The Source - August 8, 2018

We have seen several areas start with new crop apples as well as the existing storage crop in Washington. Supplies of red delicious and gala apples are limited. We have seen ginger gold apples start in a light way this week with storage crop golden delicious still available. We have California gala apples available as well. The red varietals such as Fujis and Jonagolds are still in decent supplies. Honey Crisp and Pink Ladies are extremely limited, and that market is elevated. The overall market is relatively steady beside Galas and Red Delicious although, we will see a spike in the market next week as the smaller fruit is ordered by the increased demand for schools. The quality on storage crop is really nice, and of course, the new crop is excellent with decent sugar levels and pressure test grading 14 on some varietals.

It has started to rain again in Central Mexico, and they're experiencing cool nights. Their season should be wrapped in the next week to 10 days due to seasonality, and the weather is not cooperating. In Northern Baja, the weather has been excellent and should remain this way for the next 7-10 days. Production is very good from this Mexican region and should remain this way through the remainder of August, and into September. Production and weather remain unchanged from both regions in Peru. Larger size asparagus has finally started to become more available. Markets are overall lower with very good production, and summer demand being down.

With the heat wave we had over a month ago in the California growing region supplies continue to taper off. Pricing continues to rise as Mexico is also transitioning from old crop into new crop. Although we are towards the end of the California season, the fruit still eats well, and overall quality is good. Some shippers are only packing three days per week and reporting a light harvest.
Peru is a great option with good volume arriving in the USA. We are seeing a lot of 48s and larger fruit coming in from Peru. Good quality is being reported on the fruit and also eats well.

Alerts:
California fruit is limited with a light supply being reported. Quality remains good as prices continue to rise. Mexico is slowly transitioning into new crop. Peru is providing some relief and coming in mainly with larger fruit. 48s and larger.

The avocado market is very active with pricing higher than normal. Some rain is expected in the growing region of Mexico. Old crop is finishing up, and new crop(Flora Loca) is slowly starting up. This new crop will peak on 60s then the 48s will follow. There are some quality issues on the old crop fruit but overall quality is fair, and the fruit does eat well. This upcoming storm could affect and disrupt the current harvest. Supplies on Mexican fruit will be tight through September.
Peru is currently providing some relief with a good supply of larger fruit in the USA. Quality on the fruit from Peru is good and also eats well. 48s and larger is what we are seeing from Peru size wise.

Transitions:
Mexico is transitioning from old crop into new crop (Flora Loca). We will bee a better supply come mid to late September. Peru is providing some relief with reports of good quality.

Bell Pepper supply has gotten much better, Michigan and Ohio are ramping up with most shippers in steady supplies. Canadian supplies are picking up along with newer fields in New Jersey, heavy rain along the east coast and the mountains of North Carolina and Tennessee have interrupted harvest and caused quality issues. The quality issues are not as widespread as the issues in cucumbers and squash. Bell pepper supplies should be very good for the next week to 10 days.

Alerts:
Good supplies in the Midwest, heavy rain on the east coast has interrupted some harvest.

Transitions:
Bell Pepper is in transitioning to Michigan, Ohio and Canada.

Supplies are improving this week. We will see some open product available in Salinas and Watsonville from several shippers. Quality is being reported as strong. Market prices have started to come down gradually this week. With several areas in production, we expect supplies to continue to improve over the next 3-4 weeks. The Pacific Northwest, Santa Maria, and Baja are all expected to get started and overlap with Salinas and Watsonville. This week, we expect better production out of Watsonville and steady harvest in Salinas and Santa Maria.

No major changes in supply or markets this week. Supplies remain lighter. In the Pacific Northwest, temperatures have been very warm This has advanced most of the early crops, and we saw a big push of product over the last two weeks. Oregon has passed its peak and production has really slowed down. Washington has also past its peak, and again the hot weather has had an impact on yields. British Columbia is in transition between varieties, and we can expect to see another peak in the next 1-2 weeks. Quality is the main concern as the heat has caused some shrivel and soft berries. On the east coast, New Jersey has slowed down. 80% of their crop came on in the first pick, but they are expecting a second pick and a new crop over the next week. Michigan has been steady but light, quality is good, and prices are higher. Overall, demand has been consistent. Markets have started to climb back up this week and will remain firm until we reach our next peak in production.

Alerts:
Supplies are lighter and prices are climbing.

Supplies remain steady this week on conventional fruit. No major uptick in production, but no expected disruptions in order fulfillment. For the northern growing regions (Salinas / Watsonville), shippers are expecting to see supplies gradually decline over the next 3-5 weeks. Santa Maria is expected to remain steady for the next two weeks; then we will see a slight decline. Organic production, however, is increasing for the next 2-3 weeks in all areas and we will have opportunity buys here. Quality overall has been good. Market prices on conventional are firm.

Supply continues to exceed demand this week. We have multiple growers offering aggressive buys on volume orders. The caveat is quality continues to be a challenge industry-wide. Although we do expect to see some improvements this week, we are in the peak of the hottest time of the year in all growing regions. Salinas and Watsonville areas were warm all weekend with plenty of sunshine, and Santa Maria is still seeing highs in the low 90’s. Unfortunately, this warm weather is not helping with the bruising. Shippers are still warning of softer berries will occasional bruising. The difference between each is the age of the fruit. Some shippers are starting the week with heavy volumes of fruit from Saturday’s harvest, while others cleared the floor and are starting with fresh harvest. Be aware of the age of the fruit you are purchasing as there is some older cheap fruit being sold. Please remember, the ride temperature is imperative in situations like this. If the cold chain gets broken for extended periods of time or the fruit rides at temperatures above 37 degrees, the quality will be compromised even further. Market prices have been flat with many opportunity buys. We expect this to be the case all week and look for quality to continue to improve over the next two weeks as we break into new harvest.

Alerts:
Quality is slowly improving, but some bruising is present.

The broccoli market has started to get really active this week. The supplies out there and have become tighter with most shippers walking in sold out. Regional growing areas are short and winding down production as well. Mexico is short product due to quality issues from the heavy summer rains. Quality is fair with slight yellowing, some mechanical damage, and decent crown size. Next week's outlook is looking to remain tight.

The current market on Brussels Sprouts continues to have leveled off. Supplies in Salinas continues to improve. Quality is much better from the previous weeks and is seeing less insect damage, black spotting and decay.

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 continues to be level with steady supplies from the Salinas and Santa Maria areas. Overall, the quality has been good. The quality reports have shown weights in the 25 to 31-pound level, little yellow cast to cream color, and occasional bruising.

Plenty of product is available with this commodity. Large sizing continues to be the size most harvested, but all sizing is in good availability. The temperatures continue to be very favorable for the growth of this commodity. Although some seeder is being reported, the overall quality is good. Demand is unchanged. The weight is ranging 60 to 64-pounds. Michigan production continues to be steady.

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. Other growing areas across the country have also had to deal with weather, and that has hurt some of the local growing areas as well. Mexico growing areas have also experienced heat and rain which has lowered yields. It looks like the next two weeks will continue to be a challenge.

The lemon market is still extremely higher than normal levels. Supplies remain extremely limited as well out of the Oxnard growing district. Lemons from Chile, Uruguay, and Argentina have been arriving on both the East and West Coast to help fill the void. It hasn't been enough to adjust the market at all. We will continue to see a demand exceeds market until October. This is when we will have district 3 start their season. This is in the Mecca CA and Yuma AZ growing regions. Quality currently on the domestic fruit is fair at best with arrivals showing mold, soft rot, and decay. The offshore fruit is also showing some mold upon arrival as well.

Alerts:
Lemons continue to be extremely limited, poor quality, and elevated markets.

Weather in the Veracruz growing region is in the upper 80s to low 90s. Limes remain tight, and the market is active. Old crop is pretty much done, and we are seeing a limited amount of fruit as of now on this new crop. The rain that was expected a few months ago (May-June) never came. That being said we are now seeing a bit of a gap. Growers are predicting that we will see some relief come late August early September. Overall quality on the new crop fruit is fair to good. Larger fruit is limited (150s/175s) and smaller fruit (200s-250s) is what we are seeing for now.

The California valencia demand has picked up from last week and is expected to trend that way into the end of this week. The good movement coupled with light supplies has created firm markets and some shortages. Schools are back in session, so watch for small fruit demand to pick up and pricing to rise. Supplies on small fruit will be very limited. Pricing will continue to rise on all pack sizes of valencias. Please get requests/orders into us with as much lead-time as possible. The overall fruit quality remains good and sizes peaking in the 88/72/113 range. During this time of the year, we experience some re-greening due to the heat in the Valley. Suppliers are inspecting and gassing blocks that need attention. Gassed fruit will help with appearance and sales but may create a shorter shelf life. Import Navels are now available, so most retailers have transitioned over for their bulk displays. The import program has not slowed the Valencia deal, and we expect movement to be strong until the end of the season.

Alerts:
Small size valencia oranges are extremely limited with the market trending higher weekly.

There are good supplies of cucumbers coming from the mid-Atlantic up the east coast, west to Ohio and Michigan and Canada. Significant rain along the eastern seaboard over the last two weeks has caused some quality issues that may last for another week to 10 days if the weather clears up this week. The product coming from the mid-west seems to be better quality. Cucumber supplies should stay steady for the next two weeks.

Alerts:
Quality issues on the east coast.

Michigan and Ohio have started with light supplies of good eggplant. New Jersey, Virginia and the North Carolina mountains have light supplies of fair quality. The eastern regions have received a lot of rain and the fields being harvested are older fields that growers have been working on for over a month. Michigan growers cut back on acreage this summer enough that supplies will not be abundant for the next two weeks. Eggplant supplies should stay tight for at least the next ten days.

Alerts:
Supplies of good eggplant are tight, there are eastern supplies with poor quality.

Transitions:
Eggplant is transitioning to the mid-west

California greens are readily available and of excellent quality. The main area for harvesting right now is Arvin CA, pulling all colors. The Fresno area started a few weeks after Arvin but is now also in full swing. Fruit is seeing excellent size, color, with very healthy stems.

California reds are readily available and of excellent quality. The main area for harvesting right now is Arvin, Delano, and Fresno. Fruit is seeing excellent size, color, with very healthy stems.

The market continues to be competitive. Sizing is still trending to the smaller sizing. With the hot weather in Mexico, quality has been improving overall, and the presence of thrip damage and leaf minor is minimal. This hot weather is continuing to help fight off thrip and leaf minor presence.

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.

This market is starting to turn around with most shippers. This market is active both north and south. Expect moderate production from the middle of the week on. Defects that continue to be reported include some slight insect damage, puffiness, and some internal burn. Weights continue to be ranging from 42-48 pounds on palletized. Expect stronger pricing for the end of the week. This market is definitely firming up.

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

Weather remains hot in the San Joaquin Valley growing region with temps in the mid-90s to low 100s. The market remains low to steady this week, and quality is good to excellent as we are in peak melon season. Brix/sugar levels are 12-14. With the warmer weather, the heat is bringing on the fruit a lot quicker. We are seeing a steady supply of larger fruit (6s, 9s, and 12s) and limited supply on smaller fruit (15s and 18s)

Peak Seasons:
Plenty of fruit available with a great flavor profile. With the brix/sugar levels at 12-14 Cantaloupes eat well this time of year.

Weather remains in the mid-90s to low 100s in the San Joaquin Valley growing region. The market remains low to steady with a solid supply on larger fruit 5s and 6s. This week there is a lighter supply on smaller fruit 8s and 9s. Overall quality remains good with brix/sugar levels in the range from 10-12. There is plenty of opportunity on volume deals.

Peak Seasons:
Honeydews eat very well as we are in the peak of the season. With the brix/sugar levels on the range from 10-12 the flavor profile is ideal this time of year.

Onion market is fairly steady out of California and New Mexico on all colors and sizing. Quality is good with a few fair lots being reported upon arrival. California is peaking on Jumbo and larger with New Mexico peaking on Jumbo's and smaller. Supplies will start to transition to Washington and Idaho over the next couple of weeks as they have just fired up. Sizing is currently peaking on Jumbos out of the new areas. Larger sizing will be coming quickly as more suppliers come online over the next week. Quality is being reported as good. All colors will be available by the end of this week with limited volumes. Northwest shippers are expecting high yields and large volume crop this year because of the ideal growing conditions.

Transitions:
Onions supplies will start to transition to the Northwest.

California pears are in full swing, and new crop Bartletts out of Washington have started in a light way. The markets are relatively competitive with a full range of sizes. California also has bosc and red crimson pears as well. Quality is excellent out of both California and Washington with decent sugar levels and mostly hard fruit. There have been offers for volume deals.

Pineapple volume coming out of the tropics remains good, but we are going to slowly start to see a seasonal decline in supply. This planned supply decline comes during a season where other commodities are more abundant. Size is peaking on 6ct and 7ct.

Old-crop Burbank supplies are winding up quickly and will be finished with most shippers by the middle of this month. Quality overall is still good. Light internal bruising, cracks(air checking) and end bruising is the main issues being reported on arrival. Few shippers will go through the end of this month with Burbanks. The carton market has held steady with a slight increase on the #2's. Look for this trend to go into next week. New-crop russet Norkotahs have started in a light way in both Washington and Idaho. The market is getting a premium but has already adjusted downward. As we transition from old-crop to new we still may have some minor quality issues: Skinning, white-mold, wet potatoes(wet boxes) and soft potatoes are the main ones. Number two's supplies will drop way down since Norkotahs don't yield many. The market on number two's will be close to the #1 pricing for the next month. Colorado/Wisconsin will start off with New Crop sometime next week.

Transitions:
Storage crop finishing up with new crop starting.

Red potato market is unchanged from last week as new areas are coming on board (Minnesota and Washington). Stockton California is going strong with good quality deep red potatoes being shipped. Quality is being reported as good. Minor quality issue to be aware of as new areas start is skinning. California is still the main shipping point of White and Gold potatoes. Market is firm. Quality is good. Light supplies gold potatoes have just started in Washington and Minnesota.

Transitions:
Washington and Minnesota have just started harvesting reds and golds.

Squash is coming from all the typical summertime regions, the mountains of North Carolina and Tennessee are harvesting but have suffered a lot of rain causing issues in harvest and quality. The mid-Atlantic to New England are harvesting steady supplies, but this region has received enough rain to cause quality issues also. Michigan, Ohio, and Canada are all in good volume of good quality product. Squash supplies should stay steady for the next week to 10 days.

Alerts:
Quality issues in some eastern regions.

We are in peak season for stone fruit. There is plenty of fruit available in larger sizes, and in tray packs. As the fruit sizes up, there are less smaller sized fruit and volume fills available. Schools are beginning to pull, so expect to see the market firm up over the next few weeks.

Alabama, North Carolina, Tennessee, and Virginia farms continue to struggle against rainy weather causing intermittent harvests and interrupted picking schedules, limiting the overall eastern supply. Arkansas has finished their tomato season also contributing to lesser supplies in the east. However, there is little change to price this week with heavy volumes continuing to ship from California. Helping to stabilize the eastern market, New Jersey, and Michigan farm operations are contributing to overall supply. Quality has diminished over the past couple of weeks as the effects of repeated rain interrupt farm operations. Repackers continue to produce quality pack outs, however, shrink is higher than normal and shelf life becomes a concern as more water sits in the fields. Round and Roma tomato availability is moderate helping to create firm price structure for the immediate future. Grape and cherry tomato volumes have also been reduced by weather but improving as harvest schedule begin to increase this week. Supply is snug helping to keep pricing elevated but should loosen up as the weather improves and fields dry out.

Mexico imports begin to slow down this time of year as planned, while California harvests the peak of their season. Heavy volumes of tomatoes are in the marketplace and pricing is starting to separate as quality and condition become a bigger concern for buyers, and extreme heat influences the integrity of fruit. Round tomatoes are nearly half the price of eastern grown tomatoes amid a slight uptick in price this week with Romas following suit. Quality and sizing are inconsistent from triple-digit temperatures influencing the ripening of fruit on the vine causing farms to harvest select fruit prematurely. Less volume from Baja is helping to strengthen the market, but prices will soften in the next couple of weeks when new farm operations begin shipping again. Until then, expect a slightly stronger Roma and grape tomato market while volume is reduced. On California’s coast, new vine ripened operations have begun in Oceanside California where volume continues to build, helping to promote a competitive market further.