The Source - December 27, 2018

Golden Delicious, Honeycrisp and Granny Smith are in demand exceeds supply situation and continue to be the talk at the party. Markets are active. Look for this to be the story for the balance of the season. All other varieties are steady. Quality is very nice.

Peak Seasons:
Apples out of the Northwest continue to be in peak season

Cold weather remains in both Mexican growing regions (Caborca/Constitucion), volumes are being affected by this cold weather, and seasonality. Production should wrap up in Southern Baja in the next 7 days. Weather in the south of Peru (Ica), and the north of Peru (Trujillo) is still unchanged from last week. Due to the warmer weather in the south, some growers have started to close fields. The market is a little sluggish after the Christmas holiday, and demand is also down on both coast.

Weather this week in the growing region of Michoacán Mexico calls for temps in the 70s-80s with no rain. There will be no harvest on 12/31-1/1 but there is plenty if fruit in the pipeline. Currently peaking on 48s and followed by 60s. There will be plenty of fruit going into the Super Bowl in 2019. Reports of good quality as fruit is cutting good and eating great. California will be starting up in less than a month with light volume.

Bell pepper in still in tight supply. Production is still coming from south Florida on both the east and west coast. Harvest has been interrupted due to large storms moving through the state this past Thursday. The storms produced high winds and large rainfall amounts. Damage seems to be minimal but growers decided to stay out of fields until after Christmas. Up until now quality has been good with production trending to larger number one product and very little in the way of choice product keeping pricing bunched together.

Alerts:
Bell pepper supplies remain tight.

Transitions:
Bell Pepper is not in transition

Peak Seasons:
Bell pepper is not in peak season.

Green Bell Pepper- Green bell pepper production could begin to decrease as we make our way into the New Year. Lower than normal temperature being seen in the front end of the week and expected to continue in Sonora and Sinaloa. Green bell market is currently steady in the mid to upper teens on all #1 and choice pack but could increase as we make our way into January. Steady demand on both packs. 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. Market and demand continue very strong and should remain strong as we go into January. Cool weather and cloudy skies are affecting coloring and size on Red hot house bell pepper. Red bell pepper out of Jalisco should finish within 10 days. Some shippers expect production to increase the first week in January from Culiacan and La Cruz, Sinaloa. Red bell demand continues to exceed supply. Red bell supply from Mexico crossing through Nogales, AZ and McAllen, TX continues to be extremely limited. Mexico.

Yellow Bell Pepper- Yellow bell volume continues to be short as end the month of December. Cool weather and cloudy skies are affecting coloring and size on Yellow hot house bell pepper. Yellow bell production expected to increase with some growers in Sinaloa the first week of January. Demand for yellow bell pepper continues to exceed supply. The market remains strong. Yellow Hot House bells are also available to load in McAllen, TX where supplies are also limited.

Blackberries continue to be available in limited numbers as we see the reduced crossings of product across the border for the holidays affect their numbers. The market remains steady to slightly higher as we move into the weekend. As is the case with the raspberries, colder weather with reports of hail have been reported. We should see this affect the yields in the weeks to come.

Alerts:
cooler weather could limit availability in the coming weeks

Blueberries remain steady with a fairly wide range in costs due to the availability of product from multiple growing locations. Chilean and Mexican imports are the dominant suppliers. Mexico is crossing into the US via truck to the Yuma Az and McCallan Texas points of entry. Chilean fruit is being offloaded on ocean containers as well as some Argentinian and Peruvian product and distributed into Miami Fl, Philadelphia PA, and Los Angeles CA. Look for the market to ease off after this week with more numbers arriving at the ports in the next few days.

The raspberry market has reacted to the short term interruption of border crossings and the colder weather they are currently experiencing in Mexico. Look for pricing to be steady to slightly higher moving into the weekend with supplies very limited .

Alerts:
weather has reduced yields with rain and hail being reported in several growing regions

Cooler temperatures and drier weather forecasted into the weekend should help to improve overall quality on the California strawberries as a whole. Supplies remain light but with lighter demand moving into the weekend we are expecting that open market fruit should become more available for some spot buy opportunities. The market remains steady moving forward with a downward trend expected as production in Oxnard and Santa Maria slowly begins to increase and the strong holiday demand subsides. Mexico continues to cross fruit into the US with limited numbers due to labor shortages caused by the Holidays and cooler weather in the growing regions. Florida continues to be a struggle as far as production and weather are concerned. The growing areas continue to receive sporadic rains with another front expected Friday.

Alerts:
The availability for smaller numbers of open market fruit is better although general volume is still low overall

The broccoli market continues to adjust downward with all suppliers. Supplies have picked on broccoli in all areas as suppliers are catching up. Quality is fair with slight purpling, some mechanical damage, and occasional yellow cast. Look for supplies to continue to stay steady going into next week.

The Brussels Sprouts market has come off with more steady supplies coming out of Salinas, Santa Cruz, and Watsonville areas. 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 continues to adjust 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.

Celery supplies continue to be limited. Due to the holidays, demand has slowed, so the extent of the supply shortage is not as severe as it had been prior. However, the weather in Yuma continues to limit yields and in southern California, production continues to be limited and supplies are a challenge. All sizes are being affected.
Market prices have been high and remain steady. Quality has been reported as strong, but we have seen some occasional issues with insect damage and seeder. We expect production to improve and markets to gradually lower as we move past the holidays.

Import cherries are still readily available. We have several loading options on both the east and west coast. Quality is being reported as strong. Markets have been high and steady. Demand seems to be light. We have a variety of sizes available.

Jalapenos continue to be available to load in Nogales, from Mexico. Few jalapeno still being harvested in Sonora. Quality out of Sonora being reported as good. Few growers also harvesting jalapeno out of Sinaloa. Quality out Sinaloa being reported as good. Market on jalapeno is expected to remain high through the month of December. Price on #1 jalapeno is currently holding in the mid 30’s and expected to remain at that price through the remainder of the week. Jalapenos from Mexico also available to load in McAllen, Texas.

Pasilla-Moderate pasilla volume currently crossing through Nogales from Mexico. Better pasiila production expected as we move into January. Pasilla crossing through Nogales is being harvested in the Mexican states of Sonora and Sinaloa. Quality of peppers from Sonora being reported as fair to good as peppers from Sinaloa being reported as good. Market on pasilla is steady along with pricing.

Anaheim- Moderate Anaheim volume currently crossing through Nogales from Mexico. Better Anaheim production expected as we move into January. Anaheim crossing through Nogales is being harvested in the Mexican states of Sonora and Sinaloa. Quality of peppers from Sonora being reported as fair to good as peppers from Sinaloa being reported as good. Market on Anaheim is steady along with pricing.

Serrano – Very limited supplies of Serrano peppers are available to load in Nogales, from Mexico. Supplies expected to remain light into January. The demand and market is high along with pricing. Light supplies of Serrano expected to continue till the second week of January. Light supplies of Serrano also crossing into McAllen, Texas.

Tomatillo – Husk and Dehusked tomatillos are available to load in Nogales, from Mexico. Good supplies of both varieties expected to continue through the week. The tomatillo market is steady. Prices have started to trickle down into the mid to high 20’s. Quality on both varieties being reported as good. Both varieties of tomatillos also available to load in McAllen, TX.

The Cilantro market has come off some 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 continue to improve, some suppliers offering promotable volume. Currently harvesting out of all three districts with the majority coming out of District 3 (Desert crop). With the upcoming holidays, District 3 will be a challenge with the labor shortage, markets 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. All regions have a good run on sizes and expected to continue to improve as weather permits.

Lime supplies are lightening up, market prices are climbing as we head to the holidays. With cooler weather in the growing regions in Mexico and limited transportation availability as well during the holidays we’re seeing prices slowly climbing. Going into the New Year market prices on big sizes expecting to drop and small size pricing looking to climb. Current market prices ranges from $7 -$14 depending on the size.

California Navels is moving along markets are down with good supplies across the board, plenty of promotable volume and great quality. Moving forward, suppliers will slow harvest down in anticipation for the holiday week. The pack has been mostly fancy grade and limited choice. With bag business, the choice fruit supplies continue to be limited. Through the holiday, most suppliers continue to harvest and pack 4-5 days per week. 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 32/28/24 followed by size 36. Plenty of Pummelos available sizing and quality look great. Cara Caras & Blood oranges have started with supplies getting better by the week.

There are good supplies of cucumbers with the market steady or a little lower. Florida product is hanging on a little longer than expected with only fair quality. A few customers are still requesting domestic product, Honduran import product has much better quality and volume is picking up. Florida production should be winding up any time now and the storms that pushed through the region last week may have very well finished the last remaining production. Honduran will continue with good production through the end of the year.

Alerts:
Good supplies of cucumbers, local Florida product is only fair in quality.

Transitions:
Cucumber supply is transitioning to Honduran import product.

Peak Seasons:
Cucumbers are moving into the peak season for import product.

Good cucumber volume continues as we move into the month of January from Mexico. Growers from Sonora continue to harvest and pack all sizes. Quality is reported as fair to good from this region. Cucumber harvest out of Sinaloa has also started with all sizes and packs. Good quality being reported on cucumber from Sinaloa. The current cucumber market is steady with lower pricing. Cucumbers from Mexico also available to load in McAllen, TX.

Fancy and Choice grade continue to be available to load in Nogales, AZ from Mexico. Good production on 18ct and 24ct eggplant. Supplies exceed demand on 18ct and 24ct sizes. Higher volume of eggplant expected in January with warmer weather forecasted. Good quality being reported on eggplant loading in Nogales, AZ. Eggplant market being reported as lower on both fancy and choice grade packs.

Green grape supplies continue to be very limited. The remainder of the domestic fruit is spotty and quality is fair. We are seeing reports of amber color, soft and wet berries and early signs of decay. Most shippers are refusing to send fruit across the country. We need to focus our attention on the new import fruit coming from Peru. Import fruit is slowly arriving and we expect better supplies by next week. Quality is being reported as very good on the imported fruit. Market prices are still higher and firm. We expect to see better availability and more aggressive prices as we start the new year.

Red grape supplies remain steady. We currently have both domestic and import fruit available. Domestic fruit is slowly transitioning out and there are several tiers of quality and price. For strong fruit that will travel and have shelf life, the price is going up. However, some shippers continue to advertise lower pricing on older weaker fruit. Import fruit is still fairly limited and prices remain higher and firm. We expect supplies to improve starting next week and better availability on both the east and west coats. Quality is being reported as strong.

The Green Onion market continues to pick up steam. 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 in demand going into next week.

The kale market continues to stay strong with the recent cooler weather in Yuma. Quality is good with full bunches, and only an occasional yellow leaf being reported.

Iceberg supplies continue to be excellent. Supply exceeds demand. Over the last week, we saw an abrupt shift in supplies and market reactions. As harvest yields and production increased rapidly, demand dropped off severely due to the holidays. This week seems to be much of the same. All shippers are looking for support as inventories are long. Market prices have dropped quickly and have leveled off toward the bottom without much activity over the last several days. Quality has been fair with some misshaped heads, puffiness and light mechanical damage being reported. Weights are ranging between 40-42 lbs. We expect supplies to continue to be steady as we anticipate increased demand after the holidays.

Leaf lettuces have increased in production and all varieties are readily available. Due to lower demand for the holidays, supplies currently exceed demand and markets have reacted accordingly. Romaine has yet to regain traction after the ecoli scares. The public perception is still unfavorable and we are seeing a big drop in demand. Red Leaf, Green Leaf and Butter are all similarly increasing in production and demand has slowed. Market prices across the board have dropped and leveled out this week at the lower end. Quality has been fair. We expect supplies to remain steady as we look for better demand after the new year.

The Tender Leaf market continues to come off on spring mix, arugula, baby spinach, and cello spinach. With demand coming off a bit during the holidays, suppliers are able to catch up even with the recent cold weather in Yuma. Quality issues are fair with minimal yellowing and bruising of the tender leaves. Look for these items to continue to adjust going into next week.

Weather this week in Zacapa Guatemala calls for temps in the 90s with no rain in the forecast. Overall quality has been good with no reports of quality issues We are still seeing limited supplies on offshore fruit. Fruit from Honduras has started up and we should see better volume next week.

Weather this week in Zacapa Guatemala calls for temps in the 90s with no rain in the forecast. Overall quality has been good with no reports of quality issues We are still seeing limited supplies on offshore fruit. Fruit from Honduras has started up and we should see better volume next week.

Light supplies of watermelon available to load in Nogales, AZ. Volume has dropped on watermelon crossing through Nogales as demand has increased. Few shippers have started to receive watermelon from Jalisco. New crop mini watermelon also available to load in Nogales from Colima. Market on watermelon being reported as steady/high. Quality on new crop watermelon being reported as good.

Yellow Medium Onion continues to be light out of all growing areas with good supplies of Colossal and larger out of Idaho. Quality is very nice with little to no report of issues upon arrival. The market is trying to firm up slightly on Jumbo Yellows. Transportation is still limited.

Peak Seasons:
Onions will be in peak production into February

Bartlett pears are steady and peaking on US#1 80/90. Quality is good but you don't want to sit on them for too long this late in the season. Supplies will go into the end of February. D'anjous are steady and peaking on 70/80s. Supplies will go into August and maybe into July. Quality is very nice. Bosc are steady peaking on 80/100s. Quality is good and supplies will go into March. Red pears remain steady.

Peak Seasons:
Pears will be in peak season into the end of February

Current supplies are limited and will continue as we go into the New Year. 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.

Not much has changed with markets and quality over last week out of all shipping points (Idaho, Washington, Colorado and Wisconsin). Weather has been mild out of all growing areas but is always something to keep your eyes on this time of the year. The polar vortex could change things quickly. Norkotah's are still peaking on 70 count with Burbanks peaking on 80 count and smaller. Transportation is still limited.

Peak Seasons:
Russet will be in peak season into March.

Markets are fairly steady with Red B's being limited out of most shipping points. All other sizes, colors and grades are available. Quality is good with very few reports of quality issues upon arrival. Look for these market condition to continue into the New Year.

Peak Seasons:
Color potatoes out of all growing areas are in peak season

Italian and Yellow S/N- Good consistent volume on both Italian and Yellow S/N being harvested in Culiacan. #1 and #2 labels continue to be packed. Cool temperatures at the start of the week will slow down production, but should not affect soft squash market due to current volume crossing through Nogales. Quality on both varieties currently being reported as good. Supplies on both Italian and Yellow S/N exceed demand. Lower market and pricing being reported on both Italian and yellow S/N.

Import stone fruit availability is still light. Supplies are slowly arriving from Peru and Chile with limited sizes and varieties. Nectarines and Peaches are currently available from a handful of shippers with plums being very limited and only available with 1 shipper currently. We expect to see improvements starting late next week. Market prices are currently high and firm, but will adjust as more boats arrive.

Rain and cold temperatures have slowed the amount of fruit coming from harvest, fortunately at a time where demand has slowed down, resulting in no significant change in shipping point FOBs this week. Florida is currently harvesting in Palmetto/Ruskin districts from 3rd and 4th picks, helping to keep Eastern supply steady as much of the production transitions further south to winter programs in Immokalee. Cool weather the past several weeks has developed a market where mediocre supply is expected for at least a couple weeks which has caused most varieties to remain constant, with little to no change in price. XL fruit is the hardest to source and is being sold at a premium. The weather has not only impeded size but quality as well causing softer tomatoes and some decay as fruit continues to ripen after harvest. The Roma tomato market continues to improve as supplies increase out of Mexico and Immokalee/Naples farm operations begin to increase harvests but will not have any significant volume until the New Year providing for a steady marketplace through the end of the month. Similarly, Grape and Cherry tomatoes continue to be light due to rain and cooler weather limiting maturity and interfering with picking schedules.

Baja is all but finished for the season, shifting demand entirely to mainland Mexico where winter farms are continuing to improve. Round tomato production has picked up with crossings now in both Texas and Arizona. Roma tomatoes continue to improve as harvest increase out of new fields crossing into Nogales helping to soften the market again this week. Grape tomatoes are improving as well as shipments through Nogales increase, however cool weather in Mexico have contributed to a slow start. As more growers begin winter harvests in the next 10-12 days, supplies will continue to build through the new year providing for more value buys in January.