The Source - August 29, 2018

New crop apples have started in several different growing regions. New York and Michigan are underway with Macintosh and Ginger Gold varieties. Washington has started with Ginger Golds and Galas. California has Galas, and next week we will see Granny Smith apples too. Red delicious apples are finishing up quickly, and the market has begun to trend higher. As we wait for the onset of new crop reds, we will have to rely on Fuji or new crop Galas to cover orders. Quality has been really nice on both storage fruit and new crop with decent sugar levels and 14 plus pressure testing of most varieties.

Alerts:
Red delicious apples out of Washington are finishing the storage crop over the next 3 weeks. Supplies are drying up quickly with the market trending higher.

The rain has continued in Central Mexico, and the outlook doesn't look good. This weather should wrap up the season in this region by the end of next week. In Northern Baja, the weather remains excellent for production, and quality is good. Southern Baja should start up with production in the next two weeks. The weather in both regions in Peru has remained cool which has slowed production on the bigger sizes. Markets are down overall due to the upcoming holiday next week, and promotions are wrapping up.

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. Growers are reporting good quality.
Peru continues to provide relief with plenty of larger fruit as we finish California and transition into Mexico.

Weather in the growing region of Michoacán Mexico continues to call for some showers and thunderstorms. New crop Flora Loca crop has low mature (oil) levels being that we are early in the season. That being said, the fruit will take an extra few days than normal to ripen or stage to the customer's needs. Overall quality has been good on all sizes. Extremely high field pricing in recent weeks combined with heavier than expected harvest in Mexico has lead to a softening in market conditions. While market pricing has come off, we are expecting Mexico to slow to slow down the harvest.

With the rain and hot weather in the east green bell pepper has fared better than other items with quality issues. The northeast and Canada are in good production with decent quality. The mid-west has picked up with production after being in a slight gap last week. Quality seems to be good in Michigan and Ohio. There is a front moving through the mid-west and northeast this week, in the long run, a break from the heat will be good for quality, but the rain could interrupt harvest just before the holiday weekend.

Green Bell Peppers - Quality and condition of Green Bell Pepper is good. The market of green bell has become stronger as supplies have gone lower. Shipping areas include Fresno, Gilroy, and Oxnard.

Red Bell Peppers – Red bell pepper is now shipping out of coastal areas. Good supplies are expected through September, and into October, from the coast. Red bells are also available to load out of San Diego, with hothouse peppers being grown in Baja California. The quality of the peppers has been good. Pricing is lower as supplies have increased. Supplies to exceed demand.

Yellow Bell Peppers – Hot house peppers are available to load in San Diego, from Baja California. Production will fully transition to the Coastal California growing area this week. Yellow bells will be available from the coastal areas through September. The market is very active, and pricing remains steady. The quality of the peppers has been good. Supplies should increase this week.

Supplies remain very good this week. Salinas, Watsonville and Santa Maria are all in production. Additionally, we continue to have limited production from the Pacific Northwest and East Coast. Quality is being reported as excellent with big size, full color, and great flavor. Market prices have been flat with occasional spot buy opportunities for volume. We expect supplies to remain good for the next two weeks, then gradually taper off as we transition between varieties and growing regions. We expect Baja production to increase over the next 3-4 weeks. Central Mexico and Oxnard will start late September.

We are at the beginning of transition between domestic production and import fruit. Supplies are limited as very little domestic production is left in the Pacific Northwest and Michigan. Michigan production has passed its peak and last week marked the beginning of seasonal decline in fresh volumes around the state. Oregon and Washington continue with light production, but quality has been marginal. They are in late season varieties, and most shippers expect to wrap up the season over the next 2-3 weeks. British Columbia has been warm and dry, leading to smaller berries with occasional soft and shriveled fruit. We expect to see the last of the season’s peak in late varieties over the next week and harvest will decline rapidly. Import fruit is slowly making its way into the markets with most arrivals coming in through the east coast. Peruvian fruit is the first to hit the US. This week we will have availability in Manfredi. Quality is good with firm berries, and market prices are higher. We expect to see supplies gradually improve as we start September and significant volume arrive by late September. We will see peak arrivals between October to November. We will eventually see an overlap of Argentina and Chile imports as we transition into all import fruit by Late September. This week expect higher prices and lighter supplies.

Alerts:
Supplies are lighter and markets are higher this week.

Transitions:
Domestic harvest is trending down and import fruit is starting to arrive. Peruvian fruit available now on the east coast.

Supplies are consistent, but light. We have yet to see any big uptick in production out of Salinas, Watsonville or Santa Maria. Quality is being reported as good, and market prices have been steady. No major changes in price or availability are expected this week. We expect to see supplies start to improve again in the beginning of September as Baja production starts (early than normal) and Salinas / Watsonville areas prepare for a short second peak. We expect to see Central Mexico and Oxnard start by late September.

Transitions:
Baja production will ramp up as we start September

Supplies will be limited in the front part of the week, but we expect availability to gradually improve by Wednesday. Several factors contribute to the rather quick change in supplies. First, the heat we had experienced over the last month had pushed a large portion of the available fruit forward, leaving us in a small gap between summer crop and fall crop. Additionally, the Labor Day pull has locked up a big chunk of available fruit on retail ads. This has put shippers in an ideal position to raise prices. This week we can expect to see markets jump up $2-3. Shippers will try to hold the price up as long as possible, but the caveat will be how much new harvest comes on and how quickly. In Salinas / Watsonville areas, most of the harvest continues to be summer crop. With the cooler weather, quality has certainly improved, but volume is expected to remain limited until new fall crop starts up in the next two weeks. In Santa Maria area, most shippers are now transitioning into new fall crop. Quality is being reported as good. Volumes are limited this week but will continue to improve week over week. We expect to see peak production of new crop in Santa Maria by mid to late September.

Transitions:
Santa Maria new fall crop is starting. Production will improve week over week.

The broccoli market has adjusted higher as there are less supply in the Salinas Valley and Santa Maria areas. Quality is good with slight purpling, some mechanical damage, and decent crown size. Look for supplies to continue to be tight through the weekend and into next week.

The Brussels Sprouts market continues to be steady. Supplies in Salinas continues to improve steadily. Quality now 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 as there has been more demand recently. 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.

This market is steady with most suppliers. Flexing is happening on large sizing so please be aware. Demand is just average. School business is slow but expected to pick up in a few weeks. 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. Slight bowing and mechanical have been reported, but overall quality is good with multiple shippers. The weight is ranging 56-60 pounds. Michigan production has remained steady as well.

Jalapeño – Supplies are available from Baja California, in San Diego. Production in Santa Maria has begun, and volume is expected to remain consistent into September. The quality of the peppers is mostly good out of both regions. Supply meets demand. Prices remain steady.

Pasilla – Supplies available from Baja, in San Diego and Santa Maria is also in production with lighter volume than the Baja growers. The quality is fair in both regions and should remain fair to good until new field kick in with in 10 days.

Anaheim –Supplies available from Baja, in San Diego and Santa Maria is also in production with lighter volume than the Baja growers. The quality is fair in both regions and should remain fair to good until new field kick in with in 10 days.

Tomatillo – Good supplies available on both husked and peeled tomatillos. The market remains higher on the peeled pack. Most Baja fruit will be going directly to the L.A market. Santa Maria is also harvesting tomatillos, with much lighter volume than the Baja crop. Quality is good from both growing areas. The market overall is steady. Pricing is firm. Tomatillos are also available to load in McAllen, TX.

Serrano – Light supplies are still available from Baja, in San Diego and L.A. There is also serrano pepper available to load in Santa Maria. Volume is expected to remain steady throughout the summer, the quality of the peppers has been good from both growing areas. Demand is strong, and pricing remains higher. Serrano peppers are also available to load in McAllen, TX.

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. Mexico growing areas have also experienced heat and rain which has lowered yields. It looks like this will continue to be a challenge going into next week.

The domestic lemon supplies are extremely limited with the Oxnard growing region hobbling along. Quality is fair at best from this area. District 3 lemons (Mecca CA & Yuma AZ) have started in a light way but not enough volume to help. We are still two weeks away from any significant volume. Mexican lemons are crossing but not in enough volume to effect the market. Chilean fruit will start to slow down over the next couple of weeks as vessels decrease. Expect the market to remain at higher levels for the next 3 to 4 weeks.

Alerts:
The market remains extremely elevated with no relief for the next few weeks. Supplies are also extremely limited on domestic fruit.

Weather report remains the same this week with rain and thunderstorms in the growing region of Veracruz Mexico with temps in the upper 80s to mid-90s. We are seeing better volume this week on both large and small fruit. Market prices range from $15-$20. This new crop is just starting to come on stronger. We will see prices come off with a steady supply in September. Quality remains fair to good with a steady to high market.

We are quickly approaching the end of the Valencia orange season. Some suppliers will be finishing within the next four weeks. This will definitely put a serious strain in an already depleted supply situation. Quality on the current crop is fair at best with soft rot, decay, and mold upon arrivals. There is better availability on 56ct, 72ct, and 88ct. We are experiencing extremely limited supplies of 113ct and 138ct. The navel orange season is set for mid-October. So we will experience the supply crunch for a few weeks. The markets have increased weekly. There are offshore navels available but for the most part, schools will only accept domestic fruit.

Alerts:
Supplies are extremely limited on small fruit in a demand exceeds market.

Cucumber supplies have tightened up mainly due to weather on the east coast. Quality has been an issue with a lot of rain along the eastern states, and now a heat wave is covering most of the eastern half of the country. Pack-outs have been poor, so growers are producing a higher percentage of selects which has been good for the foodservice business but with the holiday coming this weekend, retail demand has been good, keeping prices up. The forecast for the mid-west and northeast is for much cooler temps later this week, that will help with quality tremendously but will slow production.

Alerts:
Supplies are tight but the market hasn't reacted.

Very low supplies of cucumbers being harvested in Baja California. Supplies expected to increase within 10 to 14 days. Production is expected to be consistent through September and into October. The quality of the fruit is good. Mostly Plains and small being packed. Demand exceeds supply. Pricing on cucumber is higher and will remain high until supplies increase. Shipping areas are San Diego and a few out of Fresno.

Eggplant supply is better but only slightly. The east coast is still suffering from poor quality due to rain. Michigan and Ohio have better supplies of good quality product causing the market to ease slightly. The Midwestern states don't have the acreage planted that they've had in the past, so we don't expect the supply to get much greater than it is right now for about 3 weeks.

Eggplant being harvested and shipping out of Fresno. Supplies have increase in #1 and #2 label, and the quality has improved coming from newer fields. Volume is expected to increase slightly, and supplies are expected to be consistent through September. Supply meets demand. Price on eggplant remains steady.

The green grape market remains plentiful. Fruit has good sizing and color with strong stems. The market remains soft, as growers struggle to sell off the majority of the fruit they have on hand. We will continue to see good fruit and soft markets for the foreseeable future.

The red grape market remains soft. New varieties are beginning to be harvested in the Delano and Fresno areas. Fruit is seeing good size, with really strong stems. Quality will continue to remain excellent.

The Green Onion market has slowly been coming off. Sizing is still trending to the smaller sizing. The hot weather in Mexico has been causing some occasional leaf minor and some mechanical damage. The hot weather has also contributed to a labor shortage as the temperature has consistently been over 100 degrees.

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.

After a week of a softening market, pricing has settled in the marketplace. Demand has simply fallen off in less than a week. Shippers will have moderate availability throughout the week. If demand were to pick up strong again, this market will take off. This week has started slowly for demand of this commodity. The overall quality is good. Minor defects include misshapen heads, mechanical, and puffiness. Weights on palletized are averaging 42-46 pounds. Although schools are in full swing, demand is at the start slower than expected.

This market was attempting to get active, but demand has stabilized. Overall this market is steady. Romaine and romaine heart will have moderate to good availability for the entire week. Green and red leaf, as well as butter, are steady as well. Slight fringe burn, insect and mechanical have been reported, but overall the quality continues to be above average with most suppliers. Romaine hearts will have a slight twisting but nothing major.

Supplies on spring mix, arugula, baby spinach, and cello spinach will all be affected due to the recent warm weather in the Salinas Valley. This recent warm weather has pulled a lot of the Tender leaf forward causing a gap. 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.

The weather has cooled off a bit this week in the San Joaquin Valley growing region with temps in the low to high 90s. Growers are reporting a shortage on smaller fruit (12s,15s, and 18s) and a steady supply on larger fruit (6s,9s, and jumbo 9s). Overall quality has been good with brix (sugar) levels ranging from 12-16. Market pricing is ranging from $5-6$ this week.

The weather has cooled off a bit in the San Joaquin Valley with temps ranging from the low to high 90s. Shippers are reporting a limited supply on smaller fruit(6s and 8s) and a steady supply on larger fruit 4s,5s, and J5s). Overall quality is fair to good with sugar (brix) levels in the 10-14 range. The market is steady with prices in the range of $5-$7.

Mixed Specialty Melons- There are a few varieties available but overall finishing up in the Huron area. Sacramento area is starting up soon with limited varieties and supplies.
•Crenshaw •Casaba •Juan Canary •Santa Claus •Orange Flesh •Hami •Galia

There are watermelons available in different areas of the central valley. Production continues to be mostly out of Manteca. Volume is expected to decrease throughout Central California as we move into September. Demand is steady. Pricing remains steady.

2018/2019 storage crop is in full swing out of the Northwest with a fairly steady market on Yellow and Reds. Supplies are limited on Whites which has this market steady but firm. Supplies will build over the next couple of weeks. Demand overall is steady and will back off slightly after we get through the holiday this upcoming weekend. Quality is looking very nice. Transportation is limited.

We have good supplies of pears from California and Washington. The market is also competitive from both growing regions. Bartletts, Bosc, Seckel, and Red Bosc are the current varieties. The quality is excellent with good sugar levels and decent pressure testing. Also, we have a full line of sizes as well.

Pineapple market has tightened up substantially. Week of orders are difficult to cover, as fruit is being sold out as soon as the vessels arrive. We are also seeing quality problems upon arrival. The two most common issues are product coming either under ripe with white interiors, and in some cases, we are having overripe fruit arrive. We are switching country of origin from Honduras, Guatemala, or Costa Rica based on the quality that arrives into the ports.

New Crop Norkotah's are in full swing out of all growing areas ( Idaho, Washington, Colorado, and Wisconsin). The market is soft which is to be expected in the middle of the harvest. Sizing is peaking on 70 - 100 count with a sharp curve as you get into the 40-50 which are limited but available. Quality is very nice. Heavy rain in parts of Idaho Monday did stop harvest is some areas for the day. Could see some dirty potatoes showing up in some packs. The forecast is calling for clear skies for the next ten days. Freight is tight with the holiday coming up.

Transitions:
New Crop 2018/2019 crop getting into full swing out of all growing areas.

Red potato market out of California, Washington, Wisconsin, and Idaho is steady with moderate demand. Quality is good. The market out of Big Lake, Minnesota has tightened up as supplies have peaked and are on the downhill slope. Demand is good. Gold potatoes are available out of California, Washington, Wisconsin, Idaho, and Minnesota. The market is steady with moderate supplies. Sizing is peaking on B's. Quality is good. White potatoes are available out of California, North Carolina, Virginia, Maryland, and Wisconsin. Quality is good. The market is steady to slightly weaker. Sizing is peaking on B's.

Squash supplies have gotten much tighter this week. Growers in many smaller producing areas like western North Carolina and
Eastern Pennsylvania have quit fields that have received too much rain over the past month. Quality issues have gotten to the point that growers are quitting fields rather than taking the risk of bad arrivals. Growers in the Midwest are having poor yields, and there is no one explanation why, but it has caused a very tight supply situation. There are new fields starting in Michigan and Ohio next week along with very light production in some southern states that will ease the burdensome. We expect the market to stay steady through next week.

Alerts:
Supplies are tight, especially on green squash.

Transitions:
Squash is not in Transition, light supplies have started in the south but there will be no volume until mid to late September.

Peak Seasons:
Squash is not in peak season.

Zucchini and Yellow S/N - Supplies have decreased in the Santa Maria growing areas due to cool weather in the day and night time. The quality of the squash is mostly good. Production is expected to remain consistent through September. Supply meets demand at this time. Pricing is higher and may continue to increase. Few Italian and Yellow S/N squash crossing from Baja California. Quality on squash from Baja is mostly fair to good

Stone Fruit market is beginning to tighten slowly as we head into the fall. Fruit is still leaning towards the larger sizes, with very little small fruit available. Quality is excellent in general.

The market is steady at this time after strengthening over the past couple of weeks due to diminishing supply. At this time, California remains the largest producer of gas green tomatoes for the season where markets have risen for the short term. A shortage in the east during most of August has focused demand on California farms. Additionally, the central valley has experienced a heat wave reducing the number of blooms to harvest. Round and Roma tomatoes are lesser in supply and soft from heat exposure. Vine Ripe and Roma tomatoes are crossing from Baja in lighter volumes while operations transition causing import prices to firm up. Grape and Cherry tomato supplies remain short during Mexico transition encouraging a stronger market this week as well. Quality is mixed between suppliers.