growers are raising field prices daily, and markets are reacting to the lighter supplies and higher field prices. This new summer crop has much less maturity than the old crop and ripening will take longer and will see checkerboard ripe pressures and ripe fruit can still be green in color when ripe due to the immaturity of the skin. Supplies are going to get lean on Mexican fruit moving forward through September.

Alerts:
Mexico's supplies are dropping and markets are reacting upward.

The Bell Pepper market is still high priced but better supplies are starting. Michigan and Ohio are starting steady supplies with more supplies to start by this weekend. New Jersey has been harvesting but more production is starting this week. Canada is starting light supplies and shipping into the U.S., we look for the market to weaken by this weekend.

Alerts:
Better Supplies

Transitions:
Bell Pepper is Transitioning

Peak Seasons:
Bell Pepper is not in peak season

Green Bell Peppers - Most pepper supplies are now coming out of the Arvin / Bakersfield area. High heat in the growing area has slowed production. Some growers have begun to harvest new fields, but supplies remain light, especially on choice grade peppers. Quality is good. The market is stronger, and pricing is higher. Shipping areas include Fresno, Gilroy, and Oxnard, as well as Bakersfield.

Red Bell Peppers – Red bells are available to load out of San Diego, with hothouse peppers being grown in Baja California. There are also peppers available from Bakersfield, as we have moved into the summer growing areas. Volume is expected to increase in Bakersfield, but extreme heat in the area has slowed production. The market remains Steady. Shipping areas are San Diego, Fresno, Oxnard, Gilroy, and Bakersfield.

Yellow Bell Peppers – Bakersfield area growers have begun to harvest yellow bells. Quality is good with very few peppers available to offer. Volume has increased, high heat in the area has slowed production. Light supplies of hothouse peppers are also available to load in San Diego, from Baja California. The quality of the fruit from Baja has improved and is mostly good. The market remains strong.

Supplies have been a bit of a roller coaster over the last several weeks. We did see a wave of product come out of the southern growing regions two weeks ago, but then taper off quickly last week. This week, supplies seem to be steady but have yet to reach any real peak production. Salinas / Watsonville are four weeks behind the expected peak, but harvest is expected to improve week over week as we begin August. Santa Maria has slightly better production this week. Prices have reacted to the available volume and have fluctuated over the last few weeks. This week, things are steady, and prices are flat. Demand seems to be improving.

Supplies have become a little lighter this week. In the Pacific Northwest, temperatures have been very warm This has advanced most of the early crops, and we saw a big push of product over the last two weeks. Oregon has passed its peak and production has really slowed down. Washington has also past its peak, and again the hot weather has had an impact on yields. British Columbia is in transition between varieties, and we can expect to see another peak in the next two weeks. Quality is the main concern as the heat has caused some shrivel and soft berries. On the east coast, New Jersey has slowed down. 80% of their crop came on in the first pick, but they are expecting a second pick and a new crop over the next week. Michigan has been steady but light, quality is good, and prices are higher. Overall, demand has been consistent. Markets have started to climb back up this week and will remain firm until we reach our next peak in production.

Supplies have been steady with small waves of product that come on quickly. Last week, we did see some improved supplies with some sharper pricing being offered for volume, but that has leveled out this week and supplies are back to normal. Some shippers are expecting good supplies of Organic raspberries later this week, with opportunity buys in Lompoc. Quality has been very good in all locations and demand has been steady. We expect to see good supplies moving forward with an increase in harvest out of Salinas and Watsonville areas.

Alerts:
Opportunity buys on organic in Lompoc.

Supplies have certainly improved over the last week. Unfortunately, quality has not seen the same level improvements. The weather has cooled down a bit in Salinas / Watsonville areas, but we are still seeing residual issues when it comes to heat damage. Shippers are aware of this and are doing their best to avoid the problems at field level, but some bruising is unavoidable and not easily detected until a couple of days after harvest. Discussing these challenges with shippers, the feedback is to expect to see up to 20% bruising. Moving forward, with the cooler weather and new blooms, we expect quality to improve. Over the next 2-3 weeks, we will see new harvest in both Santa Maria and Salinas / Watsonville. That being said, we continue to see plenty of availability this week with market prices adjusting down. Demand has been lighter. We have multiple aggressive opportunities to move volume.

Alerts:
Plenty of fruit available, but quality is still fair. The heat has caused some softer fruit.

The broccoli market has started to get little active this week. The supplies out there and have become a bit tighter with some shippers walking in sold out. Quality remains good with minimal yellowing, little mechanical damage, and decent crown size. Next week's outlook is for supplies to increase slightly.

The current market on Brussels Sprouts continues to slowly come off as of late. Supplies in Salinas continues to improve. Quality is much better from the previous weeks and is seeing less insect damage, black spotting and decay.

We are now seeing better yields of jumbo size carrots, but demand is holding strong and so is the market on jumbos. Value-added packs and medium-sized supplies remain good.

Cauliflower market has leveled out with steady supplies from the Salinas and Santa Maria areas. Overall, the quality has been good. The quality reports have shown weights in the 25 to 31-pound level, little yellow cast to cream color, and occasional bruising.

The warm temperatures in California these past weeks has accelerated the growth of this commodity both north and south. Large sizing continues to be the size most available, but all sizing is in good availability. Beware of some seeder that shippers are reporting on. This market is steady. Demand is simply flat, and this will likely continue for a few weeks until schools start up again. Quality aside from some seeder is good with weights ranging from the 60 to 65-pound. Michigan production has been stronger, with heavier supplies coming on large sizing.

Jalapeño – The market on this item remains steady. Jalapenos being harvested in Baja are mostly going directly to the L.A market. Production has increased from Baja growing already. Quality is mostly fair to good. Santa Maria has now started harvesting jalapeños. The hot weather in California has slowed production.

Pasilla – Most of the Pasilla for the west coast is coming from the Baja growing areas. Quality from Baja has been mostly good; however. New fields are being harvested from Baja. Pasilla are available to load in Santa Maria, high heat in the area has slowed production.

Anaheim – Anaheim peppers are being produced in Baja, where the quality of the fruit has been good. Supply in Baja has increased to meet demand. Production of Anaheim has also started from Santa Maria. The market on Anaheim is steady.

Tomatillo – Better supplies available on both husked and peeled tomatillos. Most Baja fruit is still being sent directly to the L.A market. Tomatillos are now available in Santa Maria, mostly the husked variety. Volume is light and pricing is higher.

The Cilantro market has recently spiked due to the heat we normally find this time of year. The heat has burned up the product and stunted the growth and even started to shoot seeder stems instead of regular growth. This has resulted in much lower yields per acre than normal. Other growing areas across the country have also had to deal with weather, and that has hurt some of the local growing areas as well. Mexico growing areas have also experienced heat and rain which has lowered yields. It looks like the next two to three weeks will continue to be a challenge.

The overall lemon demand continues to exceed the limited available supplies. Domestic production out of Ventura County is nearly finished with picking and working out of limited storage fruit. Importers of offshore fruit are beginning to see improving supplies of fruit to arrive, but far less that is needed to fill the demand. The shortage is expected to go into September before we start to see some relief with the start of California Desert Crop.

Alerts:
Demand exceeds available supplies.

With Limes coming in from Veracruz Mexico, we are starting to see a gap with very low volume. Shippers are requesting that we are flexible on delivery dates and also place orders in advance to do their best to cover orders. Prices are subject to change daily. The new crop is going to be short in most production areas, and the old crop is pretty much done. Shippers are reporting a gap to possibly run into mid to late September.

California Valencia harvest is moving at a steady pace. Packers are packing only 2 to 3 days a week to spread this light crop out into September. Fruit quality and color are good, with size currently peaking 88s/72s/113s. Demand remains strong and increasing as early school demand is beginning. Small size fruit 113s/138s will be limited through to entire Valencia season.

Cucumbers are in good supply, but pack-outs are heavy to selects and carton 24's. Demand has been weaker over the last week keeping the super market steady and weakening the prices on selects and carton 24's. Production is coming from the usual summertime regions; Western North Carolina, Tennessee, Ohio, Michigan and the North East. Quality is good in most regions, Western North Carolina and Tennessee have been receiving a lot of rain causing some issues in those regions.

Alerts:
Wide range of pricing between selects and supers.

Quality on cucumber from San Diego has been mostly good. Cucumber volume from this region remains steady. Extreme heat in Baja has slowed production slightly, while demand remains steady.

Eggplant supplies will get better this week as Michigan and Ohio are starting, more importantly, quality will get better also. Some shippers in Georgia hung on until this weekend, but daily rains have put an end to that supply. New Jersey has been shipping but not with enough volume to satisfy all the business in the Northeast. New supply from the mid-west will be welcomed.

Alerts:
Eggplant supplies and quality will get better this week with new regions starting.

Transitions:
Eggplant is in transition to Ohio and Michigan.

Eggplant in California is being grown and shipped out of Fresno and Bakersfield. Harvest of supply is steady to meet demand. Demand and pricing have been steady. High heat in the growing area has affected quality. Shipping areas include Bakersfield, Fresno, and Gilroy.

California greens are readily available and of excellent quality. The main area for harvesting right now is Arvin CA, pulling all colors. The Fresno area started a few weeks after Arvin but is now also in full swing. Fruit is seeing excellent size, color, with very healthy stems.

California greens are readily available and of excellent quality. The main area for harvesting right now is Arvin CA, pulling all colors. The Delano and Fresno area started a few weeks after Arvin but are now also in full swing. Fruit is seeing excellent size, color, with very healthy stems.

The market continues to be competitive. Sizing is still trending to the smaller sizing. With the hot weather in Mexico, quality has been improving overall, and the presence of thrip damage and leaf minor is minimal. This hot weather is continuing to help fight off thrip and leaf minor presence.

The kale market continues to be steady with no signs of changing in the coming week. Supplies continue to be good with steady demand. Quality is good with good color, full bunches, and only an occasional yellow leaf being reported.

Steady supplies continue to be the story with this commodity in both northern and southern California. Expect steady production numbers for the rest of the week. Some issues that have been reported include internal burn, puffiness, insect damage, and mechanical. This is due to continual high temperatures in the growing regions. All suppliers are reporting this. Weights are good with palletized averaging 42-46 pounds. Pricing is very competitive, and shippers are flexing for volume type orders.

The warm temperatures in California both north and south has caused accelerated growth in romaine as well as all leaf items. Some defects customers have seen upon arrivals include twisting, fringe and tip burn, mechanical as well as some insect damage. This market is flat, to say the least. Most suppliers are flexing on volume type orders so don't hesitate to promote. Expect heavy supplies all week. We are in the peak of the season in production with many suppliers.

Tender leaf continues to have abundant supplies of arugula, spring mix, baby spinach, and cello spinach. The quality has been really nice with minimal yellowing, excessive moisture, or bruising of the tender leaves. The weather for growing conditions has been optimal for all tender leaf items.

Weather remains hot in the San Joaquin Valley this week and will cool down a bit going into the weekend. The market is low with plenty of fruit out there. Volume is strong on larger fruit (9s and 12s with some 15s). Brix/sugar levels are in the 10-12 range. Overall quality is good.

Weather remains hot in the San Joaquin Valley with temps in the triple digits. With the market trending down all sizes are plentiful. 5s, 6s, 8s and some 9s as well. Brix/sugar levels remain in the 10-12 range. Overall quality is good.

Volume has increased throughout Central California. Demand remains steady. Price has adjusted down slightly with additional supplies creating pressure to promote sales. Quality is mostly good.

California and New Mexico are the main shipping points for all colors of Onions. Markets are steady. Quality is good with a few issues being reported on heat-related defects (Sunburn, light decay) upon arrivals out of California. Temperatures have been in the low 100's for a couple of weeks with a slight cooling trend later this week. Light staining is showing up in some of the packs coming out of New Mexico from the rains last week. Yellow onions have started in a very light way this week out of Washington and Idaho. Reds to follow next week. These will be the main shipping points by the middle of this month. Quality is being reported as being very nice. 2018/2019 storage crop is being reported as being very nice with sizing pointing to be peaking on Jumbo's and larger. Stay tuned.

Alerts:
High temperatures in all growing areas especially California.

We are just a few days away from the start of new crop Bartletts out of Washington. Most suppliers are still cleaning up their storage inventories of Anjou pears. Although they should be finished by next week. Quality on the fruit out of Washington is good with minimal arrival issues. California Bartletts and red crimson pears are in full swing harvesting. There is a range of sizes, and the market is steady at current levels. The quality is excellent with the new crop.

Pineapple volume coming out of the tropics remains good, but we are going to slowly start to see a seasonal decline in supply. This planned supply decline comes during a season where other commodities are more abundant. Size is peaking on 6ct and 7ct.

New crop russet Norkotah's have started in Washington and Idaho with building supplies. Quality is being reported as good. Sizing has started off peaking on 70 count and smaller. This trend with change fairly quickly as they switch fields into peaking on 60 count and larger. #2's are always limited for the next couple of months with markets close to the #1's. Russet Burbank's out of Idaho will be available into the end of August with most suppliers finishing up the middle of the month. New Crop Colorado and Wisconsin will start up in the next week and a half. New crop pricing is coming out strong but will weaken and steady out quickly.

Transitions:
Storage supplies are winding down as new crop starts in Washington and Idaho which will be followed by Colorado and Wisconsin.

Red potato supplies are abundant with little to no change in the markets. California, Washington, Texas, Wisconsin, and Big Lake, Minnesota are the main shipping points. Quality is very nice. Golds and white potato supplies are still mainly limited to California with supplies just starting in Washington and Big Lake, Minnesota. Quality is good with good demand. Light skinning is the main defect as these new areas start.

Transitions:
Eastern supplies finishing up as Minnesota gets started.

Squash is in good supply in all producing regions from the mountains of Western North Carolina and Tennessee to the midwest, northeast, and Canada. The market has eased down the past week with so many local deals under way. The east coast has been getting rain for the past week with the mountains of North Carolina and Tennessee being the hardest hit. This could have an effect on supply over the next two weeks.

Alerts:
Rain on the East Coast may affect supply.

Zucchini and Yellow S/N - Good supplies are available from Santa Maria, CA. Quality is mostly fair to good. Production in Santa Maria is expected to remain consistent through the summer season. High heat in the last few weeks has affected the quality and shelf life of the squash. Few squash are also crossing from Baja. The market is steady, and demand has slowed with additional supplies being offered across the country from local growers.

We are in peak season for stone fruit. There is plenty of fruit available in larger sizes, and in tray packs. As the fruit sizes up, there are less smaller sized fruit and volume fills available. Growers are willing to make deals while fruit is prevalent, and the demand is slow before the school season starts up.

Alabama, North Carolina, Tennessee, and Virginia farms have all experienced rainy weather in the past week putting a damper on harvest schedules, slowing the amount of tomatoes entering the eastern pipeline. Arkansas has finished their tomato season also contributing to lesser supplies in the east. However, there is little change to price this week with heavy volumes continuing to ship from California. That being said, quality is lessening from the effects of weather and shrink is higher than normal. Roma tomato availability has contracted further from already low yields, pressing FOBs up a couple of dollars to stave off increasing demand. Grape and cherry tomato volumes have also been reduced by weather but will improve in conjunction with the climate.

California is in full production and prices remains low for the season. Heavy volumes of tomatoes are in the marketplace and pricing is starting to separate as quality and condition become a bigger concern for buyers as growers struggle to keep their coolers moving product, and extreme heat influences the integrity of the fruit.
Round tomatoes are nearly half the price of eastern grown tomatoes and quality is mostly good, however, Roma tomatoes from California are marginal. Baja continues to cross better quality Romas, but volumes are beginning to taper off for the season while newer growing operations get ready to break ground. Oceanside California has begun shipping last week and building volume helping to promote a competitive market further.