The Source - August 22, 2016

Washington - Red delicious are steady to higher on all sizes and grades with only light availability of the Wash-Extra-fancy and lower grades. 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 remains very short. A couple shippers have started packing Golden delicious but supplies are light. 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 and the market is slightly lower. The Galas are peaking on higher grade 100/88/113s.. Honey Crisp are steady but the fruit remains big and they are peaking on 48-64s. 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 but supplies are light as most shippers are finished packing and selling from final floor-counts. Fuji's are steady on all sizes and peaking on 100/113s. The quality has been good.
Idaho---they are starting to pack Gala's today.
Michigan--they are starting to pack Zestars, Paula Reds, and Ginger Golds.
New York---they will start packing Paula Reds tomorrow.
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.

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

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 the end of this next week or next week and all expect to be done by first week of September. Crop is still skewed towards smaller size fruit, with good supplies of 60s and smaller fruit.

Mexico's harvest has slowed with rains. Supplies on all sizes are tight with this harvest interruption last week. Over all supplies coming from Mexico is light, but steady right now. The summer crop volume estimate has been dropped by 25 percent from what was first estimated. There is some question of what Mexico will have in availability for September, there are reports that the summer crop will finish early and their main crop will not get started until October. Shipper are currently looking into these reports.

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. Red bells are starting to show better availability,

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.

Transitions:
Mexico is crossing some limited volumes of blackberries through McAllen, TX.

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.

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 via vessel with light volume by the end of August, increasing volume by mid-September. We saw the first air shipments hit the ports of Florida this past weekend. Pricing is high on the initial air shipments.

Production has fallen sharply 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.

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

Cool weather is keeping production on the lighter side in Salinas and Watsonville growing regions, highs only expected in the mid-upper 60s this week in the north and mid-upper 70s in Santa Maria. Berries are running smaller in all areas, 21-30 berries per 1 pound clamshell. Overall, the cooler temperatures are helping to keep berries nice and firm. A dense marine layer continues to leave additional moisture on the plants and fruit which is also resulting in more discarded fruit and some wetness in the packs and subsequent quality concerns. White shoulders, water damage, overripe, bruising and dry/brown calyx have all been reported.

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 soft fruit and increase severity of bruising as well. 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.

Alerts:
Supplies are limited and look to remain tight for the week.

Transitions:
Santa Maria has begun packing new (summer planted) fall crop. Volume is 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.

The broccoli market is unchanged from last week. Plenty of supplies and aggressive markets. Quality is excellent with nice green color and minimal yellowing from all growing regions.

As we start this week, supplies look to be better. The market has seen its peak and looks to trend lower. Quality is excellent with nice green color and sizing is better as well.

Peak Seasons:
We are moving into peak season out of the Salinas Valley growing region.

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.

The cauliflower supplies have picked up causing a downward trend in the market. Quality has been good with minimal arrivals showing bruising to black discoloration.

There are currently no changes in this market as supplies continue to exceed demand. Michigan, Southern California as well as Salinas continues to harvest high quality product. Michigan production has eased up but orders are being filled in full. Many shippers continue to flex and this will continue throughout the week. Large sizing continues to have the best availability.

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. Rainy weather has cleared up and harvesting has begun stronger providing better volume.

Market on hot pepper's have started to drop.

We are still experiencing very limited supplies and quality out of Mexico and Oxnard continue to be a problem as well. Salinas supplies and acreage are not able to support demand but the quality out of this growing region is better. The market remains strong at above normal pricing.

Alerts:
Cilantro supplies are still very limited and quality is a major factor.

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.

The larger 110ct, 150ct and 175ct are less expensive than the 200ct and 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.

Supplies are getting tight on small size Valencia oranges with the "Back to School" demand. 138s have reached demand exceed situation and will be until Navels start at the end of October/first of November. Fruit is showing some weakness of quality, which is typical for this time of year after a long hot summer.

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 rainy weather coming to a halt we should see better harvesting in cucumber's witch should drive down prices.

Quality and condition on eggplant has remained good coming out of Fresno. Minimal cosmetic issue's like scaring being shown. Still showing green calyx on all size's. Volume has also remained steady on all sizes.

The green seedless grape market is steady with good demand and good volume. The market volume is heavily weighted to Thompson Seedless and Princess with the Autumn Kings just beginning to show up. Sizing on the green grapes is skewed to the larger codes; especially on the Autumn Kings. Quality is generally reported as good on most lots with the early Autumn Kings reported as excellent.

The red seedless grape market is about steady with some discounting for size and "older varieties". The Scarlet Royal's and Vintage Red's are demanding a premium for size and condition. Early season flames are cleaning up with Crimsons becoming the predominant supply of medium-large grapes. Quality is generally reported as good with excellent reports on the Scarlet Royal and Vintage Red varieties.

The main reason for the speedy climb to higher prices is the heat in the Mexico growing regions. This has hampered growth and demand has exceeded supplies. The will be the case for the next couple of week. Quality issues such as yellowing to brown discoloration have been showing up upon arrivals. There has been better quality on domestic green onions but there is limited acreage to meet demand.

Alerts:
The heat in Mexico has caused a severe decrease in supplies. The market is active and is trending higher.

Kale supplies are plentiful. The market has been steady for weeks and does not look to change this week. The quality has been excellent out of all growing regions with minimal yellowing and dehydration.

God quality continues to exist for this commodity. Slight mechanical , insect and puffiness exists but is minimal with most suppliers. This market continues to be flat, and suppliers continue to seek business. School business is stronger, but production is above average. Flexing is offered by multiple shippers. Shippers are expecting stronger markets by the end of the week. The weights continue to average 42-48 pounds on palletized. Expect stronger demand from processors in the near future.

The market on all leaf items continues to be steady to start the week. Overall quality is good with most shippers. Occasional mechanical, and insect damage is being seen, but again only minimal. Expect this quality to be good throughout the week. Demand does not appear to be picking up until the end of the week minimum. Supplies simply exceed demand. Temperatures are ideal in the growing regions. The weights on romaine continue to average 33-37 pounds. All other leaf items are also having strong reports on good weights as well.

The supplies are a bit lower and demand has picked up a little. The market is steady to slightly higher with most of our shippers today. Shippers have been getting behind schedule on harvesting due to the lack of demand. 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 has been very good although lately we have been having some soft melons arrival issues due to the heat and shippers being behind schedule.

Growers are harvesting slightly less volumes of honeydews than last week. Demand is steady versus last week which is causing the market to be slightly higher to steady. Weather has been favorable for high quality honeydews out of the West Side and they are arriving in excellent condition although a few lots have come in with brown spots.

The current availability is limited and offering medium to smaller sizes. Mostly 60 size fruit being offered. Movement out of the San Joaquin Valley has been moving steady. Steady production with steady demand. Quality is generally good overall.

Demand is overall light to moderate with 7 growing areas in production Idaho, Washington, California, Colorado, Utah, Michigan and New York. All areas are shipping reds, whites, yellows and a few areas have sweets. Organics are very limited. The crops out of Idaho and Washington sounds to be average with a good range of sizing. Quality is being reported as good out of all areas currently. California and New Mexico will finish packing by the end of August.

California - Bartlett pears are steady 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 are shipping from inventory. The quality has been good. Crimson pears are steady and continue to peak on half carton 45/40s but supplies are limited. Bosc are available in limited quantities and they are peaking on smaller fruit. The quality has been good.
Washington - Bartlett pears are steady to lower and are peaking on 90/100/110s. Supplies are improving as more shippers get started. D'anjou pears are steady and are peaking on 90/100/110s. Stark Crimson pears are steady and continue to peak on 40/45 half cartons. The quality for all pears has been good.

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

Idaho, Washington and Wisconsin have light demand with a weaker market. Idaho and Wisconsin are harvesting a crop that has good range in sizing currently. Washington growers are in some fields that are peaking on 80 count and smaller with limited supplies of 70 count and larger. The size profiles will change to a larger profile next week as they switch fields. Quality is being reported as good.
Colorado is still harvesting a small profile crop which is only producing non-A or retail size potatoes. Shippers are saying they will get into larger size profile in the next 8 to 10 days.
Look for the potato market to stay steady at lower levels with good supplies till everything is in their storages.

Stockton California - reds, whites, and golds remain steady and all colors continue to peak on A size. Baker and premium whites and golds are short as are gold As. The quality has been good for all colors.
Idaho - they are starting to pack reds and golds.
Muleshoe Texas - they have finished for the season.
Minnesota - red and gold potatoes are steady with good availability on most sizes. Some suppliers have fewer B size reds. The quality has been good.
Wisconsin - the red potato market is steady and the availability is good on most sizes. The quality is good.
Washington - eastern red potatoes are steady to lower and are still peaking on A-size. Some suppliers have finished with golds. The quality is good.
Delaware - They still have a few red, white, and gold A and B size with some premiums and bakers but there are supply holes. The quality has been good.

Supply on Italian squash and Yellow S/N out of the San Joaquin Valley has lightened. Supply still remain light pending transition into new fields. Quality and condition are fair to good.

The stone fruit market continues to tighten up on all with lighter supplies on primarily large size fruit. Peaches, plums and nectarines are mostly large size tray packs with limited availability on the 60, 70 and 80 series volume fill fruit. Quality is good on all. Limited supplies and sizing are helping to strengthen these markets.

There is less tomato volume overall in the east this week due to curtailed picking schedules caused by rainy weather over the past 5- 7 days. Compounding harvest delays, Virginia has entered a planned gap for the season leaving much of the demand to local programs in Michigan, Tennessee, Alabama, and the Carolinas as schools get back into session and demand begins to pick up. Despite poor whether, quality remains good overall. A slight uptick is expected across the eastern region of the United States as demand firms up pricing that's been fairly consistent over the past several weeks. Roma tomatoes continue to be produced at light volumes with a majority of the market being driven by Mexican grown fruit. Grape tomato production will begin tapering off as smaller local fields finish their seasons. Cherry tomatoes are steady but the market is stronger with school demand drawing on eastern supply.

Diminished volumes are being felt in the west as we begin to see the effects of Julys heat wave that began just over 6 weeks ago causing a flush of fruit. Similar to the east, the increasing demand of schools returning to session is pressing pricing upward this week at a time volumes are more limited than in recent weeks. Roma tomatoes are also firming up out of Mainland Mexico where heavy cloud cover and rain are curtailing harvest schedules. Baja, like California, is experiencing a gap due to everything coming on at once from excessive heat in July. Mexico still has trucks crossing at the boarder but volume is down resulting in a dollar to two dollar increase this week. Grape tomatoes have also dipped in production but volume is expected to pick up again when new fall crops begin in September.