The Source - February 21, 2018

Washington – Red Delicious, Golden Delicious, Granny Smith, Galas, and Fujis, are mostly steady with some flex on smaller fruit. Honeycrisp are steady to higher due to lighter supplies. The rising star varietals are mostly steady with a few volume deals on the smaller sizes. The quality has been good for all. Most varieties have been peaking on small fruit. Transportation is easier to find now.

Idaho – Golden Delicious, Red Delicious, Granny Smith, and Pink Ladies are still available. Grannys are still peaking on 72/80/88s, Reds are peaking on 113/125s, and the Pinks and Goldens are peaking on 113/125/138s. The availability remains light due to light packing. The quality has been good.

Michigan – Galas, McIntosh, Jonathans, Jonamacs, Golden Delicious, Red Delicious, Empires, Fujis, red Romes, Ida Reds, and Jonagolds are all steady. Supplies are decent, but they are still anticipating an early finish. The quality has been good.

Pennsylvania – Fujis, Red Delicious, Golden Delicious, Cameos, Empires, Red Romes, and Pink Ladies remain steady, but the demand has been light. Red Delicious and Pink Ladies are still peaking on 88/100s while the Fujis, Golds, Cameos, Empires, and Romes are peaking on 100/113s. The quality has been good.

New York – Cortlands, Galas, McIntosh, Red Delicious, Fujis, Snap Dragons, Golden Delicious, Red Romes, Macouns, Pink Ladies, Empires, and Ruby Frost are all still available. Most of their fruit is large. The extra-fancy grade fruit has been steady and the lower grade US#1's are steady but firm due to increased juice-grade demand. Red Delicious have been producing more small fruit lately. The quality has been good.

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

Caborca and San Luis Mexico are still in their peak production. This peak should continue for the next 2-3 weeks; we will see some cooler weather at the end of this week that might slow down some production. Domestic asparagus has started with multiple shippers in Gonzales, California. Their peak should start mid-March through the beginning of May. Markets are overall lower due to an increase in production from Mexico/California, and bad weather in the larger buying markets.

California is harvesting limited volume, with much of it being sold to overseas export. Greater harvest is expected to begin in March and increase weekly.

Mexico's harvest is beginning to pick back up once again and expect volume to increase weekly into March. The size looks skewed to more smaller sizes than normal and less of the 48s/40s due to lack of rain to promote growth. The percentage of #2 fruit looks to be running higher than normal.

Green bell pepper supplies are steady with warmer weather that South Florida has had over the last couple of weeks growers have had good productive days. Demand the last ten day has weakened, and shippers have lowered prices to keep product moving. Quality, for the most part, is good with a few issues on older product that is not getting rotated out of coolers as quickly as shippers would like.

Alerts:
Good supplies. A few quality issues on older product.

Peak Seasons:
Green Bell Pepper is in Peak season.

Blackberry supplies remain limited this week. We have received more reports of red cell and soft fruit, which could be a result of the recent cool and wet weather in Central Mexico. Moving forward, we expect supplies to be fairly limited until domestic harvest ramps up in Oxnard and Santa Maria by mid-March. Market prices have stayed steady with more aggressive prices in Texas.

Alerts:
Some red cell and soft fruit has been reported this week. This is a result of the recent cold and wet weather in Mexico.

Transitions:
Oxnard and Santa Maria are expected to start mid-March.

Supplies of Chilean and Mexican blueberries remain consistent this week. Quality has been solid, and markets have been steady. Over the next 4-5 weeks, we will see production start to transition back to domestic growing regions. Mid-March will mark the beginning of new harvest in Florida. Volumes will be light to start and ramp up quickly by the beginning of April. California will start shortly after with light harvest by late March and gradually ramp up through April. Georgia will get started early April and have promotable volumes by May. Overall, supplies are expected to remain steady through March; then we will see a jump in availability by April.

Transitions:
Transition to domestic production will start by mid-March in Florida, followed by California and Georgia shortly after.

We saw a quick spike in supplies last week; then as expected, availability as quickly leveled out this week. Prices also adjusted back up this week as a result of the supplies. Quality is being reported as excellent. Moving forward, we expect supplies to remain fairly limited through the front part of March. Then, we will see a gradual increase in domestic production out of Oxnard and Santa Maria by the middle of March.

Transitions:
Oxnard and Santa Maria will start harvest by mid-March and slowly increase production.

We continue to see segmented markets and supply situations; depending on loading location. In California, Oxnard continues to be the main production area with Santa Maria slowly starting to scratch the surface. The recent weather in Oxnard has been cold, and production yields have been far below expectations. All shippers continue to be in a limited supply situation. Quality is strong, and markets are steady. Mexican strawberries loading in McAllen have been reasonably consistent in supplies with light volumes of fruit available daily. The quality has been fair, sizes are smaller, and we have had reports of wet and soft fruit. Market prices have been steady. Quality and supplies are expected to improve moving forward. In Florida, we have seen the biggest swings in market price and quality. There have been some very aggressive offers being thrown around this area over the last couple weeks. However, there has also been some very poor quality fruit being peddled. We expect market prices to remain low and quality to continue to be a challenge as we face persistent warm weather. If the warm weather continues, we expect to see the Florida season wind down quickly.

Alerts:
Supplies will remain limited in California this week with the cold weather. Florida supplies are very good, but quality is a challenge with the hot weather.

Transitions:
Santa Maria will increase harvest over the next 2-3 weeks. Salinas / Watsonville will slowly increase production over the next 4-6 weeks. Florida may come to an early end in the next 4 weeks if the hot weather continues.

Broccoli supplies will start to decrease over the next few weeks. Much colder temperatures in all growing regions have currently affected supplies. The market will trend higher as we experience this supply shortage. Quality this week is really nice with decent crown size, dark green color, and minimal yellowing.

Alerts:
Cold temperatures in all growing regions has affected the supply base resulting in a higher trend in the markets.

As the cold temperature reach the growing region of Mexico, supplies are decreasing for the next couple of weeks. This will cause the market to increase over the course of the next two weeks. Although quality should remain excellent with little decay and nice green color. What will decrease significantly will be jumbo-sized brussel sprouts.

Supplies are steady, still not much size coming from fields, so jumbo size are still short. Organic fresh carrot production is improving.

The cauliflower market is active with the market increasing daily. We are going to experience a supply gap for the next few weeks. All growing regions are experiencing much colder temperatures which have halted growth patterns. Quality has remained really nice with little bruising/brown spotting and minimal creamy color. We will continue to see a volatile market for the next three weeks.

Alerts:
Cold temperatures in all growing regions are causing supplies to decrease daily. As a result, the market is trending much higher.

This market is up slightly. Expect stronger markets next week as the cool weather has slowed the growth of this commodity in all growing regions. The quality will be average with issues reported. Suppliers are reporting leafy tops, bowing, slight bruising and mechanical in both Yuma and Oxnard/ Santa Maria. There is a gap in pricing but expect the gap to close very quickly. The best deals, for now, continue to be in the Oxnard/Santa Maria region. The cool weather throughout this week will slow production and expect moderate availability for the rest of the week.

As we experience colder temperatures in the growing regions for cilantro, supplies look to decrease over the next couple of weeks. The market has yet to react but will trend higher as we finish the week and move into next week. The quality hasn't suffered as we are still seeing minimal yellow to brown leaves, full bunches, and little dehydration.

The desert crop has finished for the season. The Central Valley crop is in full production; sizing is large peaking 115s/95s/140s, mostly fancy grade. Ventura crop is gearing up with better production, with estimates of peak sizing on 140s and smaller fruit.

Lime supplies are coming to a sudden halt. There are two major reasons why this shortage is occurring. First, the weather in Veracruz has been unfavorable with heavy rains this season and yields have been down due to poor blooms caused by last year’s hurricanes. However, the more instrumental factor is the Mexican growers controlling the markets. As supplies lighten, growers will shop out the best price and divert fruit shipments to countries that are willing to pay more. Currently, the majority of lime are being sent to Europe and Asia, leaving the U.S in a demand exceeds supply situation. Market prices have steadily been climbing and are expected to jump up drastically this week. Quality and supplies will be a challenge for the next 4-6 weeks. Advance notice for orders and flexibility on load/delivery dates will be necessary.

Alerts:
We will be extremely limited and market prices will be drastically higher for the next 4-6 weeks.

Navel crop continues to peak on 72s/56s and looks to through the season. 88s/113s/138s continue to be very slim in pack outs. Pack-outs remain clean with good color resulting in grade ratio of 80% to 85% of Fancy fruit, leaving very little choice fruit for the demand for of the choice grade. The market remains active on these smaller sizes.

Alerts:
Strong demand keeping small size fruit limited in availability.

The cucumber marker has been depressed for a month, and growers have slowed shipments to the U.S. and once inventories have been clean up the supplies will tighten quickly. Quality has been good for the most part and should get better next week but look for the price to increase by the end of the week.

Alerts:
Look for supplies to tighten by the end of the week.

Eggplant supplies are going to get tighter as the week goes on. Growers are quitting older fields that should have been abandoned weeks ago. This will cut the supply sharply, but the quality should get better as the week goes on. There is wider than normal range in quality between fancy and choice product. We expect higher pricing for the next two weeks.

Alerts:
Supplies are getting tight on good quality product.

The green grape market is strengthening with light supplies. Volume is steady with some product available in storage. There is a wide variety of sizes available with Thompsons running smaller than the Sugarone's. Quality will be consistently good as Chile continues to switch growing regions from the South to the North.

Supplies on red grapes have been consistent, and the market is starting to strengthen. Chile is switching growing regions from South to North, and we will see better overall quality and stronger markets. The sizing is spread evenly form medium/large to extra large fruit.

The growing regions in Mexico are experiencing colder temperatures. This is causing supplies to decrease which results in delayed crossing from Mexico. The market hasn't reacted yet but looks to trend higher for the next couple of weeks. Quality remains good with minimal yellow to brown tops and white tips.

Kale supplies remain abundant with little issues. The market is also competitive. Quality is excellent with minimal yellowing, little dehydration, and dark green color.

Demand has finally picked up on this commodity. The market is up today, and expect stronger activity next week with all shippers. Cool weather in Yuma has slowed production, and Santa Maria will be out all week in production. The weights on liner have been averaging 42-46 pounds. Defects reported include puffiness, ribby and mechanical. Temperatures will have lows of the 30s to 40s for the rest of the week. The quality of this commodity will be average. The gap in production we have talked about in past weeks is in its early stages right now.

As expected, lighter supplies are expected on romaine as well as all leaf items this week. There was little harvesting by most shippers on Monday due to the holiday. This, coupled with the fact that suppliers are now seeing a gap in production in most leaf items. This market is getting active and expect stronger markets next week. Issues of mechanical, ribbing, blister and peel and twisting are defects reported by most shippers. Temperatures in the Yuma region, as well as most of California, will get in the lows of 30s-40s throughout this week.

The tender leaf market and supplies remain steady. Although we have seen an increase of arrival issues from yellowing to bruising/slime of the leaves and slight decay. The much colder temperatures in Yuma will slow down growth rates which we will see the repercussions next week on the supply level.

The cantaloupe market remains mostly steady on large fruit while the 15/18s are slightly stronger due to lighter supplies. South Florida has the best availability for all sizes. The east coast, Houston, and Los Angeles have mostly large fruit. We expect sizing to remain similar to what it is now. The quality has been good.

Honeydews are mostly steady on both coasts. The market might appear higher but most of the volume deals have gone away. Size 5's and 6s are the bulk of the fruit now with only a few 8s. Florida still has the most volume while the east coast, Houston, and Los Angeles are more limited. The quality has been good.

Demand is moderate out of all shipping points. Markets are slightly weaker on all sizes and packs of Yellows and Reds. Storage white onions are winding down for the season. Some of the smaller sheds in Idaho are starting to finish for the season. The larger sheds will get into mid-April. Transportation has eased up with rates stabilizing. Cool weather in Mexico has slow supplies crossing into the U.S. The market is stable on most packs and colors out of this area. Quality is being reported as good. The weather pattern is to warm up which will bring on supplies.

Washington – only a couple of suppliers still have Bartletts and supplies are light. The fruit is still mostly large. D'anjous are steady on all sizes, but most shippers are short of 110-size and smaller especially in the fancy grade. Bosc pears are steady on the larger fruit and steady but strong on 110-size and smaller. Bosc continues to peak on US#1 80/90s. Red D'anjous are steady on all sizes, and they continue to peak on 40/45/50 half cartons. The quality for all has been good.

Chilean – the Bartlett market is slightly lower as the availability continues to improve on both coasts. The fruit continues to peak on 90/100s. The quality has been good but with some scarring.

Transitions:
We will see the first Argentinian Bartlett and Forelle pears in March. Chilean Packham pears and Bosc will arrive at the end of March.

Peak Seasons:
Washington is still in the peak of its D'anjou, Bosc, and red pear seasons. Chile is in the peak of its Bartlett season.

Volume from the tropics is good and look to be so going forward through March.

Demand is light on all sizes of cartons. Markets are softer and are trying to find the right trading level. Be careful on the deals being offered, as some sheds have loads sitting on their floor from last week. Quality overall is still good. I don't see this market changing much through the end of this month. Transportations have gotten better which has stabilized rates.

Western Washington – red and gold potatoes are steady. A-size is the peak size for both. They expect to pack until the end of March to the middle of April. The quality has been good.

Eastern Washington – red and gold potatoes are steady and are still peaking on A-size. The availability remains light for both colors. The quality has been good.

Bakersfield, California – reds, golds, and whites are all steady. All colors are peaking on A-size. The quality has been good.

Idaho – red and gold potatoes are steady. Some suppliers are flexing on A size reds. Both colors are peaking on A-size. The quality has been good.

Wisconsin – red and gold potatoes are steady. Both colors are peaking on A-size. The quality has been good.

North Dakota – red and gold potatoes are steady on As and Bs, some are higher on C size. The quality has been good for both.

South Florida – red and gold potatoes are steady. White potatoes are lower. The quality for all has been good.

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

The squash market appears to be stabilizing, and supplies look like they will tighten by the end of the week. Squash plants always go through cycles, and we are heading into a downward cycle as we move through the week. Growers started getting lower yields this past weekend, and the trend will continue with the market strengthening heading into the weekend. Quality has been good on green squash and hit and miss on yellow squash. Florida has had a lot of wind the past month beating plants up; yellow squash is showing the effect much worse than green squash.

Alerts:
Good supplies of Squash, some quality issues on yellow squash. Expect supplies to tighten as the week progresses.

Peak Seasons:
Squash is in peak season.

Availability of Chilean peaches, nectarines, and plums continues to be light. Ship arrivals have been hit or miss. Sizing on peaches and nectarines are mostly in tray pack 48/50's and 54/56's with very few volume fill 60's and 70's. The market remains steady, but supplies are very slim until the next vessels arrive in the later part of the week. Plums market is consistent with decent supplies on both red and black 40/48, and 50/56 tray backs, with some 60 and 70 volume fills available. Quality on stone fruit is good.

Florida has experienced favorable weather in recent weeks, however smaller fruit has become slightly less available bumping the market up and leveling off prices across all sizes. As Florida production begins to slow down ever so lightly, markets have not reacted since much of the country is experiencing typical winter weather slowing down consumer demand. Roma tomatoes are available in Florida, but Mexico continues with an abundance of imports flooding the marketplace raising concern over quality and condition as shippers struggle to keep cases moving out of their doors. Similarly, grape and cherry tomatoes struggle to find any strength this week with both east and west promoting Grape and cherry tomatoes. Pending a detrimental weather event, supply is expected to remain steady through Spring.

Favorable weather in Mexico continues to flood the border with loads of fruit crossing Nogales, AZ daily. Similar to round varieties, there is a greater supply of Roma tomatoes than demand keeping markets steady at mandated minimums for the foreseeable future. While demand in the United States is slow for winter, Mexico continues to bring heavy volume of tomatoes priced at mandated minimums. Roma tomatoes continue to increase week after week driving prices downward. Similarly, Grape and cherry tomatoes are affordable with a preference for the eastern grown counterpart where condition is more consistent through lots.