The Source - August 25, 2016

Washington - Red delicious are steady to higher on all sizes and grades with only light availability of the Wash-Extra-fancy #2 and Wash fancy grades. Most shippers continue to peak on extra-fancy 72-88s but supplies are very 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 remain very short. Golden delicious but supplies are very light as well. Granny Smith are higher on most sizes and continue to peak on 88-113s. The Granny market has turned up quickly. 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, granny-smith, Galas, and Honey Crisp has 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 higher-color 100/113s. The quality has been good.
Idaho---they packed a few early Galas on Tuesday.
Michigan-- Zestars, Paula Reds, and Ginger Golds are all peaking on larger fruit and all are steady. Supplies remain fairly light for all three varieties.
New York---they have started packing a few Paula reds and they are small.
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.

Asparagus market is lower in all regions. Quality is good in Northern Baja Mexico and Peru, and fair quality in Central Mexico.

California harvest is declining rapidly, many shippers report that they will be done with any useable volume by the end of next week. This early end was brought on by the heavy harvest in June to make up for Mexico's lack of supply during that period. California is still peaking on 60's.

Rain continues to delay harvest and is beginning to affect supplies shipping to the States. Mexico's summer crop harvest is declining and the next crop is still very low in maturity and it looks like October before it will be ready to begin. September will be a very short supply month for avocado's and hopefully getting better by October.

Green bells out of Fresno and Otay are showing good quality and condition. Red bells out of Fresno, Bakersfield, and Otay are showing good overall quality and condition. Red bells are starting to show better availability. More availability on yellow bells. Yellow bells showing good quality and condition.

Production is trending down and supply is tightening, demand is strong to exceeding supply going into the weekend. Quality is good overall, a few reports of overripe and red cell. There are still a few blackberries available in North Carolina.

Alerts:
Supplies are decreasing and demand remains strong to exceeding supply going into the weekend.

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. We expect a dramatic decrease next week as supplies continue to fall off.

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, currently exceeding supply. Quality has been good overall.

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

Supply has increased and we are looking at good production volumes into the weekend and through next week. Weather remains cool in Salinas and Watsonville which is helping to keep the fruit firm. Sizing is small, in the low twenties to low thirties in the northern district. Santa Maria production has also increased and the daily highs are about 10 degrees warmer which is helping to bring the new crop along. Sizing is slightly larger out of the south running anywhere from 20-28 count. The new crop has been lighter in color (salmon.) The new fall crop in Santa Maria is demanding a premium price.

Transitions:
Santa Maria fall crop production is increasing.

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.

The supplies of brussel sprouts have increased as we move into the end of the week. We are beginning peak season. The market is trending lower. Quality is excellent with nice green color.

Peak Seasons:
We are moving into peak season with good supplies and nice quality.

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.

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.

The Ventura crop is our main supplier of domestic fruit, and their season is winding down. Demand is strong and steady. We are seeing 140s/165s/200s/235s supplies getting very tight. The Desert crop looks to start some light packing by mid September. Chilean fruit is available in good supplies and Mexico is going with fair 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 larger limes are old crop and are tired. Shippers are sorting through them before they load the trucks which is helping on arrivals. Large sized new crop won't show up until the first week of September. Smaller sized new limes are filtering into the supplies already. 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.

Alerts:
138 and 113 size oranges have reached demand exceeds supply situation with the increase school demand.

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.

Green grape supplies remain steady. The Thompson and Princess varieties make up the majority of the volume currently available. Sizes are running large and quality is being reported at good. Market prices on these varieties have been consistent with value buys available. The Autumn King variety is just starting with light production numbers. Sizes are leaning heavily on the XL to Jumbo ranges and quality is excellent. Market prices on the Autumn Kings have been at a premium. Please see pictures attached.

The red seedless grape market has been steady with good demand and supply. Scarlet Royals and Crimsons are the predominant varieties. Quality has been reported as very strong with a wide range of sizes available. Recent school business has increased demand leading to firm but stable market conditions. However, harvest numbers are expected increase as we move into next week. I anticipate we will see a slight drop in market prices next week.

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 green onion market is extremely active with limited supplies due to the hot temperatures in Mexico.

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.

Finally this market is beginning to react as multiple suppliers are sold out in the middle of the week. The quality continues to be above average with many shippers. Slight mechanical , insect and puffiness exists but is minimal with most suppliers. School business is showing to be much more active. The weights continue to average 42-48 pounds on palletized. Expect stronger demand from processors throughout this week.

This market is firm on all leaf items. With lettuce becoming active in the marketplace, expect all leaf items to follow in its footsteps very soon. Overall quality is good with most shippers. Occasional mechanical, fringe and tip burn and insect damage is being seen, but again only minimal. Expect the quality to be above average for the rest of the week. The weights on romaine continue to average 33-37 pounds. All other leaf items are also having positive reports on good weights as well.

The supplies have increased and demand has picked up a little. The market is steady to slightly lower with most of our shippers. 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 bigger volumes of honeydews than they were earlier this week. Demand is steady versus last week and with somewhat larger supplies we are seeing a slightly lower market overall. Weather has been on the hot side lately making the quality of honeydews suffer a little. Overall they are good with a few lots arriving soft and overripe.

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.

California - they still have a few yellows, reds and whites. The sizing is heavier to jumbos and mediums reds for all colors. The quality is holding nicely. The season will wrap up in the next week to 10 days.
Washington - they are starting to build inventories and thus the market is steady to lower on reds and yellows. Jumbo and smaller reds and yellows are the bulk of the production with only light supplies of larger onions. The quality is good.
Idaho/Oregon - They are also heavy to jumbo and medium size in all colors. There are a few supers and colossals. The market is steady on larger yellows and steady to lower on smaller yellows, reds, and whites as inventories start to build. The quality ahs been good.

California - Bartlett pears are steady and they continue to peak on 100/110/90s but the wrap supplies are low. Some shippers are done packing and are shipping from inventory. Most suppliers don't have any fruit smaller than a 120-size. The quality has been good. Crimson pears are steady and continue to peak on half carton 45/40s but supplies remain short. Bosc are steady and are peaking on smaller fruit but supplies are limited. The quality has been good.
Washington - Bartlett pears are steady to lower and continue to peak on 90/100/110s. Inventorys are growing 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 dropping from the tropics and are going to be significantly lighter for August and possibly into September.

Washington - The market is steady for the moment but adjusting as inventories build. Most packers have good quality and are heavier to 80-count and smaller.
Idaho - The Idaho market is also steady for the moment as the season is just getting started. Most packers have good quality with minimal skinning but they are peaking on smaller size like Washington.
Wisconsin/Colorado - both areas are packing but supplies are light and the pricing is relatively high compared to Idaho and Washington.

Stockton California - reds, whites, and golds remain steady as she goes and all are peaking on A size. Baker/premium whites and golds are still short. The quality has been good for all colors.
Idaho - they are starting to pack reds and golds. The reds are peaking on A size and the quality is good with only light skinning.
Minnesota - reds and golds are mostly steady with good availability on most sizes. Some suppliers are higher on 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 and are still peaking on A-size. Some suppliers have finished with golds. The quality is good.
Delaware - They are out of reds but still have whites and gold. Both colors are producing mostly A and B size with some premium and baker-size. 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. Mostly medium and Large size available on Yellow S/N

Stone fruit availability continues to be limited. The warm weather has advanced the growth cycles leading to early harvest and large sized fruit. We expect to have good supplies of Peaches and Nectarines through the month of September with steady market prices on sizes 64 and larger. Plums and Pluots are very limited on smaller sizes (60's and smaller). Market prices on Plums and Pluots continue to climb and are expected to remain firm through the remainder of the season.

Alerts:
Plums and Pluots are very limited on sizes 60 and smaller. Market prices continue to climb due to light supply and heavy demand.

Rounds - The market is higher. Supplies are on the shorter side in the east and west. With some areas being hit with rain, along with schools back on-line, the short coming has raised the market. Range in quality from poor to good, depending on location. Look for demand to continue to be up.
Roma - The market is higher. Supplies also looking to be much shorter in all areas. Southeast volume is down, due to some weather, and Mexico is in a gap. Southern and Central California continue to be in production, however, they don't have enough supplies to fill the uptick in demand. Market is much higher than last week. Range in quality.
Cherry - The market is higher. With schools back in session, demand has picked up, with FOB's following. Look fo demand to continue to be stronger. Quality out of Michigan and Virgina/Maryland very good, with west coast a little more suspect.
Grape - The market is higher. Supplies are looking to be very short, with demand up. Although supplies are just keeping up with demand at the moment. Look for that to change as supplies get a little tighter. Out west, supplies are also very short. Range in quality from poor to good.

Rounds - The market is higher. Supplies looking to be much shorter in the west and east. Less product crossing from Mexico and Southern and Cecntral California are down this week. Back east, weather continues to lighten production. Look for demand to continue to be stronger. Range in quality from poor to good, depending on location.
Roma - The market is higher. Supplies also are very short on the Roma's. Mexico looks to continue to be in a gap. Southern and Central California continues to be in production, however, supplies are not enough to keep up with demand. Back east, production is lighter due to rains, with demand up as well. Pricies are much higher than last week, and look for demand to continue to be stronger. Range in quality from fair to good.
Cherry - The market is higher. With schools 100% going, in all areas, the market is stronger. Look for demand to continue to be stronger, with supplies getting lighter. Quality is fair out west, and much better back east.
Grape - The market is higher. Supplies are much lighter in all areas. However, demand continues to be a bit lighter keeping the market from being much higher. Look for FOB's to tick up higher as demand begins to tick up. Range in quality.