The Source - February 1, 2017

Washington - red delicious are mostly steady on all sizes but the deals are starting to go away. Reds are still peaking on extra-fancy 64-88s. Golden delicious are steady on all sizes and continue to peak on 72/80/88s. Small Goldens remain very short with very few 125s and smaller. Granny-smith are higher on 72s and larger in all grades. The fruit is still peaking on 72/80/88's. Granny 100s and smaller are exceptionally short. Most suppliers are still subbing up in grade and size to cover orders of 100s and smaller and this will continue for the entire season. The Gala market is steady on all sizes. Galas are still peaking on 80/88/100/72s and they have good volume in the larger sizes. Fuji's are steady to slightly higher on all sizes and are still peaking on 72/80/88s. Fuji volume is light right now. Honeycrisp are steady to slightly higher due to generally light supplies esp. in the lower grades . They are still peaking on 80/88/100s. The quality for red delicious, golden delicious, granny-smith, Galas, Fujis, and Honey Crisp has been good. Braeburns, Red Romes, and Cameos are available in limited quantitys.
Idaho---red delicious, Red Romes, and Pink Lady's are the bulk of the current production and are all fairly steady to slightly higher. Most of the Idaho varieties are peaking on 64-100s. The quality has been good.
Michigan--McIntosh and Empires are steady but strong due to lighter storage supplies and strong demand. Golden delicious, Jonathans, red Romes, Galas, red delicious, and Fujis are all fairly steady. The Galas, Red Romes, and Jonathans are still peaking on the smaller sizes while the Golden delicious, Red delicious, Fujis, and McIntosh are heavier to medium sized fruit. The quality has been good.
New York---The Empire and McIntosh markets are steady to higher and strong due to light supplies and strong demand. Red delicious, Galas, Fujis, and Red Romes are fairly steady but the market is starting to show strength. The sizing has been more medium recently so 125 and 138 volume is limited. The quality has been good.

Alerts:
Small granny-smith apples are exceptionally tight in all areas! Washington continues to peak on big fruit so our suppliers will continue to sub up in size and grade on orders for 100-size and smaller. The size subbing is making the 72-88 size fruit short.

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

Volumes from Mexico have increased with excellent growing weather in the region. The market is lower overall with the increased volume and we should see even better volume in the next few weeks.

With more acreage opening day by day, we should see 28lb asparagus being packed this week.

Transitions:
East Coast has transitioned all into Mexican Asparagus. Peruvian asparagus is done.

Shipments from Mexico this week are expected to be remain around 42million pounds and drop of next week to around 32 million pounds per week for the reminder for February. The overall size curve is now skewing toward the very larger 32ct/36ct with less of the smaller fruit and still see heaver percentage of #2 fruit.

Excellent Quality, Condition and supply. Supply exceeds demand keeping market on Green Bells low and very reasonable. Mostly offering number one grade peaking on large , xlarge and jumbo.

Colored bells have started with strong supply on both blocky and elongated varieties. Good quality and condition. Supply exceeds demand keeping Market on Colored bells modest. Shipping from Mexico crossing in Nogales.

Supply is limited and demand is very good. Central Mexico is the main production region for the winter months and is beginning their seasonal decline. Weather has also slowed production and fruit maturation over recent weeks. Decreased volume is industry wide and we will remain in light supplies for another 2-3 weeks.

Alerts:
Supply is very limited and expected to remain short for another 2-3 weeks before we see an increase in the Central Mexican crop.

Supplies are steady now but there has been a slight decrease in availability as Southern Chile comes off of peak production and Peru's seasonal production is on the decline going forward. Mexican production is expected to remain fairly steady for the next several weeks. Quality has been good overall but there have been minor instances of quality issues in older lots from Chile and Peru.

Transitions:
Central Florida should start picking their initial harvests toward the end of February and increasing into March.

Raspberry production has slowed and supply has begun to decrease from Mexico and Southern California. These crops have now passed peak production for the season and we will be heading into very light availability for the next several weeks. We are about 3-4 weeks out before we see the crop start to come back with better volumes.

Alerts:
Availability is limited and supplies will continue to be short over the next several weeks before we see another increase from the Central Mexico and California crops.

Valentine's Day is just around the corner and fresh strawberries will be in high demand over the next 2 weeks. Availability remains limited out of California but is showing a considerable improvement from recent weeks. Quality is improving as we move further away from the rains and wind of early last week. Florida production is increasing and should remain steady throughout the pull period. Weather is favorable with mostly warm and clear in the forecast for the next 10 days. Central Mexico is in peak production with very good availability expected over the next few weeks. Forecast looks clear and warm for the next 10 days as well.

Transitions:
A few growers will pick their first boxes of Santa Maria new crop strawberries late this week or early next. Pallet quantities should be available by mid-late February.

Peak Seasons:
Central Mexico strawberry production is peaking.

The position on broccoli is a tricky one. The market in Mexico has slightly decreased. Yet the other growing regions the market continues to be active with limited supplies. Processors are holding customers to averages as well. Santa Maria continues to struggle with quality and supplies. The current domestic supplies and markets will carry into next week.

Alerts:
The broccoli market remains active with limited supplies. This outlook will go well into next week.

There are abundant supplies of brussel sprouts. The market is reflecting this for sure. Quality is excellent with all sizes available, nice green color, and little black spotting. This will be the case into next week.

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 market price on the jumbo size carrots firming up.

The cauliflower market is trending higher as we move into this week. Supplies are starting to hit a wall and there will be a gap moving into next week. Rain in Santa Maria is affecting quality in that growing region putting pressure on Yuma to fill the void. The market has already moved higher and look for this into next week as well. Quality is better out of Yuma with little bruising.

Alerts:
The cauliflower market is trending higher as we move into a supply gap that looks to last for 2 weeks.

This market is steady to begin the week. Production continues in Southern California as well as Yuma. Pricing is competitive. The best availability continues on 24-30 counts but all sizing has good availability to meet demand. The overall quality continues to be strong. Light Mechanical and twisting has been reported, but these issues have been minimal. Southern California may have rain by the end of the week, but Yuma will be dry. Expect good supplies with most shippers throughout the week.

Pablano - Excellent size and Quality and color will continue with steady to heavier 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. Many number 2s are being shipped.

Anaheim- good quality, condition and size are expected to continue as supply have improved.

The rains in Santa Maria and Oxnard have caused problems not only with quality but harvesting supplies as well. The rains have caused spotting on the leaves, coupled by brown to yellow discoloration. Inconsistent sizing of the bunches is also occurring. The market is trending higher but not at an excessive rate.

The desert crop is being harvested with size growth, larger sizes predominate peaking 115s/95s/140s making 165s and 200s short. Central Valley crop is now back into production after last weeks rain delays and with this rain comes size growth, with more 95s/115s/140s and less 165s/200s. The Ventura crop has just began some limited harvest of their crop. Over all supplies look good, with the 165s/200s being on the shorter side.

The lime market is higher on all sizes. The higher market market is due to an overall increase in demand. The old crop harvest is in the larger size profile 110/150's while the new crop is 230/250's. The quality is good with very few problems being reported. No more adverse weather is being reported for the near future so we should experience normal market fluctuations.

Clear weather for a week now in the main growing area for California Navels and growers have been trying to catch up on picking. This has been a slow task for some as their orchards have taken awhile to dry out enough to get crews into them. What is being picked is going right into packing for orders and no real bin inventory is being built up and demand is still exceeding supplies as they work to get up to speed. There is rain in the forecast for Thursday and Friday which could slow harvest down again, but clear weather coming back for the weekend. It will take harvest into next week for shippers inventories to come back up to normal.

Good supply on cucumber coming out Mexico, Excellent color, quality and condition on all grades sizes and pack styles. Supply will continue with slightly less volume for the next week.Euro cucumber is also available in very limited supply, both #1and #2 both single layer and bushel boxes.

Good Quality and condition with good size are currently being shipped from Nogales, mostly larger sizes are available as volume has increased. Many number 2s being shipped with some lots showing internal discoloration.

Green grape supplies have been consistent on both coasts. Quality is being reported as very good. Market prices did come down slightly on all sizes. The heaviest volume is on sizes large and extra large. As we move forward, we expect supplies to remain consistent and market prices to gradually adjust, depending on inventory. Promotional opportunities are available.

Red grapes continue to be plentiful. There is excellent supplies of all sizes on both coasts. Quality is very good and markets have stabilized. After a rapid decline in market prices over the last two weeks, we have seen the red grapes finally level out. There was not much change in pricing industry wide and shippers are still looking for business. There is heavy volumes of inventory and more fruit expected to arrive. Promotional opportunities are available as well as volume spot buys. Moving forward, supply is expected to remain consistent and we do not anticipate much market price activity.

We are continuing to see delayed crossing from Mexico. Although the market is trending lower on iced, the iceless product is commanding a premium. Quality is overall good with little quality complaints. Some arrivals have been some issue with the tops turning brown.

Kale supplies have decreased over the past week. The rains in Oxnard / Santa Maria have put a halt in harvesting enough supplies to meet demand. Therefore we have a spike in the market. Quality is still excellent from all growing regions with full cartons, minimal yellowing, and little dehydration.

This market is stronger to begin the week. There have been quality issues worth noting. Discoloration, pink ribbing, misshapen heads, mildew, and heavy weights have been reported. The gap in pricing industry wide has closed. Warm temperatures in the desert will occur all week with no rain in the forecast. Southern California may have light rain towards the end of the week. The quality is fair with most shippers. Weights on palletized have has been reported to be 41 -48 pounds.

Yuma production is expected to be lighter this week. Demand is fair. The weather this week will be good in this region however. Cold weather and rain has hurt the crop on leaf items in Southern California. Possible rain is forecasted by the end of the week. On romaine, defects in both regions include blister and peel, twisting, mechanical damage and pink ribbing. These defects are industry wide. On green and red leaf as well as butter, the previous mentioned defects have also been seen, but not as widely as romaine. Expect this market to get stronger throughout the week.

Demand is good on all sizes. Supplies are steady from Honduras and Guatemala. 12's continue to get increased demand due to substitution for 15ct. The 15ct are becoming more available. 18's continue to be extremely short in supply. The market is steady across the board. The quality is excellent right now and for the long term outlook too. Weather has been ideal in the growing regions .

Honeydew supplies have leveled out and are starting to increase slowly. Mexico is exporting very nice looking honeydews up to us and their supplies are light for the next few months. Offshore dews have excellent quality and are peaking on large sizes such as 5's and 6's with 8's being short supplied. Offshore dew volume is returning to normal levels. Demand is beginning to increase. The market is currently steady for offshore and Mexican dews.

Northern Mexico has finished and production from Southern Mexico ( Jalisco/Colima) is improving. Quality and condition are good with high sugar all sizes are available in both bins and cartons . Personal seedless is available in limited supply peaking on smaller sizes.

Demand is moderate to light on all sizes of Red and Yellow onions out of Idaho/Oregon and Washington. Market is slightly weaker as supplies improved from the slow downs from the weather two weeks ago. Forecast is calling for some light to moderate snow the balance of this week with clearing going into the weekend. Quality is still being reported as good. White onions supplies are winding down quickly out of the Northwest. Quality is fair. Market is active. Mexico has starting crossing Yellow, White and Red Onions loading in McAllen, Texas. Market is steady. Quality is being reported as good. Idaho Storage supplies of Yellow and Red onions will go into April, maybe longer. Mexico supplies should be in full production by the second week of February.

Transitions:
Mexico has just started crossing onions into McAllen, Texas.

Washington -- Large Bartlett pears are steady with good availability, even some price-flex for volume. 110's and smaller are higher due to light supplies. Bartlett pears are still peaking on US#1 70/80/90s. The storage quality has been good. D'anjou 90-size and larger are steady and supplies are abundant, while 110-size and smaller are very short and the market is higher. Many suppliers have switched their consumer bag business to D'anjou's and that is taking up a lot of the smaller fruit. They continue to peak on US#1 80/90/100s. The quality has been good. Bosc pears are also steady and are peaking on US#1 80/90/100s. Expect the Bosc market to strengthen as the Bartletts disappear. The quality has been good. Red pears are steady and they are still peaking on US#1 45/50 half cartons. The red pear availability is still very light. The red pear quality has also been good.
Chile - Chilean Bartlett pears are still available on both coasts. Like Washington they are peaking on larger fruit with mostly 90s and larger. The quality has been good.

Alerts:
100-size and smaller Bartlett and D'anjou pears are very short and the market is up. With the smaller Bartlett shippers getting close to the end of the season we will see a much stronger market over the next few weeks.

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

Supplies have begun to lighten this week and look to be very tight through February due to a period of heavy rains at the end of November of last year. This tighter supply currently looks to be momentary tighten event.

Demand is moderate on all sizes cartons coming out of Idaho, Washington, Colorado and Wisconsin. Consumer retail demand is very light. Quality is still being reported as good. Markets are unchanged. Weather forecast is calling for some light snow the next couple of days, then clearing going into the weekend, followed by some more snow next week. Luckily no extreme cold temperatures forecasted for the next 10 days.

Peak Seasons:
Potatoes out of Idaho, Washington, Colorado and Wisconsin are in Peak Season

Bakersfield California - red, white, and gold potatoes are steady on all sizes and all are peaking on A size. The White market remains strong due to light supplies. The quality is good.
Idaho - red and gold potatoes are steady on all sizes. The red potato sizing is split between As and Bs while the golds are heavier to A-size. The quality is good.
Western Washington - red and gold potatoes are steady and continue to peak on A size. The quality has been good.
North Dakota - red and gold potatoes are steady on all sizes and they are also still peaking on A size. The quality has been good.
Wisconsin - reds and golds are steady to higher on all sizes but the market is strong due to light indigenous supplies. Most shippers are sourcing from North Dakota or Washington so they can finish the season, and that has pushed the market up. The quality is good.
Canada - reds, golds, and whites are mostly steady but some sizes are higher depending on the supplier. The quality has been good.

Alerts:
Bakersfield, California will finish shipping whites in mid February so expect a stronger market after that as our suppliers source from Florida.

Transitions:
Florida has started with all colors although they have more red potatoes right now.

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

After 2 weeks of extremely short supply, Italian and yellow squash have improved. Many number 2s are being packed because of the immediate demand Quality and condition is also improving. Hard squash is also very available with all varieties being offered.

The Chilean stone fruit supply and market conditions are steady. There is ample availability on both coasts. We have several loading locations available for peaches, nectarines and plums. Sizes on the peaches and nectarines are ranging on the larger side (40-50's) on tray packs and (50-60's) on volume fill. Plums are smaller ranging between 60-80's on the volume fill. Quality is being reported as excellent. We did see minor price adjustments this week on the tray packs, volume fill has remained steady. Promotional opportunities are available. We expect supplies to remain strong through the month of February and begin to taper off by March.

Temperatures in the mid 30s over the weekend have slowed production this week, however supply still exceeds demand leaving the market steady. Ideal growing conditions have carried crops longer than usual keeping markets relatively low for this time of year. As we move into Florida's winter season when less acreage is planted, overall supply will begin to decrease as we get into the month of February. Production is now focused in South Florida, where there are rounds, romas and grapes available daily. Demand is low allowing for a wide variety of product and open market orders to keep product moving.

Ideal growing conditions in Mexico continue driving production of vine ripe and gas green winter programs. Heavy volumes of tomatoes crossing from Mexico are keeping the markets low as Eastern supply also shows to be bountiful. Roma cherry and grape varieties are also in great supply. With no spikes in demand expected in the near future, with winter storms tracking a majority of the buying markets across the county, these markets will remain steady for the near future until demand begins to match its supply counterpart.