The Source - December 14, 2016

Washington - red delicious are steady to lower on the larger sizes with good availability, some suppliers will flex for volume. 125 and smaller reds are steady to lower as well with some shippers looking to move non-qualified CA fruit. Most red shippers are peaking on extra-fancy 88s and larger. Golden delicious are peaking on 72/80/88s and are steady but strong due to lighter total volume in Washington. Small Goldens remain very short with very few if any 125s and smaller. The Golden volume in Washington is down from last year. Granny-smith are mostly steady and are still peaking on 72/80/88's. 100 size and smaller Grannys are steady to higher with very light availability. There are very few if any Granny-smith 125's and smaller. The Granny-smith volume is also down from last year. The Gala market is steady to lower on the larger fruit with good availability and its steady but firm on the smaller fruit with lighter availability. Galas are still peaking on 80/88/100/72s. Honeycrisp are steady but the demand still exceeds the supplies on all sizes. Honeycrisp are peaking on 80/88/100s. Fuji's are steady on the small fruit with only light supplies. Fuji 88 and larger supplies are good with better availability in all grades and some price-flex. The quality for red delicious, golden delicious, granny-smith, Galas, Fujis, and Honey Crisp has been good. Braeburns, Jonagolds, Red Romes, Cameos, and the other varietals are available but only limited numbers.
Idaho---red delicious, Granny-smith, Galas, Fuji's, Red Romes, Pink lady's, and Braeburns are all fairly steady. Like Washington they have good numbers of larger red delicious. The volume for all others is light with a peak on 64-100s for most.
Michigan--Macintosh, Golden delicious, Jonamacs, Jonathans, Empires, red Romes, and Fujis are all fairly steady. Galas and red delicious are steady on the larger sizes and up slightly on the smaller sizes. Galas, Red Romes, and Jonathans are all still heavier to the smaller sizes while the Golden delicious, Red delicious, Fujis, and Macintosh are all heavier to medium size fruit. Cortland supplies are light and some shippers have finished for the season. The quality has been good.
New York---Red delicious, Galas, Fujis, and Red Romes are all mostly steady. The sizing has been medium to small with a larger percentage of smaller fruit than other areas. The sizing is going to change on red delicious though as more shippers get into C.A. fruit and it is larger, so expect the 125/138's to tighten up. McIntosh are stronger due to lighter volume . Last springs hail knocked out a lot of volume so expect a stronger market with only light volume coming from C.A. The Empire market is also strengthening due to strong export demand. It hasn't hit yet because to export 90 days of C.A. are required but we are reaching that threshold so expect lighter availability. The quality has been generally fair with more US#1 grade fruit.

Alerts:
100 size and smaller Golden delicious and Granny-smith are extremely limited in Washington. We may have to sub sizes to cover volume of 100s and smaller in both varieties.
Expect a stronger market on red delicious from New York due to larger fruit in C.A. McIntosh and Empire availability from New York will be light going forward.

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

Weather remains unchanged in the Mexican growing regions. Volume has declined by 75% due to field transition. Market it up across the board on all sizes, Obregon/Ensenada/fall season from Caborca are winding down as they transition into San Luis.

Weather is good in both the South/North of Peru. Volume is fair and the market is up. Market has jumped because of freight rates increasing due to the holiday demand on cargo space.

Alerts:
The amount of freight space will be extremely limited for the next 2 1/2 weeks due to the holiday rush. The market will continue to rise daily due to increased freight rates.

Transitions:
San Luis is delayed

Shipments from Mexico this week are steady, with very good demand. Mexico has raised their field price again. 48ct demand is the greatest and seeing upward pressure on the market price of 48s and 40s. Looks for this to continue as shipments over the next 2 week are expected to drop of some during the holidays and tighten supplies some.

Alerts:
Look for lighter supplies and firming markets the next 2 holiday weeks.

Green bell pepper is heavy supply peaking on mostly Large to Extra Large sizes. Very good quality color and sizing. Harvest is in both Southern California ( Coachella Valley) and Northern Mexico (crossing in Nogales) the central coast of Mexico has also started harvesting which will increase supply. The weak market should expect shippers to stop harvesting in Coachella valley.

Red and yellow bell pepper are also coming from Southern California (Coachella Valley) but are finishing now. West Mexico has started earlier than normal so supplies are increasing gradually. Quality is mostly good with both blocky and elongated varieties being packed. Supplies on yellow pepper has improved modestly.

Blackberry supplies are very good with increasing volume out of Central Mexico. Demand is fairly light. Production looks to increase over the next several weeks and quality should remain good. There have been a few reports of red cell and overripe.

Blueberries are plentiful. Opportunities available with increased volumes coming from Chile for the next several weeks and promotable pricing. Central Mexico production is steady and there's also still production in Peru. With large volumes available, blueberries are being packed into larger packaging with more availability in 18oz, pints and 6oz clamshells. Quality is good.

Supply is steady and demand is fairly light. Quality is good. Production should remain fairly steady over the next several weeks.

Demand is fairly light as winter weather slows usage in much of the US along with typical seasonal slow down in this period. Supplies are improving as Florida production continues to increase week over week, Central Mexican production is still steady and the Oxnard, CA new winter crop is beginning to come on slowly. Quality is good in all areas. The new crop Oxnard berries are large, 14-16 count berries with near full color, only slight white shoulders. Florida berries are smaller, 20-24 count with some white shoulders and a more elongated "torpedo" shape. Mexican berries are still smaller, 22-26 count with some reports of overripe and bruising. There are a few growers still producing in Santa Maria, CA. Many of them are growing under hoop houses which has extended the growing season for the current crop. These berries have firmed up, mostly full color with a few reports of bruising. Sizing is in the low to mid twenties.

Alerts:
A strong cold front is approaching California and is forecasted to produce rainfall in the range of 1.00-2.00" across the coastal growing regions. The storm will hit the North Central coast early Thursday morning then move south into Central and Southern California bringing similar precipitation to those areas.

Florida Strawberries - note the elongated "torpedo" shape

Oxnard New Crop strawberries - note the size of the berry (quarter in picture)

The broccoli market is trending higher following the cauliflower market pattern. Supplies have been slowly decreasing as we approach the end of the week. The market will trend higher into next week. Supplies look to be limited going into next week. Quality still has been really good with minimal arrival issues such as yellowing or dehydration. Long term outlook on better supplies will be in 3 to 4 weeks.

Alerts:
Broccoli supplies are beginning to decrease as we approach this week and will trend the same into next week.

Even with the holiday pull in full swing, you would think that the market would be reacting. But it is quite the opposite. The market is steady and supplies have been abundant as well. Quality out of Mexico has been hit and miss with some black spotting to decay. While sprouts out of California have been excellent with dark green color and a full range of sizing.

Carrot supplies remain good and look continue so, with jumbo, cello and value added product.

The cauliflower situation is really extreme. Limited acreage has been a result of colder temperatures and insect problems while in the growth stages. Quality is fair at best as a result, with yellow to cream color, worm damage, to black bruising. This will likely be the case for the next 2 to 3 weeks. Better supplies are about 4 weeks out. Pro Rates have been happening on the commodity front as well as the value added packs too.

Alerts:
Extremely limited supplies due to previous colder temperatures and worm damage.

The celery market is strengthening as demand increases for the upcoming holidays. This spike in demand is coupled with a shift in sizing to the smaller packs. The shift in pack out size is helping to further strengthen the market for the larger 24's and 30's. Additionally, this market promises to remain strong as short term weather forecasts for the Oxnard region show a substantial rain event for this weekend. Some suppliers are already talking about laying out for a 3 day weekend. Holiday demand, smaller pack out sizes and a harvest disruption due to weather promise to keep the celery market strong for the next several weeks.

Alerts:
Celery harvest in Oxnard facing a disruption due to rain.

Cherry supplies continue to be steady on both east and west coasts. Market prices on good quality fruit has been consistent. However, there has been more reports of pitting, discoloration and soft fruit. This has lead to some aggressive prices being offered on lesser quality product. With the arrival of vessels and container fruit becoming available, we do expect a gradual decline in market price, but close inspection of quality is recommended prior to loading.

Pablano - Excellent size and Quality and supply wit very heavy harvest.

Tomatillo- good supply and quality on fresh crop, both peeled and husked. Sizing is good. Color and condition are good.

Jalapeno- good quality on new crop pepper, Excellent Size color and condition with huge supplies.

Anaheim- good quality and condition and size are expected to continue as supply improves.

The have been some arrival issues with quality as of late. Even with these types of issues the market remains steady. Supplies have kept up with demand. But the issues that we have been seeing are black spotting, yellow to brown leaves, and some decay. we should see better quality with shipments starting next week.

Alerts:
We have had quality issues with black spotting, yellow to brown leaves, and some decay.

Over all supplies remain good. The desert crop is 60% harvested and with size growth, larger sizes predominate peaking 115s/95s/140s making 165s and 200s short. The central valley crop is still lightly being harvested and peaking on 140s/115s/165s and short on 200s and smaller.

The lime market is higher on all sizes. The rising market is due to lower volume caused by the new crop harvest being in the larger size profile. The other factor causing elevated prices is the rain that happened towards the end of last week coupled with great demand through all channels including many retail ads. New crop limes are supplying the market and quality is very nice. No more adverse weather is being reported for the near future so we should experience normal market fluctuations as we come in and out of holiday demand and export shipments to other countries.

Alerts:
The market is higher on all sizes due to increased demand through all channels including retail ads and last weeks rainfall. The higher prices look to continue through the first week of January.

Navel oranges are in good supply and flavor. Cooler night time temps are bring on better color and reduced gas times on the fruit. Sizes are peaking on 88s/113s/72s with heavy percent of fancy grade. Cara Cara navels as well as Blood oranges have started in a light way and availability will increase weekly going forward.

Good supply on cucumber coming out Mexico, Excellent color, quality and condition on all grades sizes and pack styles. Supply will continue to be good as we move into the month.Northern Mexico (Sonora) will continue and (Sinaloa) have start next week. Euro cucumber is also available in very good supply, both #1and #2 both single layer and bushel boxes.

Excellent Quality and size are currently being shipped from Nogales, mostly larger sizes are available in large volume.

Domestic green grapes are extremely limited. Most shippers are done for the season. The little inventory left is being used to fill orders, but quality has been a big concern. Soft wet berries, decay and mold are being reported.

Peruvian green grapes have been available to load on the east coast with light but consistent volumes for the last 2 weeks. West coast availability of Peruvian fruit is improving as more product is being transferred over to load out of Los Angeles. Quality is being reported as good. Crunchy grapes and good size, but some amber coloring has been present. Market prices continue to be high and very firm. Supplies are expected to improve as more vessels arrive.

The first large volume arrivals of Chilean fruit have been delayed due to recent rains in Chile. Light volume is expected to arrive on the east coast later this week, but availability will be limited. Market prices are expected to be in line with the current Peruvian supply. The first bulk vessel of Chilean green grapes is expected to land on the west coast the second week of January. We will continue to utilize Peruvian fruit to fill the gap.

Transitions:
Light volume of Chilean green grapes will begin to arrive on the east coast late this week. West coast arrivals are being delayed due to recent rains in Chile.

California red grapes continue to be in good supply. All sizes are currently available, but M/L grapes are becoming a little more limited. Sizes Large and Extra Large are in better supplies. There has been increasing reports of soft fruit and mold, but shippers continue to repacking fruit in an effort to eliminate any weak product. Market prices jumped up slightly this week, but with the amount of remaining domestic inventory, I would expect shippers to offer opportunity buys to help move through some volume over the next week.

Peruvian red grapes have been available to load on the east coast for a couple weeks with limited availability on the west coast. This week supplies look to be a little more limited and market prices are holding firm. Overall, quality is being reported as strong, but light color has been mentioned. Supplies are expected to improve as more vessels arrive on the east coast. We will see more product become available on the west coast to help fill demand for higher quality fruit until Chilean grapes arrive.

Chilean fruit will be trickling in slowly. The first arrival is expected on the east coast later this week. This fruit will be allocated to shippers and be available to load by the weekend or early next week. Volumes will be light and prices will be in line with the current Peruvian market. Due to recent rains in Chile, large volume vessels have been delayed and arrival dates on the west coast are being pushed back. Although small quantities of container fruit may land intermittently, the volume will be light and difficult to track. The first large arrival of Chilean grapes (Bulk Vessel) is expected to land on the west coast the second week of January.

Transitions:
Chilean red grapes are expected to arrive in limited amounts on the east coast later this week. Recent rains in Chile are delaying large arrivals of fruit on the west coast.

The supply chain through Mexico remain abundant and steady. Next week we will see a severe decrease in labor causing a shortage in supplies. Look for the market to take off next week. Overall quality has been really nice with little to no arrival issues.

Alerts:
Next week we will see a decrease in labor which will result in the market trending much higher.

The kale market will be steady this week and prices can vary barring the loading area. Supplies will be steady moving into next week. Quality has been excellent with dark green color, full cartons, with minimal dehydration.

The iceberg lettuce market remains steady with good supplies and only minimal demand. Recent freezing events around the country seem to have stifled demand somewhat. This combined with the Imperial Valley starting to harvest has moderated any spike in the market that we might have seen due to supply interruptions in the Yuma region. Short term we are facing much higher than normal temperatures in the desert (as high as 80 degrees) but a much colder outlook for the following week should reduce any effects this might have. Quality continues to be suspect as we are still seeing some internal burn, fringe burn and seeder in most lots.

The leaf and romaine markets are showing some signs of strengthening as yields out of the Yuma region continue to be poor. This improvement in the market should be limited however as the Imperial Valley and Coachella Valley have begun harvesting. Quality out of the newer regions is reported to be generally good. The Yuma region continues to suffer with burn (internal and fringe), twist and seeder problems affecting yields. Weather could become a factor as we are facing much colder temperatures forecast for the desert regions next week. Limited harvest due to slowed growth or possibly ice would firm the markets up rapidly seven to ten days out.

Transitions:
Imperial and Coachella Valley's now harvesting mix leaf.

Demand is good on all sizes. Supplies on 9ct are increasing due to offshore arrivals and the price of them is declining. 12's continue to get increased demand due to substitution for 9ct. The 15ct are not available anywhere and are extremely short in supply with a grim availability outlook over the next few weeks. Offshore supplies in Florida and are in full swing. Arrivals in California are steadily increasing in volume. The market is steady to lower on all sizes due mainly to increased supplies. The quality is excellent on the offshore melons.

Alerts:
15's are virtually unavailable and look to be this way for the next few weeks. Expect orders of 15's to be subbed into 12's.

Supplies of honeydews are steady overall and we can continue to expect adequate supplies and good quality to be the pattern for a while longer with a moderate range of up and down movement. Mexico is exporting very nice looking honeydews up to us and the supplies are getting smaller which is causing their prices to go higher. Mexican dews are approaching the same price as the offshore dews. Offshore dews have excellent quality and are peaking on large sizes such as 5's and 6's with very few 8's coming in. Offshore dew volume is increasing which is covering the lower volume of Mexican dews. The market is currently steady to lower on offshore dews.

Northern Mexico is winding down on supplies which will raise the market some, we expect a slight gap as the production region moves south. Quality is just fair as the old district is finishing and waiting for new districts to start. Personal seedless is available in good supply.

Idaho/Oregon - Demand on Jumbo yellow is good with a slightly firmer market. This mainly due to the Christmas and New Years holiday demand. All other sizes and colors are steady. Supplies are still exceeding demand on Super Colossal and Colossal yellow which are being discounted and traded at Jumbo pricing or below at times. Quality is very nice on all colors. Cold and snowy weather around the Idaho/Oregon shipping points have transportation moving slowly and weighing heaver due to the ice and snow on the trailers. This is a good time to stay ahead of your inventories as transportation will tight till the second week of January.
Washington - Market and demand is steady on all colors and sizes. Quality is good.

Peak Seasons:
Onions will be in peak season into the end of Feburary

Washington - C.A. Bartlett pears are steady and continue to peak on US#1 70/80/90s. Light packing for December will limit the availability for all sizes but especially the smaller ones. Bartlett 110s and smaller remain short. D'anjou pears are also steady and they are peaking on US#1 80/90/100s. D'anjou 110s and smaller are also limited. Light packing in December will hinder the D'anjou availability for all sizes. Bosc pears are steady and continue to peak on US#1 80/90/100s. There is generally better volume available for the smaller Bosc but light packing in December will limit that. Red pears are steady and still peaking on US#1 45/50 half cartons but the availability is light. The quality for all varieties pears has been good.

Alerts:
Small D'anjou and Bartlett pears are limited and will remain so since both varieties are peaking on 80/90/100s and the packing for December is lighter than normal.

Peak Seasons:
Da'njous, Bosc, Bartletts, and Red pears are all in the peak of their season.

Supplies are goods and so is holiday demand and shippers will be cleaning up weekly through the end of the year. Supplies from the tropics will drop off for the first few weeks of January due to the lack of labor to harvest during the holidays.

Idaho- Market is steady with moderate demand on most sizes and packs. Norkotah is still the main variety being packed out of storage currently with a few more sheds starting to run a few Burbank's. Burbanks are getting a slight premium. Quality is good on both varieties. The polar vortex is forecasted to drop down from Canada this weekend and bring in much cooler temperatures (single digits) into Washington, Oregon, Idaho and Utah. Luckily it is to move east as we get into the front of next week. This is something for us to watch as if the temperatures stay in the single digits for extended period of time we could see a stronger potato market due to limited ability of our potato suppliers to haul bulk potatoes thereby limiting production run times. Transportation is running slow and are not able to haul as much due to the snow and ice building up on their trailers. This is a good time to stay ahead of your inventories as transportation will be limited into the second week of January. The Christmas and New Year holidays are just around the corner which will have the potato shippers only packing 4 days.
Washington, Colorado and Wisconsin - Markets and demand are steady on all cartons out of these shipping areas. Retail demand is good on the non-A bags for the Christmas and New Year holidays coming up. Quality is good. Transportation is limited.

Peak Seasons:
Potatoes are in peak season

Bakersfield California - the red, white, and gold potato markets are steady on all sizes. All colors continue to peak on A size. Remember to plan ahead as the reds and golds are being transferred down from Washington and the holidays will tighten trucks up. The quality has been good.
Idaho - red and gold potatoes are steady and they are peaking evenly between A & B size. The availability is better and the quality is good.
Western Washington - reds and golds are both steady and continue to peak on A size while the whites remain limited. The quality has been good.
North Dakota - red and gold potatoes are steady on all sizes and continue to peak on A size. The demand is still off a little. The quality has been good.
Wisconsin - reds and golds are steady on all sizes and both are still peaking on A-size. The quality has ranged from fair to good depending on the lot.
Canada - reds, golds, and whites are steady on all sizes. Sacks are still more available than cartons. The quality has been good.

Transitions:
Florida will start packing new-crop potatoes in early February.

Peak Seasons:
Western Washington, Idaho, North Dakota, and Wisconsin are all in the peak of their seasons.

Heavy supply on both Italian and S/N Yellow squash continue to pour in from Mexico both from Northern and central Mexico. Quality is very good on all sizes, grades and pack styles. Hard Squash is also being harvested in very good supplies ,Mostly larger sizes and number one grade.

Chilean stone is available in limited amounts, but supplies are improving as more vessels arrive. Currently, light volumes of apricots, peaches and nectarines are available to load on the west and east coasts. However, sizes are limited and market prices are high. Over the next 2 weeks, we expect supplies to improve and more option to become available in variety and size. As volumes increase, market prices will slowly drop. Quality updates will be reported as more fruit arrives.

Transitions:
Chilean stone fruit is getting started in limited volumes. Supplies will improve as more vessels arrive.

The eastern tomato market is steady this week with ideal growing conditions allowing supplies to flourish. Weather has allowed Immokalee to bring lots of excellent quality fruit to market injecting larger sizes into the supply line softening prices this week. Roma tomato volumes are increasing slightly each week as growing areas are moving further south. There is steady supply of cherry tomatoes with grape varieties even more available. We can expect markets to remain steady going into next week.

Volumes continue to be light out of Mexico will Baja and eastern mainland near the end of the season. Beginning next week we will begin to see harvest from new regions in Mainland Mexico cross in Nogales. Florida continues to be the national producer of gas green rounds while Mexico imports vine ripened rounds. Vine ripes and roma varieties are both sizing down and supply is tightening under fair demand showing little to no change in the market this week. Also relatively stable this week are grape tomatoes remaining in good supply with deals to be had for older, less desirable fruit. Cherry tomatoes remain to be mainly an East coast grown item, however light numbers are showing up from baja at the border and remain a regional item. By the end of next week, overall volumes are expected to start increasing as winter crops transition to mainland Mexico bringing new supply to the market.