The Source - August 8, 2016

Washington - Red delicious are higher on all sizes and grades with only light availability of fancy-grade fruit. Most shippers continue to peak on extra-fancy 72-88s but supplies are light due to strong demand. Expect the market to remain strong through the balance of the storage season. Earli Golds & Ginger Golds are steady and they peaking on Wash-Extra 88/100/113s. Supplies of the lower-grade fruit are limited. Granny Smith are steady to higher on most sizes and continue to peak on 88-113s. New-crop Galas are still limited due to strong demand but supplies are improving as more shippers get started. The Galas are peaking on higher grade 100/88/113s. The quality for C.A. reds, goldens, and granny-smith has been good. The new-crop Gala quality has also been good.
California - Galas are steady and they are still peaking on smaller fruit but supplies are light due to light packing. The quality has been good.
Chile - Chilean Pinks Ladys are steady but only 70s are available. Chilean Fujis are also steady and peaking on 80-size. The import quality has been good.

Volume from Peru is lower. Central Mexico is almost done while Northern Baja, Mexico has just started.

California harvest is still on pace with its seasonal decline. Harvest volumes are expected to decline significantly this week. Southern groves are in clean up picking and northern groves are picking early and heavy to get fruit off the tree and take advantage of the market and for the health of the trees. Crop is still skewed towards smaller fruit. Market on 48s and larger remain strong with 60s and 70s weakening due to increased volumes of smaller fruit from Mexico.

Mexico continues to struggle at its current pace when it comes to harvesting their acreage. Inventories are steadily growing at a slow pace however. Unstable market pricing continues this week as supplies are dictating the price levels.

Bell pepper has moved up to the Central and Southern San Joaquin Valley. Better supply on both Green Varieties, Sizing is good on Green. Red bells are becoming short and
reds are still showing the effects of the heat with some condition defects, quality is expected to improve as we move forward. Extreme high temps have dropped in California.
Yellow pepper has improved supply with better quality.

Supply is steady with production out of CA, OH, IN, NC, WA and OR. Some growers are gapping and in between varieties out of Oregon. Some deals are being made on the Santa Maria blackberries in order to bring traffic down to load them. Quality is good out of all areas. There have been some isolated instances of wet and leaky berries, also reports of red cell.

Domestic production is slowing down out of the Pacific Northwest and the Upper Midwest. Rain events over the past few weeks have affected production in both regions. Volume is winding down out of both areas. Availability is less than previous weeks and markets continue to strengthen. Overall, quality has been good. We have seen some shrivel, wet and mold in older lots, especially in the older lots originating from the Pacific Northwest. The initial shipments from South America should start the import season around late August / early September. Volume will be light at the beginning and pricing will be high.

Transitions:
Peru, Argentina and Uruguay blueberries should begin to hit US ports with light volume around the first of September.

Supply is meeting demand. Availability is good. Quality has remained good out of all regions, some isolated instances of wet, leaky or light color berries.

Transitions:
Baja California, MX production will begin to increase over the next few weeks.

Summer production has passed peak in the Watsonville and Salinas growing regions. Fruit sizing has continued to come off with a large range of smaller fruit counting 18-28 berries per 1 pound clamshell. Labor is becoming more of an issue each week. Pickers are moving slower this time of year. It is taking more berries to fill each clam and pickers must cover more ground to do so. Also, some strawberry pickers are moving to easier harvesting options this late in the season or laying off more days per week or for the season completely. Late summer always increases the probability for occurrences of quality issues. The plants are tired at this point, the fruit is not as strong as it has been throughout the previous months. With the late summer fruit, bruising is more obvious on the smaller berries. Expectations must be adjusted to what is available for this time of the season and shelf life expectations must be realized as well. Order for quicker turns, order more often. It is also imperative during this time that fruit is loaded at correct temperature, transported at correct temperature and maintained at correct temperature throughout storage until use, 32-34 degrees. The Santa Maria new crop (Summer-planted) strawberries should begin to come on with volume in the next couple weeks.

Transitions:
The Santa Maria new crop (Summer-planted) Portola variety strawberries should begin to come on with volume in the next couple weeks. We have a few pallets available per day now.

The broccoli market remains flat at current price levels. Supplies are plentiful from all growing regions. There have been minimal quality reports such as hallow heart from Mexico and yellowing out if California.

Now that Mexico has finished with their season, the pressure is on California. The market is strong but steady at the current price level. Quality is excellent with no arrival issue to report.

The Bakersfield crop continues to be in full production. Growth is good and producing good percentage of Jumbo size and supplies are good. Supply of baby peeled carrots are good. The market remains steady at current price levels from last week.

The cauliflower market is flat with little demand. Supplies are plentiful. Quality is excellent with nice white color and little to no arrival issues.

Good supplies and competitive pricing continues on this commodity. All growing regions have strong quality as well. Large sizing continues to have the best availability. Production in Michigan as well as Salinas and Santa Maria should have strong quality throughout the week. Shippers continue to flex on large volume type orders.

Anaheim - Sizing and quality remain good. Good volume coming out of the San Joaquin Valley . Excellent size and color.

Pablano - Good quality and condition expected to continue.

Tomatillo - Good supply of tomatillo shipping from California. Good color and fresh husk . Good quality over all on tomatillos.

Jalapeno- good quality on new crop pepper, mostly large sizing with good color.

The cilantro market is steady at the higher price levels from last week. Supplies are hit and miss from shipper to shipper. Quality is good out of Salinas and Oxnard. But out of Mexico we are still experiencing yellowing and black spotting of the leaves.

The lemon market is steady with some higher quotes on the small fruit (165's and smaller). This trend should continue as the San Joaquin Valley is essentially done and the Oxnard / Ventura deal is winding down. Demand is unchanged but supplies will become progressively tighter on the small fruit for the next 6 to 8 weeks.

The 110ct and 150ct are now less expensive than the smaller sizes. Demand is good on all sizes across the board. Limes are peaking on the 150ct now. Quality is good overall with some leaf shading (yellow color) showing up. The overall supplies are lower than previous weeks and the trend looks to continue in this direction for the next few weeks. The market is higher on the limes and prices look to continue increasing.

The Valencia orange market is steady with adequate supplies. Sizing will begin to be an issue as schools around the country begin pulling for the new year. Larger fruit is plentiful but the smaller profile 113's and 138's are more limited in supply and will command more of a premium over the coming weeks.

Good quality and condition on cucumbers coming out of Northern Baja coast. All sizes are being packed in 1 1/9 bushel boxes. Also 24's-36's-42's being packed. Availability has dropped slightly which has perked the market up slightly

With hot weather continuing, eggplant is showing condition issues and limited supply. Sizing is mostly large with some medium.

Plenty of green grapes to choose from. We have several varieties currently being harvested. The Thompson variety will be the most aggressively priced. All sizes are available and quality has been strong, but we have had some reports of amber berries. The Ivory and Princess varieties are producing very nice size, good color and high brix. Prices on the Ivory and Princess grapes are little more firm than the Thompsons.

We have excellent supplies on red grapes. Shippers are breaking into new harvest this week with several varieties to choose from. The Flame variety is still readily available this week. Sizes on the Flames have been on the smaller side, but if you are looking for a bargain, there is some aggressive prices being offered. The Scarlet Royal variety is increasing in production this week. The Scarlet grapes are sizing up in ring sizes to produce a very nice Large to Extra Large box, but prices are firm. The Crimson and Magenta varieties are available as well. Again, larger sizes but a little more expensive. We have access to a red grape to fill any need and price point.

The green onion market continues to be at lower price levels. Iceless is commanding a premium over the iced product. Supplies are abundant. Minimal quality issues have been reported.

Kale supplies are abundant from all growing regions. This is keeping the market at a steady pace. Quality has been excellent with nice green color and full bunches.

While there is a few shippers that are tight on lettuce to start the week, be assured this market is flat, overall. There are some gaps in pricing seen in the industry. The weights have been averaging 42-48 pounds on palletized. As school business kicks in, expect processors to increase acreage purchases which will inevitably lower supplies on the carton business. Hence, stronger markets are just around the corner. The overall quality on this commodity has been good. Pricing is competitive.

This market is flat, overall and shippers are willing to deal on volume type orders. Slight mildew and mechanical damage has been reported in a light way. The quality on all leaf items are considered good. The weights on romaine continue to average 34-38 pounds. All other leaf items are also having strong reports on good weights as well. Take advantage of low pricing on all leaf items. Expect this market to be stronger next week.

The supplies are holding steady. Many of the growers are packing 9ct through 15ct with a few packing 18ct. 9ct supplies are not as plentiful as the 12ct or 15ct. Quality out of the West Side is excellent with good sugar levels. The market is steady across the board right now with demand currently matching supplies.

Growers are harvesting steady supplies of honeydews currently. The market is steady right now and looks to continue this pattern for the short term. Weather has been favorable for high quality honeydews out of the West Side and they are arriving in excellent condition.

Seedless Watermelon supply has dropped. Extreme heat in the last few months brought most of the crop to harvest. The current availability is limited and offering medium to smaller sizes. Mostly 60 size fruit being offered.

Central California and New Mexico onion supplies are starting wind down for the season and a few shippers will be done by the end of this week. Timing is good as Idaho and Washington are building supplies and will be up to full speed before these two areas finish. Quality is still being reported as good out California and New Mexico. Market is steady to slightly weaker on all sizes. Both growing areas are hit and miss on Colossal and larger in the Yellow patch. Sizing and quality of the new areas is being reported as good.

Transitions:
Idaho and Washington have both just started harvesting Onions.

California - Bartlett pears are steady to lower on all sizes and they continue to peak on 100/110/90s . Wraps are still more limited than tight-fills. Most suppliers don't have much smaller than a 120-size. The quality has been good. Crimson pears are steady and continue to peak on half carton 45/40s but supplies are short. Bosc are available in limited quantities and they are peaking on smaller fruit. The quality has been good.
Washington - Bartlett pears are still peaking on 80/90/100s. The market is steady to lower on most sizes. The quality is good.
Chile - Chilean Bosc continue to peak on 70-100s but supplies are limited. The quality has been good.

Tropical supplies are dropping and will be significantly lighter for August and possibly into September. Expect the strong market to last until supplies loosen up.

Idaho - New Crop Norkotah's are the main variety with only a few growers still packing storage Burbanks. New Crop is getting a slight premium and the size profile is peaking on 70 count and smaller. Market for the most part is steady but as all shippers get up to speed on New Crop is should weaken slightly over the next couple weeks. Quality is being reported as Good. The last of the Burbanks will finish late next week. Quality is fair to good on the storage crop. Market is steady.
Washington - Supplies of New Crop Norkotah's continue to build. Market is steady with moderate demand. Quality is very nice.
Colorado/Wisconsin - Supplies are limited out of both of these growing areas due to limited supplies and small sizing. Market is firm. Sizing will improve in about two weeks.

Stockton California - reds, whites, and golds are all steady and all colors are peaking on A size. Baker and premium whites and golds remain short. The red and white quality is good while the golds have ranged from good to fair.
Virginia - they are steady to lower on A-size for all colors but supplies are limited as they are finishing for the season. The quality has been good.
Muleshoe Texas - red potatoes are steady but supplies are light. The quality has been good.
Minnesota - red potatoes are steady to slightly lower with good availability. A couple suppliers have started packing golds but many have not. The quality and color have been good.
Wisconsin - the red potato market is steady and the availability is improving as they now have more A-size. The quality is good.
Washington - eastern red potatoes are steady and are peaking on A-size. Some suppliers have finished with golds foe the short term. The quality is good.

Heavy production on both zucchini and yellow squash are being offered in volume. Sizing is mostly larger due to warm weather. Quality is mostly good and improving, but some scarring and certain lots. Quality will continue to improve as weather gets cooler.

Good availability on large sized fruit. Nectarines, Peaches and Plums are all peaking in big sizes. Smaller volume fill fruit is very limited. Quality has been strong on all fruit. Market prices are starting to climb gradually as the warmer weather continues to push harvest forward. If the weather stays warm, shippers are expecting peaches and nectarines to come to an early finish this year. Plums are expected to be in good supply through fall.

It’s the time of year where a lot of growing regions are in play and markets are typical for August. Eastern tomato growing areas are spread out with a majority of harvest coming out of Tennessee, North Carolina, Alabama, Michigan and Virginia. Quality is good from all areas with supply exceeding demand. Similarly, markets are regional for roma tomatoes with price varying between states. The Grape tomato market is full of fruit with shippers challenged to move product that isn’t overripe. Fobs are low across the board. The cherry market remains stable and may fluctuate a bit in price by growing region. Overall pricing is steady looking forward into next week.

Tomatoes in the west are also plentiful in adequate supply. California growers are picking ahead of schedule in an effort to mitigate sun burn as they mature, producing higher ratios of culls than are normal. The roma market has stabilized in California with tomatoes crossing out of baja and mainland mexico and looks to be steady into next week. Similar to the east, there are plentiful of grape tomatoes with several growing regions in both Mexico and California.