The Source - December 31, 2019

EASTERN REGION:
Movement continues to be on the slower side as we make our way through the holiday season. As some smaller, regional shippers in the Midwest and on the EC continue to close their doors for the season. We should begin to see market prices ‘firm up’ (especially out west). With this in mind, we should continue to see these shippers aggressively move inventory in an attempt to clear their floors, with larger shippers dipping into their CA (controlled atmosphere) inventories which should carry them to the Spring.

WESTERN REGION:
Washington
Much like the Midwest and EC, Washington shippers are feeling the ‘lull’ due to the holidays. Many are exporting smaller fruit at a higher rate and we are seeing prices begin to ‘firm up’ on certain varieties (Gala, Red Delicious). With that said, the aggressive deals (single-digit prices) are quickly disappearing, but there is still plenty of small fruit available at lower prices. This trend should continue; especially once we are into the new year and schools return from winter break. Quality is excellent and with great shelf-life.

Earlier this month, Cosmic Crisps were here, for a brief time, then gone. Even though most WA shippers are approved to grow/sell the new variety, not all of them have it to sell this season. Some shippers are waiting until next season before entering the market, while others have minimal amounts of bins to pack. The month of January will bring the next round of availability, but expectations MUST be tempered as availability will mirror December.

Alerts:
As we prepare for another offering of Cosmic Crisp (first/second week of January), please temper expectations on availability (cases to single pallet orders). Also, please submit pre-book orders so that shippers have an idea of our needs.

Volume continues to decrease from both regions in Mexico (Ciudad Obregon/Northern Baja) due to weather and seasonality. Sonora is still having cold weather which will delay production from this region. All sizes are tight due to the weather, and seasonality. Volume continues to decrease from both regions in Peru (Ica/Trujillo). Markets on both coasts are very active, and higher this week with production being down from all regions.

Not much change this week. The weather pattern for the growing region of Michoacan this week calls for clear skies with no rain. Currently, Mexico continues to lead in industry supplies and will continue into January. The market has remained steady and the demand has tapered off slightly. Field prices remain under pressure for 48's and larger. The harvest this week will be interrupted due to the holiday. While there are good supplies in the pipeline. The disparity between #1 and #2 grade fruit continues to pose challenges. There remains an excess of #2 grade harvest with little expectation for relief in the near future.

Bell Pepper supplies have gotten tighter in south Florida due to heavy rains last week. Growers on both east and west coast of Florida are harvesting bell pepper but heavy rain last week has slowed harvest along with shippers taking time off for the Holidays. Growers want to wait for fields to dry as much as they can to reduce quality issues. We expect a few issues with the amount of rainfall in some areas. Supplies should be better after New Years'.

GREEN BELL
Green Bell Peppers are being harvested in the Mexican states of Sonora and Sinaloa. Supplies on domestic bell pepper from California have finished. Moderate supplies of green bell pepper are expected this week from both districts due to labor shortage due to the holidays. Quality on green bell pepper from Sonora is fair. Quality on green bell pepper from Sinaloa is good. The market on green bell pepper has increased slightly but remains steady. Moderate supplies of green pepper also available to load McAllen, Texas.
RED BELL
Red Bell Peppers are being harvested in the Coachella Valley in California and in the Mexican state of Sinaloa. Red bell supplies are moderate from the California district. Red bell quality from the California district is fair at best. Red Bell pepper supplies from Sinaloa are increasing as we approach the New Year. Quality from the Sinaloa crop is good. The red bell pepper market is decreasing this week due to better supplies from Mexico. Light supplies of Red bell pepper are also available to load in McAllen, TX.
YELLOW BELL
Good supplies of Yellow Bell Pepper are being harvested in Mexico from Sinaloa. The Market on Mexican yellow bell pepper has decreased with better supplies. Quality on yellow bell pepper crossing through Nogales from Mexico is good. All pack styles currently being packed from the Mexican growing district. Light supplies of Yellow bell pepper are also crossing through McAllen, Texas.

Blackberries are also suffering from a lack of demand. Volume deals are being offered primarily out of the Texas region. Quality has been improving but shippers are facing the same rotation challenges as they are with the raspberries.

Blueberries are still in abundance coming via ocean containers from Peru, Argentina, and Chile. Good promotable volume will continue throughout the month. Mexican blueberries crossings through Texas are still readily available. Quality has been good from all these import areas.

Alerts:
Blueberries will be highly promotable for all of the month January.

Raspberries are in good numbers coming out of Central Mexico crossing in through McAllen, TX and Otay Mesa, Ca. Quality has been fair as shippers are struggling to maintain rotation in a post Holiday market. Look for movement and quality to improve as we get back into the regular business trends late this week.

The strawberry market continues to ease up out of all areas particularly in the Florida and Texas regions. Quality is improving out of Oxnard even after recent rain events over the last weekend. Light demand is primarily responsible for the volume deals being offered in Florida and Texas. West Coast production is still relatively light so markets are expected to remain firmer. Look for production to increase as we move into the New Year Holiday. Weather will still remain an issue in Florida as they receive scatted showers through Thursday from a storm in the Gulf of Mexico. West Coast and Central Mexico projections are relatively clear through the end of the week.

Alerts:
Florida production is starting to hit it's stride.

Transitions:
California product has fully transitioned into the Oxnard area.

Peak Seasons:
Central Mexico is in peak season

The Broccoli market has started to pick up with the cold and wet weather causing lower yields. Quality continues to have slight purpling, some mechanical damage, and occasional yellow cast. Look for Broccoli to adjust upward going into next week with the cold weather this week in Yuma.

The brussels sprouts market continues to stay steady as there is plenty of supply in the pipeline. Quality has improved causing better yields. Look for the Brussels sprouts market to continue to remain the same going into next week.

The carrot market remains steady out West with shippers seeing lighter demand because of schools being out. Jumbo carrots are still on the snug side but that should change as shippers break new fields in mid-January. Mexico jumbo carrots are readily available in Texas and quality has been good in all areas.

The cauliflower market has picked up because of lower yields caused by wet and cold weather in Yuma. The quality is fair with slight bruising and yellow cast with weights in the 25 to 28-pound level. Some suppliers may need to sub sizing to fill orders. Look for the market to continue to adjust upward going into next week with the cold weather this week.

The weather has been cold and rainy in the Oxnard /Santa Maria region both last week and this week. With this being said all orders have been getting covered in full. Smaller sizing, thirty-six count, in particular, have slightly less availability, industry-wide, but again all orders should be covered in full. Overall the market is up.
The labor issues that are present in Yuma has not carried over into Santa Maria/Oxnard. This is a major reason why the product is available. This commodity also absorbs rain much better compared to other field crops. There will be no harvest on Wednesday from any shipper in any region with this item. Weights are 53-58 pounds. Leafy tops and minimal bowing is being reported upon arrivals. Yuma has begun production in a light way. Better production is expected in the next few weeks with this commodity.

Transitions:
Celery has begun production in Yuma.

Jalapeno-Light to moderate supplies of Jalapeno are crossing through Nogales, AZ this week. Jalapeno supplies have decreased because of a light harvest this week due to the holidays. Good supplies are expected to resume next week. Jalapeno quality from Mexico is good. The Jalapeno market is steady. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Light to moderate supplies of Pasilla is crossing through Nogales, AZ this week. Hot peppers supplies including Pasilla have decreased this week because of the light harvest due to the holidays. Better supplies are expected to resume next week. Pasilla quality from Mexico is good. The Pasilla market is steady this week. Pasilla from Mexico is also available to load in McAllen, Texas.

Anaheim- Good supplies of Anaheim crossing through Nogales this week. Quality on Anaheim crossing through Nogales is good. Size on the pepper is mostly medium to large. The Anaheim market has decreased with better supplies. Anaheim from Mexico also available to load in McAllen, Texas.

Serrano – Good supplies of Serrano peppers available to load in Nogales, from Mexico. Good supplies are expected throughout the week. Supplies currently meet demand. Serrano supplies also crossing through McAllen, Texas.

Tomatillo – Light supplies of Husk tomatillos are available to load in Nogales, from Mexico. Sinaloa crop is expected to start within a week. Better supplies of peeled are expected through the week due to fair quality on husk variety. The market on peeled tomatillo has decreased and is steady, while the market on husk continues steady/high as the quality remains mostly fair on the husk. Light supplies of husk and moderate supplies of peeled tomatillo are expected through the week.

The cilantro market continues to stay steady as supplies continue to be plentiful. The cilantro quality is good with an occasional yellow leaf. Look for the cilantro market to adjust going into next week with the wet weather we are having this week.

District 1 (Central Valley area) supplies are plentiful with nice quality. The sizing profile is peaking on 115’s and smaller. The large sizes 75/95 remain snug but are projected to be more readily available after the New Year. We can continue to expect good supplies with steady markets and good quality going into the New Year.

We can expect lime supplies to be snug this week again due to limited harvest schedules for the short holiday week. The growing region of Veracruz continues to lack rain and needs more rain for supplies to turn back around. Overall the quality has been consistent. We expect pricing to be active going into the New Year.

The Central Valley is looking to have a dry week after some steady rain over the weekend. This week, the sun will be out, daytime temperatures will remain mild and nighttime temperatures will remain in the mid-30s to low 40s. With the current weather patterns, we are starting to see very good natural color and gas hours are falling off rapidly. We are now into the point of the season where we will start to see very high quality, high color, great-tasting Navels. Markets are steady and demand will remain good while we work through the last week of December and focus on the New Year. Sizing profile is peaking on 88’s and smaller. Brix levels have been consistent between 11.5% – 12.5% with good quality. On Specialty, citrus keep pushing mandarins the quality has been looking solid and markets have been steady. Grapefruit supplies are steady with stable markets. The Cara Cara’s and bloods continue to get better weekly on supplies. The Minneola Tangelos are off to a good start, expect supplies to be light to start but should gradually increase over the next week couple weeks.

Cucumber supply is getting better as Honduras increases volume coming to the US. Florida growers are still harvesting light supplies of domestic cucumbers, quality is still decent but with the rain the region received last week that is subject to change. Honduras product is very good and shippers are getting higher prices for their cucumbers, but pricing, in general, is lower this week.

Moderate supplies of cucumber continue to cross through Nogales from Mexico. Cucumber supplies are expected to be steady this week along with the market. Light cucumber supplies are expected to be harvested in Sonora. Cucumber supplies from Sonora are expected to finish this week. Cucumber will continue to be harvested in Sinaloa this week, with supplies expected to increase as we approach the month of January. All pack styles are currently being packed in Sinaloa. Moderate supplies of Mexican cucumbers are also crossing through McAllen. Quality from McAllen is being reported is fair.

Eggplant supplies are steady in South Florida and shippers on both the east and west coast are harvesting. Quality has been good, heavy rains last week will not have as much effect on eggplant as it will on other commodities. Demand has been good for eggplant during the holidays. Pricing this past week has risen but remains at reasonable levels and we expect supplies to stay steady through the weekend.

Good supplies of eggplant continue to cross through Nogales, AZ from Mexico. Eggplant crossing through Nogales, AZ continues to be harvested in Sinaloa. Supplies from Sinaloa are being packed in all pack styles and in all sizes this week. Quality on eggplant crossing through Nogales ranges from fair to good due to heavy volume.

Domestic Green Grapes:
Domestic green grapes are essentially done for the season with the exception of very small volumes being held onto to fill contracts. This is necessary on the west coast because of the delayed arrivals of import fruit this week. We expect a full transition into import fruit by next week.

Import Green Grapes:
On the east coast, supplies of import green grapes are improving with several varieties to choose from. Sizes are running on the large side with most fruit falling into the XL and Jumbo categories. Quality is being reported as excellent and market prices are still fairly firm. We expect better availability on the west coast later this week when containers are scheduled to arrive. Overall, we expect to see green grapes be in better shape starting next week and have a smooth transition into all import fruit.

Alerts:
Domestic greens will be done this week. We will transition into all import fruit by next week. Import supplies are better on the east coast, but are expected to improve on the west by later this week. Markets remain firm.

Transitions:
Chilean green grapes are expect to arrive over the next 2 weeks.

Domestic Red Grapes:
California shippers still have decent supplies of Scarlotta, Allison and Holiday red seedless. Quality seems to be holding up as we have had very little issues upon arrival. Market prices are still high and firm. Domestic grapes are still being used to fill demand on the west coast due to the lack of import availability. We expect to transition into all imported fruit by next week, barring any further container arrival delays.

Import Red Grapes:
Supplies of Peruvian red seedless have been minimal up to this point. Production has been slower than expected and most of the fruit that has been shipped is being sold off of the east coast with very little fruit arriving on the west. Shippers are expecting more arrivals later this week on both coasts. Quality on the new fruit is being reported as very strong and market prices continue to be high and firm. We expect availability to improve over the next 2-3 weeks, but expect demand to exceed supply for the first part of January. As Chilean fruit starts to arrive over the next 2 weeks, we should finally see some relief.

Alerts:
Import red grapes are still very limited. On the west coast especially, there is no fruit available. East coast has slightly better supplies. We expect to see improvements starting next week. Markets remain high.

Transitions:
Chilean fruit is expected to start arriving over the next 2 weeks.

The green onion market continues to increase and supplies remain tight as there continues to be a labor shortage in Mexico. Crews in Mexico tend to take this time of the year off causing lower supplies. The cold weather is also causing slow growth, in turn, causing lower yields. Quality is fair with occasional leaf minor caused by the recent colder weather. The market will continue to adjust higher going into next week.

Alerts:
Cold and wet weather, including shortage of labor is causing the Green Onion market to go up.

The kale market has recently started to pick back up with the wet and cold weather in Yuma this week. Quality is fair with full bunches and an occasional yellow leaf being reported. Depending on the severity of this cold weather, look for the market to continue to strengthen going into next week.

Very cool weather and a lack of labor has shippers scrambling to cover orders with this commodity for the week. Demand exceeds supplies industry-wide. All shippers are expecting light supplies for the rest of the week. Yuma and Santa Maria will continue to be the main growing regions for this commodity. The big issue will be lightweights that all suppliers are reporting. Weights will range from 33-38 pounds on liner products. Misshapen heads, mechanical and mildew will also be issues. There will be no harvest this Wednesday. Delays in shipping will be likely heading into the weekend.

Alerts:
Lightweights will be an issue all week with lettuce.

With the cool weather, rain last week, and very cool weather this week, supplies look to be moderate at best on romaine as well as all leaf items. Labor will continue be on the light side with all shippers. Yuma, as well as Santa Maria/Oxnard, will be the main growing regions for these commodities. Demand is up slightly. Common defects being reported to include lightweights, blister, mechanical, and decay. These are reported on romaine as well as all leaf items. The weights on romaine are averaging 27-34 pounds. The green and red leaf items will be 18-21 pounds. Suppliers will not be harvesting on Wednesday so delays on loading for the end of the week could happen. Some suppliers have remained steady while others have gone upward in the marketplace.

Alerts:
Shortage of labor will be an issue to packing leaf items.

The Tender Leaf market has started to pick up due to lower yields caused by the wet and cold weather in Yuma. Curly parsley, spinach, and arugula have tightened up this week and looks to be tight going into next week. Quality is fair with occasional yellowing and bruising of the tender leaves.

Not much change this week. Demand is steady and there is plenty of opportunity buys of all sizes. Overall, the fruit is showing great internal and external quality. Inventories on the east coast are solid and replenished. On the west coast, we are seeing a slightly stronger market on arrivals but there are deals to be had. We are weeks away from seeing a heavy influx of cantaloupe with Honduras and Costa Rica ramping up production.

Not much change this week. The honeydew market remains in a demand exceeds supply situation. There is very little fruit in the pipeline and inventories are depleted. We are seeing very low crossings from Mexico and Central America. Guatemalan growers are seeing major issues as far as production. As crews harvest the melon patches, they are seeing mostly smaller sized fruit (8's & 9's). The fruit just does not seem to be sizing up.
Open market options are limited, especially on larger sized fruit (5's &6's). This will be the trend for the next few weeks until Honduras and Costa Rica can provide some relief.
Mexico is also struggling with production. According to the USDA daily movement report, crossings into the US are down year over year by 29%. The west coast is leaning heavily on Mexico to cover the growing demand. Currently, there is new crop fruit being harvested in the region of Guerrero. Mexican honeydews will be available through the spring.

Alerts:
Demand has outpaced the harvest. Market to remain strong into January.

Watermelon supplies crossing into Nogales, AZ continues to be harvested in Colima, MX. Watermelon supplies from Colima are expected to be steady throughout the week. Good growing weather is expected to continue in the mid 80’s this week. Quality from this district is good. The watermelon market is expected to remain steady for the remainder of the week. Both cartons and bins are currently being packed.

Onion markets are beginning to move upwards as demand into the Northwest regions of Idaho and Oregon is active. Yellow onions (in particular jumbo size) are rising along with white onions. Red onions remain flat. Other regions such as Washington, Utah, and Colorado are also seeing additional demand with markets increasing on yellow and white. With a short packing week and demand increasing heading into the new year, expect to see rising prices on yellow and white onions. Quality remains good in all regions.

Alerts:
Demand active; markets rising on yellow and white onions

Peak Seasons:
Northwest storage onions are in peak season.

Washington:
Shippers are cleaning up on Bartlett pears and should be completely done, for the season, by the first/second week of January. Currently, all three flavors remain available (Bartlett, Anjou, and Bosc), but know that Green D’Anjou has the longer shelf-life followed by Bosc. The market is steady and quality is good.
Red Anjou is the variety currently available on red pears and is packed in ½ (20#) and full cartons (40#). Markets are steady and quality is excellent.

Alerts:
Bartlett pears will be done for the season around the first/second week of January 2020. Bosc and Green Anjou remain plentiful with longer shelf-life.

Pineapple supplies out of the east coast are looking light on 5ct & 6ct, expect subs to fulfill orders. On the west coast, supplies are steady. Markets remain fair, and demand is looking to pick up for the last week of December. Quality has been consistent and looking good!

Russet potato markets continue to rise on the larger size 40 count through 70 count as well as the 10oz #2 grade. Short packing weeks due to the holidays along with small size profile has the larger size potatoes difficult to source. Other issues adding to the strain on potato supplies are weather and demand. Cold temperatures in Idaho have limited the amount of time to be able to transfer products from cellars to packing facilities and demand has also increased this week after the Christmas holiday. We are seeing markets rise on the larger size potatoes in all regions. Idaho continues to pack Burbanks and Norkotahs. Quality continues to be good with the occasional peeper and shoulder bruise. Other regions currently supplying Norkotahs are Washington, Colorado, and Wisconsin; all with active markets. We continue to recommend 5-7 business days lead time prior to ship date to ensure proper coverage and on-time deliveries.

Alerts:
Larger sizes and #2 grade remain limited. Lead time needed on all russet orders; up to 7 days advised.

Color potato markets are beginning to rise as demand this week has increased. Reds are showing slightly higher prices in all regions. Red and yellow potatoes are available in Idaho, Washington, North Dakota, and Wisconsin. Mt. Vernon, Washington continues to exhibit excellent quality. As we move into January, expect prices to continue to inch upwards as supplies become lighter. North Dakota and Wisconsin are expected to finish their seasons earlier than normal with a good amount of demand shifting to the Northwest areas of Idaho and Washington for supply.

Alerts:
Markets rising; active demand and lighter supplies, especially red potatoes

Squash supplies are steady on both green and yellow straight-neck. Rain in South Florida has slowed harvest and growth. Cloudy weather has slowed plant production. Warmer temperatures coming later this week should be a boost to production. Quality has been good in most locations, the typical scaring issues have popped up on occasion but overall issues have been limited. Pricing has risen over the past 2 weeks but should be fairly steady throughout the week.

Supplies on both Italian and yellow s/n have increased this week. Quality on both varieties continues to improve. Soft squash supplies from Sonora have decreased and are expected to finish this week with colder temperatures in the growing areas. Quality on soft squash from Sonora is fair. Better supplies on both Italian and Yellow S/N are being harvested in the Mexican state of Sinaloa. Quality on both varieties from Sinaloa is good. Temperatures in the mid 80’s are expected in Sinaloa throughout the week. Heavy supplies of soft squash from Sinaloa are expected as we enter January. The market on both yellow and Italian squash have decreased this week with volume increasing on both varieties. Light supplies of soft squash continue to cross through McAllen, TX.

Chilean stone fruit availability is gradually improving. This week we have limited volumes of red plums to add to the yellow peaches and nectarines. Overall supplies are still fairly snug and market prices remain steady and firm. Quality is being reported as strong and sizes are on the larger side. The fruit is available on both the east and west coasts. We expect supplies to continue to improve as we look out over the next 2-3 weeks and promotional opportunities to become available by late January.

Alerts:
Supplies are still limited, but slowly improving. Red plums are now available in addition to yellow peaches and nectarines. Supplies of Chilean fruit will continue to improve over the next 2-3 weeks.

Similar market conditions this week with more rain in the schedule is keeping the market elevated through the New Year. Sizing is down due to rain disrupting harvest schedules at the start of new operations. Overall availability is limited, and quality is average but should begin to turn around by next week if production increases. Cold weather has been delaying new programs from taking off and supply is expected to remain light until mid-January with markets returning to normal before February. Round and Roma tomatoes are holding with little change in price from last week. Grape and cherry tomatoes remain light from intermittent harvests between rains and will begin to improve by next week.

Alerts:
Demand Exceeds Supply. Availability is limited. Elevated Markets expected through the first half of January

Western tomatoes remain limited with little change to markets this week. Quality is less than desirable, however, product continues to sell out daily. Baja is wrapping up production where quality is poor following recent storm systems. Rain over mainland Mexico is further delaying the start of new programs keeping the scale tilted toward a demand exceeds supply scenario. Round and Roma tomato FOB’s continue to adjust to meet very strong demand. Likewise, grape tomatoes have not yet found a price limit in the market with much of what is available limited from the storm and delayed harvests in new crops. It is still 2 to 3 weeks before volumes return to seasonal norms in Nogales and markets are expected to remain escalated through the first half of January.

Alerts:
Demand Exceeds Supply. Availability is limited. Elevated Markets expected through the first half of January