The Source - August 20, 2015

California Galas are steady to slightly lower and they are still peaking on higher color 100/113s. 80-size and larger remain short. Volume deals are available on certain sizes. Fuji's have started in a light way in California.
Washington Red Delicious are steady and the market remains firm. Most shippers are still peaking on higher grade 88s. Small size reds remain short. Earligolds and 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 Granny-smith are still peaking on 72s and larger while 100s and smaller remain limited. Lower grade Grannys are also limited. Washington Galas are steady to slightly lower and they are peaking on 100/113s. A couple suppliers are starting to pack Fuji's.
Michigan will pack Paula Reds at the end of this week.
New York is packing still Jonamacs and they are starting to pack Paula Reds and Gingergolds.

The market continues to gain strength in the marketplace. 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.

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 and still limited supplies on 60s and smaller. Limited volume on #2 fruit as quality is very good. The Flora Loca fruit has come up in it's maturity, with better oil content and breaking better. 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 week over week across California growing regions. Quality has been good and we expect continual increase over the next several weeks! Demand has been relatively moderate keeping the market steady.

Overall volume continues 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. Labor has been an issue as pickers try to beat the declining crop and move to other crop 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 historic production gap may hit by late August. They are expecting a possible failure in service by late August, early September. 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 light again this week. Temperatures reached above 100 degrees this past weekend in both Salinas and Watsonville growing regions. Field crews and quality control supervisors spent the early week assessing the plants and stripping fruit where damage occurred from the heat and humidity. While they try to sort and remove any problem fruit, some soft berries, dark to overripe and bruising is now being reported. The extreme heat causes the plants to hold onto the fruit making it even more difficult to harvest without damaging the delicate raspberries. Although shippers are quoting good quality for the fruit that is being packed, it may not have the legs we are used to. Order for quick turns. Grower-shippers are spending extra time in QA to make sure quality specifications are being met and subpar fruit is being diverted in order to counter current challenges. We are also seeing a dip in production from crop cycles.

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 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 steady with most shippers. Suppliers have had slightly better production on crowns compared to the beginning of this week. The warm temperatures has not affected the quality of this commodity. There has been a few sightings of brown and yellow beading, but nothing to be alarmed over. The main production continues to be out of the Salinas Valley. The Southern California region will have moderate production for the rest of the week. Production out of Mexico is steady.

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 stronger with all suppliers. Demand has picked up dramatically. Twelve count sizing in particular has the least availability of all the sizing and a premium price is being asked. The quality overall is good with this commodity. This market is expected to gain strength throughout next week as planting gaps are in the forecast with multiple shippers.

This market is firm. 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 the least available. The Salinas Valley has moderate to light supplies. The large sizing, twenty four counts specifically are highest in demand. Expect good quality from all the regions.

Demand exceeds supply with this commodity. 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 is moderate in production numbers. 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 stabilized on all sizes. The old crop is finishing up and new crop volume is very light. 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 met a balance right now with supplies creating a steady 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 green grape market continues to be steady with good supplies and adequate demand. All sizes are available of the Thompson Seedless and Princess. Pricing on the Thompson seedless is at a discount to the Princess due to smaller overall sizing. Quality on all is reported as good to very good.

The red seedless grape market is firm to stronger. The Crimson Seedless are available in good numbers although sizing is heavier to the medium / large to large fruit. Consequently, the Vintage Red's and Scarlet Royals are commanding a premium; as they are trending more to the large and extra large fruit. Quality on all is reported as good to excellent.

This market is steady. Good weather continues out of the Mexico growing region. Strong supplies are expected all week. Supplies will continue to exceed demand all week, and likely into next week. All sizing is available, with the heavier availability coming in small and medium packs.

This market is steady. Good supplies and good quality continue with 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 steady in the Salinas valley. 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 stronger. Pricing is more flexible in this region.

The romaine market is stronger. Suppliers continue to experience lower yields as temperatures remain high across the growing regions in 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 stronger as well. 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 all sizes with the smaller sized melons adjusting downwards the most. We are 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 right now and this trend looks to continue. The market has moved down a little on the 5ct and 6ct while 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.

Yellow onion supplies continues to increase out of Idaho/Oregon and Washington. New Mexico and California will finish up for the season with most shippers next week. Market on yellow onions is soft out of all growing areas. Red Onions supplies are moderate with good demand which is keeping this market firm but steady. Eastern Onion growing states including New York, Michigan and Wisconsin will start breaking ground over the next couple weeks, putting even more supplies of onions into the market place. Due to high heat a month ago in the northwest, the size profile of this year's onion crop has been small. This should create some disparity in prices between the larger and smaller sized onions.

California Bartlett pears are still peaking on US #1 90-100s and the market is steady to slightly. Demand is lighter since Washington has started and the price flexibility for 90/100/110s still available. 120-size and smaller are no longer available in large quantities. Stark Crimson pears are still peaking 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 90/100/110s and the market is steady on all sizes and grades. The Bartlett demand has been fair.

Idaho growers will finish with storage crop by the end of this week. Pricing on Idaho large cartons is under pressure as supplies build each week. Market on smaller sizes remains strong due to limited availability. Demand is good on russet new crop across all the growing regions (Idaho, Colorado, Washington and Wisconsin). Potato sizing is peaking on 80 count and smaller in all growing areas except Idaho. The sizing will improve out of the other growing areas as we get into September. Quality is being reported as good.

Bakersfield, California has finished packing white potatoes.
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 fairly steady. 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. Both colors are peaking on A-size the quality and color are good.

Transitions:
Eastern Idaho will pack a few reds Monday 8/24. They will peak on A-size supposedly.

Demand for peaches and nectarines continues to be very good. The markets are strong with mostly large tray pack fruit available. Nectarines are rapidly approaching the end of their season with some shippers already done on the white varieties. The market on the red and black plums continues to be very strong as shippers gap on varieties and supplies tighten up.

Rounds - The market is on the Rise. Demand is exceeding supply. Volume coming out of Virginia and Tennessee is low/gapping. Local programs are picking up some of the slack. If weather permits these local programs will continue for about a month. The local programs are not enough to keep the market from rising. Quality varies with all the players but mainly good.
Roma - The market is Steady. Volume out of Mexico continues to improve. This will help keep some volume in the East and pricing should settle for this week. Quality is Fair/Good.
Cherry/Grape - Cherry market is high. As the market is on the rise suppliers continue to sell out. There just is not enough acreage planted to meet demand. Quality is Fair. Grape market is high as well. More volume is expected next week but probably will not affect the pricing. Similar to the Cherry market there just is not enough acreage planted to meet demand right now. Quality in the East is good.

Rounds - The market is Steady. California and Mexico have volume on gas greens and vine ripe respectively. Pricing on the west has creped up slightly which will make east coast buyers look for local deals. Market should remain steady for the next couple weeks. September will tighten up due to past high temperature's effect on crops and lighter plantings due to water issues. Quality is good.
Romas - Roma market is steady. Volume in both California and Mexico continues to improve. Quality is good. Market should remain steady into next week.
Cherry/Grapes - Cherry market is high and rising. Low planted acreage has caused supplies to not meet demand. As prices continue to rise suppliers continue to sell out. Quality is Fair. 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.