The Source - December 12, 2018

Washington – Red Delicious are steady on most sizes with good availability. They continue to peak on extra fancy fruit in the medium size range. Golden Delicious and Granny smith remain short with higher pricing. Look for this to continue through the season with most shippers lucky to have 2 shifts a week. Granny smith are peaking on 88 and larger with very few 100 count and smaller. Galas are steady on all sizes and are peaking on 100/113s. Fuji's are steady with good availability and they are peaking on the 88/100s. Honeycrisp are limited as most shippers are only running them once a week. The quality of all has been good.

Idaho – Red Delicious, Pink Ladies, Gold Delicious, Fuji and Gala's are all steady with light to moderate supplies. The quality has been good.

Michigan – Michigan continues to pack Galas, McIntosh, Jonathans, Golden Delicious and Red Delicious. All markets remain steady. They continue to have great quality and color. Sizing is peaking on 100 count and smaller

New York – they are packing Galas, McIntosh, Red Delicious, and Empires. They have a good mix of smaller sizes. The quality has been good.

Alerts:
Granny Smith and Golden Delicious are in a demand exceeds supply situation

Southern Baja (Constitucion)) continues with low production due to the cold weather in the region, and seasonality. Production should wrap up in this region in the next 2 weeks. We're starting to see some asparagus from Northern Caborca Mexico, but volume is very low. Production, and weather remain unchanged in both regions in Peru, Northern region (Trujillo), and Southern region (Ica). The demand out west has started to pick with less production in Southern Baja, and Northern Caborca just starting. The market, and demand has picked up in the east due to the shortage out west.

Weather in the growing region if Michoacán Mexico calls for some rain early in the week with temps in the 70s-80s. Growers are currently harvesting the "Aventajada" crop and peaking. There is plenty of fruit in the pipeline and pricing is all over the place. Overall quality is good as fruit is eating and cutting good. We are seeing some "Lenticel spotting on the surface of the avocado skin. Lenticel develops after harvesting during the rainy season. Lenticel spotting does not affect the internal quality of the fruit. An avocado with Lenticel will ripen as normal and as the skin color darkens, the lenticel will become less apparent. Mid to late January we will see California fruit available.

Bell pepper supply is still in tight supply, choice and smaller size pepper supply has actually gotten tighter. High markets over the past month have slowed demand at retail but cooler weather in the south has slowed production. Supply is limited to a few shippers, some shippers did not plant for the early season and will start after the first of the year. Quality is still good, sizing is trending to larger size fruit, a change from the earlier part of the season.

Alerts:
Bell Pepper supplies are still tight

Transitions:
Bell pepper is not in transition. Supplies will be concentrated in South Florida for the next 4 months.

Peak Seasons:
Bell Pepper is not in peak season.

Green Bell Pepper- Green bell pepper production expected to remain steady throughout the week. Green bell volume is expected to increase in the next couple of weeks. The pepper market remains steady and strong. Volume on both #1 pack and choice meet demand. Green bell pepper from Mexico are also available to load in McAllen, TX.

Red Bell Pepper- Very limited volume of Red Bell pepper available to load in Nogales, AZ from Mexico. Cooler weather and rain over the past few weeks have slowed down production and sizing. Red bell pepper harvest is expected to begin in Sinaloa this week. Red bell demand currently exceeds supply. Market on red bell pepper is high along with pricing. Red bell supply from Mexico crossing through Nogales, AZ and McAllen, TX is extremely limited.

Yellow Bell Pepper- Yellow bell volume will continue to be short as we go through the week. Yellow bell harvest is expected to start in Sinaloa as early as the end of this week. Demand for yellow bell pepper currently exceeds supply. Market remains strong. Yellow Hot House bells are also available to load in McAllen, TX where supplies are also limited.

Blackberry supplies are strong. Production from Mexico has been consistent despite the weather. Quality has been okay, but we have seen some reports of soft fruit and decay. We do expect quality to improve moving forward and we anticipate good supplies over the next 2 weeks. Promotable volume and aggressive prices are available.

Import blueberry arrivals have been delayed. Supplies have been snug since last week. Markets jumped up last week and have been firm through this week. Containers of fruit are expected to arrive later this week and we anticipate to see better supplies by the weekend. Additionally, Chilean harvest is expected to improve and we will see a swing in supplies over the next 2 weeks. This shortage will be short lived and we will see promotable volumes and more aggressive prices moving forward. Quality has been good from all area.

Alerts:
Supplies have been limited since last week and prices are higher.

Transitions:
We expect Chilean supplies to improve quickly over the next 2 weeks.

Raspberry supplies have been lighter but consistent. Market prices did inch up a bit this week. Some delayed arrivals from Mexico have played a role in short supplies this week, but we expect availability to remain fairly steady moving forward. We do expect to see another peak in production over the next 2 weeks. Quality has been good.

Strawberry supplies continue to be a struggle this week. In California, shippers have stripped and cleaned their fields of the rain damaged fruit. The yields this week have been greatly impacted by the effects of the rain and harvest is a slow go. Availability continues to be very light and markets remain high and firm. Quality is fair and bruising can be expected for the next 5-7 days as we recover from the storms. Mexico production was also slowed due to weather as well, but has picked up pace this week. Unfortunately, with the strong demand and limited availability industry wide, Mexico's volume is not enough to offset the shortages. Lastly, Florida is being hit with cold temps and rains this week. Harvest has come to a crawl and is expected to remain very limited all week. As a whole, the industry continues to be in a demand exceeds supply situation and markets will stay high. We expect this to last through the holidays and improve after the new year.

Alerts:
Demand exceeds supply industry wide. Availability remains very limited and prices are high.

The broccoli market continues to be remain volatile with all suppliers. Supplies remain tight on broccoli in all areas as the cold weather has slowed the growth. Broccoli crowns are extremely tight and may need to sub into bunched. Quality is fair with slight purpling, some mechanical damage, and occasional yellow cast. Look for supplies to continue to remain tight going into next week.

The Brussels Sprouts market has remained higher at a steady level in Salinas, Santa Cruz, and Watsonville areas. With the rains in the Salinas area, yields have been limited. Quality has been affected by the rain as well as the insect pressure particularly the Diamondback Moth and will be an ongoing battle this season. Look for the Brussels Sprout market to remain steady going into next week.

The carrot market continues to remain steady. Quality is good, and supplies are adequate to meet current demand. We see no change in the carrot market going into next week.

Cauliflower market has adjusted downward with a more supply in recent days with the recent and current weather in Yuma. Overall, the quality has been good with minor bruising and some yellow cast with weights in the 25 to 28-pound level. Look for this market to continue to adjust going into next week.

Demand continues to exceed supplies with this commodity. Value added items will be into double escalated pricing by the end of the week. Contracts are escalated as well. Production in the southern California region will be moderate to light for the rest of the week. The availability has evened out with all sizing, unlike past weeks where production was heavier to large sizing. Some seeder has been reported as well as a little insect damage, but overall, this commodity continues to be above average in quality. Transfers to Yuma will continue but a cost for delivery will continue with all suppliers. Expect this market to get stronger throughout the week.

No changes this week in import cherries. Demand seems to be light. Availability is steady. Markets have been fairly steady, ranging in the mid to high 40's. Sizes are large to extra large. Fruit is shipping out of Miami and Philadelphia. Quality is strong.

Jalapenos- Jalapenos are available to load in Nogales, from Mexico. Jalapeno crop from Sinaloa is scheduled to start harvesting this week. The market for Jalapeno is expected to remain strong for the week. Quality loading in Nogales is being reported fair to good.

Pasilla-Pasilla volume continues to be light. Cool weather in the growing region has slowed down production. Market on pasilla pepper remains high. Quality on pasilla from Sinaloa being reported as good.

Anaheim- Moderate volume currently on Anaheim pepper. The cooler weather is affecting production in the Sonora and Sinaloa growing districts. Quality in Anaheim is being reported as good. Anaheim pepper from Mexico also available to load in McAllen, TX.

Serrano – Serrano peppers are available to load in Nogales, from Mexico. Volume is down, and the southern area will start late this season due to storm damage from a few months back. The market is strong, and should remain that way until the southern Mexican regions begin to harvest. Serrano peppers are also available to load in McAllen, TX.

Tomatillo – Tomatillos are available to load in Nogales, from Mexico. Supplies from the southern areas will not be available until January. The market is very strong and is expected to remain strong. The cool weather is affecting husked and peeled tomatillos. Quality being reported as fair to good. Tomatillos also available to load in McAllen, TX

The Cilantro market continues to remain steady as growers are coming in with slightly higher yields than previous weeks. The cilantro quality continues to be good. Look for the cilantro market to continue to stay steady going into next week.

Supplies are improving, some suppliers offering promotable volume. Currently harvesting out District 3 (Desert crop) and District 1 (San Joaquin Valley). Peaking on 140/165/115 size in both growing regions. District 3 will continue to be a challenge with the labor shortage, light supplies, and market expected to be firm. District 1 volume is starting to come on stronger with markets coming off on all sizing as inventory and supplies begin to build. Light rain expected the middle of next week could affect supply, but suppliers are making sure to pack ahead to avoid jeopardizing fulfilling orders. The two regions have a good run on sizes and expected to continue to improve as weather permits.

Weather in Veracruz, Mexico shows to be in the low 80’s, with light rain expecting next week. Lime supplies are steady, but expecting to tighten up mid December through the first of the year with market prices on big sizes expecting to drop and small size pricing looking to climb. Current market prices ranges from $6 -$11 depending on the size.

California Navels is moving along with good supplies across the board, plenty of promotable volume and great quality. Markets remain firm with a few deals offered to help move extra volume. Sizing has also been better with more 72/56 available and pack out are leaning more towards fancy grade, creating a few shortages in the choice supplies. Light rain expected next week but most suppliers are packing ahead to avoid any shortages. Moving forward, the size structure remains 88/72/113 and color on the fruit gets better daily. Brix averages remain at 10-12, some 13. With the cooler temperatures, gas hours are slowly coming down and the color of the fruit showing more uniform color. Satsuma Mandarins supplies are ample on any size or pack style. Brix is 12-14 and extremely juicy. Delite Mandarins are coming along peaking on 32/36/28 followed by size 40. Plenty of Pummelos available sizing and quality look great. Cara Caras & Blood oranges supplies are light to start but will improve over the next few weeks.

Cucumber supply is extremely tight, most Florida shippers are finishing for the season. The Florida shippers still harvesting have been slowed by cooler temperatures. Imports from Honduras have started with very light volume and volume will continue to be light until after the New Years. Quality on Florida product is only fair with a few issues showing up, mostly due to older fields. Honduran cucumbers have good quality, the color has not been great but the fruit will darken up as we go through the week.

Alerts:
Cucumber supply is extremely tight.

Transitions:
Cucumbers are starting to transition to import product.

Peak Seasons:
Cucumbers are not in peak season.

Cucumber volume has decreased as harvesting has dropped due to transition from Sonora to Sinaloa. Most growers in Sinaloa expecting a late start due to weather in the past weeks. The current cucumber market is steady as pricing also remains steady. Good quality has been seen on cucumber loading in Nogales, AZ.

Eggplant is in better supply with more shippers starting in southeastern Florida. Demand has slowed since the Thanksgiving Holiday as more turn their attention to other more seasonable items. Eggplant is in peak supply now but that will only last a short time, with cooler temperatures in south Florida production will slow up. There is not a lot of acreage planted for the winter in south Florida so when the central Florida supply finishes for the season production will go way down. Quality is good in most areas of the state.

Alerts:
Eggplant supply has gotten better

Transitions:
Eggplant supply is transitioning from central Florida to southeastern Florida.

Peak Seasons:
Eggplant is in peak season for a short time.

Eggplant- Fancy and Choice grade currently available to load in Nogales, AZ from Mexico. Better availability on smaller sizes like 24ct and 32ct. Supplies meet demand on smaller sizes as demand exceed supplies on bigger sizes like 18ct. Good quality being reported on eggplant loading in Nogales, AZ. Eggplant market currently reported as steady.

Domestic green grape supplies are drying up quickly. Shippers are expecting the remaining green grape storage fruit to last another week before becoming very limited. Quality is fair and we are seeing some reports of discoloration and soft berries. Markets prices have started to climb as supplies are winding down. Import fruit is expected to arrive by mid next week. Prices are expected to be high and supply is limited at first and slowly improve over the next 2-3 weeks. More info to come as fruit arrives.

Alerts:
Domestic supplies are becoming light and prices are going up

Transitions:
Import season is expected to start next week and slowly improve.

The domestic grape season is winding down. Red grape storage fruit is expected to last through the month and fade out by January. Quality is being reported as good now, but will vary depending on age. Market prices are starting to climb after a very long and flat summer market. We have seen an increase from all shippers this week and some shippers have already finished their domestic sales completely. Import fruit is now available in limited quantities and prices are twice as much as domestic. I expect to see the price differences be short lived as more import fruit arrives and less domestic becomes available. We will see a natural transition as the domestic fruit fades out and the quality diminishes. We expect the import season to be strong by the first of the year.

Alerts:
Domestic availability will wind down quickly over the next 2 weeks. Prices are higher.

Transitions:
Import fruit is arriving now and will continue to improve as we start the new year.

The Green Onion market continues to remain steady as supplies have increased. The recent heat followed with rain has been causing some occasional leaf minor and some mechanical damage. The green onion market will continue to be plentiful stead going into next week.

The kale market continues to stay steady this week and will continue to be with this cooler weather in Yuma. Quality is good with full bunches, and only an occasional yellow leaf being reported.

Supplies cannot keep up with demand. This market continues to be very strong. Romaine is being avoided and this has caused an increased demand on this commodity. Escalators are in play on value added as well as contracts. Lightweights, puffiness, and a little discoloration are the main complaints upon arrival. Lettuce has been ranging between 33-37 pounds early in the week. The weather has been better in the growing regions this week, and weights are expected to be 39-44 pounds by the end of the week. Production in Santa Maria and Yuma will struggle to meet demand for the rest of the week. The good news is that no rain is expected for the rest of the week in Yuma and Santa Maria. School business should start to slow this market down as many institutions will be closed for the holidays next week.

The Tender Leaf market continues to be strong on spring mix, arugula, baby spinach, and cello spinach as we are in the third week in Yuma. Yields are down to the recent cold weather in Yuma. Quality issues are fair with minimal yellowing and bruising of the tender leaves. Look for these items to remain tight going into next week.

Temps in the growing region of Zacapa Guatemala are in the 80s-90s this week with no rain in the forecast. The season has been off to a slow start and we continue to see limited supplies this week on offshore fruit. Small fruit is very tight as 9s and 12s seem to be the go to. Quality is fair and the market is higher this week as demand exceeds supply.

weather in Zacapa Guatemala calls for sunny skies and temps in the 80s-90s. Fruit is limited as the season has started off slower on the offshore fruit. Majority of the fruit we are seeing is large-sized fruit as smaller honeydews are harder to come by. Overall quality is fair and the market is higher this week as demand exceeds supply. We are also seeing fruit from Mexico. Weather in the growing region of Hermosillo Mexico calls for temps in the 70s-80s with no rain in the forecast this week. Quality is fair as there seems to be a good supply on all sizes as the market is steady/higher this week.

Light supplies of watermelon available to load in Nogales, AZ. Volume has dropped on watermelon crossing through Nogales as demand has increased. Watermelon harvest from Jalisco expected to start within the next 10 days. Pricing on new crop watermelon is expected to increase. Quality on new crop watermelon being reported as good.

Markets are steady on all sizes and grades. Quality is excellent. Holiday season is right around the corner with two short shipping weeks. Good time to stay ahead of your inventory.

Washington – Bartlett pears are steady on all sizes and are peaking on US#1 100s. D'anjous are peaking on US#1 80/90s and the market is steady on all sizes. Bosc are steady on all sizes and are still peaking on US#1 80/90s Red Bartletts/Red Sensations remain steady on all sizes and peaking on 45/50 half cartons. The quality for all has been good.

Peak Seasons:
Washington continues in the peak of its Bosc, Bartlett, D-Anjou and red pear season

Current supplies are limited, and will continue as we get closer to the Holiday pull. The decrease in supplies is due to Costa Rica having issues with Basal Staining. This causes a discolored ring around the base of the pineapples causing too much moisture in the soil from previous heavy rains. Shippers have stepped up their selection process for packing to ensure the best quality arrives, hence causing lower volumes moving forward. This is industry wide and forecasted to remain limited until January. Volumes should gradually increase as we move through the first quarter of 2019. Current market prices on all sizes between $10-$12.

Russet carton potato markets have firmed slightly on most sizes out of all growing area. Quality is good with the occasional lot showing a few peepers. Norkotah is still the main variety being packed with a few sheds packing limited supplies of Burbank. Burbank our getting a slight premium over the Norkotah variety. The Christmas holidays are right around the corner with two short weeks. Stay ahead of supplies. Weather the next couple of days will become a factor with snow slowing trucks hauling and transporting potatoes to the sheds. Transportation in and out of the state will also be slowed down by this weather.

Alerts:
Snow to blanket Idaho slowing transportation to a crawl

Color potato market if fairly steady on most sizes and packs except for B size reds. These are available but limited out of all areas. Quality is very nice with little to no reports of issues upon arrivals. California just started up with Gold and White potatoes. Reds are still being transferred down from Washington. Quality is nice.

Transitions:
California just started digging Golds and Whites potatoes

Squash supply are very tight; with cooler temperatures and squash plants in a downward cycle. Squash production is coming from central and south Florida, quality is pretty good with most shippers, only a few issues are showing up. Squash plants run in cycles and on top of low production due to temperatures we are in a downward cycle keeping production at a bare minimum.

Alerts:
Squash supplies are very tight.

Transitions:
Squash supplies are coming from central and south Florida.

Peak Seasons:
Squash is not in peak season.

Italian and Yellow S/N- Volume on both Italian and Yellow S/N have started to increase this week as harvesting on squash has started out of Sinaloa. Quality on both varieties currently range from fair to good as both districts continue to harvest from Sonora and Sinaloa Mexico. Supplies on Italian squash currently meet demand as demand on Yellow S/N exceeds supplies. Steady market on both Italian and yellow S/N.

The domestic stone fruit season is officially done. The only fruit that remains is utility grade plums and quality is poor. We are expecting the import stone fruit season to gradually ramp up over the next 2-3 weeks. The first arrivals of peaches and nectarines are expected this week, but supplies are spotty and prices are high. Starting next week, we expect to see a little more consistency in availability on peaches and nectarines. By the week of 12/24, we anticipate to have plums available. Again, prices are expected to be high in the beginning. More info to come as fruit arrives.

Transitions:
Domestic season is finished and import will ramp up over the next 2 weeks.

Extreme heat during the planting season in Palmetto/Ruskin Districts has created reduced volumes and smaller sizes than normal. Florida is currently harvesting in Palmetto/Ruskin districts from 2nd, 3rd and even 4th picks, helping to keep Eastern supply steady. Cool weather last week coupled with forecasts for more chilling weather this week has developed a market where mediocre supply is expected for at least another week which has caused most varieties to remain constant, with little to no change in price. Roma tomatoes remain very short with the expectation of supply for the season to be imported from Mexico where supplies are also short from weather-related challenges. Immokalee/Naples farm operations are beginning to ramp up operations but will not have any significant volume until late December providing for a steady marketplace over the next seven to 10 days.

Alerts:
There is a national shortage of tomatoes of which Roma tomatoes are extremely short. As Florida season gets started with light supply, and Mexico farms struggle against crop loss from weather related setbacks, supplies continue to run short each week as steady demand sustains an elevated market.

Baja and Eastern Mexico supplies continue to decline to shift the demand to Mainland Mexico where winter farms are waiting to break ground. This time of year, Baja is usually the main producer of round and roma tomatoes but a virus has affected major farms greatly diminishing supply leading to some crop failures. Sinaloa is not expected to have any real volume of tomatoes until after the first of the year due to nearly 2 months of hurricane-related weather causing a major disruption in supply for most of December and into 2019. Northern States of Coahuila, Durango, and Zacatecas in central Mexico experienced a freeze eliminating roma and grape tomato supplies, especially open field grown varieties not protected by adapted environments. As supplies diminish in Baja, imports in Nogales are gradually increasing, helping to soften prices, however it will not be until January when mainland Mexico begins winter programs that prices will return to seasonal norms. It is reasonable to expect escalated pricing through the rest of 2018 until mainland Mexico begins harvesting winter programs at the end of January.

Alerts:
There is a national shortage of tomatoes of which Roma tomatoes are extremely short. As Florida season gets started with light supply, and Mexico farms struggle against crop loss from weather related setbacks, supplies continue to run short each week as steady demand sustains an elevated market.