The Source - February 15, 2017

Washington - red delicious are mostly steady on all sizes. Red delicious are still peaking on extra-fancy 64-88s and the smaller sizes are limited. Golden delicious are steady on all sizes and continue to peak on 72/80/88s. Small Goldens remain very short. Granny-smith are steady but strong on 72s and smaller in all grades. The fruit is still peaking on 72/80/88's. Granny 100s and smaller are exceptionally short and supplies seam to be getting shorter. Most shippers are still subbing up in size and grade on the smaller sizes in order to cover orders. 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. Gala 125/138s are limited right now. Fuji's are steady on all sizes and are still peaking on 72/80/88s. Fuji volume is generally light right now especially in 113s and smaller. Honeycrisp are steady to higher due to light supplies and they are still peaking on 80/88/100s. The quality for all varieties has been good. Braeburns are available in limited quantitys only.
Idaho---red delicious, Red Romes, and Pink Lady's are still the bulk of the current production and they are all fairly steady. Most of the Idaho varieties are peaking on 64-100s. The quality has been good.
Michigan--McIntosh and Empires remain 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 the medium sizes. The quality has been good.
New York---The Empire and McIntosh markets are steady but remain 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 in the smaller sizes due to larger fruit. All varieties are peaking on 80/88/100s right now. The quality has been good.
Pennsylvania---red delicious, golden delicious, Red Romes, Pink Ladys, Fujis, and Granny-smith are all steady and are all are heavier to 88/100 size right now. They are producing more US#1 and US fancy grade but the quality has been good.

Alerts:
Washington---Granny smith apples are still very large so the 100-size and smaller are very limited. Most suppliers continue to sub up in size and grade to cover orders of the smaller fruit.

New York and Michigan---Empires and McIntosh are strong due to light supplies and strong demand.

Peak Seasons:
All areas are in the peak of their seasons.

Weather in the Caborca growing region is excellent and we're in full production. We should see it peak for another 4-5 weeks, then it should taper off. All growers are now packing 28 lb asparagus, and the 11 lbs are being packed to order.

Transitions:
California production will start this week, but rain is in the forecast for the next 4-6 days which will slow production. Consistent supplies will not start until the beginning of March.

Mexico has dropped their crop estimate for this season down by 25 percent. They have been shipping to the states weekly on the average of 45 million pounds of fruit with peak weeks of 50 to 52 million pounds. They are now telling us that we are to expect only 25 to 30 million per week through the end of this crop ending in June. Mexican growers have raise field prices, are doing so every other day. US shippers are agreeing to these price increases and are still falling short of fruit need to fill demand. Market prices have jumped up 25-30 percent across to board and all sizes and grades of fruit.

Alerts:
Mexico shipments have dropped drastically, and look to stay at a much lower volume than was expected. Markets are surging upward.

Green bell Pepper has dropped in supply and will show a gap in production, prices have jumped up and will continue for the near future with larger sizes on number one grade being very short.

Colored Bells ( Red, Yellow and Orange) continue with slightly improved supply on both blocky and elongated varieties. Good quality and condition will continue, supply has remained steady with market and demand improving some. Packing 25# 15# and 11# units.

Alerts:
Very limited supply of number one green pepper for the near future crossing in Nogales, pricing has jumped due to short supply.

Blackberry availability continues to be very limited this week. Although there has been some slightly warmer temperatures in Mexico, the changes have not been sufficient enough to make a big difference in production. Yields remain low and volume is limited. Shippers anticipate increased supplies over the next 2 weeks as the weather continues to improve.

Alerts:
Production remains limited in Mexico and California.

Blueberry supplies continue to remain tight this week. A delayed vessel has limited the amount of available import fruit in California. This vessel is expected to arrive Thursday and will help relieve some of the shortages on the west coast for the weekend and early next week. Peruvian production is coming to end and volume continues to decline. Chilean production has been gradually decreasing and is expected to last another 2-3 weeks. Mexico harvest is ramping up and is expected to improve as we move forward. Peak Mexico production will be late March. Florida is expected to start later this month and increase as we move into April.

Transitions:
Chilean and Peruvian production is coming to and end. Mexico harvest is ramping up. Florida is expected to start later this month.

Raspberry availability continue to be limited this week, but supplies are expected to gradually improve as we move forward. Mexican production is slowly improving as the weather warms up and we expect to see improvements every week as we move toward spring. California harvest will be light this week (depending on weather) and is expecting to see increased production over the next 2-3 weeks.

Alerts:
Production remains limited in Mexico and California.

Strawberry supplies in Florida and Texas have greatly improved this week, while California production continues to struggle with the affects of the heavy rains. Mexico has been in peak production; supplying Texas with a consistent flow of good quality berries. TX market prices have come down slightly this week with spot buy opportunities available. Production in Florida has been strong with heavy volumes of open fruit. FL quality has been reported as good and aggressive prices are being offered for volume buys. California continues to get hit with rain which has had a tremendous impact on overall production and quality. Supplies are still very limited in Oxnard this week and the forecast calls for more rain this weekend. This will continue to limit production and availability of CA fruit as we approach next week. Market prices are expected to remain firm.

Alerts:
Rain in California continues to limit production and quality is fair.

Peak Seasons:
Mexico is currently in peak production.

Oxnard strawberry quality due to recent rain

The broccoli market has a downward trend as supplies ramp up out of Mexico and Yuma AZ. But we do have rain in the forecast in Santa Maria this Thursday that will last for 5 to 6 days. This will further affect the fair quality out of that growing region. Quality in Mexico and Yuma is much better with vibrant green color and minimal dehydration. The rain in the forecast will again put pressure on Yuma and Mexico to fill the supply void. So even with the market trending lower it has a possibility to bounce back next week.

Alerts:
The broccoli market is declining with increase supplies from Mexico and Yuma. But we have rain in the forecast for Santa Maria starting this Thursday that will last for 5 to 6 days.

We are currently in peak growing season in Mexico. The market is really aggressive with plenty of supplies. Quality is excellent with all sizes available and vibrant green color. This trend will last well into next week.

Peak Seasons:
We are currently in peak season out of Mexico.

Carrot supplies remain good and look continue so, with jumbo, cello and value added product.

The cauliflower market has hit its plateau. Supplies are steady but demand has fallen off at the higher price levels. Quality out of Santa Maria is fair with bruising and black spotting. Quality out of Yuma is much better and all sizes are available. The market looks to trend lower moving into the weekend and stabilize next week.

Alerts:
The market has reached its peak and looks to trend lower due to lack of demand.

Heavy rains in Oxnard and Santa Maria is expected to begin this Thursday and continue for six straight days. Production will be limited. With this being said, the market is currently steady, as demand is off. Yuma production is moderate. All sizing continues to be available. This market is competitive and flexing continues with a few suppliers. Good quality continues to be reported. Light twisting has been reported, but these issues have been minimal. Expect to see some muddy boxes upon arrival. Shippers are trying to keep clean, but it is inevitable that muddiness is going to be seen on boxes and raw material.

Alerts:
Six days of rain in Santa Maria and Oxnard expected to begin this Thursday.

Pablano - Excellent size and Quality will continue with slightly 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. Many number 2s are being shipped.

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

The severity of quality continues to be the staple here. The rain in Santa Maria and Oxnard has drastically affected the cilantro supplies. Yuma and Baja MX is not able to help with their current acreage. And now we have rain set in both Santa Maria & Oxnard coming that will last for 5 to 6 days. This will prolong the current market and supply situation. We will continue to see problems well into next week.

Alerts:
The current supply shortages continue with quality being fair at best out of Santa Maria and Oxnard. Rain is set to hit these growing regions to prolong the issues. This will put pressure on Yuma and Baja MX to fill the void. But there isn't enough acreage to help.

The desert crop is fully harvested and this is the last week of shipping. Central Valley crop is faced with limited production with the on and off rains they are getting. Rains coming again beginning on Thursday and forecasted through Wednesday of next week. 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, but they are also will be getting rain this week, so harvest has been limited. Over all supplies are beginning to tighten with the desert finishing and rains in the other two areas.

The lime market is steady to higher on all sizes. The higher market is due to an overall increase in demand and shorter supplies especially on 110's through 175's. The old crop harvest is in the larger size profile 110/150's while the new crop is 230/250's. The supply of old crop limes is dropping off faster than the new crop is producing. The quality is good with very few problems being reported other than an occasional stylar end breakdown. Rain is being reported in the growing region so we may have disrupted supplies and quality.

Alerts:
Rain is being reported in the growing region so supplies and quality my be affected.

Rains last week put harvest off and growers got behind in picking and bin inventory was very low to begin the week. Clear weather to begin this week and growers are picking as much as the can before a new series of wet storms hit the growing area for California Navels again on Thursday and is forecasted through Wednesday of next week. What harvest that does get done before rains begin again is expected to just enough to meet this weeks demand. Availability for next week will be very limited on all sizes and grades until weather clears and groves dry out.

Alerts:
Rains returning to California's Navel orange growing area again on Thursday and is forecasted through Wednesday of next week. Availability for next week will be very limited on all sizes and grades until weather clears and groves dry out.

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 24 size are available as volume drops slightly. Many number 2s being shipped.

Supplies of green grapes have been good on both coasts. Quality is being reported as very good. Market prices are lower to steady. Large and extra large packs are where the main volume is. The near future looks to have steady supplies and excellent quality with normal small market adjustments happening. Promotional opportunities are available.

Red grapes are plentiful and look to be for several days. Excellent supplies are available on both coasts. Quality is also excellent and should remain so for the near future. The market is lower to steady again and it feels more like a bottom is near. Growing conditions are good so we shouldn't see many disruptions to the current environment for red grapes. Promotional opportunities are available on excellent grapes.

Peak Seasons:
We are in a peak point of production with great volume. Promotional opportunities are available.

As the steady flow of green onions makes its way from Mexico, the market has finally founds its competitive level. Although we have had some late crossings from Mexico with iceless green onions. The quality has been really good with minimal arrival issues. There shouldn't be many disruptions moving into the end of this week and into next.

The kale supplies have improved in Yuma and fro Baja MX. Although Santa Maria and Oxnard seem to struggle along. Quality is better out of Yuma and Baja, but the rain in Santa Maria and Oxnard have brought on some yellowing. The market has trended lower but now looks to remain at current price levels.

Overall, this market is firm. Heavy rains in Southern California will be the norm for 5-6 days straight starting Thursday. This will inevitably hurt production of all lettuce items in Oxnard and Santa Maria. Value added lettuce items will be light in availability thru the month of February. Next week looks to be the worst in terms of production. Shippers will be holding to twelve week averages. The market will be active next week. Quality issues continue. Discoloration, pink ribbing, misshapen heads, and mildew have been reported. These defects are being reported from most shippers. Rain in the desert has been predicted by the end of the week, furthering shortness of supplies.

Alerts:
Six straight day s of rain expected in Southern California.

This market continues to gain strength on romaine as well as all leaf items. Expect limited availability on romaine for the entire week. The quality will be just fair. Defects continue to be seen. Blister and peel, twisting as well as light fringe burn is seen on romaine. Similar defects are also seen on green and red leaf as well as butter. These defects are industry wide. Six straight days of rain expected in the southern California region starting this Thursday as well as possible rain in Yuma by the end of the week. This does not bow well for production.

Alerts:
Rain in Southern California will alter production.

Demand is currently matching supplies. Supplies are steady from Honduras and Guatemala. The peak size is 12ct and we are receiving decent amounts of 15's now. 18's are still really short supplied but demand for them is light so it's not an issue. 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 continuing 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 6's with 8's being available now. Offshore dew volume is at slightly above normal levels for this time of year. Demand is beginning to increase. The market is currently steady for offshore and Mexican dews.

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.

Onion market is settling down to lower levels with light demand and good supplies. Idaho has good supplies of Yellow and Reds, with limited supplies of white onions. Quality is being reported as good. Mexico supplies started early this year. Moderate supplies of Yellow, Red and White onions are crossing daily into McAllen, Texas. Market is steady on all colors and sizes out of this area. Look for volumes to peak out of Mexico around the first week of March. Quality and availability are good. Look for the market to stay steady at lower levels through the balance of February.

Transitions:
Mexico is crossing all colors and sizes loading out of McAllen, Tx and will start to peak the end of February

Peak Seasons:
Mexico will be in peak production the end of February first part of March.

Washington -- Large Bartlett pears remain steady with good availability and they continue to peak on US#1 70/80/90s. Bartlett 110's and smaller are steady to slightly higher and strong due to light supplies. The storage quality has been good. D'anjou 90s and larger are steady with good supplies. 110-size and smaller D'anjou's are still very short and the market is strong. Many packers have switched their consumer bag business from Bartletts to D'anjou's and that is taking up much of the smaller fruit. D'anjou's continue to peak on US#1 80/90/100s. The quality has been good. Bosc pears are also steady and are still peaking on US#1 80/90/100s. 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 steady on both coasts and they are still peaking on larger fruit with more 90s and larger. The quality has been good.

Alerts:
Bartlett an D'anjou 110 and smaller pears are really limited and will remain so.

Transitions:
Chile will start with Packhams in mid March.

Peak Seasons:
Washington is in the peak of its season for D'anjous and Bosc.

Chile is in the peak of its Bartlett season.

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.

The potato market is steady out of all growing areas. Demand is moderate on most packs. Quality is good. Idaho is starting to transition varieties from Norkotah to Burbanks. The biggest change will be the size profile, changing from large (60 count and larger) to medium (peaking 80/70). Large cartons will start to get a slight premium as this transition happens. Look for the markets to stay fairly steady at current levels though the balance of February.

Bakersfield California - red and gold potatoes are steady on all sizes and all are peaking on A size. The White market is steady to slightly stronger due to light supplies. Washington has only limited supplies of whites and Bakersfield supplies are finishing faster than anticipated due to the recent wet weather. Bakersfield product will last another 10-14 days and then the California suppliers will have to source from Washington or Florida. The quality has been good.
Idaho - red and gold potatoes are steady on all sizes. The red potato sizing is still split between As and Bs while the golds are heavier to A-size. The quality is good.
Western Washington - reds and golds are steady and continue to peak on A size. The quality has been good.
North Dakota - red and gold potatoes are mostly steady on all sizes and they are also still peaking on A size. Some suppliers are flexing on volume of #2A and #2B reds. The quality has been good.
Wisconsin - reds and golds are steady on all sizes but the market remains high and strong due to light indigenous supplies. Most shippers are sourcing from North Dakota or Washington so they can finish the season. The quality is good.
Florida - they continue to pack all colors and all are slightly lower on most sizes. Reds are still the bulk of the volume and they are still peaking on A-size. The whites and golds are heavier to B size but supplies are more limited. The quality has been good with minimal skinning.
Canada - reds, golds, and whites are mostly steady but some sizes are slightly higher due to lighter supplies. The quality has been good.

Alerts:
Bakersfield white potato supplies are finishing earlier than anticipated due to the recent rains and Washington has limited supplies. Once they start sourcing from Florida expect a big price jump.

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

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

Stone fruit supplies are steady and once again the market steady. Demand is the normal amount for this time of the year which is light. Peaches and nectarines sizes are coming in on the larger side of the scale. Plums have most sizes available. Kiwi's are plentiful and very nice also. We don't foresee much happening with any of the markets here for a number of weeks.

Favorable growing conditions have helped keep quality high and prices low creating a steady market again this week. Overall volume has been consistent with steady supply, however a dip in production is forecasted the first week of March due to a cold snap that occurred late in January. Roma tomatoes have began their seasonal decline where acreage is less this time of year in Florida while Mexico enters their peak season. Grape production also remains steady through transition with an excess of availability keeping pricing low. Cherry tomatoes are still limited this week due to limited acreage keeping the market firm. As demand picks up, Florida will have plenty of tomatoes to supply the East regionally while Mexico touts cheaper fruit competitively.

Tomatoes from Mexico continue to cross US boarders in heavy volumes. Large sizes are more available with most all crossing into America at the mandated anti dumping price minimums. Roma tomatoes are also widely available and large in size. Grape tomatoes have dipped in production slightly but not enough to see a change in the market. With favorable weather this week supply will continue to exceed demand well past valentine’s day. With favorable weather conditions no change to the market is expected for the foreseeable future.