The Source - December 20, 2017

Washington – Red Delicious continue to peak on medium sized extra fancy fruit with good availability. Golden Delicious are peaking on premium 100/113s, and the availability is good. Granny Smith are peaking on 113/125s, and the market is steady. Large Granny Smith are still short. Galas are still peaking on 100/113s. Fuji's are peaking on 100/113s, and the availability is good esp. on smaller fruit. Honeycrisp are still peaking on 80/88/100 with good availability. The other varietals have also been steady. Demand has been light. The quality has been good for all varieties.

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 peaking on 88/100/113's. The demand has been light. The quality has been good.

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

Pennsylvania – Fujis, Red Delicious, Golden Delicious, Granny Smith, Cameos, and Pink Ladies are all steady. Red Delicious and Pink Ladies are peaking on 88/100s, while the rest are peaking on 100/113s. The demand has been light. The quality is good in all varieties.

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. Most of their fruit is large, so they haven't been much of a factor in foodservice, but there have been some small McIntosh and red delicious lately. All markets have been steady, and the demand has been light. There have been some small McIntosh and red delicious lately. The quality has been good.

Alerts:
Washington is still short on large Granny Smith apples.

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

Volumes are continuing to decrease from Central Mexico (Ciudad Obregon) as the season from this region wraps up. There will be a gap until Caborca, Mexico starts to cut fern the first week in January, and production starts the second week. Northern Peru (Trujillo), and Southern Peru (ICA) is continuing to ship, but volume has decreased due to warm temperatures in the region which is creating a lower yield in the field due to spreading, and seeding. Market out west has continued to rise with very little volume from Mexico. The market in the east is starting to react with less airspace available in Peru, and fewer sea arrivals this week.

Transitions:
Caborca Mexico will start to cut fern the first week in January, and we should see production during the second, and third week.

The weekly limited harvest volumes by many of Mexico's producing municipalities continues. The reduced volume coming into the US is keeping supplies short and markets firm. The industry still expects this limited harvest to continue through the month, with hopes that come January, these municipalities will resume a normal and steady rate of harvest. Markets look to have stabilized for right now.

Production of green bell pepper is picking up, the larger growers in the eastern part of the state are starting to harvest larger volume. The pepper fields that were planted after hurricane Irma are ready for harvest and yields and size are much better. The market is reflecting the increased production with prices the lowest they've been in well over a month. We expect good production through the holidays.

Alerts:
Better supplies.

Blackberry supplies have improved slightly this week. Production has been consistent in Central Mexico, and quality is being reported as good. Demand has been strong. Market prices have been fairly steady with some lower prices being offered in Texas and east coast. Since all of this product is being transferred to California and Florida, delayed truck arrivals have been a challenge. However, with improved supplies, we are seeing better daily availability and light inventory. We expect availability to remain consistent but light for the next 2-3 weeks.

No major supply or market changes on blueberries this week. Chilean arrivals are gradually improving, but we are still not seeing a big volume increase. Demand and quality have been very strong. Market prices have been steady. 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. Delayed arrivals and transfer trucks are our biggest challenge on order fulfillment. As we start quarter one, we expect supplies and availability to improve.

Raspberries continue to be light this week. Demand has been strong. We do not expect any gaps in supply, but availability is limited. The majority of the available fruit is being harvested in Mexico and transferred to California or Florida, so delayed arrivals are the biggest obstacles in order fulfillment. Quality has been reported as good. Moving forward, we expect supplies to remain limited and market prices to remain high and firm for the next 2-3 weeks.

Alerts:
Supplies remain limited and market prices are higher.

Not much change this week on strawberries. Supplies have been steady but light in all areas. California continues to have consistent production in both Santa Maria and Oxnard. Oxnard is increasing harvest as shippers move past the wind damaged fruit and into new winter harvest, but volume is still light. Central Mexico is steady with good quality. This fruit is being sold out of Texas and making it's way to other locations via transfer trucks. Florida production was slowed last week due to cold weather, but harvest is improving this week as the weather warms up. Markets have been holding firm as supplies remain light. Quality is improving in Oxnard (pictures below). Mexico has been good, and Florida is solid, but the sizing is still small.

The broccoli market is trending much higher. We are entering an acreage gap which has decreased supplies dramatically. This has caused most suppliers to raise prices daily. Although supplies are decreasing the quality of broccoli hasn't suffered. We are seeing dark green color, minimal yellowing, and dehydration. We are having difficulties with iceless broccoli. As supplies are taking much longer to arrive to the coolers, it puts a strain on the cooling process. So some suppliers are forced to ship iced broccoli to ensure timely loading times.

Alerts:
We are currently experiencing a supply gap which will last for the next two weeks. The market is trending much higher.

The brussels sprout market is steady with good supplies from all suppliers. We have seen a run of all sizes as well from jumbo to small. Quality has been excellent with vibrant green color and consistent size profile.

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 has reached its peak. Demand has fallen off as a result. The market is still holding firm at much higher costs, but there is a feel of it trending lower. Supplies are still limited with all suppliers. Overall quality is still really nice with whiteheads, minimal bruising, and weights in the 24 to 29-pound level.

Alerts:
The cauliflower market is still extremely high as we are experiencing a small supply gap, but the market has reached its peak.

The celery market remains about steady with few if any, quality problems being reported. Demand is adequate to maintain the market with current supplies. We have seen some price fluctuation with some shippers due to sizing issues. This has not affected the overall market which, in our opinion, is holding on the high end due to retail ads. Barring any inclement weather, we expect this market to hold at current levels into the first week of January.

Chilean cherries, Bing and Rainier varieties, are available on both the east and west coasts. Pricing is holding about steady as supplies are moderate but adequate to meet current demand. Supplies are expected to improve as we move into the new year. Chilean cherries should be readily available for the month of January. Quality is generally good with no arrival issues being reported on the early fruit.

The cilantro market has remained steady with most suppliers. Although prices do vary depending on the growing region. Quality remains good with minimal reports of yellowing or brown leaves. Vibrant green color, and minimal dehydration.

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 as they look at an early end of their season. The Central Valley crop has just begun to harvest and pack limited volume, mostly fancy grade. Ventura crop will not start until the end of February. Demand is exceeding supplies on 165s and smaller fruit, and will so into January/February.

Alerts:
Demand exceeding supplies of 165s and smaller fruit.

Lime supplies are steady. Demand has been consistent, and market prices have increased slightly this week. Quality overall has been good with consistent sizing and color. As we look toward the first quarter, we can expect supplies to start to taper off slowly, and market prices rise, depending on the weather.

We are seeing peak sizing of 72s/56s/88s the Navel crop and the percentage of 113s/138s continue to fall off in pack outs. Pack-outs remain clean with good color resulting in grade ratio of 80% to 85% of Fancy fruit, leaving very little choice fruit for the demand for of the choice grade. The market remains active on 113s/138 both grades. We are looking at peaking on the larger sizes 72s/56 for the balance of the navel season. Small fruit will be in short supply all season long.

Alerts:
Demand exceeds supplies on 88s/113s/138s.

Honduras cucumbers are dominating supplies now and will be going forward. There are still some supplies of Florida cucumbers they should finish this week. Quality is still good on most Florida cucumbers and very good on the imports. Supplies from Honduras should increase after the holidays when all growers will be in production. The cooler weather last week slowed production in Florida and will bring the season to an end about a week sooner than expected. The market is reacting in the east to the decreased supply with higher pricing.

Alerts:
Supplies are light.

Transitions:
cucumbers are transitioning to Honduras

Eastern eggplant supplies are light, but the market is lower due to decreased demand and increased supplies from Mexico. Growers on the eastern and very southern tip of Florida are starting new field with much better quality, but yields are light. Production will pick up next week; in the meantime, some shippers are still packing product from older fields and quality is only fair.

Alerts:
Light supplies in the East.

Domestic and imported green grapes are readily available, and quality is generally reported as good on both. The domestic market is steady and with good quality this late in the season; is helping to moderate pricing on the imports from Peru and Chile. It now appears that we should have good supplies of quality domestic green grapes well into January. This fact is helping to pull the import prices down somewhat lower than shippers first anticipated. They are still, however, selling import greens at a premium to the domestic fruit.

Transitions:
Chilean green seedless grapes are beginning to arrive in the U.S.

The domestic red grape season is winding down. Quality on the late season reds has been suspect with many lots of off-color and marginal condition. This has reinforced the split in pricing between the imported red grapes and the domestics. It appears now that despite adequate supplies on the domestic side of things we will continue to see much higher prices on the imported fruit. It appears to us that this market will maintain its' strength well into the month of January.

Transitions:
Chilean red seedless grapes are starting.

The green onion market is extremely active. We are experiencing the labor shortage that goes on during the holidays in Mexico. Supplies are limited on iced and iceless green onions causing the market to increase dramatically. Quality has not suffered with these limited supplies. We are seeing green tops, clean white tips, and minimal brown to yellow discoloration.

Alerts:
Extremely limited supplies due to the lack of labor for the holiday. This has caused the market to dramatically increase.

We continue to have ample supplies of kale from all growing regions. This has kept the market competitive. Quality is excellent with dark green color, full bunches, ad little dehydration or yellowing.

The iceberg lettuce market has settled back from its' recent run-up in price. Good weather, adequate supplies and moderate demand have combined to pull this market back to lower levels. Quality is generally good although most lots are showing lighter weights than we would like to see.

We are seeing all the red leaf, green leaf and romaine markets settle down. Quality is generally good on all with good supplies and only average demand. We believe these markets will remain steady well into next week.

We are currently experiencing good supplies of conventional spring mix, baby spinach, arugula, and the other components of spring mix. The market remains aggressive. The only trouble we have been having is with organic spinach. Growers are struggling with mildew and supplies are limited. The overall quality has been good with the exception of a few arrivals with some wetness and bruising of the leaves.

The offshore market is steady on all sizes in the east, and the west has been steady to slightly lower. The fruit remains large with 9s and Jumbo 9s with some 12s. We expect larger with the finish of Guatemala and the start of Honduras. There are vessels arriving mid-week this week so the availability will improve. The quality has been good.

Domestic fruit supplies are slightly lower than the imported but the quality is good, and the fruit is also large. Domestic supplies are light and will finish soon.

Transitions:
Honduras will start packing in January as Guatemala finishes.

The market remains steady on imported fruit in the west and in the east with mostly large fruit. Most fruit is peaking on 5s and jumbo 5s with some 6s, and there are a few 8s in Pompano. We expect the sizing to remain steady with the finish of Guatemala and into Honduras. The quality has been good.

There are light supplies of domestic fruit left at substantially cheaper prices, but it is cleaning up quickly. The quality has been good.

Transitions:
Honduras will start packing in January as Guatemala finishes.

Idaho/Oregon–they have been steady on all sizes and colors. The yellows are still peaking on jumbos and mediums while whites and reds are peaking on jumbos. The quality has been good.

Washington–they have been steady on all sizes of yellows and reds. The yellows are still peaking on jumbos and mediums while the reds are peaking on jumbos. The quality has been good for both

Alerts:
Transportation has been the hardest thing to find in the northwest.

Peak Seasons:
Washington and Idaho/Oregon are in the peak of their seasons.

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

New York – they are still packing a few Bosc bins left, but they will finish soon.

Alerts:
Bartlett supplies are short and we are expecting an early finish to the season so we could see the market jump in January. Small sizes are especially limited.

Peak Seasons:
Washington continues in the peak of its season for all variety's.

We continue to see good supplies from the tropics. Expect good supplies through December. Supplies will lighten the first two 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.

Idaho–the market remains steady on all sizes for both norkotahs and burbanks. The norks have a larger size profile while the burbanks are more average sized. Most packers switched from norkotahs to burbanks back in November to get the smaller size profile and more consumer bags. We will see most switch back, but because of the short week and light packing schedules, the larger count availability will remain light. The quality remains good for both.

Washington–their norkotahs are steady on all sizes and are peaking on 80's and larger. The quality has been good.

Colorado–their norkotah market is steady on all sizes, and they are heavier to 70/80/90s. The quality has been good.

Wisconsin–their norkotahs are also steady but have been peaking on smaller counts. The quality has been good.

Alerts:
The tightest thing in potato-land has been transportation. Stay ahead and load rail or piggy-back if possible.

Western Washington – reds and golds are steady with good availability. Both colors are peaking on A-size with good quality. Whites have finished for the season.

Eastern Washington – reds and golds are steady, and both are peaking on A size. The quality has been good.

Bakersfield, California – reds, whites, and golds are all steady. The whites are new-crop and are peaking on A-size. The reds and golds are also heavy to A-size. The quality has been good for all three colors.

Idaho – red and gold potatoes are steady on all sizes with good availability. 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. There have been some volume deals for A-size out there. The quality has been good.

Alerts:
Western Washington has finished with white potatoes.

Transitions:
Bakersfield, California has started packing new-crop white potatoes.

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

Bakersfield, California is in the peak of its red, gold, and white potato seasons.

Squash markets have remained high since a cold front moved through the southeast all the way to Homestead. Temperatures dipped into the 30's and squash production came to a halt. The forecast for this week is for much warmer weather with sunny skies. We expect the squash production to pick up late this week but not in time for Christmas business.

Alerts:
Tight supplies on squash.

Apricots, peaches and nectarines, the Chilean stone fruit season has begun. Albeit in a small way. We have arrivals on all of these items on both coasts. Supplies are light, but the early fruit is showing good quality upon arrival. Sizing on peaches and nectarines is running heavily to the 60/64 tray packs, and volume fills with larger fruit anticipated with every vessel. We should see peak supplies and sizing by the month of February.

There is a significant shortage of tomatoes across North America with very little fruit harvesting from Florida where growing regions are transitioning. Warm weather forecasted for the next several days will hopefully prevent any further delays from new fields breaking ground putting a fresh injection of fruit into the pipeline. For the time being, the overall consensus continues to evolve with the best expectation for market relief to occur after the New Year. Round tomatoes harvested from Immokalee this week are going into gas rooms and won’t be realized in the supply channel until after Christmas. The first picks are suspect of quality issue from rain and cool temperatures during the growing cycle. As long as Round tomato prices remain high, Romas will continue to be pushed upward as buyers look to supplement what cannot be sourced from the round category. In recent weeks much of eastern supply has been sourced from Mexico growing regions, however, with the Christmas holiday fast approaching, many trucks that were making delivery from San Diego will be staying west of the Rockies complicating procurement for the far east. The cherry and Grape tomato categories remain firm with no immediate expectation for relief finishing the year off on the high side.

Alerts:
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.

Mainland Mexico has been faced with growing challenges caused by freezing temperatures reducing the imports crossing Texas. 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. Baja far past their peak but continuing to ship helping the transition to Nogales who is getting started in a light way. With Christmas approaching, reduced picking schedules are in the forecast reducing what is available in the West with most trucks staying West of the Rockies. Demand is steady with 20lb vine ripes hovering below the $40 mark. Roma tomatoes are better this week as Nogales comes into some volume stabilizing price across AZ, TX, and CA shipping points. Grape and cherry tomatoes remain firm at this time. 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.

Transitions:
Baja is winding down with Nogales getting started in a light way. Winter Programs should be underway in Mainland Mexico crossing AZ by mid January