The Source - August 30, 2017

California – Gala apples are lower on most sizes due to price-pressure from Washington. The fruit is still peaking on 100/113s. Granny Smith apples are steady on all sizes although 88s and larger are very short with only light supplies available. The quality has been good for both.

Washington – Red Delicious are steady to higher on most sizes and grades and the market remain very active with strong demand. Most red suppliers are still peaking on 80/88s. Gingergolds are still available but supplies are very light and many shippers are already finished with them. Gold Supremes are also available but supplies are also light as supplies are selling quickly due to strong demand. We can expect Golden Delicious by the end of next week, but only light volume. New-crop Gala supplies are up especially small fruit as the early apples are peaking on 100/113s with good color and lots of the premium grade. Fujis are extremely short very with only a few 72/80 size and larger. The quality of all varieties has been good.

Idaho – Galas have started and they are producing a lot of extra-fancy fruit peaking on 100/113s. The quality is good.

Michigan – Paula reds are steady to lower and peaking on 88/100s. Gingergolds are steady and peaking on 100/113s and the demand has been strong so supplies are limited. The quality is good.

New York – They have started packing a few McIntosh but supplies are limited and they are heavy to 88/100s. Paula reds are steady to lower and peaking on 88/100s. Gingergolds are steady and peaking on 100/113s and the demand has been strong so supplies are limited. The quality is good.

Alerts:
Washington is still gapping on Granny-smith apples and supplies of Gold Supremes and Gingergolds are very short.

Transitions:
Washington will start packing a few new-crop red delicious, Golden delicious, and Granny-smith by the end of next week.

Pennsylvania will start packing in 3 weeks approximately.

Central Mexico is almost done due to rain in the region, and seasonality. Northern Baja (Ensenada) volume is down due to warm nights and warmer days. Northern Peru (Trujillo) has started to close some fields due to seasonality, and Southern Peru (ICA) has good volume with excellent growing weather. All markets are up due to Central Mexico winding down, warmer weather in Northern Baja, and Northern Peru closing fields. Larger sizes are still short from all regions.

Mexico's summer crop is small and limited. Mexican growers continue to hold field prices high as U.S. importers push to get a share of this limited amount of fruit. Demand is exceeding the supplies and the U.S. market is still holding very high pricing. The crop is peaking on 60s and smaller sizes, with mostly #1 fruit and a very small percent of #2s. No relief to this shortage looks to come until we see the Chilean imports. These early arrivals from Chile will be light volume with better volume by mid-September. Mexico's new main crop is expected to start mid-September if maturity level of the fruit is there to harvest.

Alerts:
Demand exceeds supplies

With all major producing regions in good supply of green bell pepper the market is flat as the floor. With California, Canada the mid-west and northeast battling for market share the pepper market has a lot of pressure to maintain the low levels we are at. Some rain has not hurt quality but has curtailed harvesting helping growers in the east to clean up product in their coolers. Cooler temperatures should help slow production but we look for the market to stay at reasonable levels for the next week.

Peak Seasons:
Green Bell peppers are in peak availability.

Green Bell Pepper supply has improved peaking on large #1 followed by choice grade out of Fresno, California. We will see more availability as we move into the week. Red bell pepper is more available this week due to improved harvest in the central coast of California. Better demand on choice grade followed by #1 25lb and 15lb. Yellow bells are very limited on field grown in California.

Blackberries remain consistent. Supplies will be steady over the next 2 weeks as we continue to move through the Salinas / Watsonville peak harvest. Flavor and size are excellent, but the berries are ripe and do have some red cell. Shippers are trying to stay ahead of quality, but be aware of occasional soft fruit. Market prices have been steady with some spot buy opportunities. California supplies will start to gradually taper off later in September, then Central Mexico will start up by October.

Transitions:
Central Mexico is expected to start by October.

Peak Seasons:
We are now in peak season in Salinas / Watsonville.

Blueberries remain limited as we await the first large arrivals of import fruit. Domestic harvest (Pacific Northwest and Michigan) has been trending down over the last couple weeks and will continue to be light as we finish the season over the next 2-3 weeks. Quality on both fresh harvest and storage fruit has been good with occasional soft berries being reported. The weather forecast calls for more warm weather this weekend in the Pacific Northwest, this may cause some quality issues next week. Markets have been firm as supplies are becoming increasingly limited.

Import season has started with light harvest in Peru, the first big volume arrivals are expected to land in 2 weeks. Argentina will follow shortly after, with harvest expected to start in late September. Central Mexico is expected to start in October and ramp by the end of the month. Chile is scheduled to start in November and go through March.

Alerts:
Supplies continue to be limited. Warm weather this weekend may have a bigger effect on availability and quality.

Transitions:
Import harvest has started. The first large volume arrivals are expected to land in the US over the next 2 weeks.

Not many changes on the raspberries this week. Supplies remain steady in the Salinas / Watsonville areas. Flavor is excellent, but some soft berries are being reported. Market prices have remained steady this week. Spot buy volume opportunities will be available over the next 2 weeks, then supplies will start to gradually trend down as we begin September. Central Mexico is expected to start by the end of September.

Transitions:
Central Mexico is forecasted to start by the end of September.

Strawberry supplies are lighter this week in Salinas / Watsonville. The Labor Day holiday pull combined with lower production and labor challenges have all contributed to the limited availability. Market prices have reacted and jumped up again this week. Prices are expected to remain firm through the weekend and start to drop slightly next week. Quality has been good, although the weather is warming up again this weekend, so we may see some softer fruit next week. We expect better supplies for the month of September with promotional opportunities available.

We are approaching some transitional periods for strawberries; here is some info and forecasted start dates.

Salinas / Watsonville - We will continue to have production in this area for the next couple months, however, total volume is starting to trend down. Below you will find pictures of some local fields that have already been covered and gassed in preparation for new spring plantings. This is an indication that harvest in this area is finishing up and may be a bit ahead of schedule.

Santa Maria – new fall crop is just starting in this area with a handful of shippers. We expect volume to increase over the next 2 weeks and really pick up the pace by the end of September. Quality is being reported as very good and market prices are higher but will level out as production increases.

Oxnard – getting started in the next 2 weeks with light production and help supplement the Santa Maria crop.

Central Mexico – harvest is expected to start by late October / early November, then ramp up after Thanksgiving. This product will be available to load in Yuma and Texas as the rest of industry transitions to the desert.

Florida – this area is scheduled to start sometime in November then ramp up as we get into December for the winter months. We will continue to keep you updated on availability as we get closer.

The broccoli supplies remain abundant from the growing regions of Salinas, Santa Maria, and Mexico. This has kept the market at a competitive pace. Quality has been really nice with minimal yellowing, little dehydration, or flowering of the beads.

"Is there any relief in sight?" has been the question as an industry. The market remains at an extreme high. The quality has been the main problem, as the worm damage here in the Salinas Valley has hampered supplies. Suppliers have struggled to sort the brussels sprouts while they are harvesting. Demand is at an all time high as the value added sector has made its way into the retail and foodservice arena. We still do not have any information when supplies will increase but we will keep you informed.

In California growing area we are still seeing slowed size growth of the carrots. The heat has stunted the growth is the current growing area and very few jumbo size carrots are being produced. Good demand for the jumbo sized carrot and less production of them, the market for them continues to be firm and rising. We currently don't expect and shortages or quality issues as we move forward. Supplies on value added and baby peeled are still good.

The cauliflower market is steady with plenty of supplies from Salinas and Santa Maria. Quality is really good with weights in the 25 to 30 pound range, little yellow to creamy cast in color, and minimal brown to black spotting.

Good supplies continue to be the story with this commodity in the marketplace. Supplies exceed demand in all parts of California. Large sizing has the best availability, twenty-four counts in particular. Shippers continue to flex. Aside from some slight bowing and seeder, the overall quality is being reported as good with most shippers. Michigan continues to have production as well.

Pablano – Seeing better quality and condition with new crop in Santa Maria. California growers have started harvesting with improved size.

Tomatillo – much lighter supply and just fair quality, both peeled and husked. Sizing is only fair. Color and condition will continue to be only fair.

Jalapeño – fair to good quality on new crop pepper. Good size, color, and condition with supply limi Baja and Santa Maria volume improving some.

Anaheim – Good quality, condition, and size coming out of Baja California and growers now Harvesting in Fresno and Santa Maria.

The theme her continues to be quality and where to find something suitable to ship. Oxnard and Salinas are still having difficulties with brown to black spotting. Santa Maria seems to be the best area for quality. The market remains strong as supplies are still a struggle. We should hopefully see some relief in the market by next week.

The domestic lemon supplies continue to be limited and demand is very good. The Ventra crop season is winding down, there are decent supplies of 165s and smaller, but 140s and larger are very limited in availability. The desert crop looks to start picking mid-September, but will not be in full production until mid to end of October. We still are seeing good supplies of Chilean fruit.

Limes are still struggling. Tropical Storm Franklin caused a lot of damage to the lime supply. Previous rains and heavy winds caused days of zero harvest and on top of that quality will suffer for weeks due to stylar, skin breakdown and wind scarring. The situation will not improve much for the next few weeks due to an 80% chance of rain for the next 5 days. Growers had just started in new blocks and are now finding all of the defects listed above. The size curve is on the small end with the most volume in 23/250's and very few 110/15's. The market is steady to higher.

Alerts:
We have an 80% chance of rain for the next 5 days which will continue the stylar, skin breakdown and wind scarring defects the hurricane and it's winds caused.

Demand for California Valencia oranges remains very strong and is getting stronger. School demand for the smaller sizes continues to build. School demand paired with the retail juice demand is now exceeding supplies for 88s/113s and 138s which will last through the Valencia season. Even with packers moderating their pack weekly to stretch the crop, some packers will be finished over the next 2 weeks and others expect to see their crop finish by the end of September. California's Navel crop is not expected to start until mid to end of October. The excessive hot weather in the growing area this summer, we are seeing heavier than normal re-greening of fruit. The fruit looks tired and has softness.

Alerts:
Demand exceeding supplies on all sizes and grades of fruit.

Don't get caught sleeping on the cucumber market. With cooler, cloudier weather production on cucumbers should tighten up over the next week. This past Thursday a cold front started sweeping through the mid-west and continued across the eastern half of the country. The rain wasn't an issue, but much cooler temperatures followed the front and while we haven't seen the market on cucumbers react yet, we feel it will only be a matter of time. Buyers have enjoyed a very steady market, especially on off-grade product but now is the time to look ahead. Quality has been good for the most part, color, shape, and size have been very good. Some of the product from older fields does not have the shelf life that is expected.

Peak Seasons:
Cucumbers are peaking right now but look for that to change soon.

lighter supply on cucumber crossing in Baja California. Excellent color, quality and condition on all grades, sizes and pack styles. Peaking on Super Select.
Started to get better supply of cartons, heavy to 42s volume will improve as temperatures continue to increase.

The supplies of eggplant are steady, but lack of demand has caused slightly less pricing. As a lot of kids head back to school this time of year buyers are concentrating on the items those institutions use and eggplant is not on the list. Quality and production are good, but with cooler weather across most of the eastern part of the country supplies could slow down over the next week to 10 days. Eggplant does not react to temperatures as quickly as squash so we feel like the market will stay steady through the week.

Peak Seasons:
Eggplants are in peak availability.

Eggplant is currently being shipped from Fresno CA, Supply is improving with warmer weather. Quality is improving Look for lighter supply as we move into the fall season.

Green grapes are looking really good in all areas. We have great quality, good supplies, great size, great color and great taste. It's a good time to load up on the different varieties being harvested right now. The market has a range from the low teens low twenties with a lot of choices of size from our shippers. The market is steady

Red grapes are enjoying the same exact environment as the green grapes. Red grapes are looking really good in all areas. We have great quality, good supplies, great size, great color and great taste. It's a good time to load up on the different varieties being harvested right now. The market has a range from the low teens low twenties with a lot of choices of size from our shippers. The market is steady

We continue to see extreme heat in the growing regions of Mexico. Temperatures are ranging from 107 to 116 degrees. This has really hampered growth rates. We are seeing sizing in the small to medium size with jumbo sized green onion being nonexistent. The market remains much higher than normal levels. We will continue to see this trend for the next 3 to 4 weeks. Quality is fair at best with yellowing and browning of the tops.

Alerts:
Supplies continue to be a problem as the heat takes its toll on growth rates. The market remains active and much higher than normal.

The kale supplies from all growing regions remain steady. The market is also competitive. Quality is excellent with dark green color, full bunches, and minimal dehydration or yellowing.

The lettuce market has softened. Last week showed signs of getting stronger, but warm weather has brought on an accelerated growth pattern of this commodity in the industry. Demand is off. The quality continues to be good with many shippers. Aside from slight ribbing, occasional mechanical and insect, inspectors continue to report of good quality lettuce coming out of California, north or south. Weights on palletized are averaging 42-47 pounds. Expect competitive pricing for the rest of the week.

The romaine market is stronger after weeks of flatness. Romaine is averaging 32-36 pounds. There has been a little mechanical damage and slight insects due to warm temperatures in the growing regions. Supplies look to be moderate for the rest of the week. The overall quality, however, is being reported as good with most suppliers. Green and red leaf, as well as butter, are also showing minimal defects and good quality. These commodities have remained flat.

Cantaloupes are in a supply exceeds demand market right now. The scenario is turning ever so slightly due to high temperatures in the growing areas that are curtailing harvests, slowing growth and a pick up in demand due to schools being in session across the country. The market is steady to slightly higher.

Honeydews, like their partner the cantaloupes, are in a 'supply exceeds demand' market right now. The scenario is turning ever so slightly due to high temperatures in the growing areas that are curtailing harvests, slowing growth, and a pick up in demand due to schools being in session across the country. The market is steady to slightly higher.

Seedless Watermelon supply in the west has improved due to warmer weather . Bakersfield and Huron are shipping with improved quality and size, peaking on 45s mostly bins and some cartons. Heavy supply on personals being offered peaking on 6s and 8s with better, lower pricing.

Northwest onion season is back to full swing with all color and sizes. Markets on Yellow and Reds are steady and should be through most of September. White onion market is starting to weaken as supplies increase. Yellow onion sizing is currently peaking on Jumbos and mediums with light supplies of Colossal and Super Colossal. Sizing will improve as each week moves on. Red and white onions are peaking on Jumbos. Quality is being reported as good. There are some lots of Yellow onions being packed that are showing some light greening.

Transitions:
Onions are back to the Northwest growing areas

Stockton, California - Bartlett pears are slightly lower on the larger sizes and steady to higher on 110s and smaller. The Bartletts are peaking on 100s now. Red pears are steady and are still peaking on 45/50 half cartons. Bosc pears are peaking on 100/110s and the market is slowly coming off but supplies are still limited. The quality for all has been good.

Washington – Bartlett pears are steady on the larger sizes and lower on smaller fruit as they continue to peak on US#1 110/120s. The quality has been good. Red Bartletts/Sensations are steady on all sizes. The quality has been good

New York -- they have started packing a few Bartlett pears mostly in 4/5 bushels. The quality is reported as good.

Transitions:
Washington will start packing Bosc, D'anjous, and red D'anjous by the end of next week

Demand is good and supplies from the tropics remain light. It now is looking like it will be mid-September before supplies will start to return to more normal levels.

2017/2018 russet potato crop is ramping up quickly out of all growing areas (Idaho, Washington, Colorado, and Wisconsin). Markets are steady at high levels with signs of weakening starting to show as demand catches up with supplies. The market correction will happen in the next 7 to 10 days. Sizing is peaking on 70/80 count out of most growing areas currently. Quality is being reported as good. Idaho is down to the last couple of shippers that are still packing storage Burbank's which will finish for the season by the start of next week. Quality on the last of the storage crop is fair at best.

Eastern Washington – red and gold potatoes are steady and continue to peak on A size. C size are fairly short in both colors. The quality has been good.
Stockton, California – the reds are steady to higher on all sizes and continue to peak on A size, but supplies are down. Whites and golds are higher on all sizes due to light supplies and both are also heavier to size A. Premiums/Bakers remain short in all colors. We expect Stockton to pack and ship through next week and then finish. The quality is good.
Idaho – reds are steady and peaking on A size while Bs are limited. Golds are also steady and the availability for A size and B size are good. The quality is good with only light skinning.
Wisconsin – the red market is higher on all sizes because demand has caught up with supplies. Due to some immaturity in the field, the market will stay up for a while. The gold market is steady, but with better availability. The quality has been good for both colors.
Minnesota – reds are up due to lighter supplies coming in form the field and they are peaking on As. Gold potatoes are steady and also heavier to A size. The quality has been good.

Transitions:
Western Washington will start over the weekend and into next week with reds, whites, and golds.

Squash supplies have been tight for the past two weeks due to various factor and now with a cold front moving across the eastern half of the country production has gone down even more. Prices have jump over the past week on green squash, yellow has not reacted as much but the supply on both is even more of a factor than the price. Shippers are prorating orders on both colors. Quality is good on both colors, but the forecast is not calling for any warmer weather over the next 10 days. Growers do have newer fields starting later this week and some new regions in the south should start after Labor Day with light production.

Alerts:
Squash supplies are very tight through the week. Shippers have been prorating orders and will continue to do so for the remainder of the week.

Peak Seasons:
Squash is not in peak supply.

Yellow Squash and Italian Squash are being harvested in Santa Maria and Fresno. Weather is warmer and supply has improved. Good supply of medium followed by fancy and xfancy with very few W/B being offered. Hard Squash is still being offered from the Central Valley in California. Butternut and Kabocha are in fair supply. Acorn and Spaghetti are very limited.

A week of very high heat in the San Joaquin growing region is expected to last through the week. Some days will have temperatures around 110. This could cause some quality and supply issues. Crews typically cannot get a full day of harvest in under those extreme conditions. We should see nectarine harvest start to wind down over the next 2 weeks. Peaches and plums should have supplies through September and into October. Prices across the board are in the $17-25 range. Kiwi prices continue to remain high with tray pack at $12-14 and volume fill at $28-32.

Markets have increased slightly from last week while regional programs continue to do the best they can to supply the eastern US. AL, NC, MI, and VA are all in production helping eastern supply and expected to continue into September when operations transition back down south. Mature green tomatoes have more availability amongst smaller sized fruit creating traditional step pricing with larger blooms selling for the most money. Roma tomatoes remain limited as expected for this time of year, however supply continues to improve in eastern growing regions helping to level out pricing. Grape tomato quality is very good out of Virginia and quotes are on the high end against a short supply out of the west. As a result there has been a jump in the marketplace by $3 to $5. Similarly, cherry tomatoes are short in the west strengthening eastern market this week as well and will remain stronger until September.

California continues to work through unseasonably hot weather reducing hours of operation amongst picking schedules. Mature greens are steady at this time and quality is fair. Sizing is on the smaller side as a result of hot weather causing larger fruit to sell at a premium. Roma production is steady in California with increasing numbers crossing McAllen and Otay Mesa stabilizing prices. Grape tomatoes are strengthening with less available as a result of coastal weather systems. Additionally, cherry plantings are transitioning between fields shortening supply with demand driving price upward temporarily for the next couple of weeks until supply improves again in September.