The Source - August 31, 2015

Summary

Bell Peppers:
Sources from Baja California are very light and upcoming transitions in California aren't expected for another month pressing markets higher as Extreme Demand Exceeds supplies. From all indications supplies will continue very short until the late summer/fall crops start in Southern California.

Weather Update

A slight cool down to near seasonal averages is expected out west this week as a strong northerly surface flows from the north bringing an increased marine layer to the west coast. Temperatures look to remain in the upper 60s to low 70s near the coast with 80s to mid-90s expected in the interior valleys. The continuing marine layer will bring some moisture and drizzle to the coastal regions as overnight low temperatures (upper 50s to low 60s) remain 5-10 degrees above normal thru the week. The warm, humid overnight temperatures will continue to push crops ahead of schedule affecting yields, quality and shelf life.
The Southwestern Desert regions will see average temperatures (90s to low 100s) Stretching into northern Mexico and Baja. Slight cooling and coastal marine layer begins early this week in Northern Baja. Forecast gets a little tricky late this week as an approaching tropical low moves into the region from the south
The Southeast region will see vastly increased moisture and shower activity from the remnants of Erika. The now tropical low looks to bring heavy rains and thunderstorms to the entire region as it moves northeast into the northern half of Florida then into Georgia and the Carolinas over the next couple of days. The area of west central Florida (Tampa Bay) already saturated from heavy rains is under flood and flash flood watch as up to 3 more inches are possible with this system. Temperatures remain in the 80s to low 90s thru the week.
We continue to monitor a very active tropical season in both the Atlantic and Pacific Oceans. In the Atlantic, Florida missed a direct hit as Erika downgraded to a tropical system before reaching landfall on Sunday. The system will move into the northern half of Florida today with significant rainfall and possible flooding. Another Hurricane Fred just off the African coast at this time is forecast to weaken with little threat to the U.S. at the moment. The Central Pacific Ocean has seen unprecedented activity so far this year. At no time on record have we seen 3 category 4 hurricanes/typhoons lined up across the Central Pacific, which happened over the weekend. The good news is that these systems have generally skirted Hawaii and are in open water. We are currently following a tropical disturbance 600 miles off the coast of Puerto Vallarta that is forecast to intensify over the next couple of days. This system looks to track northwest into Baja possibly reaching hurricane strength late this week. We will continue to monitor the weather events and their potential impact on the various growing regions.

Freight Update

California trucks remain steady but look to tighten up at the end of the week. Washington and Idaho trucks look to be steady for the week. The national average dropped .05 cents again this week and is currently $2.514 per gallon. A difference of $1.30 from this time last year. California prices dropped .05 as well and are now at $2.851 per gallon. Crude oil rebounded over the weekend and is now up to 48.65 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples

California Galas continue to peak on higher color 100/113s. The Gala availability is limited on some sizes but there are volume deals to be had as well. Fujis are steady on all sizes and they are spread evenly from large to small fruit. Granny-smith apples are peaking on 88/100s and the market is firm due to strong demand. The quality for all varieties is good.
Washington Red Delicious are steady and the market remains firm due to both stronger demand and lighter supplies. Most shippers are peaking on higher grade 88s and larger. Small size reds remain short. Earligolds and Gingergolds are steady to higher on most sizes and they are evenly sized from large to small. The demand for small fruit has been strong. Granny-Smith are steady to higher on all sizes and the market remains firm due to light supplies and strong demand. Granny-smith are still peaking on 72s and larger with limited availability of 100s and smaller. Lower grade Grannys are also limited. Washington Galas are steady to slightly lower and they are peaking on 100/113s. A couple suppliers have packed early Fujis and they are heavier to large fruit.
Michigan Paula reds and Gingergolds are steady. The Paula reds are peaking on 88/100s and the Gingergolds are peaking on 100/113s.
New York Macs, Jonamacs, Paula reds, and Gingergolds are all steady with light availability. The quality has been good for all varietys.

- pa_admin
Growing Region Market Quality
Coopersville/Belding/Sparta, MI Steady Good
Hudson/Pleasant Valley/Red Hook, NY Steady Good
Stockton, CA Steady Good
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Asparagus

This market is stronger with all suppliers. Production from the northern Mexico region will be finishing in mid-September. After that, southern Mexico will begin but supplies will be moderate to light to start the season. All pack sizing is limited, with jumbo packs being the tightest in availability. Production out of Peru is moderate to light. Supplies are better on standard and large packs out of this growing area.

- pa_admin
Growing Region Market Quality
Caborca, Mexico Higher Good
Ica, Peru to Trujillo Higher Good
Avocado (California)

California harvest is declining and is expected to finish their season in a couple of weeks. Peak sizing is on 40s and 48s with very little smaller fruit. Very good demand is keeping supplies on all sizes tight. Quality and flavor are both excellent.

- pa_admin
Growing Region Market Quality
Oxnard/Ventura, CA Steady Excellent
Avocado (Mexican)

Mexico's Flora Loca crop harvest is going well, with good volume on 40s and 48s and still limited supplies on 60s and smaller. Limited volume on #2 fruit as quality is very good. The Flora Loca fruit has come up in its maturity, with better oil content and breaking better. Ripe fruit could still be green in color as the skin isn't mature enough for it to darken. Color is not an indication of ripeness, pressure is.

- pa_admin
Growing Region Market Quality
Michoacan, Mexico Steady Good
Berries (Blackberries)

Blackberries are available with good volume and increasing week over week across California's growing regions. Quality has been good and we expect continual increase over the next several weeks! Demand has been relatively moderate keeping the market steady.

- pa_admin
Growing Region Market Quality
Salinas, CA Steady Good
Watsonville, CA Steady Good
Santa Maria, CA Steady Good
Oxnard, CA Steady Good
Berries (Blueberries) Alert

Pacific Northwest (OR, WA, BC) blueberries are very limited this week. Recent weather coupled with the seasonal decline of this crop is beginning to severely limit transfers of fresh fruit from this area. Some shippers are anticipating severe shortages beginning this week and going all the way through September. Southwest Michigan received some weather over the weekend as well, slowing down production to begin this week. Quality has been very good out of this region so far. Pricing is forecasted to continually climb upward as we get into September. Availability of the large packs (pints, 18oz, bulk) is more limited with 6oz and 4.4oz clamshells being the main sizes packed.

- pa_admin

Alerts:
Supplies are forecasted to become very limited this week and remain short throughout the month of September.

Growing Region Market Quality
Salem, OR Higher Good
Mossyrock, WA Higher Good
Pitt Meadows, BC Higher Good
Grand Junction, MI Higher Good
Berries (Raspberries) Alert

Availability has been limited due to recent heat and subsequent quality issues requiring culling of fruit. The heat causes the plants to hold onto the fruit making it even more difficult to harvest without damaging the delicate raspberries. Although shippers are quoting good quality for the fruit that is being packed, it may not have the legs we are used to. Order for quick turns. Grower-shippers are spending extra time in QA to insure quality specifications are being met and sub-par fruit is being diverted. We are also seeing a dip in production from crop cycles that is limiting availability. We continue to see fill-rates across the board as there is not enough fruit to over the current demand. This shortage is projected to last throughout the first 3 weeks of September and we should see better volume available after that.


- pa_admin

Alerts:
Demand is currently exceeding supply. Recent heat and humidity coupled with a gap in production as the crop cycles is leaving us short on product daily. Forecasted harvest volumes show we will be short for approximately 2-3 more weeks before we see some more volume come on.

Growing Region Market Quality
Watsonville, CA Steady/Higher Good
Salinas, CA Steady/Higher Good
Santa Maria, CA Steady/Higher Good
Oxnard, CA Steady/Higher Good
Berries (Strawberries)

Quality is still the biggest concern with fresh strawberries out of the Salinas/Watsonville growing region. Fruit size is small (20-25 per 1 pound clam), berries are full-red color with bruising and some overripe, soft spots. Overnight temperatures are remaining too warm and the fruit continues to ripen too quickly, turning full-red color before reaching a mature size. The fruit will not last as long as you are used to. Order for quick turns and do not carryover. Maintaining the cold chain is of utmost importance when dealing with lower quality fruit. Fruit should be kept 32-34 degrees at all times. The Santa Maria fruit is coming on slowly but still limited volume out of this area. The fruit size is larger (14-22 per 1 pound clam), berries are firmer. While this area is an improvement over Salinas/Watsonville, the volume is not significant enough to replace the fruit out of the north. Some soft shoulders, overripe fruit and bruising is being reported out of the south as well.

- pa_admin
Growing Region Market Quality
Salinas Valley, CA Steady Fair
Watsonville, CA Steady Fair
Santa Maria, CA Steady Good
Broccoli

This market has softened with a few suppliers on bunched product. Crowns continue to be tight in availability. With this being said, processors will be holding to averages all week on broccoli florets. The quality of this commodity continues to be average at best. Escalated pricing is in effect. There has been defects including brown and yellow beading, as well as a rubbery texture due to past and current high temperatures in all of the growing regions. The main production continues to be out of the Salinas Valley. The Southern California region will have moderate to light production for the entire week. Production out of Mexico as well as McAllen is moderate at best.

- pa_admin
Growing Region Market Quality
Celaya Guanjuato Mexico Steady Fair
McAllen, TX Steady Fair
Oxnard/Santa Maria, CA Steady Fair
Salinas Valley, CA Lower/Steady Fair
Carrots

Bakersfield crop is in full summertime production. Size in the fields is dropping some and the percentage of jumbo size carrots is falling off a little. With good demand for jumbo size and this fall off in size and market is firm. Quality is good.

- pa_admin
Growing Region Market Quality
Bakersfield/Santa Maria, CA Steady Excellent
Cauliflower

Light supplies are expected all week with this commodity. Escalated pricing is in effect. Processors are going to be watching averages very closely as extra product outside averages will be difficult to acquire. Demand exceeds supplies. Twelve count sizing in particular continues to have the least availability of all the sizing. Black spotting and yellowing has been seen upon arrivals. The excessive heats in the growing areas are starting to take a toll on the quality. This market is expected to gain strength throughout this week as planting gaps are in the forecast with of all shippers.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Higher Fair
Salinas Valley, CA Higher Fair
Celery

This market is unchanged. Santa Maria has heavier supplies on large sizing which is different compared to past weeks. Supplies out of the Michigan region is moderate. Production in Salinas is beginning to slow down and is moderate at best. The quality continues to be reported as good and this will continue throughout the week with most suppliers.

- pa_admin
Growing Region Market Quality
Michigan Steady Good
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Cilantro

This market is softer in Santa Maria, but firm in all the other growing regions. The Baja region of Mexico is moderate to light in production numbers. Some seeder and black coloring on the product has been reported upon arrivals from all the growing areas. Production in Santa Maria is better compared to past weeks and some shippers in this region are flexing. Salinas has light production.

- pa_admin
Growing Region Market Quality
Baja, MX Lower/Steady Fair
Oxnard/Santa Maria, CA Lower/Steady Fair
Salinas, CA Lower/Steady Fair
Citrus (Lemons) Alert

Demand remains very high and we are seeing extreme demand exceeding supplies on 165s and larger and on all grades of fruit. We are really feeling the extent of the drought conditions of the last couple of years, with fruit not sizing and seeing high percentage of undersized fruit that goes straight to juice and leaving an extreme shortage on fruit. Expect this shortage to go until we start the desert crop in late September.

- pa_admin

Alerts:
Demand exceeds supply has reached an extreme shortage of supplies. Expect shortages to go through September until new crop Desert fruit starts.

Growing Region Market Quality
Oxnard/Ventura, CA Steady Good
Citrus (Limes)

The lime market is coming down across the board. The old crop is finishing up and new crop volume is picking up nicely. The overall quality is good on the new crop that is being harvested. The old crop limes are average to below average in quality and they are tired now. Stylar breakdown is the main defect some lots of old crop and yellowing also may be found. We have good demand on limes right now but it's not keeping the market from adjusting downwards.

- pa_admin
Growing Region Market Quality
Veracruz, Mexico Lower Good
Citrus (Oranges) Alert

California Valencia oranges are moving very well and are in full demand with the school push started; 88s/113s/138s are in a extreme demand exceeds supply situation. Because poor pack outs that shippers are experiencing with soft fruit and undersized fruit, many shippers are already looking at their final few weeks of their Valencia season, this is much sooner than many expected. Shippers are also having labor shortages as pickers move to grapes to help finish that crop off. Packers have been slowing the pace of packing fruit to stretch out this year's lighter volume Valencia crop, but even this may not help much.

- pa_admin

Alerts:
Demand for California Valencia oranges 88s/113s/138 has reached an extreme demand exceed supplies as school demand is in full swing.

Growing Region Market Quality
Merced to Bakersfield, CA Higher Good
Riverside, CA Higher Good
Grapes (Green)

The green seedless grape market is strengthening. Late season Thompson seedless are the exception due to a smaller size profile and some quality issues (amber, soft berries) showing up. This market will continue to firm up as the Thompson Seedless fade out and the newer varieties (Autumn King, etc.) dominate.

- pa_admin
Growing Region Market Quality
Arvin, CA Steady Good
Delano, CA Steady/Higher Excellent
Fresno, CA Steady/Higher Excellent
Madera, CA Steady/Higher Excellent
Grapes (Red)

The red seedless grape market is steady with good demand and good availability on all sizes. Quality is generally excellent on all varieties. We expect to see a firm but steady market through the coming week.

- pa_admin
Growing Region Market Quality
Arvin, CA Steady Excellent
Delano, CA Steady Excellent
Fresno, CA Steady Excellent
Madera, CA Steady Excellent
Green Onions

Finally we have activity on this commodity. Supplies are definitely lighter out of Mexico where most of the green onions are grown. Demand is stronger. Salinas' production is moderate at best. All sizing is available, with the heavier availability coming in small and medium packs.

- pa_admin
Growing Region Market Quality
Mexicali, Baja Higher Good
Salinas Valley, CA Higher Good
Kale

This market is unchanged, industry wide. Good supplies and quantities are available in all the growing regions. Pricing continues to be very competitive. Expect strong quality and competitive pricing throughout this week at a minimum.

- pa_admin
Growing Region Market Quality
Baja, MX Steady Good
Oxnard/Santa Maria, CA Steady Good
Salinas, CA Steady Good
Lettuce Iceberg

Demand is still strong with this commodity. Defects include small and irregular head size, high core, puffiness, insect damage and internal burn. All shippers are having these issues. This is industry wide, and directly caused by the warm temperatures over the past three to four weeks. Yields are down 25-40 %. If nighttime temperatures do not subside, supplies will be light for weeks to come. The weights on palletized are averaging 40-46 pounds. Salinas and Santa Maria are the two main growing areas at this time. Production in Santa Maria is moderate at best.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Fair
Salinas Valley, CA Steady Fair
Lettuce Leaf

The market on all leaf items are steady to begin the week. There is a pricing gap on romaine that exists as some suppliers have suffered stronger losses in the field due to past and current temperatures in the growing regions. Supplies are expected to be steady thru the middle of the week. Issues on this commodity include fringe burn, small and irregular sizing, insects, dehydration and internal burn. The weights on romaine cartons are averaging 31-36 pounds. Chopped romaine as well as romaine hearts continue to show pinking upon arrival. Green and red leaf markets are steady as well. Fringe burn, mildew damage and insect pressure continue to be defects associated with these commodities.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Fair
Salinas Valley, CA Steady Fair
Melon (Cantaloupe)

The West Side continues to produce good volumes of 15ct right now. The main size at the moment is 15ct. The size curve is beginning to hint a move towards the larger sizes again but reports of cooler weather in the growing areas may change this. The West Side has very good quality and acceptable sugar contents. The current market on all sizes is steady. We are experiencing decent demand for cantaloupes.

- pa_admin
Growing Region Market Quality
Firebaugh, CA Steady Excellent
Mendota, CA Steady Excellent
Melon (Honeydew)

The peak size is currently 5ct. The quality and sugar contents are really good right now and this looks to continue. The market is trending down slightly on all sizes right now due to increasing supplies. Honeydews are in peak production right now. We continue to experience good demand right now across the board which is a good thing given the increased volume we have right now.

- pa_admin
Growing Region Market Quality
Firebaugh, CA Lower Excellent
Mendota, CA Lower Excellent
Onions

Idaho/Oregon yellow onions are heavy to jumbos and mediums with light availability of colossal and supers. Markets are steady with some flex on volume orders of mediums and jumbos. The red and whites are peaking on jumbo size with a steady market. The quality has been good for all colors and sizes.

Washington is packing all colors. The yellows are also heavy to jumbos and mediums with very light supplies of colossal and no supers. Washington has the most volume of red onions currently. The market is steady on all sizes but there is flex on jumbo reds and yellows as well as medium yellows.

California is still harvesting all colors but they are almost finished for the season.

New Mexico is done for the season.

- pa_admin
Growing Region Market Quality
Ontario, OR to Nampa, ID Steady Good
Quincy/Hermiston, WA Steady Good
Huron/Metler, CA Lower/Steady Good
Pears

California Bartlett pears are peaking on US #1 80-100s and the market is steady to lower. Demand is lighter since Washington has started packing and the price flexibility for 80/90/100s is still available. 120-size and smaller are no longer available. California Crimson pears are still peaking on 35-55 count half cartons. California Bosc pears are steady to slightly lower and they are peaking on smaller fruit. The quality has been good for all varieties.
Washington Bartlett pears are still peaking on 90/100/110s and the market is steady. The Bartlett demand has been fair. Washington red pears are steady on all sizes and are peaking on 45/50 half cartons.

- pa_admin
Growing Region Market Quality
Stockton, CA Lower/Steady Good
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Potatoes

Idaho is packing lots of Large counts and are dealing on volume on 70 count though 40 count. The smaller sizes, 80 count and smaller have limited supplies with a steady market. Number-twos are very limited because the new crop norkotahs produce mainly number one potatoes. Market is steady on 80 count and smaller and firm on number twos. The quality has been very nice.

Washington is quoting steady on all sizes but are limited on 70 count and larger and making some deals on 80 though 120 count. Quality is good.

Colorado/Wisconsin are also heavy to the smaller counts. Supplies of 70 count and larger are limited. Quality is good.

- pa_admin
Growing Region Market Quality
Hamer/Rupert, ID Lower/Steady Good
Quincy/Hermiston, WA Steady Good
Eastern Colorado Steady Good
Plover/Bancroft, WI Steady Good
Potatoes (colored)

Stockton, California reds, whites, and golds and all are still peaking on A-size. The market is steady on most sizes and colors but a few are slightly lower. The quality has been good.
Western Washington reds and golds are steady to slightly lower. The reds are peaking on A-size while the golds have more Bs..
Western/Central Idaho reds are steady to lower and are peaking on A-size. The golds are steady with limited volume on some sizes. The quality has ranged from good to fair but the quality is improving.
Wisconsin reds and golds are steady on most sizes with a few are lower. Premium and baker reds and golds are limited as are C-size golds. Both colors are peaking on A-size but have good availability of B-size reds. The quality is good.
Minnesota reds and golds are steady on most sizes with some lower. Both colors are peaking on A-size with good quality and color. Minnesota has a lot of #2 A-size reds.

- pa_admin
Growing Region Market Quality
Stockton, CA Steady Good
Mount Vernon, WA Lower/Steady Good
Rupert to Rexburg, ID Steady Good
Plover, WI Lower/Steady Good
Big Lake Minnesota Lower/Steady Good
Stone Fruit

The nectarine market is firming up as shippers finish harvesting and supplies diminish. The peach market is about steady with good supplies of the larger tray pack fruit. The quality on both peaches and nectarines is generally reported as good. The plum market has tightened up on supplies as we are experiencing varietal gaps between the red and black plums. Sizing is generally large in either color plum with quality reported as good.

- pa_admin
Growing Region Market Quality
Madera south to Arvin, CA Steady/Higher Good
Tomatoes (Eastern)

Rounds - The market remains strong with supply just meeting demand. Virginia has lower acreage planted this year and the weather has been an issue recently. Still relying on local programs to help with supplies probably all the way through September. Quality is Fair/Good.
Roma - The market remains steady with Mexico bringing in good volume. This should continue to increase availability in the East. Michigan is also coming in with some good volume. Quality is Good.
Cherry/Grape - Cherry market remains strong with pricing settling a bit this week. Vendors continue to sell out and demand is on the rise with schools starting. Eastern market still lower than the west with Virginia providing some volume. Quality is fair. Grape market is strong. Virginia/Maryland are producing some volume and the quality is much better than in the west. Pricing should remain steady this week. Quality is good.

- pa_admin
Growing Region Market Quality
Charleston, SC Steady Good
Cedarville/Hammonton, VA Steady Good
Benton Harbor/Byron Center, MI Steady Good
Tomatoes (Western)

Rounds - The market remains steady as California and Mexico have some volume. Mid September still looks like the west will be gapping due to high temperatures during planting. Quality is good.
Romas - Roma market remains steady. Good volume coming out of California and Mexico that brought the price down some. Market should remain steady for this week. Quality is good.
Cherry/Grapes - Cherry market remains strong. With schools starting we may see a jump in pricing toward the end of this week. Quality is fair. Grape market remains strong. Baja is having some quality issues that is tightening up the market. Color and translucency being the major issues. Market will remain strong for another couple of weeks.

- pa_admin
Growing Region Market Quality
Coachella Valley, CA Steady Good
Southern San Joaquin Valley, CA Steady Good
Northern Baja California Norte, Mexico Steady Good

Things You Should Know

Berries (Blueberries)
Supplies are forecasted to become very limited this week and remain short throughout the month of September.

Berries (Raspberries)
Demand is currently exceeding supply. Recent heat and humidity coupled with a gap in production as the crop cycles is leaving us short on product daily. Forecasted harvest volumes show we will be short for approximately 2-3 more weeks before we see some more volume come on.

Citrus (Lemons)
Demand exceeds supply has reached an extreme shortage of supplies. Expect shortages to go through September until new crop Desert fruit starts.

Citrus (Oranges)
Demand for California Valencia oranges 88s/113s/138 has reached an extreme demand exceed supplies as school demand is in full swing.

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