The Source - August 14, 2019

Eastern Region

New York – Ginger Golds are expected to start 8/13-8/16. ‘Early’ Reds (Polar, Jersey Macs) to start 8/15-8/20 with ‘Late’ Reds (Jonamac, McIntosh, and Gala) coming mid to late September.

Michigan – Golds expected to start 8/22 with Gala and McIntosh expected 9/10. We should see Red Delicious and Fuji late September and Jonagold the first or second week of October.

Western Region

Washington– We continue to see active markets in the world of apples. Shippers have begun subbing Ginger Golds for Golden Delicious with new crop GD’s not expected until the second or third week of September. Many shippers are reaching the end of their stored product (ie. Golden Del., Fuji, and Gala). We should see new crop, Royal Gala apples next week (very light volume to begin the season).

Schools are re-opening, in some parts of the country, and demand is steadily increasing with each passing week. SEND ORDERS EARLY. Flexibility on subbing sizes/grades/varieties is essential—especially on smaller, foodservice sizes (113ct, 125ct, and 138ct). Know that some orders may require an extra pickup location due to some shippers not having all items.

California – The new crop, CA Gala apple is now available and commands lesser money than its Washington counterpart. CA Fuji apples are expected mid-August and Granny Smith apples should start late August/early September.

Chilean Braeburn – 70ct XFCY (available)
Chilean Pink Lady – 70-90ct XFCY (available)
*High color—FOB L.A.

Alerts:
Many shippers have started shipping Ginger Golds in place of Golden Delicious (unless instructed not to).

Central Mexico (Guanajuato) production has started to decline due to seasonality, they should be wrapped in this region in the next 2-3 weeks. Production on the larger sizes is still very limited. Both Southern (Ica), and Northern (Trujillo) Peru are both being affected by the cold temperatures, production is down in both regions. The larger sizes are also limited in Peru due to the cold temperatures. Markets on both coasts are still very active, especially on the larger sizes.

Production on California fruit continues to taper off. Growers are anticipating that they will be cleaned up by the end of the month. Quality has been outstanding as fruit cuts great and eats well. With California and Peru finishing up their season, we will transition into Mexico being our only source for fruit until Chilean fruit arrives late fall.

Alerts:
California and Peruvian production tapering. Season will wrap up in the next few weeks.

We are seeing an increase in pricing this week. Over the next few weeks, the industry will clean up on California and Peruvian fruit and slowly transition into primarily sourcing fruit from Mexico. The current Mexican crop is peaking on smaller fruit as large fruit is holding at a premium. "Flora Loca" crop should start winding down by the end of the month as the "Aventajada" variety is set to be harvested mid-August. With California and Peru approaching the end of their season, expect Mexico to drive this market right back up.

Alerts:
Seeing a stronger market with California and Peru season coming to an end.

Pepper supply is in very good supply as more growers in the mid-west are starting for the season. New Jersey, Pennsylvania and the mountains of North Carolina and Tennessee continue to ship steady supplies. There are small local supplies springing up in New England and the mid-west that many customers are using to fill their orders. Canadian shippers are starting to push product into the eastern half of the US putting a lot of pressure on markets. Quality in most regions is good, with pack outs trending to Jumbo size pepper.

Peak Seasons:
Green Bell Pepper is in peak season

Green Bell Pepper- Moderate supplies of green bell pepper being harvested in Bakersfield, CA and in the Fresno, CA growing area. Mostly choice grade continues to be packed. Very light supplies of large and extra-large retail grade bell pepper being packed. Quality on green bell pepper from these areas are good. Choice grade Green bell pepper supply meets demand. Retail grade green bell pepper demand currently exceeds supply. Green bell pepper from Mexico is also available to load in San Diego, CA and McAllen, TX.
Red Bell Pepper- Light supplies of red bell pepper being harvested in the Bakersfield and in the Fresno growing area. Mostly choice grade currently being packed from these districts. Quality from Fresno and Bakersfield is mostly fair due to recent heat. The market on red bell pepper is high. Light supplies of Red bell pepper also available to load in McAllen, TX.
Yellow Bell Pepper- Light supplies of yellow bell pepper being harvested in the Bakersfield and Fresno Growing area. The majority of yellow bell is being packed into choice grade. Light supplies of choice grade yellow bells are expected to continue throughout the week. The market on yellow bell peppers is expected to remain steady. Yellow bell pepper from California is mostly fair to good. Light supplies of Yellow hot house bells are also available to load in McAllen, TX.

Blackberries remain snug with many shippers subbing into the more available organics to help fill the demand. Quality has been good in most lots but the occasional red cell has been reported in some packs. Look for the market to remain firm with some light shortages as we move into next week.

Blueberries continue to be steady in supply as we see the market edge upward due to some areas transitioning from their first crop plantings into their secondary varieties. Quality has been good on most fruit barring age or heat-related issues Look for the market to remain steady with slightly higher undertones moving into next week.

Raspberries are in short but steady supplies. Quality has varied as much of the fruit is being transferred considerable distances to consolidate with the other mixed berry shipments. Some of the problems we are seeing are an early breakdown with some leakers occurring in some of the older fruit.

The recent warmer weather has brought some of the smaller fruit on to full red color a little faster than most growers would like to see. We will definitely see a drop in berry sizing as the smaller fruit gains color faster than it gains size. Sizes are currently running 18 to 22 per clamshell and we can expect to see that number increase to the 22 to 24 count per clam. Quality on the fruit is slowly improving however we are still in the time of year where later plant growth stages in the field and warmer weather combine to produce a less than perfect fruit. We are still seeing a shortened shelf life accompanied by bruising and some leakers. The market remains firm with higher undertones as we see the Watsonville and Salinas areas move to the downhill side of peak summer production and schools begin to drive additional demand. Santa Maria is also experiencing later stage fruit issues with newer fields beginning to break late next week for some shippers. Receivers are encouraged to monitor transit temps on their trucks and maintain proper rotation practices to avoid as much shrink as possible.

Alerts:
Quality levels are still marginal out of all areas

Peak Seasons:
Salinas and Watsonville are moving out of peak availability

The broccoli market has come off a bit as the recent warm weather has brought fields forward the last couple of weeks. Quality is fair with slight purpling, some mechanical damage and occasional yellow cast.

The brussels sprouts market continues to get stronger as fields are currently gapping from the recent warm weather. Internal Decay is also causing lower yields. Look for the Brussels sprouts market to continue to adjust going into next week.

The carrot market remains steady out of the Kern county area on both cello and processed cuts. The Mexican jumbo market is lower as we see competition from Eastern Canada crop beginning to take volume away from that area. Load volume deals on the Mexican jumbos should become available looking forward.

The Cauliflower market has recently come off as fields have come forward and yields have improved. The quality is good with minor bruising and yellow cast with weights in the 25 to 28-pound level. Look for the market to continue to adjust going into next week.

Overall this market is steady. For some shippers, large sizing became slightly tighter compared to smaller sizing. With this being said, there is enough availability to meet all demands. Production continues out of Salinas and Santa Maria/ Oxnard. The quality continues to be very good. Aside from some slight leafy tops, mechanical and insect damage, these defects are minimal. Michigan continues to have production. The weights continue to be consistent, averaging fifty- two to fifty-six pounds per case. Expect steady supplies for the entire week.

Jalapenos- Good supplies of Jalapeno available to load in Los Angeles from Mexico and California. Jalapenos are being harvested in Baja California where the quality is good. Domestic jalapeno is also being harvested in Santa Maria, CA. Mostly medium to large sizes are available from both regions. Market on jalapeno has maintained in teens this week. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Good supply of Pasilla peppers available to load in Los Angeles from Mexico. Pasilla is being harvested in Baja California. Quality on Pasilla from this region is mostly good. Size on the pepper is mostly medium to large. The market on Pasilla is Higher/steady. Pasilla from Mexico also available to load in McAllen, Texas.

Anaheim- Moderate supply of Anaheim available to load from Baja California and Santa Maria. Quality from Baja and Santa Maria is mostly good. The market for Anaheim is in the mid-teens and is expected to stay there through the week. Anaheim from Mexico also available to load in McAllen, Texas.

Serrano – Moderate supplies of Serrano peppers available to load in Los Angeles, from Mexico. Supplies are expected to remain steady throughout the week. Supplies currently meet demand. Price on Serrano pepper is currently in the high teens and is expected to remain the same throughout the week. Serrano supplies also crossing through McAllen, Texas.

Tomatillo – Husk tomatillos are available to load in Los Angeles, from Mexico. The quality of husk variety is good. Good supplies on husk tomatillos are expected to continue throughout the week. The tomatillo market has remained steady on both husked and peeled. Both Husked and Peeled tomatillos have remained steady in the teens. Both varieties of tomatillos also available to load in McAllen, TX

The cilantro market continues to get stronger as growers continue to get through this gap. The recent warm weather has brought fields forward and now shippers are not able to get the supplies they need. The cilantro quality is fair with an occasional yellow leaf. Look for the cilantro market to continue to adjust going into next week.

Lemon supplies will be plentiful this week, with the majority being imported fruit out of both coasts. Market prices on small size fruit continue to soften up, looking at mid $20’s to low $30’s on choice and fancy fruit. Offshore supply continues and has have been helping offset domestic supplies. We’re hearing great feedback on the export quality. Please let us know if you have interest.

The lime market will remain relatively firm while demand exceeds supplies on 175ct and larger. This is based on the presence of fewer crossing and decreased availability for this time of year. Rains in Veracruz and Michoacán this week have put an even bigger damper in an already tight market. These trends will remain consistent until late August/early September when the new crop officially begins. The new crop will peak on small sizes, beginning with 250/230’s. With fewer trucks crossing and less product available, please expect layovers and loading delays.

Valencia supplies are steady on large size fruit and getting snug on the small sizes 113’s & 138’s. With schools back in we’re experiencing a high demand for the small fruit. Markets are firm in the mid teens and we could see a lift in markets as demand increases. On Specialty Citrus, the Bloods have about another week left, supplies on import Clementine Mandarins on both coast are expect to increase by the end of the week. Grapefruit supplies are looking plentiful through the summer, plenty of opportunities to push volume.

Cucumber supply is coming from all over with many small local farms in the mid-Atlantic, northeast and mid-west. The larger shipping points are New Jersey, New York, Michigan, and Ohio. Canada is in full production and shipping product to the northeast. Pricing has come down over the past week as supplies have picked up with excellent weather in most growing regions. Demand is slow with a lot of people getting their last vacations before schools start back for the fall. Quality is good in most cases, with lower prices, farmers are leaving the older fields.

Peak Seasons:
Cucumbers are in peak season.

The cucumber market has increased this week and is expected to remain high throughout the week. West coast cucumbers are currently being harvested out of Baja California. Moderate supplies of cucumber being produced by the Baja district. All sizes and pack styles currently being packed. Demand is currently exceeding supplies on both retail and foodservice quality. Quality from Baja is good. Light supplies of Mexican cucumbers currently crossing through McAllen. Cucumber quality from McAllen is good.

Eggplant supply has gotten better with the mid-west picking up in volume as more growers start for the season. Michigan and Ohio have started and production has picked up over the past week. Demand for eggplant this time of year is typically low and pricing has stayed at reasonable levels through light supply situations. Supplies should pickup through the week. There is some supply coming from the Carolina's but the quality is starting to slide on most of that product. New Jersey is still shipping steady supplies, most of that product is staying in the northeast.

Transitions:
Eggplants are in transition to the mid-west.

Moderate supplies of eggplant available to load in Los Angeles. Eggplant continues to be harvested in the Bakersfield and Fresno, CA district. Mostly choice grade supplies of eggplant are expected to be packed through the week. Light supplies fancy grade eggplant expected to be packed. Quality on domestic eggplant is currently fair on retail grade and good on choice Grade good.

Growers in the San Joaquin Valley seeing a good supply on all sizes. The heatwave we had a few weeks ago caused some damage but we are well passed that. Quality has been up to par. There are around 8 different varieties of green grapes going so there will be a wide range as far as pricing. The demand remains strong and supplies are excellent going into the second half of the month.

There are a few growers making their final passes on flames and others are slowly transitioning into other red seedless varieties. The overall quality has been great and color as well. We anticipate seeing Scarlet Royal and other proprietary red seedless pricing to open up slightly higher with sizing and condition being the determining factors.

The green onion supply continues to be plentiful with the recent nice weather in Mexico and Salinas. The cooler weather in April/May is causing occasional leaf minor. The market will continue to stay steady going into next week.

The kale market continues to remain steady as supplies continue to stay plentiful. Quality is fair with full bunches and an occasional yellow leaf being reported due to the recent heatwave.

Although schools have started up again across the nation, the market has remained steady, overall. Shippers have seen an increase in business but many of them have kept pricing steady due to good volume and yields that are being produced currently. Ideal weather conditions have kept this commodity readily available. There are a few suppliers that are more aggressive in pricing due to smaller inventories but this is not the norm. Early forecasts indicate the there will be ample supplies to fill all orders for the entire week. The quality continues to be reported above average. Some minimal defects include puffiness, insect damage and mechanical. Weights on this commodity are reported at 41-44 pounds.

This market continues to gain strength on romaine. Supplies will be on the light side for the entire week with most shippers. The quality continues to be strong, Aside from mechanical, insect damage and fringe burn, these defects are minimal. Weights are averaging thirty-six to forty- two pounds per case. Romaine hearts are light in availability as well and this market is also active. Green and red leaf, as well as butter, are in good supplies with multiple shippers. The quality of green and red leaf, as well as butter, have been reported to be strong. Aside from occasional fringe burn, mildew, and insect damage, multiple reports show the defects are minimal and the overall quality is strong industry-wide. The weights on green and red leaf range from twenty-three to twenty-seven pounds per case.

Tender Leaf supplies continue to be plentiful as the weather in the Salinas Valley continues to spur growth and produce better yields. Curly parsley, spinach, and arugula have reacted to the recent warm weather and supplies look to be in good shape going into next week. Quality is good with occasional yellowing and bruising of the tender leaves.

Cantaloupe supplies have increased this week as growers are peaking out here in the San Joaquin Valley. As some growers are going through their second pickings, we are seeing good supplies on all sizes for the week. Quality has been great and brix levels are up to par.

The honeydew market is holding steady this week and could get stronger by the end of the week. Currently peaking on large fruit and light offerings on smaller fruit. Quality has been good and brix levels are up to par. We should see good quality for the remainder of the month.

Watermelon’s currently being harvested in Central California. The seedless watermelon market is steady with steady demand. Watermelon quality out of California is good.

Northwest onions in the Idaho/Oregon and Washington regions have started up for the season. California and New Mexico are finishing up for the season over the next 7-10 days. Markets are steadily decreasing with sporadic load volume deals to be found as suppliers look to finish up and make way for the new crop up north. More shippers are coming into the mix in the Northwest and supplies will ramp up over the next few weeks as we head into September. Larger size super colossal and colossal yellow onions will be limited as the new crop size profile on yellow onions are leaning to jumbo's and smaller. Red onions are in excellent supply with a limited volume of white onions.

Alerts:
Markets are lower. Sporadic load volume deals available in New Mexico and California.

Transitions:
Idaho/Oregon and Washington have started!

Washington:
New crop, Washington Bartlett pears are now available while stored, Green Anjou pears wind down. We expect new crop, WA Bartlett pears the week of 8/19 or 8/26.

California:
The overall market is softening as more pears become available. Load volume on CALIFORNIA BARTLETT and BOSC pears are available. ASIAN PEARS are starting up; 10ct-18ct available to load in the San Joaquin Valley.

Alerts:
Washington Bartletts are now available. CA Bosc are now available along with CA Bartlett pears.

Pineapple supplies will continue to remain tight. The crownless pineapples on all sizes will be very limited on the out of the east coast, along with 7ct out of the east coast. Subbing orders around will be limited if shippers are able to do so. Industry-wide both coasts are expected to be in very tight situations until the 2nd week of September. Most customers have been understanding of the situation and flexible with subbing sizes around to fulfill orders in full.

Idaho potato markets continue to rise as Burbank supplies are finishing up for the season and new crop Norkotahs startup. Larger size 40 count through 70 count along with #2's are very limited in the remaining Burbank storage supply. Quality for the storage Burbanks will exhibit external bruising and internal black spots in some lots. New crop Norkotahs are showing excellent quality with the size profile leaning to the 70 count and smaller. We may see some minor quality issues in the new crop Norkotahs in the way of skinning, white mold, wet potatoes (wet boxes), and soft potatoes. As we move into new crop Norkotahs #2 grade will become extremely scarce with suppliers subbing into carton counts to fulfill orders. Typically a 50 count to 70 count will be used for 10oz #2's and 90 count to 100 count will be used for 6oz #2's. Washington and Colorado continue to rise in price as demand is active in all regions. Wisconsin is expected to start the week of August 26. Advanced orders (at minimum 72 hours) prior to ship date will be needed over the next 3-4 weeks as we move through the transition.

Alerts:
Markets will remain active over the next 3-4 weeks. Supplies will be limited; especially larger sizes. Advanced lead time on russet orders crucial during this time period.

Transitions:
New crop Idaho Norkotahs; Burbanks are winding down. Wisconsin to start late August.

Color potatoes have stabilized as new regions are just starting up and more around the corner. Stockton, CA continues to produce all three colors. Texas is winding down on red and yellow and expects to see supplies on red and yellow through August. New crop Washington is producing red and yellow with good quality and color. Minnesota is also producing red and yellow with improving supply. Wisconsin has started up with limited supplies of red and yellow. The volume will ramp up over the next few weeks. Idaho is coming up with expectations of an early September start. As these new regions get going we can expect a declining market over the next several weeks and much-improved supplies.

Transitions:
Wisconsin has started with limited volume. Idaho to start early September.

Squash supply is coming from many places along the east coast and mid-west. Pricing has been low for the past few weeks and now demand is picking up and pricing should be higher for the end of the week. Michigan, Ohio, Pennsylvania, New Jersey, and New York are all shipping squash. With low pricing, growers have left older fields and newer fields are in a down cycle. Weather and temperatures have been very good, producing good quality and steady volume but not an overabundant supply.

Peak Seasons:
Squash is in peak season

Both Italian and yellow straight-neck squash continue to be harvested in Santa Maria, Fresno and Baja California. Moderate supplies on both Italian and yellow s/n squash continue from the Santa Maria and Baja areas. Lighter volume continues produced from the Fresno growing region. The market on soft squash increased slightly. Quality from the California growing districts on both Italian and yellow s/n are mostly fair to good due to recent heat. Quality from Baja is mostly good. Moderate supplies are expected to continue on both Italian and Yellow S/N through the week. Light supplies of Italian and yellow s/n are available to load in McAllen, TX where markets have also increased.

Demand has definitely increased as schools re-open in some parts of the country. Over the next few weeks, we will see strong availability on yellow/white peaches—great for promotions through September. On the other hand, yellow and white nectarines are more limited as the industry is gapping—approximately one week—as growers transition to other varieties. As demand increases, prices will slowly increase over the next 2-3 weeks. Supplies on black plums should remain steady through late September while red plums remain steady, for the next few weeks, before dipping a bit (mid-September) and finishing off October strong. Reports indicate that quality remains strong across the board.

Tomato yields in the eastern growing regions have been reduced strengthening the market for the time being. Mature greens out of North Carolina are in a small gap from a heat-induced bloom drop 6 weeks ago. Virginia is in the last of their crop rotation coming back into volume the first week of September with new plantings. Alabama and Tennessee will remain in production until the first frost of the season. Michigan is expected to break ground as soon as next week. Smaller fruit is on the short side and quality is all over the board between the multiple farms in production. Roma tomatoes are steady and feeling the pressure of an upward market as rounds contract. North Carolina and Tennessee have steady supply with the brunt of demand western focused on imports. Alabama, Tennessee, and Virginia farms are all harvesting light yields of grape tomatoes. Demand exceeds supply and is sending bulk FOBs near the $30 mark. Similarly, Cherry tomatoes are experiencing the effects of harsh weather. As usable fruit is harvested, the finished product is limited mostly because less acreage is devoted to the crop. Supplies are expected to improve by the first week of September.

Californian is currently working through reduced crops caused by a heatwave in June. More heat in the last weeks of July is cause for concern of another supply gap during the month of September. Triple-digit temperatures have produced quality issues and directly affecting the shelf life of tomatoes inhouse/in transit. Sizing has been trending large but as the heat increases farms will be challenged to pick fruit before it begins to color up and mature on the vine. Vine ripe tomato supply has improved with new farms harvesting in Baja. Eastern Mexico will have decent volume for summer out of Jalisco, San Luis Potosi, and Torreon. Romas out of Baja are crossing steadily to help meet demand. California has consistent availability, but the quality is mixed. Heat in the valley is causing some scarring, sun scold, and advancing the condition of fruit in transit causing rapid maturity in color and firmness. Overall western grape tomato supply is still light in both CA and Mexico. Mainland Mexico is steadily harvesting while Baja continues to produce better quality as they move into new fields. Growing demand in the east is pressing the market upward. Production has been moderate as a whole while new farms get a slow start. Markets are forecasted to improve by the first week of September after crops have time to recover.