The Source - August 22, 2018

Washington new crop apples are underway. Although there is still plenty of supplies on the storage crop. Out of the shoots we have galas, ginger golds, gold supremes, and Honeycrisp varieties. As supplies ramp up, we will see a stabilization in the market. For now, the market is steady with some varieties of apples at higher than normal market conditions. Reds, Granny Smiths, Fuji, and Pink Ladies are still storage crop. California has good supplies of gala apples, and the market is competitive. Local apples are also underway with harvesting in most states. This will keep markets in line as Washington competes with the local programs. Quality is excellent with good sugar levels as well as decent pressure testing of 14 and much higher.

Rain is in the forecast in Central Mexico for the next four days which should accelerate the closing of their fields which are at the end of their cycle. In Northern Baja, the weather, and volume have remained unchanged. Southern Baja should start up with production in the next 2-3 weeks. Cooler weather in both Peruvian regions have slowed down production and slowed down larger sizing. Markets are up overall due to Central Mexico finishing up due to seasonality, Southern Baja not in production yet, and the cooler weather in Peru.

Transitions:
Central Mexico is wrapping up production due to seasonality. Southern Baja should start in 2-3 weeks.

Volume continues to decline as we are winding down the California crop. The demand is still strong for California fruit on all sizes. There just isn't enough volume to meet the demand. California will finish up at the end of this month as we transition into Mexican fruit. The market remains in the $60 range. Growers are reporting good quality.
Peru continues to provide relief with plenty of larger fruit as we finish California and transition into Mexico.

New crop Flora Loca out of the Michoacán Mexico growing region is staring strong with market prices coming off a bit this week. Market this week is in the $50-$60 range with reports of good quality. The industry continues to source mature fruit. Keep in mind this new crop has a low mature level/ oil level. That being said the fruit takes a lot longer to ripen and stage/condition. We are having to push orders back a few days to give the fruit some time to properly ripen and condition the fruit as we try and meet the customer's needs.
Forecast in Mexico continues to show rain and thunderstorms. Under these conditions, the harvest can be delayed but has not been an issue as of yet as Mexico is in the middle of their rainy season. Flora Loca crop will peak on 48s and smaller leaving a shortage on larger fruit 40s and larger.

The Midwestern states have steadily increased production each week since starting a few weeks ago, although we’ve seen yields drop over the last 5-7 days from previous weather-related issued. Rain has been off and on more than usual this summer season for many growing regions. Michigan and Ohio have had overall good quality from their harvest, and the outlook seems that will continue through this weekend. The yield production in that area should bounce back in the next seven days. Markets have trended up slightly since late last week, but shouldn’t take any major leaps before the yield issue is corrected.

Alerts:
More volume in the Midwest this week.

Blackberry supplies are improving this week. Production in the Salinas and Watsonville areas continues to be strong. Quality is excellent at the moment. The berries are big, with full color and great flavor. Markets are lower this week with volume opportunities available. We expect to have 2 weeks of promotable volumes, then supplies will start to decline as we transition growing to southern districts and Mexico.

Blueberry supplies are limited. Quality has been fair, and market prices are climbing. We are in the beginning of transition between domestic and import fruit. The majority of the available fruit is still being harvested in the Pacific Northwest and Michigan growing areas. Some import fruit is slowly trickling into the market, but not enough to offset any supply shortages. Moving forward, we expect the Pacific Northwest to trend down in production and Michigan to finish by Labor Day. We will transition into import fruit over the next 2-3 weeks. Baja will get going with harvest and fruit will be available in California loading points. Additionally, we will see an increase in Peruvian fruit initially, followed by Argentina and Chile. Most of this fruit will come over by boat and will land on both the east and west coasts.

Alerts:
Supplies are lighter and markets are higher.

Transitions:
We will be transitioning between domestic and import fruit over the next 2-3 weeks. Baja and Peru will start first, followed by Argentina, Chile and Central Mexico.

Raspberry supplies remain limited this week. Orders are being filled without issues, but additional volumes are light. Market prices have been steady. Quality continues to be solid. Fruit is being harvested in Salinas, Watsonville and Santa Maria. Shippers expect another increase in production in the front part of September, and we should see promotable volumes for two weeks. Then supplies will downtrend until we transition into Baja and Mexico production.

Peak Seasons:
We expect to see another peak in production by mid September.

Strawberry supplies are consistent, but not as heavy as the past few weeks. Shippers have pulled back on harvest volumes to focus on correcting the recent quality issues. Additionally, we are in the beginning of the Labor Day pull, so retail demand has increased and has locked up a big chunk of the available fruit. The weather has been cooler in all areas and quality will continue to improve. Salinas and Watsonville continue with summer harvest, whereas Santa Maria has now started with new fall harvest. Volume on the new harvest is light but will be gradually increasing as we move forward. Markets this week have increased and are expected to remain firm through the next week. As we get past the holiday pull, I expect to see markets decline for a bit then level off again by mid-September.

Alerts:
Markets are higher and are expected to remain firm for the next 2 weeks until we get past Labor Day.

Transitions:
Santa Maria has started with new fall harvest. Supplies are limited, but will increase week over week.

The broccoli market has adjusted lower as there are now more supplies this week. Quality is good with slight purpling, some mechanical damage, and decent crown size. Look for supplies to continue to improve into the weekend and next week.

The Brussels Sprouts market continues to be steady. Supplies in Salinas continues to improve at a steady level. Quality has improved from the previous weeks and is seeing less insect damage, black spotting and decay.

Nothing has changed from last week. The market and quality remain steady.

Jumbo size carrots should be in steady supply thru the season but demand is holding strong and so is the market on jumbos. Value-added packs and medium-sized supplies remain good.

Upcoming Season - Fall has a tentative start of 12/1/18 there are currently no signs of any shortages or gaps thru the Summer Bakersfield carrot season.

Cauliflower market has started to pick up in the Salinas and Santa Maria areas. Overall, the quality has been good. The quality reports have shown weights in the 25 to 28-pound level, little yellow cast to cream color, medium consistent diameter and clean jackets.

A few suppliers have attempted to raise pricing but minimally. This market is steady, overall. Schools have begun but demand has not risen thus far. Smaller sizing will have less in availability but all orders will be covered in full. Large sizing continues to be the most abundant sizing available. Minor seeder and yellow leaves due to past high temperatures have been reported upon arrivals, but overall quality continues to be good. The weight is ranging 57-60 pounds. Michigan production continues to be steady.

The Cilantro market continues to be tight due to the heat we normally find this time of year. The heat has burned up the product and stunted the growth and even started to shoot seeder stems instead of regular growth. This has resulted in much lower yields per acre than normal. Other growing areas across the country have also had to deal with weather, and that has hurt some of the local growing areas as well. Mexico growing areas have also experienced heat and rain which has lowered yields. It looks like the next two weeks will continue to be a challenge.

Lemon supplies remain extremely limited. Even with the influx of offshore and the start of district three fruit (Coachella / Yuma), the market remains relatively strong. The quality of new crop and offshore fruit is really nice. Although fruit from the Oxnard growing region is fair at best with arrivals showing mold, decay, and soft rot. As supplies increase out of the district three region, we should see this market adjust itself.

Alerts:
Extremely limited supplies of all sizes and grades of lemons. The market remains extremely high.

Transitions:
Over the next 3 weeks we will see lemons to start production in the Yuma and Coachella growing regions.

We continue to see rain and thunderstorms in the Veracruz growing region on Mexico. Not only is product tight but with this weather, it can delay the harvest. The market is active with market pricing in the low $20s. This new crop will start coming on stronger these next few weeks and come September we will see more fruit available. Overall quality is fair with plenty of smaller fruit (200s-250s). Look for prices to come down come September.

The Valencia supplies are extremely limited on all sizes of fruit. The smaller sizes are extremely limited with schools being back in session. Most orders are starting to be subbed into larger sizes in order to get covered. Most inventories are peaking in 88ct and larger. And the offset of imported navels has kept the larger size Valencia market competitive. This has left supplies of smaller fruit to be extremely limited. Trucks are making multiple stops to get covered. The quality has been fair at best with some fruit showing up with mold and soft rot.

Alerts:
Small size oranges (such as 138ct and 113ct) are extremely limited with the market trending much higher.

Cucumbers supply continues to come from various locations. Many growing regions have been dealing with rain issues for the past few weeks, which have caused some quality issues intermittently. Michigan and Ohio regions overall have had decent quality, and supply continues to remain steady. Markets for supers have been on the higher side while selects seem to hang around the lower side. More production of selects is causing a wider than normal spread between the two. We expect for the cucumber market and supply to remain steady heading into the weekend.

Alerts:
Good supplies all over the eastern half of the country. Rain on the east coast has caused some quality issues.

Eggplant supply remains on a limited basis in the Midwestern regions; no yield increases are expected in the near future. Supply from Michigan specifically has been down this summer mainly due to less acreage being planted versus previous summers. Quality is good and seems to have gotten more consistent from Michigan and Ohio over the last ten days, although more coastal states such as Virginia and New Jersey have struggled with quality and consistency thus far. Many regions this summer season have dealt with weather-related struggles. With many schools starting back now and even more starting soon, demand may put even more strain on supply. Markets look to remain on the higher side for now.

Alerts:
Better supplies, but still not up to normal volume.

Transitions:
Eggplant is transitioning to Michigan.

The green grape market continues to see plenty of supply. Quality and sizing are excellent throughout the San Joaquin Valley. Pricing remains soft with such an abundance of good quality product out there. We will continue to see excellent fruit for several months.

Red grapes continue to be plentiful in all California growing regions, and we have begun seeing a larger amount of available varieties, with Krissy's and Scarlett Royals being the varietals with the heaviest supply. Quality remains excellent all around.

The market continues to be competitive. Sizing is still trending to the smaller sizing. With the hot weather in Mexico, quality has been improving overall, and the presence of thrip damage and leaf minor is minimal. The hot weather has also contributed to the labor shortage as the temperature has reached as high as 116 degrees. This hot weather is continuing to help fight off thrip and leaf minor presence but also keeps the green onions from growing. Green Onions will continue to be snug for the next few weeks.

The kale market continues to be steady with no signs of changing in the coming week. Supplies continue to be good with steady demand. Quality is good with good color, full bunches, and only an occasional yellow leaf being reported.

This market was in a severe demand exceeds supplies situation last week. The start of this week, demand was very slow. Suppliers are moderate at best, and multiple suppliers started the week with low inventories. With this being said, this commodity had availability to begin the week. Pricing is ranging by three to four dollars pending on the shipper. The quality on this commodity is good. Aside from some slight mechanical and puffiness, the quality is steady with multiple shippers. The weight on palletized this week has ranged from 41-46 pounds. Supplies are expected only to be moderate at best. Demand from schools and other business will dictate what will happen later this week.

This market has gained strength compared to past weeks. Romaine and romaine heart supplies have tightened up this week, and suppliers are expecting this market to pick up with schools starting up again. Green and red leaf, as well as butter, are slightly more active. The quality overall has been good. Some defects on romaine as well as green and red leaf include fringe burn, ribbing and mechanical but minimally. Romaine hearts have slight twisting. Expect moderate supplies to continue to be available all week on all leaf items.

The warmer weather in the Salinas Valley has been pulling a lot of the Tender leaf forward causing a gap. Supplies on spring mix, arugula, baby spinach, and cello spinach will all be affected. This warmer weather has caused some quality issues such as minimal yellowing, excessive moisture, or bruising of the tender leaves. This market will continue to be volatile for the next couple of weeks.

Not too much has changed this week. We continue to see a shortage on smaller fruit(12s/15s) and a steady supply on larger fruit (6s,9s, and jumbo 9s). The weather this week has cooled off in the San Joaquin Valley. Temps are in the 80s to the mid-90s. Overall quality has been good with brix (sugar) levels in the 12-16 range. Market prices are in the $5.00- $6.00 range this week.

Not many changes on honeydew this week from last. Shippers are still reporting a limited supply on smaller fruit (7s,8s) and a steady supply of larger fruit (4s,5s, and 6s). The weather in the San Joaquin Valley has cooled down this week with temps in the 80s to mid-90s. Growers are reporting good quality fruit with brix (sugar) levels in the 10-14 range.

Mixed Specialty Melons- We are a few weeks out from finishing up in the Huron area and will see limited varieties and fruit from the Sacramento area come September. Overall quality remains good on all varieties.
-Crenshaw
-casaba
-juan canary
-santa claus
-orange flesh
-hami
-galia

Idaho/Oregon yellow onions are heavy to jumbos and mediums with light availability of colossal and supers. Markets are steady with some flex on volume orders of mediums and jumbos. The red and whites are peaking on jumbo size with a steady market. The quality has been good for all colors and sizes.
Washington is packing all colors. The yellows are also heavy to jumbos and mediums with very light supplies of colossal and no supers. The market is steady on all sizes, but there is flex on jumbo reds and yellows as well as medium yellows.
California is still harvesting all colors, but they are almost finished for the season.
New Mexico is done for the season.

New crop bartlett supplies from California and Washington are abundant. There has been a full range of sizes. Bosc and red pears such as stark crimsons have started in Washington this week and are available out of California as well. Quality is excellent with good sugar levels and high-pressure levels too.

Current supplies are remaining consistent, although we are heading into the period where supply tightens up. Historically Pineapple supplies have tightened the end of July, but because of an influx of supply from the Philippines to the European markets, we have seen less stress on the South American supply lines. The markets have firmed up as supplies have been limited towards the second half of the week. Quality remains fairly consistent with minimal arrival problems.

All potato growing regions are in the middle of harvest. Idaho growers are seeing a large mix of sizing depending on the field with sizing ranging from large size profile peaking on 70 count and larger and other peaking on 80 count and smaller. Washington growers are currently peaking on 80 count and smaller. Colorado/Wisconsin are peaking on 70 count. Quality is being reported as good out of all areas. The market is weak across all sizes except retail bags with are limited. I do not see the markets changing much until everything is in storage which will be sometime in October.

Transitions:
New Crop Norkotah are the main variety out of growing areas

Stockton, California - Reds, whites, and golds and all are still peaking on A-size, and the market is steady on most sizes and colors. Premium/baker red and gold availability is light. The quality has been good.
Western Washington - Reds and golds are steady to slightly lower. The reds are peaking on A-size while the golds have more B-size.
Western/Central Idaho - Reds are steady and are still peaking on A-size. The golds are steady with limited volume on some sizes. The quality is good.
Wisconsin - Reds, and golds are steady on most sizes. Premium and baker reds and golds are limited along with C-size golds. Both colors are peaking on A-size but have good availability of B-size reds. The quality is good.
Minnesota/North Dakota - Reds and golds are steady on all sizes. Both colors are peaking on A-size with good quality and color.

Yellow and Green Squash supply has shortened this week; mainly stems from previous weather occurrences that caused stresses on plants, and many schools have started back which increases volume demand. Squash is still being harvested in various Northern and Midwestern regions. Quality overall has been good from Michigan and Ohio growing regions. Markets have grown stronger early this week from simply a supply-and-demand stance, although some suppliers believe yields should increase within the next 7-10 days. Yellow Squash availability is currently more limited than Green. Although overall supply for both colors of squash is currently down in some of the major growing regions, pricing should be held to reasonable ranges due to many local farms still producing.

Alerts:
Zucchini pricing is a little higher. Yellow Squash is steady.

We are still in peak season for stone fruit in California, with good supply on larger sized fruit. Due to the high temperatures, small fruit continues to be less available. Quality overall is good, although we have seen a few cases that were overripe, and began to deteriorate quickly.

The market is slightly stronger from reduced yields, rising another couple of dollars again this week. Alabama, North Carolina, Tennessee, and Virginia farms continue to struggle against rainy weather causing intermittent harvests and interrupted picking schedules, limiting the overall eastern supply. North Carolina has began harvesting a modest crop helping local buyers find supply. The reduced yield in the east are pulling the market upward in California nearly doubling the FOB’s offered at the beginning of the month. Helping to stabilize the eastern market, New Jersey, and Michigan farm operations are contributing to overall supply. Quality has diminished over the past couple of weeks as the effects of repeated rain interrupt farm operations. Repackers continue to produce quality pack outs, however, shrink is higher than normal and shelf life becomes a concern as more water sits in the fields. Round and Roma tomato availability is moderate helping to create firm price structure for the immediate future. Most availability can be found in the larger growing operations in Tennessee and Alabama. Grape and cherry tomato volumes in Virginia have also been reduced by weather but improving as harvest schedule begin to increase this week. Supply is snug helping to keep pricing elevated but should loosen up as the weather improves and fields dry out.

Production has slowed in California and prices have risen and remain steady as eastern, and import tomato supplies contract. As planned for this time of season, Mexico imports through Baja slow down this time of year to transition growing areas, at a time when California harvests the peak of their season. Heavy volumes of tomatoes are in the marketplace and pricing is starting to separate as quality and condition become a bigger concern for buyers, and extreme heat influences the integrity of the fruit. Round tomatoes are nearly half the price of eastern grown tomatoes amid a slight uptick in price this week with Romas following suit. Quality and sizing is inconsistent from triple-digit temperatures influencing the ripening of fruit on the vine causing farms to harvest select fruit prematurely. Less volume from Baja is helping to strengthen the market, but prices will soften in the next couple of weeks when new farm operations begin shipping again. Until then, expect a slightly stronger Roma market while volume is reduced. Similarly, grape and cherry tomatoes in the dominate growing areas of Baja and eastern Mexico are beginning to move markets as supplies change. Grape tomato supply is slightly better helping to ease FOB’s while cherry tomatoes have tightened further strengthen the market by a couple of dollars. On California’s coast, new vine ripened operations have begun in Oceanside California where volume continues to build, helping to promote a competitive market further.