The Source - August 17, 2015

California Galas are steady to slightly lower and they are still peaking on higher color 100/113s. 80-size 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 on all sizes and they are evenly sized from large to small. Granny-Smith are steady to higher on all sizes and 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 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.
New York is starting to pack a few Jonamacs and they have some smaller sizes available.

Transitions:
New York and Michigan will pack Paula Reds later this week.

The market is stronger out of Mexico and Peru. Production from the Mexico region is expected to run until mid-September. Jumbo packs as well as large and extra large sizing are the lightest in availability and these sizes are commanding a premium price. Production out of Peru is moderate to light. Supplies are better on standard and large packs. This market will likely gain strength daily.

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.

Blackberries are increasing in volume across California growing regions. Quality has been good and we expect continual increase over the next several weeks!

Overall volume has begun to decrease. Larger packs such as 18oz, pints and bulk packs are all declining in the market and small clams are more available. 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 projecting a major historic production gap may hit by mid-late August. They are expecting a possible 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.

Raspberry availability began to tighten toward the middle of last week and continues to be lighter this week. Temperatures reached above 100 degrees this past weekend in both Salinas and Watsonville growing regions. Field crews and quality control supervisors are currently assessing the plants and fruit for damage incurred. The extreme heat causes the plants to hold onto the fruit making it even more difficult to harvest without damaging the delicate raspberries. We are seeing a dip in production from crop cycles as well. Our grower/shipper's QA personnel will be implementing quality specifications and inspections to counter current challenges.

The strawberry market remains active with very high demand and extremely 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 continue to decrease in the Salinas/Watsonville 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 strawberries 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. We are continuing to see fill-rates, cancellations, pushed orders on a daily basis. Overall volumes of fruit coming in from the fields are considerably lower than what is projected daily for the northern district. Many growers are now gapping and in-between fields leaving us with even lower volumes of fruit than we’ve experienced over the past several weeks. A light at the end of this tunnel is Santa Maria's new fall crop is coming on in a light way this week. The harvests are increasing more quickly than originally anticipated. Quality is good with full color, firm texture and larger berries, 12-15 strawberries per 1 pound clam. Most shippers have spent the previous weeks cleaning up the plants and the "mud crop berries," keeping most of the fruit very close. This week, more shippers are quoting availability for Santa Maria although the fruit is demanding a premium price.

Alerts:
Strawberries remain extremely limited and quality remains fair at best out of the Salinas/Watsonville growing regions.

Transitions:
The new Fall crop harvests in Santa Maria are increasing and even coming on more quickly than anticipated. This is very good news as the northern district continues to be challenged by weather, lack of labor and availability of quality fruit for fresh harvest.

Fall (new) crop strawberries from Santa Maria

This market is stronger on the bunched product as well as crowns. The warm temperatures in the growing regions has affected the availability of this commodity. The product has been reported as a little rubbery. Yellowing and brown beading has also been reported. The main production continues to be out of the Salinas Valley. The Southern California region will have moderate to light production all week. Production out of Mexico is moderate at best and Texas is in production as well.

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 and market is firm. Quality is good.

This market is steady to start the week. Supplies are good with most suppliers and pricing is competitive. This is a good time to promote this commodity. Demand was expected to pick up at the end of last week, but the market activity was light, overall. The quality has been reported as good in terms of color and texture. Santa Maria and Salinas are the main growing regions for this commodity.

This market is stronger. Supplies out of the Michigan region is moderate. Santa Maria production continues to be stronger in small sizing, thirty- six counts in particular. This sizing has the best offers available. Large sizing is active. The Salinas Valley has moderate to light supplies to start the week. The large sizing, twenty four counts specifically are highest in demand. Expect good quality from all the regions.

There is no change with this commodity. Demand exceeds supply. There continues to be a ban on product out of Puebla-Central Mexico. Planting gaps in northern and southern California also are key reasons for the shortage of product in the marketplace. The Baja region of Mexico continues to be unable to pick up the slack for extra product. The shortage of this commodity will continue all this week at a minimum. Some seeder has been reported upon arrivals.

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 continued its upward move 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 to below average in quality due to it being hot in the growing region and they are tired now. Stylar breakdown is the main defect some lots of old crop and yellowing also may be found. Large sizes are less plentiful. Demand has increased which is also pushing up the market.

California Valencia oranges are moving very well and are in full demand with the school push started; 88s/113s/138s are in demand exceeds supply. Because poor pack outs that shippers are experiencing with soft fruit and undersized fruit, many shippers are already looking at their final few weeks of their Valencia season, this is much sooner then many expected. Shippers have been slowing the pace of packing fruit to stretch out this year's lighter volume Valencia crop, but even this may not help much.

Alerts:
Demand for California Valencia oranges 88s/113s/138 has reached demand exceed supplies as school demand continues picks up.

The market on green seedless grapes is about steady. Thompson Seedless and Princess are still the predominant varieties available. The Princess should begin to fade out in the next few weeks as the Autumn Kings come on. Quality is generally good on all with only fair demand.

The red seedless market is strong with good demand for adequate supplies. We are now primarily into the Crimsons with some Scarlet Royals and Vintage Reds available at a premium over the Crimsons. Quality on all is reported as excellent with much better sizing on the Scarlets and Vintage Reds.

This market is steady, overall. A few suppliers have attempted to raise the pricing slightly, but end up lowering the price due to lack of demand. Good weather continues out of the Mexico growing region. Good supplies are expected all week. Supplies are expected to exceed demand all week. All sizing is available, with the heavier availability coming in small and medium packs.

This market is unchanged. Good supplies and good quality continue to be characteristics of this commodity. The Baja region as well as domestic product are plentiful and clean. Shippers continue to listen to offers. Expect strong quality and availability throughout this week.

This market is active. A few suppliers are sold out to begin the week. Yields continue to suffer due to current high temperatures in all the growing regions. Growers continue to evaluate damages. Internal burn is the big problem. Puffiness and insect damage continue to be issues as well. Night time temperatures have been warm. The weights on palletized are averaging 40-46 pounds. Salinas and Santa Maria are the two main growing areas at this time. Production in Santa Maria is moderate. Expect supplies to be light throughout the week.

The romaine market is steady. Suppliers continue to experience lower yields as temperatures continue to swell across California. Fringe burn, insects, dehydration and internal burn will be seen upon arrival. The weights on romaine cartons continue to average 31-36 pounds. Chopped romaine as well as romaine hearts continue to show pinking upon arrival. Most suppliers are holding to averages on chopped romaine. Green and red leaf markets are steady. Fringe burn, mildew damage and insect pressure are defects associated with red and green leaf as well.

The West Side is producing good volumes of 12ct, 15ct and 18ct right now. The main sizes are also 12ct and 15ct. The size curve is beginning to peak back towards smaller sizes and 9ct are less plentiful than previously. The West Side has very good quality and acceptable sugar contents. The current market has come down on 12ct, 15ct and 18ct. The 9ct 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 last week. Honeydew 8ct continue to be 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 the 5ct, while the 6ct and 8ct are holding steady at current levels. We continue to experience good demand right now and supplies have increased enough to cause a slight drop in the price of 5ct.

New Mexico and California onion growers are slowly coming to the end of their season and should finish up late next week. Quality is still being reported as good on all colors and sizes. Demand is moderate. Idaho is slowly getting up to speed as more and more growers start harvesting. Quality is being reported as good. Demand is light to moderate. Market is soft on jumbo and mediums yellow onions. Super colossal and colossal onions are limited with a firm market. Washington growers are still peaking on medium onions with limited supplies of jumbos and larger. Quality is good and demand is moderate.

California Bartlett pears are still peaking on US #1 80-100s and the market is steady. Demand is lighter since Washington has started and 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 to lower on all sizes in the US#1 grade while the fancy grade are steady. Washington volume is still low but it is improving. Washington D'anjou pears are finished for the season.

Supplies of New Crop Idaho potato continue increase as each week moves on. Supplies are peaking on 70 ct and larger with limited supplies of #2's and 100 count and smaller. Quality is being reported as good. Demand is moderate. Look for the market to slowly come down on 70 count and larger as this week moves on. Storage supplies of Burbank's potatoes are all but done for the season. Washington, Colorado and Wisconsin potato supplies are peaking on 80 count and smaller with very few 60 count and larger. The potato growers out of these areas should see larger size potatoes in the next couple weeks as they get into their later fields. Demand is very good on 60 count and larger with a firm market. 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 is packing reds, whites, and golds and all are peaking A-size. The market is steady on all sizes. The quality has been good on all colors.
Western/Central Idaho reds and golds are steady to higher and both are peaking on A-size. The availability is lower on all sizes and colors.
Wisconsin reds and golds are steady and appear to have reached their trading level. Some shippers are even a little higher on Red Bs. Both colors are peaking on A size but have good volume of B-size reds too. There are very few C-size golds in Wisconsin. The quality is good.
Minnesota reds and golds are steady on all sizes except Red Bs which are a little higher. Both colors are peaking on A-size. The quality has been good.

Nectarines are beginning to decline in volume. Sizing is still heavy to the larger size tray packs. Demand is good and the market on nectarines is strengthening. Peaches are still readily available. Sizing on peaches is limited and skewed heavily to the tray packs. Although volume will drop off in the coming weeks; we will have late variety peaches through the end of September. Plums both black and red, are declining in volume on all sizes leading to a much stronger market. Supplies will continue to be sketchy on plums as the industry moves through varietal gaps throughout the coming month.

Rounds - The east market is strong. Not enough volume coming out of Virginia and Tennessee to ease pricing. Quality is good. Buying out west starting to level out price wise. This will tighten supplies in the east. Market should remain steady for now.
Roma - The market on a slight rise. Supply is meeting demand as long as Mexico continues to have volume. Quality is fair/good with some color issues. Michigan, Virginia, Alabama and Tennessee are all producing and may help to ease the market later in the week.
Cherry/Grape - Cherry market is high. Not a lot of volume coming out of Virginia nor Maryland due to some quality issues and light planting. High prices will continue. 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 should continue to lighten up a bit. California product is coming on and together with Mexico supplies are meeting demand. 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 is steady. Supply is meeting demand with some color issues in quality. Mexico continues to bring in volume together with California product coming on we should see an increase in volume.

Cherry/Grapes - Cherry market is strong this week. Increased pricing should keep demand low. Allowing for availability at a premium. 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.