The Source - December 28, 2016

Washington - red delicious are steady on all sizes but most shippers are still flexing for volume in the larger sizes. Some shippers are still looking to move non-qualified CA fruit so make sure to check. Red delicious are peaking on extra-fancy 88s and larger and they have promotable volume esp. in the higher grades. Golden delicious are steady on all sizes and continue to peak on 72/80/88s. Small Goldens remain extremely short with very few if any 125s and smaller. Light December packing could cause more size and grade subbing especially in the smaller fruit. Granny-smith are steady and are still peaking on 72/80/88's. Granny 100s and smaller supplies are still very limited. Light December packing could cause more size and grade subbing especially in the smaller fruit. The Gala market is fairly steady on all sizes. Galas are still peaking on 80/88/100/72s. Fuji's are still heavier to larger fruit and are steady o n all sizes. Honeycrisp are peaking on 80/88/100s and are steady to higher due to strong demand and light packing. Honeycrisp availability will improve in January when there is more packing scheduled. 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. Idaho is packing more Pink Lady's and red delicious currently. The volume for all others is light with a peak on 64-100s for most. The quality has been good.
Michigan--McIntosh, Golden delicious, Jonamacs, Jonathans, Empires, red Romes, Galas, red delicious, and Fujis are all steady. 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. The quality has been good.
New York---Red delicious, Galas, Fujis, and Red Romes are all 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 as more shippers get into C.A. fruit and it is larger. McIntosh are stronger due to less volume. Last springs hail knocked out much of the volume so expect a stronger market with only light availability from C.A. The Empire market is going to strengthen as export demand comes on. It hasn't hit yet because to export the fruit must 90 days of C.A. storage but we are reaching that threshold. The quality has been good to fair with more US#1 grade fruit.

Alerts:
Washington---Remember that small Golden Delicious and small Granny-smith are very limited!

New York---McIntosh supplies are very light due to the low numbers in C.A. storage.

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

Weather is still cold in the San Luis growing region. Volume is very light. Market is still high on all sizes.

The weather is good in both the South/North of Peru. Volume is good and market is sluggish with the holiday being over. Air freight is down a little with the major holiday rush over.

Alerts:
Production is slow due to cold weather

Transitions:
We are in the process of the San Luis transition.

Shipments from Mexico last week were off just a bit, much better than expected and this weeks is expected to be very similar to last weeks. 48ct demand remains the greatest and still seeing some upward pressure on the market price of 48s and 40s. Shippers are pushing for greater harvest as we move into January in preparation for Super Bowl ad pulls beginning mid January.

Good Supply of Green Bells in Nogales. Quality is Fair to good depending on Shipper. Supply exceeds demand keeping market on Green Bells Low.

Colored bells have started strong with good quality and condition. Supply exceeds demand keeping Market on Colored bells steady.

Supplies are steady and demand is fairly light. Favorable weather in Central Mexico is leading to good production volume and more fruit being sent to the US. There have been some challenges with quality as red cell, decay and mold have shown up on recent inspections. Order for quick turns and maintain the cold chain through transportation and storage.

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. Central Mexican production has already peaked this season and will continue to decline from here on. However, overall availability still looks to remain fairly steady over the next several weeks.

California strawberry supplies remain light following about an 1.50" of rain in Oxnard and Ventura county over the past weekend. Quality has suffered from wind and water damage and a lot of fruit is being discarded in the fields. Temperatures will remain cooler this week which will help fruit firm up but will not help with growth and color maturation. This crop has been slow to start ramping up this season due to the continued rain and cool weather. Florida is still producing strawberries steadily. Near record high temperatures have brought fruit on very quickly and at high volumes over the past several weeks. A slight cool down is expected this week. The current crop is strong and plants are healthy. Barring any major inclement weather events, we should have a strong crop with good supplies continuing through January. Central Mexico strawberries crossing through TX have been steady and volumes should increase into January.

Alerts:
Supplies of fresh strawberries are limited in CA following rain and wind over the past weekend.

Rain soaked Oxnard strawberry fields

Muddy Fields in Oxnard

There are so many growing regions packing broccoli right now, it has continued to keep this market aggressive. Supplies look to be stable for the next couple of weeks. Quality has been really good with minimal yellowing, decent crown size, tight beads, and little dehydration in the iceless packs.

The brussel sprout market remains steady as we move into this week. Supplies from Salinas and Mexico look to be plentiful for the next few weeks. Quality has improved out of Mexico. The supplies out of Salinas even with the cooler temperatures is excellent with dark green color.

Carrot supplies remain good and look continue so, with jumbo, cello and value added product. Cooler weather is slowing size growth slightly and we are seeing a slight firming up of market price on the jumbo size carrots.

Last week we finished with the market firming up as some shippers walked into the business day being sold out. There are still limited supplies and demand has picked up. That has also caused the market to firm up and trend higher. This supply outlook will continue for the next 2 weeks. Quality is fair with arrivals showing black bruising, creamy to yellow color, and misshapen heads. Also sixing is trending smaller towards the 16 count pack.

Alerts:
Supplies are limited to start the week with the market firming up.

Production will begin in Yuma by the middle of this week in a light way. Oxnard continues to have strong production. This market remains steady. Demand is not exceeding supplies and shippers continue to flex. Expect pricing to be steady throughout the week. Quality is reported as good and all sizing is available.

Chilean cherries continue to be available on the east and west coasts. Supplies are slightly stronger on the west. Shippers are reporting good availability in a range of sizes. The fruit is hard and color is good, but there is some occasional pitting and scars on the cherries. This is an industry wide problem and all shippers are facing the same issues. Market prices have remained steady on both coasts. Supplies are expected to last through mid January, then we will see a quick finish to the season.

Transitions:
Chilean supplies are expected to last through mid January then taper off quickly.

Pablano - Excellent size and Quality and color will continue with steady to lighter supply.

Tomatillo-Heavy supply and excellent quality on fresh crop, both peeled and husked. Sizing is good. Color and condition will continue to be great.

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.

We have had some previous cold temperatures in the Oxnard growing region causing some quality issues. I have provided a glimpse of them below. The markets haven't reacted as of yet, but there is a possibility of it as the week progresses. Supplies remain steady but as the quality issues persist there normally is a tendency to shorten the supply base as they bypass quality issues in the field.

Alerts:
we have had some frost damage in Oxnard which will affect overall quality.

Over all supplies remain good. The desert crop is 70% 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. Meyer lemons are in good available in all growing districts.

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 factors causing our elevated prices are the rains that happened three weekends ago, cool weather, great demand across all channels and retail ads. The quality is good with a few reports of moldy fruit from the rains. 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.

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. Many shippers reporting packing heavier to the larger sizes of 72s/56s/48s and a much smaller percentage of 113s/138s. Cara Cara navels as well as Blood oranges have started 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.

Import green grape supplies continue to be steady on the east coast with limited availability on the west coast. Currently we have Sugarone and Thompson varieties available. Quality has been good on both varieties with larger sizing on the Sugarone. Market prices have been steady and firm in the high 30's to low 40's. Most of the current inventory is Peruvian, but Chilean supplies are expected to improve as we start January and more vessels arrive.

Transitions:
Chilean supplies are expected to improve in the next 2 weeks with better availability on the west coast.

If you are looking for a value buy, domestic red grapes will continue to be available to load in California this week. Supplies will be good, but the quality is representative of late season fruit. Although shippers are working product and doing their best to eliminate any problems; the reality is, there is some occasional soft berries and the possibility of light mold present. Market prices have not changed and fruit is available in the low to mid teens.

If you are looking for better quality, we have the option of loading Peruvian or Chilean red grapes on the east and west coasts. Flame and Crimson varieties are available. This fruit is much stronger, but the market prices are much higher (mid to high 20's). As we move into January and more vessels arrive, we expect to see the supplies continue to improve and prices will gradually decrease.

Transitions:
Chilean supplies are expected to improve as we begin the new year.

The market is extremely active as minimal crossing from Mexico continue. The labor shortage for the holidays has created a supply gap. Even with the volatile market quality remains fairly good with minimal arrival issues. The market continues to rise to higher levels. This outlook will persist until mid January as more harvesting crews begin to harvest again.

Alerts:
The labor shortage has caused a serious supply issue as minimal crossings from Mexico continue.

As more and more suppliers add kale to their value added line ups, the industry has kept up with the demand for this super food. Acreage continues to grow and supplies remain abundant. Quality is excellent with full cartons, dark green color, minimal yellowing, and little to no dehydration.

The iceberg lettuce market in Yuma is steady and this looks to continue for the entire week. Demand is off. The weather will not hit a freezing temperatures in the desert for the entire week. High 60's to mid 40's on the lows are predicted temps for the rest of the week. Aside from some slight discoloration and misshapen heads, the quality has been reported to be good. There are no gaps in the forecast for the rest of this year.

The leaf lettuce and romaine markets are steady for the week. Shippers are looking to move volume and flexing is occurring with multiple suppliers. Demand is off. Weather conditions have been much better compared to past weeks in the desert. Expect good supplies to finish out the year. Aside from some slight fringe burn and twisting, the quality has been reported to be good. Supplies exceed demand. Lighter supplies are not expected to be light until the second to third week of January.

Demand is good on all sizes. Supplies are steady to lower at the moment. 12's continue to get increased demand due to substitution for 9ct. The 15ct and 18ct 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 higher across the board. The quality is excellent right now and for the long term outlook too. Weather in the growing regions have been ideal.

Alerts:
15 and 18 count lopes are not available for the next few weeks.

Honeydew supplies are trending down. Mexico is exporting very nice looking honeydews up to us and their supplies are lightening up a lot as growers finish up for their season down there. Mexican dews are now the same price and higher than the offshore dews. Offshore dews have excellent quality and are peaking on large sizes such as 5's and 6's with 8's being extremely short supplied for several weeks. Offshore dew volume is temporarily lower which is causing the market to react. The market is currently higher on offshore dews and higher on Mexican dews.

Alerts:
Mexico is nearly done for their season.

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.

Onion market is steady on all sizes and packs of Yellow and Red Onions. White Onions supplies are seasonally winding down out of the Northwest which should slowly firm this market up as they get into fewer hands as we get into the New Year. Some light greening is showing up in the white onion packs but the over all quality is good. Mexico white onions should start to cross into the U.S. by the end of January start of February. Demand on Onions is moderate but should pick up as we get into the middle of January. Quality is still being reported as nice. Snowy and icy weather is the biggest factor which slowing down Transportation to and from the onion packing sheds. Very cold temperatures (single digits) are to drop into the Northwest the front part of next week which could limit supplies coming out of the storages to packing houses.

Alerts:
Snowy and Icy weather slowing Transportation to and from the packing sheds

Washington -- Bartlett pears are steady and still peaking on US#1 70/80/90s. Light packing will limit the availability for all sizes but especially the smaller ones. Bartlett 100s and smaller remain limited. D'anjou pears are steady and continue to peak on US#1 80/90/100s. D'anjou 100s and smaller remain limited. Light packing will limit 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:
Washington----light packing during the last week of the year will limit the availability for the smaller sizes of all varieties.

Peak Seasons:
Washington is in the peak of its season for Bosc, D'anjou's, Bartletts, and red pears.

Supplies are goods and holiday demand is beginning to back of a little as we move to year's end. Expect 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.

Potato market is steady out of all growing areas. Quality is very nice. The biggest issue is the snowy and icy conditions all around the potato shipping points. Trucks are moving very very slow coming and going. Snow is in the forecast for today and tomorrow. The extended forecast is calling for very cold temperatures to drop into Idaho the middle of next week which could get cold enough to limit the transfer of potatoes to the packing sheds. We will keep you posted. The New Year holiday will make for another short week with most shippers not packing on Monday.

Alerts:
Snowy and icy conditions slowing transportation. Very cold temperatures in the forecast for next week could slow production

Bakersfield California - red, white, and gold potato markets are all steady. All colors continue to peak on A size. Continue to plan ahead as the golds and most of the reds are being transferred down from Washington. The whites are from Bakersfield and are peaking on A size but there is good volume of B and C size as well. The quality has been good for all.
Idaho - both the red and gold potatoes are steady and are peaking evenly between A & B size. The availability is good.
Western Washington - red and gold potatoes are both steady and continue to peak on A size. White potatoes remain limited and the market is firm with only light availability from some shippers. 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 remains light but the packing schedules have also been light. The quality is good.
Wisconsin - reds and golds are steady on all sizes and both are still peaking on A-size. They have also had fairly light packing. 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.

Alerts:
Whites remain very short in Washington.

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

Bakersfield, California is in the peak of its winter white potato season.

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.

We did not see much change in Chilean stone fruit over the last week. Supplies continue to be steady, but limited in size selections. The majority of the fruit is being shipped from the east coast, but there is some availability on the west. Market prices have remained fairly flat with a slight decrease in certain sizes of peaches and nectarines. We do expect supplies to increase next week as bulk vessels are anticipated to arrive on both coasts. As availability and size selection improves, we can expect to see some flex in market prices. Quality on the current fruit is being reported as excellent.

Peak Seasons:
We will approach peak season of Chilean stone fruit 3-4 weeks from now.

Ideal weather conditions have allowed tomato yields to flourish in Florida. Gas green round sizing has been evenly available and is reported as excellent. With plenty of fruit in the supply chain the market remains steady. Roma tomatoes on the other hand are expected to decline heading into January as crops get into 3rd picks and growing regions transition. Like the round Varity, grape tomatoes are widely available flourishing in the recent warm weather Florida has experienced. The cherry tomato market also remains depressed with volumes strong out of Florida. Overall demand is good but abundance in supply has allowed the market to remain low through the start of 2017.

There is little to no change in Western supply with light volumes transitioning from Baja and Eastern Mexico to Western Mainland Mexico. Culiacan and Sinaloa growers are coming on slowly and gradually expecting to hit their stride by mid January. There are light volumes of Romas crossing but still a couple weeks away from full production being realized in the states. Grape tomatoes are available in steady volumes through Texas with Western Mainland Mexico set to bring the next injection of fruit by the second week of January.