The Source - December 13, 2017

Washington – Red Delicious remain steady with good availability. They continue to peak on medium sized extra fancy fruit. Golden Delicious are steady with good availability and are peaking on premium 100/113s. Lower grade goldens remain limited. Granny Smith are steady on all sizes and are peaking on 113/125s. 88 and larger Granny-smith remain limited. Galas are steady on all sizes and are peaking on 100/113s. Fuji's are steady with good availability and they are peaking on 100/113s now. Honeycrisp are steady on all sizes with good availability. Honeycrisp are now peaking on 88/100s. Jonagolds are steady and are heavier to 72/80s. Braeburns are steady and they are medium-sized with an 88/100 peak. The quality of all has been good.

Idaho – Jonagolds, Golden Delicious, Red Romes, Red Delicious, Granny Smith, Fuji's, and Pink Ladies are all steady. Granny's and Jonagolds are still peaking on 80/88/100s while the others are one size lower in the 88/100/113 range. The quality has been good.

Michigan – Michigan continues to pack Galas, Honeycrisp, McIntosh, Jonathans, Jonamacs, Golden Delicious, Red Delicious, Cortlands, Empires, Fujis, red Romes, Ida Reds, and Jonagolds. All markets remain steady. They continue to have great quality and color. The quality has been good.

Pennsylvania – Fujis, Red Delicious, Golden Delicious, Granny Smith, Cameos, and Pink Ladies are all steady. Galas are available in small quantities but they are winding down. Red Delicious and Pink Ladies are peaking on 88/100s, while the Goldens, Galas, Fujis, Cameos, and Grannys are heavier to 100/113s. The demand has been light. The quality is good in all varietys.

New York – they are packing Cortlands, Galas, McIntosh, Honeycrisp, Red Delicious, Fujis, Snap Dragons, Golden Delicious, Jonagolds, Red Romes, Macouns, Pink Ladies, Staymen Winesaps, and Empires. They have mostly large fruit so they haven't been much of a factor in foodservice this year. There have been some small McIntosh. The quality has been good.

Alerts:
Large Granny-smith remain limited in Washington.

Most Michigan suppliers have substantially less fruit than last year due to a spring freeze during their blossom so we expect and early finish.

Peak Seasons:
Washington, Idaho, Michigan, Pennsylvania, and New York continue in the peak of their seasons.

Volumes are lower this week from Central Mexico (Ciudad Obregon) due to closure of fields with regions in transition. Northern Peru (Trujillo), and Southern Peru (ICA) has also started to close fields due to warmer weather in the region, and seasonality. Market out west is much higher due to Central Mexico finishing up soon. Market in the east has not reacted yet, but expect with less volume out west the east will follow suit.

Transitions:
Caborca Mexico, and San Luis Mexico should start to cut fern the first week in January, and harvesting should be 7-10 after the fern is cut.

Mexico's many producing municipalities continue the limit their weekly harvest numbers. This is greatly reducing volume coming in to the US, and moving markets upward and keeping availability limited. They are expected to limit the harvest through December. Negotiations are ongoing to resume a normal and steady rate of harvest. In the short term, supplies in the states are low and supplies look to remain tight. Markets are very unstable.

Alerts:
Limited harvest in Mexico is shorting supplies, markets active.

Cold temperatures in the southeast have slowed bell pepper production. The pepper market had been very high most of November was starting to slide downward to more normal levels has stabilized. In many Florida growing areas temperatures dropped to the high 30's bring production to a halt. What little pepper left in Georgia was frozen out. Temperatures this week will remain below normal. The growing regions in southeast and southwest Florida are due to start more volume next week as temperatures get back to normal.

Alerts:
supplies are still tight.

Peak Seasons:
green bell pepper is not in peak availability.

Blackberry availability is very limited this week. Just like raspberries, Central Mexico is the primary source of supply at this time and we are dealing with multiple delayed arrivals due to heavy snow in Texas. The front part of the week was the lightest. However, as the transferred product arrives in California and Florida at the end of the week, we can expect better order fulfillment. Demand has been strong and quality is good. Market prices are slightly up due to the limited supplies. We expect supplies to continue to be light over the next 2-3 weeks.

Alerts:
Supplies are light this week. Transfer trucks from Mexico were delayed due to weather.

Blueberry supplies are improving slightly. The Chilean arrivals have increased this week, opening up more fruit in the market. Although we are not seeing a wave of product or a push for big volume, we are hearing of better availability and more arrivals as we move forward. Demand and quality have been very strong. Market prices have been steady, with a slight decrease on the east coast. Mexican production has been consistent and has been supplying a large portion of the fruit on the west coast. Quality is being reported as strong and market prices have been steady. We expect this to remain steady over the next 2-3 weeks. As we begin the new year, we expect to see increased supplies through January.

Transitions:
Chilean arrivals are improving with better supplies expected at the end of December.

Raspberry availability is very limited this week. Central Mexico is the primary source of supply at this time and we are dealing with multiple delayed arrivals due to heavy snow in Texas. The front part of the week was the lightest. However, as the transferred product arrives in California and Florida at the end of the week, we can expect better order fulfillment. Demand has been strong and quality is good. Market prices are slightly up due to the limited supplies. We expect supplies to continue to be light over the next 2-3 weeks.

Alerts:
Supplies are light and transfer trucks from Mexico were delayed due to weather.

Strawberry production has slowed down this week. We have several areas currently harvesting strawberries, and weather has proved to be a major hurdle in most. California has two separate growing regions; Santa Maria and Oxnard. Santa Maria has been consistent with harvest and has the best availability and price. However, harvest did slow down slightly due to quality. The fruit has been soft and bruising easily, harvesters have slowed down and are paying closer attention to what is being picked to help correct arrival issues moving forward. Oxnard was hit with strong winds last week. Shippers are carefully working through the damaged fruit this week. Supplies will be limited and markets prices will remain firm. Central Mexico has been consistent. Quality has been good and fruit is available in Texas. Market prices have been steady. Florida saw some light rain and cold temps over the weekend. This slowed harvest down in the front part of the week, but it will resume to normal by the weekend. Market prices are slightly lower this week and quality is good. We expect Florida to increase harvest next week.

Alerts:
Oxnard production has slowed down due to the strong winds last week. Limited supplies and firm markets.

Transitions:
Florida is expected to increase harvest this week and next.

We have seen an upward trend in the market as some suppliers have decreased acreage as we go into the next two weeks. Prices will continue to rise during this time frame. Quality remain really good despite the market trending higher. We have seen intermittent quality issues with some slight decay of the beads but that was out of Santa Maria. But overall color has been dark green with decent crown size.

Alerts:
The broccoli market is trending higher as we are approaching less acreage and decreased supplies as an industry.

Supplies are steady with the market at a competitive level. Quality has been excellent with vibrant green individual sprouts, full line of sizing, and minimal brown to black discoloration we had seen in the past from insect damage.

Supplies are steady, still not much size coming from fields, so jumbo size are still tight. Organic fresh carrot are still light production. Quality is good.

The cauliflower market is on fire. We have hit a major supply gap as we have been two weeks ahead of harvesting scheduled. Shippers are doing their best to cover orders, but we are having to substitute sizes. As an industry we are seeing more cauliflower 16 count than 9 count or 12 count. We are looking at this type of shortage for the next two weeks. Despite the supply shortage, we are seeing good quality with vibrant white color and minimal brown spotting.

Alerts:
We are experiencing a severe shortage in supplies of cauliflower as an industry. The market is extremely active.

This market has gained strength with many suppliers. Supplies are moderate at best. Production in Salinas is minimal. Santa Maria and Oxnard are the the main areas this commodity is being produced. The overall quality continues to be reported as good. Moderate availability is expected for the next few weeks. Loading in Yuma is an option but will come with a transfer fee added to the FOB price. Currently there is no celery being harvested in Yuma.

Bing cherries are now in from Chile. These are shipping by air through ports on both the East and West Coast. Sizing is predominantly 10.5 row to 9.5 row with quality reported as generally good. Supplies are limited.

Although there have been disruptions in the Oxnard growing region due to the fires, supplies remain steady from other regions. The market is also steady. Quality has been good with full bunches, green color, and minimal dehydration or yellow leaves.

The lemon market is very active. Demand continues at a strong pace and is exceeding supplies. With this year's Desert crop much lighter in volume, shippers production starting to fall off. The Central Valley crop has just begun to harvest and pack limited volume, mostly fancy grade. Ventura crop will not start until February. Expected demand to exceeding supplies into January/February.

Alerts:
Demand exceeding supplies.

Lime supplies are expected to remain steady this week. Demand has slowed down slightly and shippers are looking to make aggressive deals to move volume. Quality has been good. Sizes have been consistent, but occasional light color is present. We expect supplies to continue to improve over the next 2-3 weeks. Market prices will be steady to slightly lower over the next week. Volume deals will be available.

We are seeing a size shift to the larger sizes of 72s/56s in the Navel crop, the percentage of 113s/138s continue to fall off in pack outs. Pack outs remain clean with good color resulting in grade ratio of 85% of Fancy fruit, leaving very little choice fruit for the demand for of the choice grade. Choice market remains active and short. We are looking at peaking 72s/56/88s for the balance of the navel season. Small fruit will be in short supply all season long.

Alerts:
Demand exceeds supply for 88s/113/138 both grades.

Florida cucumbers are slowing down as the season is coming to an end, plus cooler temperatures have moved in over the weekend to slow production even more. The Honduran cucumber deal started a month ago in light volume is picking up with a few more shipper starting for the season. More shippers are set to start over the next two weeks. Quality on both the Florida and Honduran cucumbers is good now, although Florida product from this point on will start to show signs of wind scar after the front that pushed through this past weekend. Quality on the Honduran cucumber should remain very good for the next few weeks. We expect the market to stay steady through the weekend.

Alerts:
supplies are tightening

Transitions:
Moving to offshore supplies

Peak Seasons:
Cucumbers are not in peak season

Eggplant quality has been marginal in Central Florida over the past two weeks. Most of the product went through bad weather with hurricane Irma and then the rains that followed. New fields are starting in the southern part of the state, both on the east and west coast, with much better quality. Supply has been steady and should continue to be through the week. Demand for eggplant has been low since just before Thanksgiving and the market has drifted lower as a result.

Alerts:
New supplies with better quality are starting.

Peak Seasons:
Eggplant is coming into peak season.

The domestic green grape market is harvested and shipping out of storage on the West Coast. Quality is mostly good with size and color of the Autumn King's holding up very well. This market is about steady and should remain mostly unchanged for the coming week. Peruvian green grapes are in on both the East and West Coast with good quality but the fruit is commanding $15.00 to $20.00 premiums over the domestic fruit. Chilean green grapes are expected in with the first arrivals around the last week of December.

Transitions:
Chilean green grapes will be arriving the last week of December.

The domestic red seedless grape market is strengthening as limited quantities of good quality fruit are commanding a premium. The late season red seedless fruit is showing signs of weakness with off color (60-80%) and soft berries in some lots. This has created a split in the market with the marginal quality fruit being sold at a discount to help clean up inventories. Peruvian fruit is available on both coasts now but is getting as much as $20.00 over the domestic red's. We expect the first early arrivals of Chilean red's around the first of the year.

Transitions:
The first arrivals of Chilean Red Seedless Grapes is expected about the first week of January.

We are approaching that time where the work force in Mexico will take their break for the holidays. We will see this market trend higher as we approach Christmas. Supplies currently are steady but look for that to change quickly. Quality has been really nice with green tops and minimal brown to yellow discoloration.

Alerts:
We will see a significant decrease in supplies as we approach the Christmas holiday. The market will trend higher in the weeks to come.

We will continue to see plentiful supplies of kale from all growing regions. The quality has been excellent with dark green color, full bunches, and minimal yellowing or dehydration. The market remains competitive.

As expected this market has become stronger with most suppliers. Some defects include mechanical, puffiness and a bit of insect damage but the defects are minimal. Surprisingly enough, the overall quality continues to be good with most shippers. Expect only moderate availability for the rest of the week with a few suppliers being sold out. Demand is up. Weights on wrap lettuce have been averaging 34-38 pounds. Santa Maria has very light production. The gap is not here yet but supplies are limited compared to past weeks and availability will be less next week.

The market has remained steady on romaine as well as all leaf items. Markets are expected to be stronger next week, but with limited demand suppliers are looking to move this week. Flexing is being offered from multiple shippers for volume type orders, especially on romaine. Romaine hearts are strong in production. Supplies continue to exceed demand. Yuma production, as well as Santa Maria and Oxnard, will be good throughout this week. Some defects include slight ribbing and insects. The overall quality continues to be good. Expect a gap in production in a few weeks.

So we are experiencing a shortage of regular flat leaf arugula. This is due to the tender leaf acreage being 2 weeks ahead of harvesting schedules. Although there seems to be good supplies of wild arugula to substitute. Spring mix and baby spinach seem to be in good supplies as well even being so far ahead of harvesting schedules. Although once the colder temperature hit the Yuma growing region we will see a definite shift in supplies.

The domestic melons are very limited and finishing but the fruit we do have is in the 9/12/15 size range and the market is up.

Guatemalan fruit is large due to their early pick and the market is up. Most suppliers have jumbo 6/9's and regular 9/12's, smaller fruit is limited. They have had cool weather so expect more smaller fruit at the end of next week/beginning of the following week.

Transitions:
Honduran fruit will begin in a couple weeks.

Offshore fruit continues steady in the 5/6/8 size range but they have cool weather in Guatemala so we expect more small fruit in the next 10 days to 2 weeks.

Mexican fruit is steady to lower but it is cleaning up, they expect to finsh at the end of this week or beginning of next.

Transitions:
Honduran fruit will start in a couple weeks.

Markets are steady on all colors, sizes and packs. Quality is great. The biggest issues is transportation or lack of. Stay ahead on inventories and place your orders well in advance. Truck are demanding a premium $$$ so don't be sticker shocked. I don't see any light at the end of the tunnel. Look for the markets to possibly strengthen as we get into the middle of January which is all dependent on when Mexico starts shipping to the U.S..

Alerts:
Transportation very limited and demanding a premium so don't be sticker shocked

Washington – Bartlett pears are steady on all sizes and are still peaking on US#1 80/90/100s. Supplies of small Bartletts and the fancy grade remain short. D'anjous are steady on all sizes and are still peaking on US#1 80/90s. Small fruit and all sizes of the fancy grade remain very short. Bosc are steady on all sizes and are still peaking on US#1 80/90s Bosc are also short on 100s and smaller as well as all sizes in the fancy grade. Red Bartletts/Red Sensations remain steady on all sizes and peaking on 45/50 half cartons. The quality for all has been good.

New York – they are still packing a few Bosc bins but expect to finish shipping within the week.

Alerts:
Supplies of small Bartletts, D'anjou's, and Bosc remain very short.

Peak Seasons:
Washington is still in the peak of it's red pear, Bartlett, D'anjou, and Bosc seasons.

We continue to see good supplies from the tropics. Expect good supplies through December. Supplies will lighten the first 2 weeks of January, which is planned to allow farm workers the time off during the Christmas holiday. Retail demand is beginning to pick up for the holiday and market is beginning to firm.

Markets are steady across the board on all sizes of Carton. Retail bags adds for Christmas have started which has this market firming slightly. Quality is very nice. Transportation is the biggest issue and is very limited. Stay ahead on inventories. Christmas and New Years holidays fall on Monday, so look for shippers to either run a half day or take the Friday off. The processors and fryers are buying up storages currently to fill their inventories which has growers bullish. Stat tuned, as processors and fryers will go away and who knows when they will be back.

Alerts:
Transportation is very limited no only truck but rail cars are also limited.

Western Washington – reds, whites, and golds are steady with good availability but plan ahead as we get closer to the holidays. All are peaking on A-size with good quality.

Eastern Washington– red and gold potatoes are steady and both are peaking on A size. The quality is good.

Bakersfield, California – reds, whites, and golds are all steady. The availability is good but plan ahead as the holidays get closer. The quality is good.

Idaho – red and gold potatoes are steady on all sizes. The availability is good this week but plan ahead as we get closer to holidays. Both reds and golds are peaking on A size and have had good quality.

Wisconsin – reds and golds are both steady and remain heavy to A size. The quality has been good.

North Dakota – red and gold potatoes are steady with good availability especially in the size A. The quality has been good.

Peak Seasons:
Western Washington and Bakersfield, California continue in the peak of their white, red, and gold potato seasons.

Idaho, eastern Washington, North Dakota, and Wisconsin continue in the peak of their gold and red potato seasons.

Squash production has slowed to a crawl in the east with temperatures dipping into the high 30's in many growing regions in south Florida. Lack of production has sent markets higher, almost doubling over this past weekend. The forecast is for cool weather to continue through the week and warming next week, so expect supplies to remain tight through the weekend and early next week. Quality has been good on the east coast and in Homestead, there have been a few issues on the central west coast in fields the went through heavy rains in mid-November.

Alerts:
very tight supplies

Peak Seasons:
Squash is not in peak season.

The first of the Chilean stone fruit will soon be available. We have yellow peaches and yellow nectarines arriving this week. Sizing profiles are primarily 52/56 on the tray packs and 60/68 to 72/78 on the volume fills. We currently have apricots available on the West Coast in a range of sizes (64-78's). Quality is generally good on light supplies.

Transitions:
Chilean peaches and nectarines arriving in LA this week.

There is a significant shortage of tomatoes across North America with very little fruit harvesting from Florida where growing regions are transitioning. Recent near freezing temperatures have swept into the state over the weekend complicating the transition further. The supply consensus continues to evolve with the best expectation for market relief to now occur after the New Year. All tomato categories continued to strengthen this week as Mexico markets continue to push FOBs higher as well. Florida rounds are trending smaller in size making smaller fruit the most economical option, however the entire category has strengthen by as much as $5 from last week. Naturally as rounds become increasingly unavailable, the Roma tomato has strengthen by equal margin from last week as well. Cherry tomatoes remain steady but may go higher as buyers look for alternatives to grape tomatoes that are up nearly $20 more than this time last week. With more cool weather in the forecast slowing down the growth cycle of plants awaiting harvests, we can expect a similar market place with upward pressure next week as Mexico now battles supply concerns from a freeze that occurred over the weekend.

Alerts:
ALERT: There is a shortage of Tomatoes across North America with expectation for relief to occur after the new year

Transitions:
Palmetto and Ruskin growing regions in Florida are transitioning further south to Immokalee where the start of the season has been delayed 2-3 weeks as a result of Hurricane Irma that destroyed plantings early in the growing phase of Production. Harvests are forecasted for the week of December 18th but significant reprieve in the market will not be realized until after Christmas as product comes out of gas rooms and is realized in the pipeline. It is likely that recent cold weather patterns will delay supply even later until after the New Year.

While our television stations over the weekend shared footage of Snowfall in Texas, snow storms also blew through eastern growing regions of Mexico damaging production where yields have already been low. Tomatoes out of San Luis Potosi and Torreon were severely damaged from snow shifting buyers attention to Baja for imports where the focus of buying will remain until Culiacan begins winter crops in January. Demand remains very good pushing markets higher across the board. Vine ripe tomatoes have increased again this week on crops already failing to produce any real volume. Similarly, Roma tomatoes have increased a couple of dollars following vine ripes upward that have increased as much as $5 -$10 selling out daily as buyers look to procure whatever is available. Grape tomatoes are again going higher this week as Baja edges toward the end of their season and Florida waits to begin new regions all while demand continues to increase. Western supply should get a boost when Culiacan gets going near the new year when Florida also expects to complete transition.

Alerts:
There is a shortage of Tomatoes across North America with expectation for relief to occur after the new year