The Source - August 9, 2017

California - Gala apples are steady on all sizes are still peaking on 100/113s with generally light color. The market remains strong along with demand and it appears it may hold steady in the short-term. The quality has been good.

Washington – Red delicious are steady on most sizes and grades but some shippers are slightly higher. Most red packers are still peaking on 80/88s. Golden delicious are finished for the season. Earli/Gingergolds will start between August 17 and 22. Granny Smith are steady to higher and the market remains strong due to light supplies. The fruit is still mostly large but some of the later lots have more small fruit. Galas are in very few hands and the remaining suppliers that have them are packing mostly 72/80/88s.. Fuji's are also essentially finished for the season. The quality for all varieties has been good.

Chile – there are still a few large Chilean Pink Ladys, Fujis, Galas, and Braeburns and all are slightly lower. All variety's are peaking on 70/80 size. The quality has been good.

Alerts:
Washington Golden delicious are finished for the season. Gala and Fuji supplies are so short that they are basically done.

Transitions:
Washington will start packing new-crop Galas and Early/Gingergolds the week of 8/21 with Honeycrisp the following week and Golden and red delicious between September 10 and 15.

Michigan will start pacing new-crop Gingergolds in two weeks as well. Then Jonamacs, Golden delicious, Galas, and McIntosh will all begin between September 6-10.

Pennsylvania will start packing a few Gingergolds this coming weekend or early next week.

Peak Seasons:
California is in the peak of its Gala apple season.

Central Mexico will see rain for the next 5 days. Rain has caused scarring in the asparagus stalks, some soft tips, and reduced shelf life. Production from this region should run through the 3rd week in August due to seasonality unless the rain continues. Northern Baja (Ensenada) is having great growing weather, and quality has been very good. They're at their peak, and should continue with good production through the end of the month. Northern Peru (Trujillo), and Southern Peru (ICA) are both in production, and having good growing weather. We have started to see better sizing this week on large, and x-large but still remain short on Jumbo in all 3 regions. Overall markets are down with 3 regions in production, and Northern Baja at it's peak.

Peak Seasons:
Northrn Baja (Ensenada) is peaking on asparagus production.

California harvest is nearing it's completion of this years crop. This is the last week on any real useable volume, with about 2 more weeks of limited availability before totally being finished for this year. Size peaking on 48s with limited supplies of 60 and smaller.

Alerts:
Demand far exceeds supplies.

Mexico's summer crop is small and limited. Harvest is slowing down to get us through August and into September. Mexican growers continue to raised field prices as US importers push to a share of this limited amount of fruit. Demand is exceeding the supplies and the US market is still pushing upward quickly.This looks to be the trend for a while. Currently the crop is peaking on 60s and smaller sizes, with mostly #1 fruit and very small percent of 32s. No relief to this shortage looks to come until we see the first of the Chilean imports toward the end of the month. These early arrivals 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 far exceeds supplies.

Green Bell Pepper is in good supply with all the northern tier states in production. Michigan, Ohio, New Jersey, Pennsylvania New York and Connecticut are all in good production so buyers have multiple options to choose from. Reports from all areas are showing good quality. This trend should continue well into 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, Ca. We will see more availability as we move into the week.

Red bell Pepper is shorter supply this week due to lighter harvest in the central valley . Better demand on choice grade followed by #1 25lb and 15lb, Yellow bells are very limited on field grown in California.

Transitions:
Red bell pepper is finishing in Fresno Ca. and will increase in production from the California Central Coast as we move into the Month.

The recent warm weather in the Salinas / Watsonville growing regions has promoted growth and production is increasing on blackberries. Harvest volumes have jumped quicker than expected and we are entering our California blackberry peak for the next 2 weeks. Quality has been excellent and market prices are gradually adjusting down. I expect to see excellent supplies and opportunity buys for the next 2 weeks.

Peak Seasons:
The recent warm weather has increased production. We will be in peak harvest for the next 2 weeks.

The big news on Blueberries is the recent hot weather in the Pacific Northwest growing regions. Last week temps sored up past 100 degrees for several days. This week the forecast is calling for more warm weather with temps in the mid to high 90's. All this heat will have an adverse effect on supply and quality moving forward. Many shippers are being forced to move into their late season crops which will ultimately shorten the season. Quality may become compromised if the weather does not cool down. Market prices have firmed up and shippers are expecting limited supplies moving forward.

Michigan harvest has been consistent, but is gradually declining as we finish up the second cycle of harvest in this area. We may see some lighter supplies over the next week or so as we wait for the third cycles of harvest and late season varieties to ramp up. Market have firmed up slightly.

Alerts:
The recent hot weather is expected to impact supplies and quality of fruit from the Pacific Northwest.

Supplies continue to improve on raspberries as most shippers are increasing production this week. Salinas / Watsonville areas are expected to come on quicker than initially expected due to the recent warm weather. Quality is good and market prices are starting to gradually drop as supplies improve. Look for promotional opportunities and spot buys over the next 2 weeks.

Peak Seasons:
We are entering our second peak in harvest in the Salinas / Watsonville areas.

Strawberry supplies remain steady this week. However, quality will be the main concern. The recent warm nights in the Salinas / Watsonville growing regions have kept the plants active and the fruit continues to grow around the clock. In these conditions, strawberries will ripen rapidly and can lead to darker fruit and soft berries. Unfortunately, due to the sensitivity of the berries in this weather, the soft spots and bruising are not always apparent in the field. Even with careful evaluation and packing, the fruit may show signs of the heat by the time it arrives. Yields are being effected and supplies are not as heavy as the have been. Market prices have firmed up. Please keep inventories light as we wait for the quality to improve by next week.

Alerts:
Strawberries may show full color with occasional soft berry due to warm weather.

There are plentiful supplies from all growing regions. This has kept the market at current and competitive levels. Although there has been some conversations with suppliers about having lighter supplies next week. The quality has been really good. We are seeing weights before ice in the 20 to 23 pound range, decent crown size, minimal yellowing, and occasional purple cast.

We are still suffering from a lack of supplies from the Salinas Valley. As a result the markets are extremely volatile. Although there looks like we will have light at the end of the tunnel starting mid next week. Even though we have elevated markets we are seeing excellent quality with vibrant green color. Although sizing is still small.

Alerts:
The supplies from the Salinas Valley are continuing to hold the elevated markets in place.

The hotter than normal weather continues in the California growing area we are still seeing slowed size growth of the carrots. Good demand for the jumbo sized carrot and less production of them, the market for them continues to firm up. 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 has been indicative of the current supplies. Which have been abundant. The trend will take itself into next week. We have seen quality reports showing occasional bruising, which is the brown spotting. Also weights are ranging in the 20 to 25 pound level. But overall quality has been really nice.

The celery market is relatively stable with light demand and good supplies. Sizing has been skewed mostly to the larger size 24's but we are seeing a few shippers slipping down to predominantly 30's. Regardless, quality continues to be good with few if any issues reported.

Pacific Northwest cherries will be wrapping up the season this week. There maybe a few shippers with some cherries left next week but most likely not with much volume. Quality remains excellent.

Peak Seasons:
Cherries will be moving out of availability over the course of the next seven days.

Pablano – Seeing better quality and condition with new crop in Baja California. California growers have started harvesting this week with very limited supply, good quality and condition.

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 limited 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 quality of cilantro continues to be the story. We are still seeing black to brown spotting, yellow leaves, and slimy decay. The market is holding firm at much higher than normal prices. We will continue to see this trend well into next week.

Alerts:
We are still experiencing poor quality and much higher than normal markets.

The domestic lemon supplies continue to be limited and demand is very strong. We are seeing a little relief as Chilean and Mexican lemons are arriving in better volumes.

We are faced with a storm that started hitting late Tuesday and is expected to peak in Veracruz Mexico on Thursday. Rain has been reported and growers were not able to harvest today due to the rain and winds yesterday. Quality will suffer and the market are rising. We will have more updates as things progress. Current quality is good with some styler showing up in a few lots. Shippers are running the limes more than once to assure good quality upon arrival. The market is higher.

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 113s and 138s which will last through the Valencia season. Even with packers moderating their pack weekly to stretch the crop, some packers will finished by the end of the month and others expect to see their crop finish sometime in September. The excessive hot weather in the growing area this summer, we are seeing heavier than normal regreening of fruit. Fruit looks tired and has softness.

Alerts:
Demand exceeding supplies on 113s and 138s.

With the major suppliers of cucumbers in good production the market is holding steady at reasonable prices with a few deals being made. Michigan, Ohio, New Jersey and now New York all in production buyers have a few choices to fill their cucumber needs. Some quality issues are showing up in older fields but most reports are of good quality and color. Expect supplies to stay steady into next week.

Peak Seasons:
Cucumbers are in peak availability.

Improved 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 increase as temperatures continue to drop.

There are better supplies of eggplant with Michigan, Ohio and New Jersey all getting into steady production. Quality reports are good in all producing areas and the market has come down to more normal levels than we have seen over the past month but with the west coast in light supplies demand has kept up with the increased supply. Good supplies should continue in the east for the next few weeks and California will have more supply next week.

Peak Seasons:
Eggplant is moving into peak supply.

Eggplant is currently being shipped from Fresno CA, Supply is improving with cooler weather. Quality is improving after the recent heat wave. Look for supply and condition to improve as we move into the month.

Green grapes are looking very nice and we have a number of varieties to choose from. We have all sizes and shapes to choose from with nice crunchy and tasty flavors. Supplies are great and so is demand. The market is steady right now

Red grapes are experiencing a tighter market that has brought the lower prices up. Overall quality is very nice with a few of the older lots having an occasional shatter problem. We have a number of very nice and very large grapes to choose from. The supply of red grapes is lighter than last week with some growers having to wait longer than expected due to high temperatures delaying the coloring of the grapes. The market is steady with a chance of going up.

The past and recent extreme heat in the growing regions of Mexico have caused some serious supply gaps. The growth patterns have slowed to a halt as a result of the heat. The supplies for the next three weeks will be a struggle. The market has already reacted and is trending higher. We are seeing minimal amounts of jumbo sized green onions with the majority arriving in the small / pencil size. We have seen quality issues with yellow to brown tops as well.

Alerts:
The extreme heat in the growing regions of Mexico have caused a serious supply gap.

The story about kale has remain the same for quite sometime. This staple commodity is such a part of the processing world that supplies have been extremely abundant. This has kept the market at competitive levels. Quality is excellent with full bunches, minimal yellowing, and no dehydration.

The iceberg lettuce market is steady with more than adequate supplies to meet current demand. Quality has suffered only slightly from the recent heat and humidity with some lots showing fringe / tip burn and an occasional varnish reported. For the near term we see no change in the market.

The market on romaine, red and green leaf is steady with light demand and good supplies. Size and weight on all has been very good. The recent heat and humidity experienced in the growing regions has led to some issues with tip burn and fringe burn; but these have been fairly limited in scope. We expect to see the market continue to be about steady through this week and well into next.

The cantaloupe world is struggling to find enough business to keep the current supplies from over running demand. The supply is greater than demand right now but we have more and more schools starting up which will help kick up demand. We are seeing some arrivals with softness and some lost that are cutting green and have low brix levels. The market is currently lower.

The honeydew patch is looking very good right now and we have plenty of volume too. Quality is exceptional and they are eating very good. The market is in a slow downward trend currently and should find the bottom soon and demand from schools picks up. The market is lower.

Seedless Watermelon in the west have improved supply and only fair quality due to the heat . Bakersfield is shipping in a limited way with only fair quality and size peaking on 45s mostly bins and some cartons. some personals being offered peaking on 6s and 8s with better supply and lower pricing.

Markets are steady on all sizes of Yellow and Red onions out of all shipping points. Supplies of Colossal Yellows and larger out of the New Mexico growing area are limited but adequate. New Mexico and California are still the main shipping points. Supplies of Yellow and Red onions out of Washington have started with building supplies. This is keeping the market in Check. Idaho will break ground in a very light way next week with yellow onions. White onions are in a demand exceeds supply situation due to quality and limited supplies. This looks to be the case till supplies come on board from Washington and Idaho in a couple of weeks. Look for the market to stay steady into the end of this month.

Transitions:
Washington growing area just coming on board with Idaho to follow over the next couple weeks. California and New Mexico will slowly wind down for the season in the next couple of weeks.

Stockton, California - Bartlett pears remain fairly steady on the larger sizes while volume deals remain on 110s and smaller. The Bartletts are peaking on 100/110s but the fruit is starting to get a little larger. Red pears are steady on all sizes and continue to peak on 50/55s. The quality is good for both reds and Bartletts.

Washington – D'anjou pears are steady on all sizes and are still peaking on US#1 80/90s. The quality has been good. D'anjou's are expected to last through the month.

Transitions:
California will start packing a few new-crop Bosc pears later this week.

Washington will start packing new-crop Bartlett pears in 10 days followed by stark-crimson red pears on August 21.

Demand is picking up and supplies from the tropic's remain light. It now is looking like it will be mid September before supplies will start to return to more normal levels.

New crop is in full swing out of Washington, New Mexico, Kansas, Wisconsin and Nebraska. Idaho has started with a handful of shippers with more to come on board over the next two weeks. Quality and size is being reported as good. Idaho storage crop is winding down quickly and will only be in a few hands by the end of next week. Quality on the storage crop is showing it age. This will put supplies out of Idaho at their lowest levels middle of next week. Market on storage crop is relatively steady. New crop is getting a premium on all sizes and is only producing limited numbers of # 2's. Look for the market to stay steady at higher levels till the end of this month and then should slowly adjust downward. September will be a great time to promote potatoes as harvest will be in full swing. The path of the total eclipse is to go right over Idaho Falls potato growing areas a week from this Monday which will bring thousands of people into the area. Traffic will be and issue for trucks that week.

Alerts:
Total eclipse a week from this Monday will cause heavy Traffic in the Idaho growing areas.

Transitions:
Storage crop winding down quickly as supplies of new crop build

Eastern Washington -- red and gold potatoes are steady and continue to peak on A size. The quality has been good.
Stockton, California -- the red, white, and gold potato markets are all steady. They have good availability on all sizes and colors with the exception of Premium/Bakers in any color. The quality is good.
Wisconsin -- Their red potatoes are getting larger and producing more A size but they still have plenty of Bs. The quality has been good.
Minnesota -- reds are steady to slightly lower and the volume is increasing. Golds are steady on all sizes with light availability still. Both colors are peaking o size A. The quality has been good.
Delaware -- All colors are heavier to A size and the quality has been good. They should pack for another 2-3 weeks.

Transitions:
Western Washington will start packing reds in 3 weeks followed by golds in a week or two.

Squash supplies are tight around the east coast. There are many regions producing squash at this time but all are experiencing the same issue with low yields. Yellow squash has been low yielding for a week now and over the last few days green squash has started following the same pattern. The reason is not clear, they vary with every shipper, squash plant are known to get into an up and down pattern during hot humid weather. Crop reports are not looking promising for the near future with very few blooms on plants that are in production. Expect tight supplies on squash for the next week at least.

Alerts:
Squash supplies are going to remain tight for the next week at least.

Peak Seasons:
squash is not in peak availability.

Yellow Squash and Italian Squash are being harvested in Santa Maria and Fresno. Weather is cooler and supply has improved. Good Supply on 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.

There is better availability this week for yellow peaches and yellow nectarines. Volume is still not abundant on these colors but it will be easier to get orders covered. Plums and pluots are in good supply with prices in the $14-$20 range. Apple pears are readily available with prices in the $18-$24 range. This season's crop still remains small so trying to look ahead with what your needs are will be helpful.

The tomato market fluctuations may be starting to level out with supply continuing to improve this week. With less planted acreage this summer supply has been shortened even further from the already reduced planting normal for this time of year. Smaller operations in NC, TN, MI, and VA are helping to alleviate the pressure placed on western operations and are forecasting steady supply into September when operations transition back down south. Roma tomatoes remain limited as expected for this time of year however supply continues to improve in eastern growing regions to helping to level out pricing. Cherry and Grape tomato harvest are suitable for eastern demand providing for a steady and reasonable marketplace.

Supply is improving this week coming out of several weeks of the lightest harvests of the season so far. Romas remain a coveted item this week. Warm monsoonal weather has reduced the crop keeping a majority of what is available in Mexico where there is a strong national market. California roma production is steady however supply is generally lower with plantings around 25 percent of their round counterpart. Since Mexico is usually the big producer of romas, prices will remain high until crossings improve and Mexico comes into better supply again over the next couple of weeks. Mexico has come back into large supply of grape tomatoes helping to suppress pricing with projections of steady volumes through summer.