The Source - December 5, 2018

Granny Smith and Gold Delicious continue to show strength on all sizes. Look for supplies of these varieties to possibly run out before the season is over. Red and red varietals have good availability of most sizes and grades. Quality is very nice with little to no reports upon arrival. Look for the apple market to remain firm for most of this season due to the overall crop being down out of the northwest. Transportation is limited

Alerts:
Granny Smith and Gold Delicious are extremely limited. Small size apples out of the Northwest are limited

Weather has turned cold in Southern Baja (Constitucion) which has slowed production. Fields are starting to close due to the weather, and seasonality. We should see some fields in Caborca Mexico start to open in the next 3 weeks. Production and weather remain the same in both regions in Peru, Northern region (Trujillo), and Southern region (Ica). The demand and the market out west has started to pick up due to the closure of the fields in Southern Baja. The market on the east should start to react at the end of next week with holiday AD's starting up.

Transitions:
Caborca Mexico should start up in about 3 weeks.

Weather in the growing region of Michoacán Mexico this week calls for some rain, thunderstorms, and temps in the 80s. Overall quality is good. Mexico is currently at its peak of the season. Fruit is cutting well and east great. Suppliers are reporting a better supply of ripe and preconditioned fruit this week as they are seeing inventories replenish quickly. Current market price ranges from the low $20s-mid $30s.

Bell Pepper supplies are still light, demand has slowed and prices have declined slightly. Georgia has finished for the season, a few more shippers have started in south Florida but volume is still light. Cooler temperatures have slowed harvest this week and many shippers are getting a late start this season after fighting cheap markets last year during this time period. Quality is has been good overall with most shippers, sizing is running on the larger side.

Alerts:
Supplies still light

Transitions:
Bell pepper will be shipping from south Florida for the next few months.

Peak Seasons:
Bell Pepper is not in peak season.

Green Bell Peppers - Green bell pepper production from Mexico is ramping up. Bells are available to load in Nogales, volume is expected to increase steadily in the next week to 10 days. The pepper market has been strong, demand remains high on the west coast. Quality from Mexico has been good. Green bell peppers from Mexico are also available to load in McAllen, TX

Red Bell Peppers – Red bell peppers are available to load in Nogales, from Mexico. Hot house varieties are mostly being sold in retail packs, and field grown peppers are now being harvested in Sinaloa, Mexico. Hot house varieties are expected to provide limited volume as many growers harvested the peppers while they were still green, to capitalize on a high green pepper market. Good supplies are expected from January through April. Limited supplies also available in Coachella. Hot house red bells from Mexico are also available to load in McAllen, TX

Yellow Bell Peppers – Yellow bell peppers are in very short supply. There are peppers available to load in Nogales, San Diego, and Coachella. Volume is expected to increase toward the end of December from Mexico, where steady supplies are expected through April. Hot house yellow bells from Mexico are also available to load in McAllen, TX

Blackberry supplies continue to be strong. Despite the slowed production from Mexico over the weekend, the blackberries didn't seem to be affected at all. We have plenty of fruit available in all loading locations. Markets are actually softer this week. Quality has been reported as good.

Blueberry supplies have been lighter this week and markets are higher. This is a result of the cold wet weather in Mexico and the delay of arrivals from offshore supplies. As a result of the recent rains in central Mexico, production has slowed down and has had an impact on available fruit this week. Additionally, due to some hail in Peru and delayed boat arrivals to the U.S, we are seeing a small and presumably short-lived supply gap this week. As we anticipate more arrivals next week and increased production in Mexico, we can conversely expect more availability and cheaper prices. Chilean production is also increasing moving forward.

As expected, supplies are becoming lighter on raspberries. Production slowed down over the weekend in Mexico due to weather. Although we expect better weather this week, we have moved past the first peak of production and supplies will gradually decline until we reach another peak in the next 2 weeks. Quality has been reported as good, although we have seen some soft berries. Markets have been steady to higher.

California has experienced some substantial rain over the last week. Salinas, Santa Maria, and Oxnard have all been hit with heavy showers. Additionally, Mexico saw some rain in the berry growing regions which has slowed down production as well. Obviously, this has had a big impact on availability. Shortages began mid last week and have continued into this week with all shippers being in the same situation in regard to extremely limited supplies. Unfortunately (for supplies), the weather forecasts are calling for more rain this week. Exact amounts of precipitation vary by region, but all areas are expecting light to moderate rainfall. This will only further accentuate the already dismal supply situation. We can expect to see gaps in harvest and supply as well as compromised quality for the next 10 days. Order fulfillment will be a challenge and will be subject to daily availability and market price. Expect fill rates and increasing market prices. Please be aware that quality will be compromised. Expect bruising, discoloration, soft and wet berries, and early decay. Ride temps are imperative to the shelf life and quality of the berry in times like this.

Alerts:
Due to the recent rains, supplies are extremely limited. Market prices are up and quality will be a challenge.

Transitions:
Florida will slowly improve production as we move forward.

The broccoli market continues to be in a demand exceeds situation. Supplies remain tight on broccoli in all areas as the cold weather has slowed the growth. Broccoli crowns are extremely tight and may need to sub into bunched. Quality is fair with slight purpling, some mechanical damage, and occasional yellow cast. Look for supplies to continue to remain tight going into next week.

The Brussels Sprouts market has picked up a bit in Salinas, Santa Cruz, and Watsonville areas. With the rains in the Salinas area, yields have been limited. 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 higher 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 be tight but has adjusted downward with a little more supply in recent days. Sizing in Yuma has been extremely slow with the colder weather. With this colder weather, shippers are yielding more Cauliflower 16's. 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.

Demand is very strong and pricing on contracts have escalated. Expect light supplies for the entire week out of the Santa Maria/Oxnard region. The smallest availability continues to be in large sizing, although small sizing has been very active all week. Some seeder and insect damage has been reported but overall the quality continues to be good. Value-added product will escalate by the end of the week and shippers will be watching averages very closely. Transfers to Yuma will continue but a cost for delivery, contract or not will be incurred. Expect light supplies for the entire week with this commodity.

No changes this week in import cherries. Demand seems to be light. Availability is steady. Markets have been fairly steady, ranging in the mid to high 40's. Sizes are large to extra large. Fruit is shipping out of Miami and Philadelphia. Quality is strong.

Jalapeño – Nogales currently receiving low numbers of Jalapeno. Jalapeno volume expected to increase in the back end of this week with hotter temperature in the Sonora growing region. Jalapeno supplies from the Mexican state of Sinaloa have also started with low volume and should increase as we move into the end of November. The market is high. Currently, demand exceeds supply. Jalapenos are also available to load in McAllen, TX.

Pasilla- Nogales currently shipping moderate volume of Pasilla from Sonora, Mexico. Warmer weather in Sonora expected increase Pasilla production. The Pasilla market is steady and supplies currently meet demand. Good quality being seen in Pasilla from the Sonora growing region. Pasilla supplies from Sinaloa projected to start next week. Pasilla is also available to load in McAllen, TX.

Anaheim – Nogales still receiving good volume of Anaheim from the Sonora, Mexico growing district. Moderate number of Anaheim also being harvested in Sinaloa. The market is steady while supplies exceed demand. Good quality being reported from both districts. Anaheim peppers are also available to load in McAllen, TX.

Jalapeño – Jalapeños are available to load in Nogales, from Mexico. Volume is down, as the cool weather in the northern growing areas has slowed production. We are scheduled to transition to the southern region in December; however, the southern crop is delayed due to a hurricane that caused considerable damage to the hot pepper growing area ( Escuinapa, Sinaloa, Mexico ). This could create a supply gap until mid to late January. The market has been strong, and is expected to remain strong through December. Quality is fair to good. Jalapenos are also available to load in McAllen, TX

Pasilla – Pasilla pepper volume is also light in Nogales. The same challenges exist for Pasilla and most hot pepper varieties. Cool weather in the north has slowed production, and the southern region is behind schedule to begin harvesting peppers. The supply gap during the transition could create some very strong markets. Pasilla also available to load in McAllen, TX

Anaheim – Volume is higher on Anaheim peppers than most other varieties. The cooler weather is affecting production in northern Mexico, and the southern areas will start later than normal. The market is steady, but expected to be stronger as supplies decrease. Quality has been good. Anaheim peppers are also available to load in McAllen, TX

Tomatillo – Tomatillos are available to load in Nogales, from Mexico. Volume is way down due to the recent cool weather. Supplies from the southern areas will not be available until January. The market is very strong and is expected to remain strong. The cool weather is affecting husked and de- husked tomatillos. Quality has been mostly fair. Tomatillos also available to load in McAllen, TX

Serrano – Serrano peppers are available to load in Nogales, from Mexico. Volume is down, and the southern area will start late this season due to storm damage from a few months back. The market is strong, and should remain that way until the southern Mexican regions begin to harvest. Serrano peppers are also available to load in McAllen, TX

The Cilantro market continues to remain steady 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 are steady, covering normal business and holding off on promotable volumes. With the same situation as the navels the rain is playing a big part on the supply and markets. Currently harvesting out District 3 (Desert crop) and District 1 (San Joaquin Valley). Peaking on 140/165/115 size in both growing regions. District 3 will continue to be a challenge with the labor shortage, light supplies, and market expected to be firm. District 1 volume is starting to come on stronger with steady market on all sizing. Rain expected the middle part of the week could affect supply, but suppliers are making sure to pack ahead to avoid jeopardizing fulfilling orders. The two regions have a good run on sizes and expected to improve in the next few months.

Lime supplies are looking steady now through mid December with fair quality and steady markets. Supplies expecting to tighten up mid December through the first of the year with market prices on big sizes expecting to drop and small size pricing looking to climb. Current market prices ranges from $5 -$11 depending on the size.

California Navels is moving along with good supplies across the board, plenty of promotable volume and great quality. The demand is increasing with markets starting to firm up. The change in market is due to the slowdown from the Thanksgiving holiday and multiple days of rain the last week. With more rain in the forecast, suppliers may experience potential days without able to get into the fields to harvest. The availability of XL fruit has cleaned up with the main focus on the MED and SML fruit. With rain hanging around the Central Valley, we could see supplies tighten up on all sizes. With very little inventory available, the market will remain firm until we see pockets of supply to build up. Moving forward, the size structure will be 88/72/113. 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 32/36/28 followed by size 40. Plenty of Pummelos available sizing and quality look great. Cara Caras are expected to start the end of the week with supplies being light to start but will improve over the next few weeks. Blood oranges expected to start mid to late next week.

Cucumber supply is very light. Cooler temperatures are slowing harvest tremendously and Florida shippers are starting to wind down for the season. Most shippers will be in production for another 2 weeks but supplies will be light. One shipper in Honduras has started importing light supplies, the other shippers will not start until the middle of December. Quality is fair for the most part, some issues have showed up in the older field cucumbers from Florida. The imports are a little light in color on the first shipment but color will get better by next week.

Alerts:
Very light supplies

Transitions:
Cucumbers are not in transition, 1 shipper has started importing Honduran cucumbers.

Peak Seasons:
Cucumbers are not in peak season.

Cucumbers are available to load in Nogales, from Mexico. Volume is down as we transition from the northern growing areas in Mexico, to the state of Sinaloa. We could see a small gap in supply due to severe storms in the area back in October. Most growers in Sinaloa will be starting later than normal, and cool weather in Sonora is slowing production sharply. The market has been lower, but the lighter supply is allowing growers to set firm pricing for the open market. Light supplies of cucumbers are also available to load in McAllen, TX

Eggplant

Eggplant is available to load in Nogales, from Mexico. Volume is increasing steadily , supply exceeds demand on smaller sizes. Retail sizes are being sold for more money, most growers are producing smaller fruit at the front end of the growing season. Steady supplies from Mexico are expected through April.

Supplies on domestic green grapes is becoming more limited. As the domestic season starts to wind down we will see smaller size grapes become scares and larger, stronger grapes become the mainstay. Most of the fruit is storage crop. Quality can be a challenge as we approach the tail end of the season. We will see some split markets depending on age and quality of the fruit being shipped. Overall, markets are higher this week. There has been some very light early arrivals of import fruit, but nothing being shipped on the west coast yet. We expect import fruit to increase as we move forward in December and the import season to make a shift by the first of the year.

Alerts:
Domestic season will start to wind down. Market prices are higher and quality will need to be monitored.

Transitions:
Import grapes will make the transition into our market late December.

Domestic red grapes are still readily available as there are several different varieties being sold. However, harvest is coming to and end and we will be relying on storage crop to cover demand before import season starts late December. That being said, we will see varying levels of quality and price. All sizes are available, but depending on the age of the fruit, we will see split markets. It will undoubtedly turn into a "get wait you pay for" situation as we approach the end of the domestic season. Import fruit will gradually make it's way to the US over the next 2-3 weeks with an expected transition by the new year.

Alerts:
As we finish the domestic season, quality will need to be monitored closely.

Transitions:
Import season is expected to start by the first of the year.

The Green Onion market continues to come off as supplies have increased. 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 plentiful stead going into next week.

The kale market continues to stay steady this week and will continue to be with this cooler weather in Yuma. Quality is good with full bunches, and only an occasional yellow leaf being reported.

Demand continues to be strong. Suppliers cannot catch up to fill all orders. Escalated pricing is in effect for value-added product as well as all contracts. The overall quality is fair. Lightweights are the biggest issues many shippers are dealing with. Weights are ranging from 34-42 pounds pending the shipper. Puffiness, mechanical and growth crack has been reported upon arrivals. The vision that romaine would ease the iceberg demand has simply not happened. Production in Santa Maria and Yuma will struggle throughout this week and next week as well. Rain is expected in the Yuma region this week and this will only create greater shortages of product.

Demand on green and red leaf, as well as butter, has seen demand exceed supplies in the marketplace. Romaine has softened as availability is much better with multiple suppliers. Escalated pricing is in effect with all leaf items including romaine. Expect this market to be active throughout the week. Value-added, green and red leaf fillets, as well as romaine fillets, are escalated in pricing as well. Production in the southern California region, as well as Yuma, will be light due to cold temperatures and rain in the growing areas. The weights on green and red leaf as well as butter are fair. Romaine is averaging 29-33 pounds.

The Tender Leaf market continues to be strong on spring mix, arugula, baby spinach, and cello spinach as we are in the third week in Yuma. Yields are down to the recent cold weather in Yuma. Quality issues are fair with minimal yellowing and bruising of the tender leaves. Look for these items to remain tight going into next week.

Weather in the desert calls for temps in the 60s this week with some rain Thursday and Friday. That rain might be enough to end the season in the growing region of Arizona. There is a limited supply of cantaloupes, mostly 12s. On the offshore fruit, temps in the Zacapa, Guatemala growing region are in the high 90s with some rain in the forecast this week. We are seeing fruit available to load FOB in Florida, Pennsylvania, and Southern California. Mostly large fruit this week J4s, J6s, J9s, 9s and 12s. Open market ranges from $15-$25. Overall quality is fair.

Weather in Sonora Mexico calls for temps in the 70s with some rain in the forecast. We are seeing a good supply on all sizes this week and reports of fair quality. The market is holding at $9-$16 range depending on size. Offshore fruit is now available to load fob in Florida, Pennsylvania, and Southern California. Good supply on larger sized fruit as smaller fruit is hard to come by. Reports of fair quality on offshore fruit.

Seedless watermelons are available in very light supply in Nogales, from Mexico. Cooler weather has really affected the melon growing regions in Northern Mexico. Volume is down, and the market is very strong. We will transition to Southern Mexico for supplies in the next week to 10 days. Pricing is expected to increase with added freight for the winter crop (growing area is 800 miles to the south ). Quality of the fruit in Nogales is fair, some poor ( low sugar / old fields ) The new crop is expected to provide good quality melons

Onion supplies continue to outpace demand keeping the market unchanged on all sizes and colors. Quality is excellent. Don't look for markets to change to maybe after the first of the year. Weather is the only thing to keep your eyes on, as it could slow the ability of trucks getting around. Staying ahead of supplies is always a good idea this time of the year.

Bartletts, Comice, D'Anjou, Bosc, Forelle, and Red Crimson pears are in good supplies coming out of Washington and Oregon. Bartletts are peaking on 100 then 110 count with 90 count and larger being limited. This will be the trend through their season. Quality has been very nice on most varieties with good sugar levels. Sporadic reports of bruising and discolored skins have been reported on a few arrivals. Limited transportation is slowing movement

Peak Seasons:
Pears supplies are in peak season coming out of storage

Current supplies are limited, but covering normal business. The next few week's supplies expected to be even tighter. 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.

Potato carton market has moderate to good movement depending on size. Sizing availability ranges widely shipper to shipper depending on variety. Norkotah's are running larger with Burbanks running on the smaller side. Market have firmed slightly across the board. Look for the carton markets to stabilize as the retail bale business peaks for the Christmas pull. Quality is still very nice will little to no reports of issues upon arrival. Due to the weather Trucks have snow and ice built up on their trailers adding extra weight not allowing them to haul as many potatoes. Transportation is still limited

Alerts:
Transportation limited

Peak Seasons:
Storage potato are in Peak production out of Washington, Idaho, Colorado and Wisconsin

Red and Gold potatoes supplies continue to be good out most shipping points. Markets are steady with little change. Wisconsin is having issues with supplies of Red B's. Red and Gold C's supplies are very limited out this growing area. Shippers in Wisconsin are bringing bulk supplies from North Dakota to supplement their local supplies. Pricing is getting a premium with better quality product being pack. California will be starting up with supplies in the next 10 days Transportation is limited.

Transitions:
California will be breaking ground New crop Red and Gold next week in a light way

Zucchini and Yellow S/N - There is zucchini and yellow squash available to load in Nogales, from Mexico. Volume is down as we transition from the northern growing areas of Mexico, and begin to harvest out of Sinaloa, Mexico. This region will supply the market until we transition back up to the northern areas in March. Quality ranges in Nogales, as there are now two growing regions in harvest. There could be a small gap in supply with cooler weather affecting production in the north. The newer fields in Sinaloa are producing good quality fruit at the front end of the harvest.

The last of the domestic stone fruit is coming to an end. Only plums are available. Blacks are finished with only red plums remaining. Sizes are leaning on the large side. Market prices have been slightly higher. Quality has been good. The import stone fruit season is expected to start late December with the first arrivals expected for the first of the year.

Extreme heat during the planting season in Palmetto/Ruskin Districts has created reduced volumes and smaller sizes than normal. Immokalee/Naples farm operations are beginning to ramp up operations but will not have any significant volume until mid to late December. Currently, Florida is coming out of a 4-day mini heat wave helping to bring out some blooms on the vines, however, temperatures are forecasted to see-saw over the next 10 days dipping into the 40’s by this evening. The Eastern Market has shown a slight correction this week after FOB’s soared last week. Round tomatoes have improved by $1 to $2, while roma and grape tomatoes are showing a savings of $2 -$3. Harvests are still considered to be light, however, the quality and sizing is reported to be excellent. Strong markets are being forecasted to last through at least the first half of December.

Alerts:
There is a national shortage of tomatoes of which Roma tomatoes are extremely short. As Florida season gets started with light supply, and Mexico farms struggle against crop loss from weather related setbacks, supplies continue to run short each week as steady demand sustains an elevated market.

This time of year, Baja is usually the main producer of round and roma tomatoes but a virus has affected major farms greatly diminishing supply leading to some crop failures. Sinaloa is not expected to have any real volume of tomatoes until after the first of the year due to nearly 2 months of hurricane-related weather causing a major disruption in supply for most of December and into 2019. Northern States of Coahuila, Durango, and Zacatecas in central Mexico experienced a freeze eliminating roma and grape tomato supplies, especially open field grown varieties not protected by adapted environments.

Both Baja and Mexico are experiencing more rain this week which is forecasted to last through the weekend. Reduced picking schedules, in already weather reduced acreage, are supporting a relatively unchanged western marketplace this week. Similar to Florida, Fobs have corrected from last week by $1-$3, however, rounds and romas still exceed the $20 mark. Grapes are relatively unchanged and forecasted as steady. There is a wide range in quality across all varieties at this time correlating with pricing, where premiums may be required for consistent quality and condition in pack outs. It is reasonable to expect escalated pricing through the rest of 2018 until mainland Mexico begins harvesting winter programs at the end of January.

Alerts:
There is a national shortage of tomatoes of which Roma tomatoes are extremely short. As Florida season gets started with light supply, and Mexico farms struggle against crop loss from weather related setbacks, supplies continue to run short each week as steady demand sustains an elevated market.