The Source - August 28, 2019

Eastern Region

New York
Beginning to see ‘Early’ Reds (Paula Reds, Jersey Macs) along with Ginger Golds. It is very light volume and many shippers are not able to commit to loading volume this week. ‘Late’ Reds (Jonamac, McIntosh, and Gala) starting early to mid-September.

Michigan/Pennsylvania
Ginger Golds are available but are very light in volume. Also, Paula Reds have started, but shippers have limited volume until next week. Look for McIntosh, Gala, Jonamac, Golden Del., and Honeycrisp to start early to mid-September.

Western Region:

Washington
Most shippers are gapping on Golden Delicious with a few shippers able to sub into Ginger Golds/Gold Supreme. New crop, Golden Del. apples should start the week of September 9. Many shippers are reaching the end of their stored product (Golden Del., Fuji, and some with Red Del.). Shippers are increasing their volume on Royal Gala apples this week and orchards seem to be yielding to smaller sizes in the Yakima area, which means more foodservice sizes available (113ct, 125ct, 138ct, and 150ct).

Post-Labor Day will bring the return of all schools and a jump in volume for many across the nation. Until we see more new crop offerings in the coming weeks, flexibility on subbing sizes/grades/varieties is essential—especially on smaller, foodservice sizes (113ct, 125ct, and 138ct). Know that some orders may require an extra pickup location due to some shippers not having the full line-up of varieties.

California
CA Gala apples are still available and command lesser money than Washington product. CA Granny Smith apples should start, in a light way, next week with Fuji’s available mid-September.

Alerts:
Golden Delicious and Fuji apples are gapping until new crop starts (week of 9/9)

Central Mexico (Guanajuato) production for the most part is wrapped up. Baja Mexico has started with production, and this region should increase in the next 2 weeks. Both regions in Peru (Ica/Trujillo) remain cold, and this trend should continue for the next 2-3 weeks. The larger sizes are still limited in Peru due to the cold temperatures. Markets on both coasts are still very active, especially on the larger sizes.

Industry demand remains good with a steady market. We are seeing late-season fruit that appears with darker external skin and with great internal quality. California's gradual drop in production is expected to last until early September. Peruvian fruit is also showing a significant decline in arrivals. Volume will continue to taper off as the last have arrived and the pipeline is pretty much in clean up mode on Peruvian fruit.

Current demand has softened up. Large fruit (48's and larger) have been tight for the last month and held at a premium. With rain hitting week in and week out in the growing region of Michoacan, the fruit has sized upon the trees. This new crop is dominating on smaller fruit but the size curve has shifted. We anticipate a flat market for the next few weeks. As soon as the pipeline has cleaned up on California and Peruvian fruit, we can expect a stronger market.

Green Bell pepper is in peak season with most supplies coming from Michigan, Ohio, New Jersey and Pennsylvania. There are still light supplies in the mountains of Tennessee and North Carolina. Quality in most of the regions is good, the eastern growing regions have had more issues because of heat, the mid-west has better overall quality with the only real issues coming after rainstorms. Pricing has been steady for the past week at reasonable levels with very slow demand. With cooler weather in the mid-west this week, expect production to slow and quality will get better.

Peak Seasons:
Green Bell Pepper is in peak season.

Green Bell Pepper- Better supplies of green bell pepper being harvested in Bakersfield, CA and in the Fresno, CA growing area. Mostly choice grade continues to be packed. Very light supplies of large and extra-large retail grade bell pepper being packed. Quality on green bell pepper from these areas is good. Choice grade Green bell pepper supply meets demand. Retail grade green bell pepper supply meets demand. Green bell pepper harvest has also started in the Hollister and Oxnard and will continue to be available from McAllen, TX.

Red Bell Pepper- Better supplies of red bell pepper being harvested in the Bakersfield and in the Fresno growing area. Mostly choice grade currently being packed from these districts. Quality from Fresno and Bakersfield is mostly fair. Market on red bell pepper is steady. Red bell pepper also being harvested in Hollister and Oxnard. Light supplies of Red bell pepper also available to load in McAllen, TX.

Yellow Bell Pepper- Light supplies of yellow bell pepper being harvested in the Bakersfield and Fresno Growing area. Majority of yellow bell is being packed into choice grade. Light supplies of choice grade yellow bells are expected to continue through the week. Market on yellow bell peppers is expected to remain steady. Yellow bell pepper from California is mostly fair to good. Light supplies of Yellow hot house bells are also available to load in McAllen, TX.

Blackberries are more abundant than in previous weeks as we see good yields out West with better numbers crossing into the U.S. from Mexico. Look for this trend to continue into next week. Quality has been generally good, however, some red cell is being reported upon arrival.

Blueberries are still available in multiple areas including the West Coast, Pacific North West, and Michigan. The market is firm with higher undertones on all pack styles. Quality has been good out of all regions except for some repacks showing some age. Look for this firm to higher trend to continue through the upcoming Holiday. Imports are slowly increasing from Peru, Argentina, and Mexico.

The raspberry availability has improved in the last few days and the market has relaxed to a steady-state. Quality has been good overall coming out of Mexico and Central California. Look for the supplies to continue to get better as the Mexican season really kicks into gear in the upcoming weeks.

The market remains steady with higher undertones as we see the yields drop gradually out of the Salinas/Watsonville area and good demand exists. The new crop fruit out of the Santa Maria area is just starting up and supplies will not be enough to counter the lower numbers coming out of the North. Quality has been fair out of the Salinas and Watsonville areas as the plants approach the end of their life cycle. We are still seeing some bruising and leakers upon arrival. Quality out of Santa Maria should be markedly improved due to the minimal age of the plants. The market should remain strong moving into the holiday weekend. Look for Mexican berries to become available by the end of September if not sooner

Alerts:
Be aware that there will be challenges in the next few weeks regarding labor. Growers must allocate limited resources to prepare winter beds and replace drip lines and cover plastic. This yearly field prep deadline always limits harvesting crews thereby reducing yields and producing temporary shortages as Growers juggle between these priorities.

Transitions:
Transitioning to new crop fruit in Santa Maria

Broccoli supplies are starting to get tight as we are approaching a gap in supplies and lower yields due to the recent heat. Quality is fair with slight purpling, some mechanical damage and occasional yellow cast.

Alerts:
Broccoli fields are gapping and producing lower yields. All shippers are not getting their projected #'s.

The brussels sprouts market has started to come off as fields are starting to come forward. There is still slight internal decay causing lower yields. Look for the Brussels sprouts market to continue to adjust going into next week.

The California carrot market is steady out of the Cayuma, Lancaster, and Bakersfield areas on all pack styles excluding the jumbo category. Shippers are reporting there will be a pricing increase on the jumbos due to warmer than usual weather which has slowed the growth of the carrots. The Mexican Jumbo carrot market remains steady with lower undertones as we move past Mexico's rainy season and production begins to increase. These carrots are crossing into the US at Laredo, Texas and McAllen, Texas.

Alerts:
There will be a pricing increase on California jumbo carrots projected to take effect in September due to warmer weather causing the carrots to not size up properly. Alternative sources are Mexican jumbos coming out of McAllen Texas.

Cauliflower supplies are plentiful as fields have come forward and yields continue to improve. The quality is good with minor bruising and yellow cast with weights in the 25 to 28-pound level. Look for the market to continue to adjust going into next week.

With the holiday approaching, demand has fallen off in the marketplace. Good supplies of this commodity will be available for the entire week in Salinas and Santa Maria/Oxnard. All sizing is readily available. Shippers are flexing on most large sizes on volume type orders so promoting this commodity would be a good idea. The quality continues to be above average with most shippers. Minor defects were reported to include insect damage, slight bowing and mechanical. The weights are averaging fifty-one to fifty-four pounds per case.

Jalapenos- Good supplies of Jalapeno available to load in Los Angeles from Mexico and California. Jalapeno are being harvested in Baja California where the quality is good. Domestic jalapeno is also being harvested in Santa Maria, CA. Mostly medium to large size are available from both regions. Market on jalapeno has maintained in teens this week. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Good supply of Pasilla peppers available to load in Los Angeles from Mexico. Pasilla is being harvested in Baja California. Quality on Pasilla from this region is mostly good. Size on the pepper is mostly medium to large. Market on Pasilla is Higher/steady. Pasilla from Mexico also available to load in McAllen, Texas.

Anaheim- Good supply of Anaheim available to load from Baja California and Santa Maria. Quality from Baja and Santa Maria is mostly good. The market for Anaheim is in the mid-teens and is expected to stay there through the week. Anaheim from Mexico also available to load in McAllen, Texas.

Serrano – Good supplies of Serrano peppers available to load in Los Angeles, from Mexico. Supplies are expected to remain steady throughout the week. Supplies currently meet demand. Price on Serrano pepper is currently in the high teens and is expected to remain the same through the week. Serrano supplies also crossing through McAllen, Texas.

Tomatillo – Husk tomatillos are available to load in Los Angeles, from Mexico. Quality of husk variety is good. Good supplies on husk tomatillos are expected to continue through the week. The tomatillo market has remained steady on both husked and peeled. Both Husked and Peeled tomatillos have remained steady in the teens. Both varieties of tomatillos also available to load in McAllen, TX

The cilantro market has started to come off as fields are starting to come forward. The cilantro quality is fair with an occasional yellow leaf. Look for the cilantro market to continue to adjust going into next week.

We’ll have another good week on lemon supplies, with the majority being imported fruit out of both coasts. Market prices on small size fruit continue to soften up, looking at mid $20’s to low $30’s on choice and fancy fruit. Offshore supply continues and has been helping offset domestic supplies. We’re hearing great feedback on the export quality. Please let us know if you have interest.

The Lime industry is seeing an extreme shortage on Lime sizes 110ct - 200ct, due to extreme drought conditions in most of the Mexican Lime growing regions. Not only is this a size issue, but it is also a quality issue. Many growers are experiencing around a 50% utilization rate when grading the Lime crop before and after it crosses the border. Most limes currently crossing into McAllen are 250ct or smaller this week, and we don’t expect this to improve. Many Mexican Lime growing regions do not expect to see any rain relief soon and don’t anticipate relief within the next 6 weeks. Mexico has been experiencing a drought for some time now, they are now in a desperate need of rain. Only 3 % of growers have watering wells and those wells are either dried or are starting to dry up. Currently, Mexico is dumping about 70% of the harvest before it even hits the states. Growers are saying that large fruit 110cts, 150cts, 175ct, and even the 200cts will be extremely tight or non-existent for the next month or so. We’ll take it week to week and communicate any updates we have.

Alerts:
Lime supplies expected to very limited due to drought conditions in the growing regions in Mexico. Sizes on 230/250's expected to be in better shape, but supplies on small fruit are expected to go quick, markets prices have gotten stronger and expected to stay firm.

Demand for small Valencia continues to be very strong and the market continues to go up. Supplies remain limited and we expect demand/supply to be a challenge moving forward. We advise placing orders in advance to help strategize and secure the fruit. Markets are firm in the high teens to low twenties and we could see a lift in markets as demand increases. If you have options to take import Navels to help offset please let us know. Supplies on import Clementine Mandarins on both coasts are snug, it’s best to prebook in advance week. Grapefruit supplies are looking plentiful, plenty of opportunities to push volume.

Alerts:
Domestic small size Valencia's will continue to remain very tight moving forward. It's advised to prebook orders in advance. Please keep in mind we do have options to use Chilean Navels.

Cucumbers supply has gotten tighter this week, Michigan, Ohio, New Jersey, Pennsylvania, and Virginia are all shipping cucumbers but none of the regions are in peak production. Canada is shipping cucumbers to the northeast keeping markets in check. Super Select supplies have gotten tighter as more product can't make grade and is being packed as selects. Most growers have hit a slight gap in production due to planting schedules, new fields will be ready for harvest next week so supplies and quality will get better. All these growing regions have fall plantings scheduled and most of that production will start in early September.

The cucumber market has stabilized and is expected to remain steady throughout the week. West coast cucumbers are currently being harvested out of Baja California. Moderate supplies of cucumber being produced by the Baja district. All sizes and pack styles currently being packed. Supplies are currently exceeding demand on both retail and foodservice quality. Quality from Baja is good. Cucumbers from Mexico are also available to load in Nogales. The quality of cucumber arriving in Nogales is good. Light supplies of Mexican cucumbers is expected to continue through McAllen. Cucumber quality from McAllen is good.

Eggplant is in peak season with supplies coming from New Jersey, Michigan, and Ohio. Other small supplies are coming from Virginia and the Carolina's. Planted acreage this time of year is not large compared to the spring and fall in the southeast but there is more than enough supply to cover the demand. Quality is good in the mid-west and fair in New Jersey. Volume is peaking now in the Midwest and should continue this way for the next couple of weeks. New Jersey is in steady volume and will continue until cold weather sets in.

Peak Seasons:
Eggplant is in peak season.

Light supplies of eggplant available to load in Los Angeles. Eggplant continues to be harvested in the Bakersfield and Fresno, CA district. Mostly choice grade supplies of eggplant are expected to be packed through the week. Light supplies fancy grade eggplant expected to be packed. Quality on domestic eggplant is currently fair on retail grade and good on choice Grade good.

Green grape supplies are improving this week as shipper move forward with new harvest in California. Last week we transitioned from older varieties into new harvest and it affected supplies briefly. Shippers were trying to hold the market prices up on new harvest, but as production increases this week, I expect to see prices start to fall off a bit. I anticipate aggressive volume buys for the weekend. Quality on the new varieties (Ivory, Great Green and Valley Pearl) is being reported as very strong. Demand has been consistent. We will see good availability as we start fall.

Alerts:
Cheaper fruit is older varieties and quality is poor.

Red grape supplies are improving this week. We saw a transition from old varieties into new harvest over the last week or so. As production continues to increase on the new harvest, shippers will quickly be back into a supply exceeds demand situation. Last week there was a split market between old fruit and new. Shippers were trying to hold the prices firm on new varieties. This week, markets have remained steady, but I am expecting to see more aggressive prices being offered on volume buys for the weekend. New varieties include Scarlet Royal, Krissy, and Magenta with some light harvest of Jacks Salutes. Scarlet Royals are yielding a lot of big fruit (XL to Jumbo) the other varieties are mostly sized large and extra-large. Quality on the new harvest is being reported as very good. Demand has been increasing with schools back in session. We expect good availability as we start in September.

Alerts:
Cheaper fruit is old varieties and quality is poor. Stay with new varieties.

The green onion supply continues to be plentiful with the recent nice weather in Mexico and Salinas. The cooler weather recently is causing occasional leaf minor. The market will continue to stay steady going into next week.

The kale market continues to remain steady as supplies continue to stay plentiful. Quality is fair with full bunches and an occasional yellow leaf being reported due to the recent heatwave.

This market is steady to start the week. With the emergence of school business, supplies have firmed up with multiple suppliers. Salinas and Santa Maria are the main growing regions for this commodity. Mexico has production as well but bad weather has caused production to be up and down from this growing region. The weather in all of California continues to be very favorable for growing conditions. Yields continue to be above average with multiple growers. Small, minimal defects include growth crack, insects and misshapen heads. The overall quality is good. Weights on this commodity are reported at 41-45 pounds.

This market has firmed up on romaine. There is a supply gap in the industry. School business has picked up on value-added as well as carton business. Overall supplies will be moderate at best throughout this week. The quality continues to be above average. Minor defects include mechanical, light windburn and slight insect damage. Weights are reported between thirty-five to forty- three pounds per case. Romaine hearts will continue to be on the light side for the entire week. Green and red leaf, as well as butter, will have good availability all week. Good quality of green and red leaf, as well as butter, continues to be reported. Aside from occasional insect damage, mildew and fringe burn, these defects are minimal. The weights on green and red leaf range from twenty-one to twenty-five pounds per case.

Tender Leaf supplies continue to be plentiful as the weather in the Salinas Valley continues to spur growth and produce better yields. Curly parsley, spinach, and arugula have reacted to the recent warm weather and supplies look to be in good shape going into next week. Quality is good with occasional yellowing and bruising of the tender leaves.

As we approach the end of August, we are seeing good volume on large fruit end excellent quality melons. We are seeing limited offerings on smaller fruit this week as the heat has brought on the fruit and has sized up. Going into the weekend we anticipate a stronger market on all sizes.

Honeydew supplies are good this week. We are seeing a good demand on all sizes and an even stronger market/demand in smaller fruit. Good quality fruit internally and externally with great brix levels. Cantaloupes and honeydews will run strong through September and transition into the desert in October.

Watermelon’s currently being harvested in Central California. The seedless watermelon market is steady with steady demand. Watermelon quality out of California is good.

Northwest onions in Idaho/Oregon and Washington are now in full production. Size profile for yellow onions is running on the smaller size, jumbo, and medium. Super colossal and colossal yellow onions are limited with inflated markets. Red onions have excellent quality and plentiful supply. White onions are increasing in production with declining markets. New Mexico has some supplies of yellow, red and white onions and look to finish for the season by the end of this week. As we move into September, we will be looking at the Northwest for onion supplies with excellent quality.

Transitions:
Idaho/Oregon and Washington in full production. New Mexico will finish this week.

Washington:
New crop, Washington Bartlett pears are available (mid to high 20’s). Stored Green Anjou pears are at their end and new crop will begin next week (increased volume the week of September 9).

California:
Aggressive prices continue on CA-Bartlett pears (low teens). Load volume on CALIFORNIA BARTLET; BOSC PEARS pricing out much higher and less volume. ASIAN PEARS are starting up; 10ct-24ct available to load in the San Joaquin Valley. We should see smaller sizes by the end of next week (66ct-96ct, 3-layer).

Alerts:
Aggressively priced CA-Bartletts available!!!

Pineapple supplies have slightly improved out of both coasts on crowned sizes, the crownless situation is still snug and looking to improve by the second week of September. Markets remain steady and demand continues to remain strong as schools have started back up. Demand is expected to be strong for Labor Day weekend.

Idaho Burbanks have finished for the storage season and we are now 100% Norkotahs with the new crop harvest season in full swing. Quality is excellent with size profile currently leaning to 80 count and smaller. Larger size 40 count through 70 count are limited to start. As harvests continue, 60 count and 70 count are steadily increasing in volume. #2 grade 10-ounce and 6-ounce are limited as Norkotah quality is producing high volume #1 grade potatoes. Suppliers will be subbing into carton counts for #2's to fulfill orders. Typically a 50 count to 70 count will be used for 10oz #2's and 90 count to 100 count will be used for 6oz #2's. Some minor quality issues in the new crop Norkotahs may be seen in the way of skinning, white mold, wet potatoes (wet boxes), and soft potatoes. Washington continues to produce steady volume. Colorado supplies are limited with Wisconsin starting up this week. Please continue to send advanced orders (at minimum 72 hours) prior to ship date over the next 2-3 weeks as we move through the transition.

Alerts:
Idaho storage Burbanks are done for the season.

Transitions:
Wisconsin starting this week.

Color potato markets have stabilized with other regions just starting up. #2 grade and chef size remain limited. California continues to produce all three colors out of Stockton, CA with good quality. Washington is producing supplies of red and yellow with Idaho now starting up on red potatoes this week. Yellow potatoes are expected to start up in Idaho next week. Minnesota continues to produce both red and yellow with Wisconsin just starting up the season with limited supply. Expect the new regions of Idaho and Wisconsin to increase in volume over the coming weeks and a steady decline in markets as we roll into September.

Alerts:
#2 grade and chef size color potatoes are limited.

Squash supplies have been a lot lower for the past week, cooler temperatures in the mid-west have slowed production in Michigan and Ohio. The mid-Atlantic and northeast are in steady supplies but not peaking. All of these regions are in a downward production cycle, yellow squash supplies are much tighter than zucchini. All of this will start to change next week, as the mid-west and northeast get warmer and start new fields scheduled for the fall season. The mid-Atlantic will continue with light supplies.

Both Italian and yellow straight-neck squash continue to be harvested in Santa Maria, Fresno, and Baja California. Better supplies on both Italian and yellow s/n squash are expected from the Santa Maria district with better weather in the growing area. Good supplies are expected from the Baja district. Good volume also from the Fresno growing region. The market on soft squash is currently steady. Quality from all California growing districts on both Italian and yellow s/n are mostly good. Quality from Baja is also good. Good supplies are expected to continue on both Italian and Yellow S/N through the week. Light supplies continue on Italian and yellow s/n continue in McAllen, TX where markets have also increased.

We are seeing stone fruit availability start to lighten up. We are approaching the beginning of the end on the domestic stone fruit season. As we move toward fall, we will see nectarines drop off first, followed by peaches, then plums are expected to last through October. As harvest slows down, sizes will become more limited. Currently, we are seeing nectarines become more limited. Smaller sizes are running out and only large tray pack sizes will be left. Market prices on nectarines have started to firm up. Peaches and plums are good for now with decent supplies at hand. However, we expect to see peaches taper off over the next 2 weeks and markets will climb. Plums and pluots will be steady through September.

Alerts:
Domestic stone fruit season is starting to wind down. Certain sizes will become limited.

Weather conditions continue to disrupt supply. Tropical Storm Dorian is forecasted to have a 90% chance of forming a cyclone before making landfall on Puerto Rico today. Depending on the strength and path of the storm, there is a chance Dorian will make landfall somewhere over Florida also bringing rain to Georgia and the Carolinas.
Although harvests are scattered over several growing regions, summer programs remain light and demand is strong lifting the market. Round tomatoes are being harvested early from heat in the regions bringing forth a flush of fruit. Quality is mixed overall and mostly fair. Mature greens out of North Carolina are in a small gap from a heat-induced bloom drop 6 weeks ago. Virginia has finished harvesting for the short term coming back into volume the first week of September with new plantings. Alabama and Tennessee will remain in production until the first frost of the season.
Like rounds, Roma tomato volumes are light but better supply from the west is helping to ease the market causing fobs to come off a few dollars from last week. Grape and Cherry tomatoes are steady. Virginia has light supply and North Carolina is also harvesting, but like rounds and romas, there is not enough supply from any one area to meet demand forcing buyers to look west. Quality is fair and with more rain in the forecast picking schedules may be reduced this week.

Another Heat wave hit the San Juaquin Valley last week with temperatures exceeding 105 degrees in some growing areas. The heat brought on a flush of fruit and more than likely caused a bloom drop that could potentially affect production in mid-October. Quality challenges continue from excessive heat and tired plants. There is not much change in the market as a result of the growing conditions. Mature greens are steady, and quality remains fair to poor. Roma tomatoes are similar in CA and most imports from Mexico are only slightly better as Baja farms continue to work their way into new plantings. The newly agreed upon suspension agreement draft has eased concerns of a shortage of tomatoes coming from Mexico helping to steady supply as growers in Mexico continue to work through transition and recent rains. Grape and cherry tomatoes have improved slightly from the past couple of weeks but are mostly steady now while supply is still limited. It will still be a couple of weeks before harvests are expected to improve, and the hope is for better markets when Mexico begins harvesting in greater volume mid to late September.