The Source - August 18, 2016

Weather Update

A broad trough stalls over the Central Coast with near average temperatures and a deepening marine layer providing plenty of moisture near the coast with warmer interior regions slightly above average. Baja and Northern Mexico will see gradual cooling through the week as an upper level low swings into coastal California late this week. Scattered showers will continue with the increase in monsoonal moisture late this week. Central Mexico will see slight cooling and an increase in monsoonal activity especially along the western coast into the weekend. Florida and the southeast will see light scattered showers mainly in the afternoons as a high pressure system pushes the storm track to the north. The gulf coast region of Texas and Louisiana remains under flash flood advisories as heavy rains continue to pound the region.

Freight Update

California trucks remain steady and look to remain that way again this week. Washington and Idaho potato trucks remain steady as well. The National Average for diesel remained steady and is currently at 2.306 per gallon. A difference of .305 from this time last year. California prices remained steady as well and are currently at 2.696 per gallon. Crude oil is on the rise and is at 46.57 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples

Washington - Red delicious are steady to higher on all sizes and grades with only light availability of the fancy-grade. Most shippers continue to peak on extra-fancy 72-88s but supplies are light due to strong demand. Expect the market to remain strong through the balance of the storage season. Earli Golds & Ginger Golds are steady to higher and supplies are very light. The remaining fruit is still peaking on Wash-Extra 88/100/113s. Supplies of lower-grade fruit are esp short. Granny Smith are steady to higher on most sizes and continue to peak on 88-113s. New-crop Gala supplies remain fairly short due to strong demand but supplies are improving as more shippers get started. The Galas are peaking on higher grade 100/88/113s. Two suppliers have started packing Honey Crisp and one will follow shortly. The Honey's are big peaking on 80/72/64s. The quality for C.A. reds, goldens, and granny-smith has been good. The new-crop Gala quality has also been good.
California - Galas are steady and they are still peaking on smaller fruit but supplies are light due to light packing. Some suppliers are done packing and selling from inventory. The quality has been good.
Chile - Chilean Pinks Ladys are steady but only 70s are available. Chilean Fujis are also steady and peaking on 80-size. The import quality has been good.

- pa_admin
Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Stockton, CA Steady Good
Chile Steady Good
Asparagus

Volume from Peru is lower. Central Mexico is almost done, while Northern Baja Mexico has just started.

- pa_admin
Growing Region Market Quality
Ica, Peru to Trujillo Steady Good
Central Mexico Lower Fair
Northern Baja California Norte, Mexico Lower Good
Avocado (California)

California harvest volumes have decline significantly. Southern groves are cleaned up, northern groves are declining quickly. Many shippers expect to be done with California fruit by next week and all expect to be done by first week of September. Crop is still skewed towards smaller fruit, with good supplies of 60s and smaller fruit.

- pa_admin
Growing Region Market Quality
Oxnard/Ventura, CA Steady Excellent
Avocado (Mexican)

Mexico's harvest has slowed with rains. Supplies are good on 60s and 48s have better availability, but still fairly limited. The summer crop volume estimate has been dropped by 25 percent from what was first estimated.

- pa_admin
Growing Region Market Quality
Michoacan, Mexico Steady Good
Bell Peppers (Western)

Green bells out of Fresno and Otay are showing good quality and condition. Gilroy is also offering a low volume of green bells at a cheaper price but quality and condition is fair. Red bells out of Fresno, Bakersfield, and Otay are showing good overall quality and condition.

- pa_admin
Growing Region Market Quality
Northern San Joaquin Valley, CA Steady/Higher Good
Berries (Blackberries)

Production is trending down and supply is tightening. Demand has been steady but getting stronger. Quality is good overall but there have been a few reports of overripe and red cell.

- pa_admin
Growing Region Market Quality
Watsonville, CA Higher Good
Santa Maria, CA Steady/Higher Good
Berries (Blueberries) Alert

Domestic production is slowing down sharply out of the Pacific Northwest and the Upper Midwest. Rain events and warm weather over the past few weeks have affected production in both regions - quality and availability. Volume is winding down out of both areas. Availability is less than previous weeks and markets continue to strengthen. Overall, quality has been fair to good. We have seen some shrivel, wet, leaky and mold in lots that were previously exposed to weather, etc. and seeing good fruit in other lots.





- pa_admin

Alerts:
Domestic production is falling off sharply and supplies are continuing to tighten up.

Transitions:
Peru, Argentina and Uruguay blueberries should begin to hit US ports with light volume by the end of August, increasing volume by mid-September.

Growing Region Market Quality
Mossyrock, WA Higher Good
Pitt Meadows, BC Higher Good
Salem, OR Higher Good
Grand Junction, MI Higher Good
Berries (Raspberries) Alert

Production has fallen sharply this week with continued cooler weather and volume will continue to decline until the Central Mexican deal picks up at the end of September. Supplies will become more limited than in recent weeks and demand is remaining very good. Quality has been good overall.

- pa_admin

Alerts:
Production is falling off sharply this week and demand is exceeding current supply!




Growing Region Market Quality
Watsonville, CA Higher Good
Santa Maria, CA Higher Good
Berries (Strawberries) Alert

Production has slowed down in Salinas and Watsonville. Cooler weather is reducing the harvest estimates and lack of labor is slowing down the harvesting of ripe fruit. Berries are running smaller, 21-30 berries per 1 pound clamshell. Therefore, it is taking more berries to fill each clamshell and pickers are covering more ground to do so as well. The marine layer has been heavy and leaving additional moisture on the plants and fruit which is also resulting in some wetness in the packs and subsequent quality concerns. White shoulders, water damage, overripe, bruising and dry/brown calyx have all been reported as well.

It is imperative that the cold chain be maintained from loading until end user delivery, berries should be held at 32-34 degrees continuously. Any exposure to warmer temperatures will accelerate decay and increase severity of bruising. Expectations of quality must also be adjusted as we are late in the summer season and fruit will not be as strong as you are used to. Order for quick turns and do not get long on berries.



- pa_admin

Alerts:
Demand is very good while supply continues to drop off in all growing regions, with all shippers. Availability is lighter than anytime in recent weeks.



Transitions:
Santa Maria has just begun packing their new (summer planted) fall crop. Volume is very limited out of the area so far. Sizing is in the low twenties to low thirties. New crop fruit is firm with some white shoulders and green tips and salmon (overall lighter color.) Grower/shippers are charging a premium for the new crop berries.

Growing Region Market Quality
Salinas Valley, CA Higher Good
Watsonville, CA Higher Good
Santa Maria, CA Higher Good
Broccoli

Broccoli supplies from all growing regions continue to be abundant. This has kept the market at low price levels. Quality has been really good with an occasional arrival issue here and there.

- pa_admin
Growing Region Market Quality
Salinas Valley, CA Steady Good
Oxnard/Santa Maria, CA Steady Good
Celaya Guanjuato Mexico Steady Good
Brussels Sprouts

Supplies have taken a turn south. The current weather in the Salinas Valley is holding back acreage. Small size brussel sprouts will be the most abundant pack. The market remains strong at current price levels. Quality has been excellent from both Oxnard and the Salinas Valley. Nice green color with little defects.

- pa_admin
Growing Region Market Quality
Salinas Valley, CA Steady/Higher Excellent
Oxnard, CA Steady/Higher Excellent
Carrots

The Bakersfield crop is in full production. Growth is good and producing good percentage of Jumbo size and supplies are good. Supply of baby peeled carrots are good.

- pa_admin
Growing Region Market Quality
Bakersfield/Santa Maria, CA Steady Excellent
Cauliflower

Cauliflower supplies from both growing regions continue to be steady. Lighter supplies are headed our way. The market is holding firm at the higher price levels.Quality is really nice with white color and little yellow discoloration or bruising.

- pa_admin
Growing Region Market Quality
Salinas Valley, CA Steady/Higher Good
Oxnard/Santa Maria, CA Steady/Higher Good
Celery

This market continues to be flat. This pattern will continue for the rest of the week. Steady supplies and good quality is expected out of all the growing regions. Michigan, Southern California as well as Salinas continues to produce high quality product. Shippers are expected to be very competitive all week with flexing occurring throughout the industry. Large sizing continues to have the best availability, but small sizing is readily available as well.

- pa_admin
Growing Region Market Quality
Michigan Steady Good
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Chili Peppers

Pablano - Good quality and condition expected to continue.

Tomatillo- Rainy weather has affected quality of Tomatillo. Many grower's showing water blister's turning into decay.

Jalapeno- good quality on new crop pepper, mostly large sizing with good color.

Quality and Condition are good overall. , California supply has remained steady.

- pa_admin
Growing Region Market Quality
Northern Baja California Sur, Mexico Steady/Higher Good
Cilantro Alert

The cilantro market is still trending strong with limited supplies form all growing regions. Quality is fair to good depending on growing region. Better quality is being reported out of the Salinas growing region but the acreage can't meet demand.

- pa_admin

Alerts:
Cilantro supplies are still extremely limited and quality is fair at best. The market is extremely active.

Growing Region Market Quality
Baja, MX Higher Fair
Oxnard/Santa Maria, CA Higher Fair
Salinas, CA Higher Good
Citrus (Lemons)

The Ventura crop is our main supplier of domestic fruit. Demand is strong and continues to build. We are seeing 140s/165s/200s/235s supplies getting very tight. Chilean fruit is available in good supplies.

- pa_admin
Growing Region Market Quality
Oxnard/Ventura, CA Steady Fair
Citrus (Limes)

The larger 110ct and 150ct are less expensive than the smaller sizes. Demand is good on all sizes across the board. Limes are peaking on the 150ct now. Quality is good overall with some leaf shading (yellow color) showing up and occasional stylar end breakdown showing up from previous rains. The market is steady on the limes.

- pa_admin
Growing Region Market Quality
Veracruz, Mexico Steady Good
Citrus (Oranges)

Shippers have good supplies of Valencias and peaking on 88s/113s/138s. Demand for 113s and 138s is high and increasing as school demand continues to ramp up. These smaller sizes are beginning to get tight and market is firming up on them.

- pa_admin
Growing Region Market Quality
Merced to Bakersfield, CA Steady Good
Riverside, CA Steady Good
Cucumbers (Western)

Good quality and condition on cucumbers coming out of Northern Baja coast. All sizes are being packed in 1 1/9 bushel boxes. Also 24's-36's-42's being packed. With rain's in Baja, California it has not permitted harvesting to be done as frequent.

- pa_admin
Growing Region Market Quality
Northern Baja California Norte, Mexico Steady/Higher Good
Eggplant (Western)

Quality and condition on eggplant has become better coming out of Fresno. Minimal cosmetic issue's like scaring being shown. Showing green calyx on all size's. Volume has increase on all sizing.

- pa_admin
Growing Region Market Quality
Fresno, CA Lower/Steady Good
Grapes (Green)

Green grapes supplies continue to be steady. We have multiple varieties to choose from with a wide range of size. Quality has been reported as excellent on all the new varieties. The weather has been very warm this week, so some of the older varieties (Thompsons) may show some amber coloring on the berries. Market prices on all varieties have been level with volume opportunities available.

- pa_admin
Growing Region Market Quality
Arvin, CA Steady Excellent
Grapes (Red)

Good supplies of red grape varieties. Scarlet Royals, Crimsons and Magentas are being harvested currently. Sizing in on the bigger side with most fruit peaking in the Large to XL range. Quality has been very strong. Harvest has been consistent, but the warm weather may slow production down slightly. The market prices on the new red varieties have been higher and are expected to remain firm through next week.

- pa_admin
Growing Region Market Quality
Arvin, CA Steady/Higher Excellent
Green Onions

The heat in the growing region of Mexico is taking its toll on supplies of both iced and iceless. The heat will obviously affect the quality. This will bring on more yellow to brown discoloration. The market is trending higher because of these factors.

- pa_admin
Growing Region Market Quality
Mexicali, Baja Higher Fair
Salinas Valley, CA Higher Good
Kale

Steady supplies of kale are still the theme here. Quality has been excellent with minimal dehydration and yellowing. The market is steady from all growing regions.

- pa_admin
Growing Region Market Quality
Salinas, CA Steady Excellent
Oxnard/Santa Maria, CA Steady Excellent
Baja, MX Steady Excellent
Lettuce Iceberg

This market continues to be flat, and suppliers seek business. Although a few shippers have stronger pricing to start the day, this is just optimism. Schools have begun across the nation, yet this commodity remains steady in the marketplace. Shippers are expecting stronger markets possibly by the start of next week. The weights continue to average 42-48 pounds on palletized. Processors are expected to ramp up their business in the next few weeks.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Lettuce Leaf

Supplies are steady and demand is off. Expect this pattern to continue for the rest of the week. Although markets were expected to increase with the emergence of schools opening, this simply has not happened yet. Very warm temperatures this past week may hinder quality in the next few weeks. For now, however the quality is good and plentiful on romaine and all leaf items. The weights on romaine continue to average 33-37 pounds. All other leaf items are also having strong reports on good weights as well. Expect processors to begin to purchase larger acreage of raw material by the start of next week.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Melon (Cantaloupe)

The supplies are holding steady but demand has weakened. The market is lower on the larger sizes and steady at the low levels on the smaller ones. Many of the growers are packing 9ct through 15ct with a few packing 18ct. 9ct supplies are not as plentiful as the 12ct or 15ct. Quality out of the West Side is excellent with good sugar levels.

- pa_admin
Growing Region Market Quality
Firebaugh, CA Lower/Steady Good
Mendota, CA Lower/Steady Good
Melon (Honeydew)

Growers are harvesting steady supplies of honeydews currently. Demand has weakened a bit from earlier levels which is causing the market to be slightly lower to steady. Weather has been favorable for high quality honeydews out of the West Side and they are arriving in excellent condition.

- pa_admin
Growing Region Market Quality
Firebaugh, CA Lower/Steady Excellent
Mendota, CA Lower/Steady Excellent
Melon (Watermelon)

Seedless Watermelon supply has dropped. Extreme heat in the last few months brought most of the crop to harvest. The current availability is limited and offering medium to smaller sizes. Mostly 60 size fruit being offered.

- pa_admin
Growing Region Market Quality
Central California Steady Good
Onions

Supplies of all color and sizes of Onions are building out of the North West (Idaho and Washington) which marks the beginning of storage season. California and New Mexico are slowly finishing for the season. Supplies are plentiful and are meeting current demand. We are anticipating good supplies of onions during the Northwest storage season. Quality is being reported as good.

- pa_admin
Growing Region Market Quality
Huron/Metler, CA Lower/Steady Good
Las Cruces, NM Steady Good
Ontario, OR to Nampa, ID Lower/Steady Good
Quincy/Hermiston, WA Lower/Steady Good
Pears

California - Bartlett pears are steady on all sizes and they continue to peak on 100/110/90s . Wraps are still more limited than tight-fills and most suppliers don't have any fruit smaller than a 120-size. Some shippers are done packing and shipping entirely from inventory. The quality has been good. Crimson pears are steady and continue to peak on half carton 45/40s but supplies are short. Bosc are available in limited quantities and they are peaking on smaller fruit. The quality has been good.
Washington - Bartlett pears are steady with some lower and are peaking on 90/100/110s. Supplies are improving as more shippers get into the deal. The quality is good. A couple suppliers have started packing D'anjou pears.

- pa_admin
Growing Region Market Quality
Stockton, CA Steady Good
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Pineapples

Supplies are light from the tropics and are going to be so through August and possibly into September.

- pa_admin
Growing Region Market Quality
La Virgen, Costa Rica Higher Good
Heredia, Costa Rica Higher Good
Guapiles, Costa Rica Higher Good
La Cieba, Honduras Higher Good
Retalhuleu, Guatemala Higher Good
San Luis, Guatemala Higher Good
Potatoes

New crop supplies continue to build out of all growing areas (Idaho, Washington, Colorado and Wisconsin). All signs are pointing to above average crop with larger than normal size profile. Pricing is expected to weaken over the next couple weeks as supplies build. Quality is being reported as good. Colorado is still not producing any cartons or very few if they are, this will change by the end of this month. Demand is moderate to light out of all areas.

- pa_admin
Growing Region Market Quality
Hamer/Rupert, ID Lower/Steady Good
Quincy/Hermiston, WA Lower/Steady Good
Monte Vista, CO Steady/Higher Good
Plover/Bancroft, WI Steady/Higher Good
Potatoes (colored)

Stockton California - reds, whites, and golds remain steady and all colors continue to peak on A size. Baker and premium whites and golds as well as gold A-size remain limited. The quality has been good for all colors.
Muleshoe Texas - red potatoes are cleaning up for the season. The quality has been good.
Minnesota - red and gold potatoes are steady with good availability on most sizes. The quality and color have been good.
Wisconsin - the red potato market is steady and the availability is good on all sizes. Gold supplies are more limited than reds but are improving. The quality is good.
Washington - eastern red potatoes are steady and are peaking on A-size. Some suppliers have finished with golds. The quality is good.
Delaware - They have good availability on red, white, and gold A and B size with some premiums and bakers as well. The quality has been good.

- pa_admin
Growing Region Market Quality
Stockton, CA Steady Good
Big Lake Minnesota Steady Good
Plover, WI Steady Good
Pasco/Tri-Cities, WA Steady Good
Muleshoe, TX Steady Good
Squash (Western)

Supply on Italian squash and Yellow S/N out of the San Joaquin Valley has lightened. Supply should remain light for remainder of week as shipper's make transition into new fields. Quality and condition are fair to good.

- pa_admin
Growing Region Market Quality
Southern San Joaquin Valley, CA Steady/Higher Good
Stone Fruit

Stone fruit availability is becoming more limited. The warm weather has pushed a lot of fruit forward. Harvest is breaking early indicating an earlier than expected end of season. Peaches and Nectarines are expected to last through September and Plums will go through October. Sizing remains on the large side. Quality has been steady and strong. Market prices have been on the rise and are expected to remain firm moving forward.

- pa_admin
Growing Region Market Quality
Madera south to Arvin, CA Higher Good
Tomatoes (Eastern)

Rounds - The market is steady / higher. With schools back in session, the market has ticked up a bit due to demand. Rains in the east have curtailed parts of production, which is lowering supplies and helping the market. The local tomato deals are about over for the season. Out west, schools are also starting back up. Quality is Good.
Roma - The market is steady / higher. As with rounds, production in the east has been slowed up due to weather. And, with demand a bit higher with schools in, the market is ticking up. Out west, Mexico is experiencing heavy cloud cover along with rains. Mexico is in a slight gap at the moment. Range in quality from fair to good.
Cherry - The market is steady. Supplies on cherry's are holding steady, along with the market. Demand should begin to steadily increase soon, with schools back in. Quality is Good.
Grape - The market is steady / higher. Along with all the others, grapes look to be on the upswing due to demand. Supplies continue to be good, however, with demand on the rise, FOB's should begin to follow. Quality is Good.


- pa_admin
Growing Region Market Quality
Benton Harbor/Byron Center, MI Steady/Higher Good
Cedarville/Hammonton, VA Steady/Higher Good
Eastern North Carolina Steady/Higher Good
Tomatoes (Western)

Rounds - The market is steady / higher. With schools back in session, the market has ticked up a bit. Rains in the east have curtailed parts of production, which is lowering supplies and helping the market. The local tomato deals are about over for the season. . Quality is Good.
Roma - The market is steady / higher. Mexico is experiencing heavy cloud cover along with rains. At the moment, they are in a slight gap due to the past heat wave when all product came on too early. And with schools back in session, demand is on the uptick. Back east, production has slowed due to the recent rains. Look for the market to steadily increase. Range in quality from fair to good.
Cherry - The market is steady. Supplies on cherry's are holding steady, along with the market. Demand should begin to steadily increase soon, with schools back in. Quality is Good.
Grape - The market is steady / higher. Along with all the others, grapes look to be on the upswing due to demand. Supplies continue to be good, however, with demand on the rise, FOB's should begin to follow. Quality is Good.

- pa_admin
Growing Region Market Quality
Coachella Valley, CA Steady/Higher Good
Southern Baja California Sur, Mexico Steady/Higher Good
Southern California Coast Steady/Higher Good

Things You Should Know

Berries (Blueberries)
Domestic production is falling off sharply and supplies are continuing to tighten up.

Berries (Raspberries)
Production is falling off sharply this week and demand is exceeding current supply!




Berries (Strawberries)
Demand is very good while supply continues to drop off in all growing regions, with all shippers. Availability is lighter than anytime in recent weeks.



Cilantro
Cilantro supplies are still extremely limited and quality is fair at best. The market is extremely active.

Transitions and Temperatures

Berries (Blueberries)
Peru, Argentina and Uruguay blueberries should begin to hit US ports with light volume by the end of August, increasing volume by mid-September.

Berries (Strawberries)
Santa Maria has just begun packing their new (summer planted) fall crop. Volume is very limited out of the area so far. Sizing is in the low twenties to low thirties. New crop fruit is firm with some white shoulders and green tips and salmon (overall lighter color.) Grower/shippers are charging a premium for the new crop berries.

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