The Source - August 13, 2015

California galas remain steady to slightly lower and they are still peaking on 100/113s with good color. 80s and larger remain short.
Washington Red Delicious are steady to higher and the market remains firm. Most shippers are still peaking on 88s and larger in the higher grades. Small size reds remain short. Earligolds & Gingergolds are steady to lower on most sizes and they are 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 are limited. Lower grade Grannys are also limited. Washington is starting to pack new-crop Galas and they are heavier to the smaller fruit. The shippers are size and color picking in 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.

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

Washington is scheduled to start packing Honeycrisp in two weeks.

The asparagus market has settled to slightly lower levels as supplies have steadily increased. This market should remain about steady for the coming week. Quality is reported as very good.

California harvest is declining and is expected to continue to decrease gently through August to season's 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.

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.

Availability has improved this week and we are seeing better volumes of fruit coming on. Demand has been very good which is keeping the market steady. Quality has been good overall. This is an excellent time to promote fresh CA blackberries as peak season is upon us!

Peak Seasons:
This is an excellent time to promote fresh CA blackberries as peak season is upon us!

Availability is very limited out of all growing regions. 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 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. South America has begun fresh harvest. Peru is sending their first shipments on the water bound for US ports. Argentina will have fresh fruit by early September but they're hesitant with projections as the market will determine whether that fruit is sent to the US or other countries offering better money for the initial fruit shipments.

Alerts:
Availability is very limited out of all growing regions.

Transitions:
Peru has begun fresh harvest. Fruit is on the water bound for US ports.

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!

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

The strawberry market remains active with good demand and very light availability. Suppliers are selling out of fruit daily and coming into empty coolers awaiting fresh harvests each day. We have passed the peak of the spring/summer season and volume will 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. Counts are ranging from 20-25 berries per 1 pound clam in Salinas and Watsonville. 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. Sub-par fruit is still being diverted to processors to avoid arrival issues for the fresh fruit market. 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. Some shippers are starting to get a few "mud" berries from the new crop.

Alerts:
Very limited availability and quality issues are prevalent throughout all labels, industry wide.

Increasing supplies in the face of steady demand are weakening the broccoli market. Broccoli crowns especially are easing back as harvest volumes increase. Quality is reported as generally good in all growing regions.

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.

The cauliflower market is firming up as the long anticipated drop in harvest volumes is beginning to be felt. The unseasonably warm summer has caused cauliflower supplies to come on much sooner than expected. This has created a harvest gap that is just now manifesting itself. The high average temperatures have also caused quality issues with some yellowing, brown spotting and closely trimmed product showing up. We expect this tightening of supply and the related quality issues to continue for several weeks.

Alerts:
Quality and supply issues now showing up in cauliflower due to the above average temperatures.

The market on celery has strengthened. Supplies of celery have dropped due to quality issues (black heart, pith and insect damage). This is impacting the availability of the larger sizes more severely as the celery tends to develop more issues the longer it is in the ground. Consequently, the growers are harvesting earlier in favor of quality over size.

The demand exceeds supply market for cilantro looks to continue through the month of August. The recent embargo of Mexican supplies, as well as the reduction in local supplies due to heat related issues, will continue for the next several weeks.

Crop is peaking on 140s and smaller. Demand remains very high and is exceeding supplies on 165s 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.

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

The lime market has climbed up further 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. Demand has increased which is also pushing up the market.

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.

Alerts:
Demand for California Valencia oranges 88s/113s/138 is beginning to exceed supplies as school demand picks up.

The green grape market is about steady with good demand and good supplies, Quality is reported as excellent with sizing of the Thompson Seedless running smaller than other varieties. The Thompson's are selling at a discount due to the smaller size of the fruit.

The market on red seedless grape has steadied out with the transition into Crimsons as the primary supply. We are still seeing some late flames with good supplies of Scarlet Royals and some Vintage Reds as well. Quality is reported as excellent on all with the larger sizing (and premium pricing) running to the Scarlet's and Vintage Reds.

The green onion market is steady with excellent quality and supplies from all growing regions.

The market on kale is steady with good supplies and good demand. Quality is reported as excellent from all growing regions.

The iceberg lettuce market is currently demand exceeds supply. Once again, the hotter than normal temperatures this summer are the culprit. Much lighter than average weights are being reported as shippers try to harvest before any quality issues become too severe. Quality issues reported are seeder, burn and insect damage. This market looks to continue to strengthen through this week.

The romaine market is strengthening as supplies are beginning to tighten up. Weights are dropping due to quality issues (heat related) and the need to harvest early. Green leaf, red leaf and butter lettuce are all experiencing the same problems. All are showing a drop in size and weight at harvest due to heat related issues. These markets are all strengthening and will continue to be strong for the next few weeks.

The West Side is producing good 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 has come down on 9ct, 12ct and 15ct. The 18ct are currently holding steady. We are currently experiencing decent demand for cantaloupes along with better supplies.

The peak size is currently 5ct with more 6ct available now than we had during the first part of the week. Honeydew 8ct continue to be very scarce. The quality and sugar contents are really good for dews right now and this trend looks to continue. The market has moved down a little on dews. We continue to experience good demand right now and supplies have increased enough to cause a slight drop in the price of 5 and 6ct.

California and New Mexico shippers are getting close to being done for the season. They will finish up sometime next week. Quality is still good. Market is steady on all colors and sizes. Idaho and Washington shippers are slowly getting up to speed and will be ready to take on the demand as California and New Mexico finish up. Quality out of Idaho is good and market is steady.

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. 120-size and smaller are no longer available. Stark Crimson pears are also steady and continue to peak on 35-55 count half cartons. California Bosc pears are steady and still 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 is steady on all sizes. Washington volume is still low but that will change by the end of next week. Washington D'anjou pears are still available but the supplies are light and they are cleaning up.
Chilean pears are also still available in certain sizes but are almost finished.

Transitions:
Washington will start to pack a few Bosc pears in two weeks

Idaho shippers are all packing New crop Norkotah potatoes. Quality is good. Sizing is peaking on 70 count, with a good mix of larger and smaller potatoes. Market is steady.
Washington shippers are all into new crop potatoes. Quality is good. Sizing is peaking on 80 count and smaller. 70 count and larger are very limited. Sizing should slowly improve out of this area over the next couple of weeks.
Colorado has just started to break ground on new crop and the sizing is starting out very small. Peaking on 90ct and smaller. Sizing out of this area will not improve for about two weeks. Market is steady but firm.
Wisconsin has also just started breaking ground on new crop and their is a good mix of sizing. Peaking on 70 count. Market is steady. Quality is being reported as good.

Bakersfield, California white potatoes are steady on all sizes. They continue peak on A-size and the quality has been good.
Stockton, California continues to pack reds, whites, and golds and all are peaking A-size. The market is steady on all sizes. Premium and baker golds are limited. The quality has been good on all colors.
Western/Central Idaho reds and golds are steady and both are peaking on A-size. Some suppliers have limited availability of B and C-size.
Wisconsin reds and golds are finally steady and have reached their trading level. Both colors are peaking on A size but they also have good volume of B-size reds. There are very few C-size golds in Wisconsin. The quality is good.
Minnesota reds and golds are steady on all sizes and they have also reached an established trading level. Both colors are peaking on A-size. The quality has been good.

Transitions:
Delaware is starting to pack white potatoes.

Demand for peaches and nectarines has picked up with the new school year. Sizing continues to run more heavily to the larger tray packs. Pricing is relatively steady despite this increased demand. Nectarines are approaching the end of their season in California. Peaches, due to the late varieties, should continue to be readily available through the month of September. The market on black and red plums is about steady with availability fluctuating between varieties and color from week to week. Quality on all stone fruit is reported as generally good.

Rounds - The market in the east continues to be strong. Still not enough volume coming out of Virginia and Tennessee to ease pricing. Quality is good. Suppliers that were going west for product may start to see cost leveling out. This will make east coast product even tighter. Look for the market to stay steady the rest of the week.

Roma - The market on Romas had a slight increase. Supply is just meeting demand. As long as Mexico continues to have volume the east market should remain steady. Quality is fair/good with some color issues. Michigan, Virginia, Alabama and Tennessee are all producing and may help to ease the market next week.

Cherry/Grape - Cherry market remains high. Virginia has some quality issues and Maryland planted light this year. High prices will remain for another two weeks. Quality is poor/fair. Grape market tightened up a bit due to some weather issues in the northeast. Quality is good. Virginia, Maryland and Michigan have availability as long as weather permits. Market should stay steady this week.

Rounds - The market in the west should start to see some steady volume beginning next week for about 2 - 3 weeks. September will tighten up due to past high temperature's effect on crops and lighter plantings due to water issues. Should also see more volume on the smaller sizes. Market will remain steady this week. Quality is good.

Romas - Roma market will remain steady. Supply is meeting demand with some color issues in quality. Should not see much change with Romas in the next week.

Cherry/Grapes - Cherry market will remain strong this week. Increased pricing is keeping demand low and allowing for availability to those who will pay the increased cost. Grape market continues to be on the rise due to poor quality/gapping. There is availability in multiple areas but the quality varies (color issues). Market will remain strong for another couple of weeks.