The Source - February 26, 2020

Markets remain stable and availability, on most varieties, is plentiful. Smaller, regional shippers are closing their doors for the season and we are seeing demand shift—in a light way—to the larger shippers and to the Northwest. The remaining shippers will have fruit into the summer months (June/July). Quality remains strong with strong shelf-life.

Winter storm systems continue to delay deliveries in the Midwest and Northeast. When placing apple/pear orders, please account for possible delays and apply proper lead times.

WESTERN REGION:

Washington

Slow movement continues into this week and shippers are reacting with aggressive prices on some small-sized, red varietals (Red Del., Fuji, Jonagold, and Braeburn). Shippers’ inventories are increasing on small sizes with suppressed export movement to Asia (tariffs, Coronavirus). Golds and Grannies are steady, but low grade fruit is hit-and-miss with some shippers.

ASK YOUR PRO*ACT SOURCING SPECIALIST ABOUT LOADING OPPORTUNITIES ON PROCESSED APPLES (SLICED, DICED, ETC.).

Production and quality remain excellent from both Mexican regions (San Luis/Caborca). This will be the trend for the next 2-3 weeks. The market is very sluggish with the increased production, and there's very little demand for asparagus at this time.

Is seems that California growers are reacting to this strong Mexican market and ramping up harvest. Demand is strong and the market is active. Current pricing on California fruit is in step with the Mexican market. Early season fruit will take longer to ripen due to very low dry matter. As the season progresses, dry matter will increase and days of shelf life will decrease.

Alerts:
With an active Mexican market, California growers are ramping up harvest.

The avocado market continues to climb, while supplies continue to tighten up. Mexican growers continue to see 60's and smaller dominate the pack-outs. Larger fruit (48's and larger) are almost nonexistent and holding at a premium. With large fruit being extremely limited and the size curve geared towards smaller fruit, we will need to consider downsizing and also looking into #2 grade fruit as options. The industry as a whole is in a "Demand Exceeds Supply" situation and, we expect tough market conditions to remain the norm for the next few months.

Alerts:
Avocado market continues to climb while supplies continue to tighten up. Demand exceeds supply!

Green Bell Pepper is in steady supply in the east. Demand has picked up over the past week and pricing is starting to rise. There are some weather fronts moving through the region this week, the forecast is calling for cold temperatures in the high 30's for most growing areas and some rain. This will most certainly slow harvest for the weekend and tighten supplies considerably. Quality has been good for the most part, a few scarring issues due to high winds for the past month. Most growers are starting new plantings, product has been better and trending to larger sizes. We expect supplies to tighten as the week goes on because of weather issues but as shippers get past the weekend supplies should become more consistent. Bell pepper is being harvested on both the southeast and southwest coast of Florida, as we move into March more new plantings will be ready for harvest in both growing regions starting the spring crop.

GREEN BELL
Good supplies of Green bell pepper continue to cross through Nogales this week from Sinaloa and Sonora. All pack styles on green bell pepper are being packed. Quality from both growing regions continue to be good. Market on the green bell pepper remains steady/low this week. Green bell pepper supplies continue to exceed demand this week.

RED BELL
Red bell pepper supplies crossing through Nogales this week have increased on both Hot House and LA rouge varieties. Red bell supplies are expected to continue increasing as Mexican growers start transition into new crops. Quality on Mexican red bell pepper on both varieties and in all sizes and pack styles are currently fair. The red bell pepper market has stabilized with increasing volume. Light supplies of Red bell pepper are also available to load in McAllen, TX.

YELLOW BELL
Better supplies of Yellow bell pepper are currently being harvested from Mexico this week. The Market on yellow bell pepper has decreased slightly this week. Quality on yellow bell pepper crossing through Nogales is fair to good. Light supplies of Yellow bell pepper are also crossing through McAllen, Texas.

Blackberries are available in moderate supplies coming mainly out of Central Mexico. Quality has been fair with some red cells and uneven coloring being reported in some lots. The market remains steady with lower undertones. Look for this trend to continue over the next few weeks

Blueberries continue to be in short supply with the market in a demand exceeds supply situation in effect for the next several weeks. Chilean imports are sporadic and the Mexican production is just beginning to pick up the pace in the newer growing areas. Florida production has just begun with lower yields which are expected to increase gradually over the next three weeks. Quality has been generally good from all three regions.

Alerts:
Blueberries are in a demand exceeds supply situation .

Raspberries are still in limited supplies coming primarily out of Central Mexico and Baja. The quality is just fair with some reports of an early breakdown in some lots. The market will remain firm through the next few weeks with continued light supplies.

Alerts:
Light supplies on raspberries will continue through the next two weeks

Strawberries are in very good supplies in all areas. Oxnard and Santa Maria have the edge in quality with Mexico and Florida producing good volumes of fruit as well. The market is much easier in all loading locations. Volume deals are being made on Mexican and Florida fruit, Look for the market to begin to firm up late next week as we see the harvest yields trend downward out of Central Mexico and Florida.

The broccoli market continues to stay steady with the help of better yields and more supply in the pipeline. Quality continues to have slight purpling caused by the recent cold weather, some mechanical damage, and occasional yellow cast. Look for Broccoli to stay steady going into next week with the warmer weather this week in Yuma.

The brussels sprouts market continues to be aggressive as more supply is in the pipeline. Currently, quality is good with occasional internal decay. Look for the Brussels sprouts market to continue to stay steady going into next week.

Carrots are in good supply coming out of both the Bakersfield area and the newly entered Coachella fields. Product quality is very good. Mexican Jumbo carrots are in good supply as an alternative loading area which will obviously save Eastern destinations substantial freight. These jumbos are crossing into the U.S. through the Mcallen Texas area.

Transitions:
Coachella Valley is now in production as of this week.

The cauliflower market continues to be strong. Yields have decreased with the cold and wet weather we had last week in Yuma. The quality is fair with slight bruising and yellow cast with weights in the 25 to 28-pound level. We are hoping the warmer weather we are experiencing today and the next few days in Yuma will start to help supplies this week. Look for the market to adjust going into next week with the warmer weather.

The market continues to be flat, industry-wide. The best deals continue to be seen out of the southern California region. All reports indicate that supplies will be steady in availability throughout the week. All sizing will be available. Expect good quality from most suppliers. Insect damage, leafy and mechanical is being reported, but in a light way. Mexico will continue to have production throughout the week. Weights will average 55-59 pounds in all the growing regions.

Jalapeno- Moderate supplies of Jalapeno continue to cross through Nogales, AZ this week. Moderate supplies are expected through the remainder of the week. Jalapeno quality from Mexico is mostly fair. The Jalapeno market has increased this week due to lower/moderate supplies. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Moderate supplies of Pasilla continue to cross through Nogales, AZ. Moderate supplies are expected to continue throughout the week. Pasilla quality from Mexico crossing through Nogales is mostly fair to good. The Pasilla market remains steady this week. Pasilla from Mexico is also available to load in McAllen, Texas.

Anaheim- Light supplies of Anaheim crossing through Nogales this week. Quality on Anaheim crossing through Nogales is good. Size on the pepper is mostly medium to large. The Anaheim market is high due to lighter supplies. Anaheim from Mexico also available to load in McAllen, Texas.

Serrano – Light supplies of Serrano peppers continue to be available to load in Nogales, from Mexico. Serrano supplies are expected to continue light through the week. Moderate serrano supplies are also crossing through McAllen, Texas.

Tomatillo – Light Supplies on both husk and peeled tomatillo this week. New crop tomatillo has started from Sonora. Quality is good on both varieties. Market on both varieties are high this week.

The cilantro market continues to be leveled off as there is plenty of supplies with the warmer weather in Yuma, Mexico, and Southern California. The cilantro quality is good with an occasional yellow leaf. Look for the cilantro market to adjust going into next week with the warmer weather we are having this week.

Lemon supplies out of the Central Valley are looking really nice on supplies and quality. This is a perfect time to quote any promotional lids for the month of March. The small sizes are starting to get snug on 200/230’s and markets are holding firm. The Coastal Region supplies are looking good and peaking on 115/140’s. Out of the CA Desert/AZ Desert Region supplies are almost done but there is fruit still lingering around with suppliers are trying to clean it up with deals out there. Be mindful it could be storage crop so shelf life might not be as strong. We continue to have optimal growing weather and the fruit will continue to be exceptional as long as we have this weather. Please reach out for any advance pricing.

Lime supplies are starting to take a turn on the 175’s and smaller with markets climbing and firming up. The growing regions in Mexico have had rain and which is delaying harvest and less crossings at the border. We have opportunities to load FOB Texas and California as well as delivered options. Please reach out if you have any interest.

Lime supplies are starting to take a turn on the 175’s and smaller with markets climbing and firming up. The growing regions in Mexico have had rain and which is delaying harvest and fewer crossings at the border. We have opportunities to load FOB Texas and California as well as delivered options. Please reach out if you have any interest.

Navel supplies this week are peaking on 72/88/113’s with great quality. The 138’s continue to be a struggle with light pack-outs, please continue to place orders for small sizes in advance to allow suppliers to strategize inventories for coverage. Current markets are steady on the large sizes and the small size market is staying firm. Fruit quality overall is looking very good with natural color, high quality, and great tasting Navels. Brix levels have been consistent between 12-14%. On specialty citrus keep pushing Mandarins, Cara’s, Bloods, and Minneola’s we’re in peak season and have plenty of lids to promote the remainder of February and going into March. Gold Nuggets have started this week, supplies are light to start but will gradually increase weekly. Please keep in mind we have Grapefruit opportunities out of Texas and California, please reach out if you have any interest.

Alerts:
138's continue to be tight, please continue putting orders in advance for better coverage.

Cucumber supplies are steady coming from Honduras, demand is very good with very light supplies coming from Mexico. The Honduran cucumber crop has been packing a very high percentage to select grade cucumbers creating a wide price spread between super selects and select cucumbers. Quality has been good with some light scarring but color and shelf-life are good. Weather in Honduras has been good with warm temperatures, sunny and consistent wind which is the cause of scarring and a high percentage of selects. Pricing has been escalated driven by very light supplies from Mexico and that trend will continue through the weekend.

Light supplies of cucumber continue to cross through Nogales, AZ. Supplies from both the Sinaloa and Sonora districts are expected to remain steady. Mostly Selects, Plains, 36ct being packed. The cucumber market is expected to remain steady throughout the week. Quality on cucumbers from both districts are mostly fair to good. Cucumber demand continues to exceed supplies. Supplies are expected to increase from the Sonoran district within two weeks.

Eggplant is in short supply in South Florida. Growers are harvesting product on both the southeast and southwest coast of Florida. Growers are working on older plantings that were intended for winter production and with some recent cooler temperatures volume has decreased. Less supply from Mexican growers has created increased demand for eastern product. Demand this time of year is traditionally less than spring and summer so there is still enough supply to fill orders. Quality has been good with very few issues on arrival, with the wind that has been prevalent in south Florida for the past month it is surprising that there have not been more quality issues. Expect light supplies from the east until the second week of March.

Eggplant supplies remain steady this week. Eggplant crossing through Nogales, AZ continues to be harvested in Sinaloa. Supplies from Sinaloa continue to be packed in all pack styles and in all sizes. Quality on eggplant crossing through Nogales varies from fair to good. The eggplant market is steady this week.

Green grapes supplies are steady this weak with consistent to slightly lower pricing. Supplies seem to be in the same position on both the east and west coasts. Quality on all fruit is being reported as strong. We are not seeing the split markets that we are on the red grapes. We expect supplies to remain good for the next 2-3 weeks, then taper off quickly as we approach mid to late March. We do expect to see a small gap in supplies as we plan forward for transition between import to Mexican harvest. We will continue to monitor the situation as we get closer.

Alerts:
Supplies and pricing remain steady this week.

Transitions:
We do expect lighter supplies by the end of March and a possible gap in supplies as we transition into Mexican harvest in April.

Peak Seasons:
We are currently in the peak of Chilean production.

Red grape supplies are good this week. We had several containers arrive last week from Peru and Chile. Supplies are heavier on the east coast, so we are seeing a bit of a split market. Prices are lower on the east due to inventory, but we have also heard of lower quality grapes making their way through the market. As we anticipate good availability and aggressive pricing for the next 2 weeks, please be aware of the quality you are getting for the price. There will definitely be cheap prices being offered on lower quality fruit. Looking forward, we expect good supplies, good quality and better pricing for the next 2-3 weeks, then we anticipate supplies will slow down quickly by the end of March.

Alerts:
Good supplies and cheaper prices are expected for the next 2-3 week. However, there is some weaker quality fruit being sold at very aggressive prices. Be aware of what you are getting for the price.

Transitions:
We will see Mexico start in April.

Peak Seasons:
We are in the middle of Chile's peak production.

The green onion market continues to stay steady with good supplies brought on by the warmer weather we've had in Mexico. Quality is good with occasional leaf minor caused by the recent colder weather. The market will continue to stay steady going into next week.

The kale market continues to stay steady. Quality has started to improve with full bunches and some yellow leaves being reported. We're hoping this week's warmer weather going into the weekend continues to help the quality, supplies, and spur growth.

Although there was rain over the weekend in the desert, the lettuce crop was not affected. Currently, the weather is optimal. The Yuma region will have rain and cool weather expected next week so this market could change. Currently, this market is stable. Some common defects being reported upon arrivals include mildew, mechanical, misshapen heads and growth crack. These defects are weather-related and reported by multiple suppliers. Yuma will have steady supplies this week with most shippers, while the southern California region will have light production. Weights are ranging from 40-43 pounds on liner lettuce.

This market is very similar to the past few weeks. Romaine, as well as all leaf items, are plentiful. The market demand is off. Rain and cool weather next week in the desert region could change things, however. For now, shippers continue to offer flex pricing on romaine. The quality is up and down pending on the supplier. Currently, supplies exceeds demand. Some common arrival defects being reported on romaine include mildew, light blister, mechanical and insect damage. These defects are seen on green and red leaf as well. The weights are being reported between 32-37 pounds on romaine while green and red leaf has been 19 -22 pounds.

The Tender Leaf supplies continue to stay steady this week. We have experienced some cold weather recently and anticipate warmer weather in the next couple of days to help supplies, quality, and growth. Quality is good with occasional yellowing and bruising of the tender leaves.

We continue to see a solid run of cantaloupes for both the east and west coast. Market has softened but we continue to see good demand for fruit. Brix levels and overall quality has been consistent. There are opportunity buys available, mostly on larger fruit. We anticipate good supplies for the next few weeks.

Honeydew market remains steady and with good demand. Although large-sized fruit is dominating the pack out, we are seeing good numbers on small fruit (6's,8's,9's) this week. Arrivals into the US from Costa Rica, Honduras, Guatemala and Mexico combined are up year over year. Quality has been very consistent with great internal and external quality. Brix levels are also good ranging from 10-14%.

Watermelon supplies crossing through Nogales, AZ continue to be harvested in Nayarit, MX. Watermelon supplies from Nayarit are steady. Moderate supplies on both bins and cartons are being packed due to demand. Quality from this district is currently fair. Few supplies of Seedless watermelon are also being harvested in Los Mochis, Sinaloa. Quality from Sinaloa are also fair to good. The watermelon market is currently steady.

Onion markets remain at low levels as supplies are plentiful in all regions. Northwest is expected to have good supplies for the remainder of the storage season on yellow and red. White onions are slowly wrapping up for the season in the Northwest with adequate supplies. Mexico continues to improve on crossings into South Texas with all three colors available. Utah and Colorado are also producing. Upcoming regions in April will be the California desert as well as the Texas domestic crops.

Washington:

Availability on 120-150ct Anjou WAFCY remains limited and shippers are coming up with larger sizes and higher grades. Overall, prices have reacted, but remain steady. Bosc pears continue to command higher prices, but shippers will begin to clean up—for the season—as we make our way into March.

Red Anjous remain steady with good availability and strong quality.

Pineapple supplies are looking good out of all loading locations. Demand is steady, keep the orders coming. We’ll make sure to get you covered. Markets remain steady and quality continues to be consistent and looking good!

Russet potato markets are rising on the larger size 40 count through 70 count and 10oz #2 grade. As we approach March, shippers in Idaho will start finishing up most of the Norkotah supplies leaving Burbanks as the main variety for the balance of the storage season. The Burbank storage crop has a much smaller size profile and will lean heavily to the 80 count and smaller range. Suppliers in Idaho are already looking to Washington and Oregon for 40 count and 50 count to help supplement mixers. Orders are also getting spread out to 2 or more picks to obtain full coverage. Quality is good with some lots showing occasional peepers, light mold, and soft rot. Washington, Colorado, and Wisconsin continue to produce supplies of Norkotahs with rising markets due to shifting demand. We continue to recommend 7 business day lead time prior to ship date allowing the time necessary to provide full coverage and minimize the number of picks.

Alerts:
Limited supplies of larger size 40 count though 70 count and 10oz #2 grade; markets rising.

Color potato markets remain elevated as supplies are limited and demand is active. Idaho and Washington continue to produce red and yellow with excellent quality coming out of Mt Vernon, Washington. California continues to utilize the reds from Mt Vernon but limited on B size reds as well as #2 grade. Whites are limited in California as well; in particular size A. North Dakota has limited supplies of red and yellow with expectations to get through March. Florida has started with red and yellow in limited amounts and high markets. Pricing is expected to continue climbing as the Northwest begins the seasonal decline over the next 4-6 weeks.

Alerts:
Markets rising with active demand. Northwest winding down.

Squash is in very light supply and demand has steadily increased over the past week. Yellow squash is extremely tight, zucchini is in tight supply but not quite as bad as yellow. Cold temperatures moving through south Florida this week are only going to make squash harder to find. High winds in south Florida have decreased yields in all squash but yellow squash has really felt the effect, growers are harvesting very little product from fields that normally produce multiple times the number of boxes growers are harvesting presently. Very light supplies from Mexico are only compounding the problem as buyers that would usually load in Arizona are trying to fill orders in Florida. We expect these conditions to continue through next week.

Good supplies of Italian squash continue to cross through Nogales. The Italian squash market has stabilized due to consistent supplies. All pack styles continue to be packed with quality remaining fair to good. Italian squash continues to be harvested from both the Sinaloa and Sonoran growing district. Supplies on Yellow S/N continue light this week. The Yellow S/N market continues steady/high as light supplies continue this week. Quality on yellow squash is fair at best. Supplies on both Italian and Yellow S/N are expected to increase with the Sonoran district expected to start within 10 days.

Stone fruit supplies have been sporadic all season. Although we are approaching peak production, Chile is only sending limited volumes to the US. Most of the fruit is larger size Tray Pack with very limited availability of Volume Fill. This week, we expect to see good supplies of yellow peaches and yellow nectarines, but the white varieties and plums will remain limited. Market prices have remained steady due to the limited supplies being sent by Chile. Speaking with shippers, it is hard to identify specific time frames when supplies will greatly improve or when specific sizes/varieties will be available. We expect supplies to be limited with intermittent peaks and valleys depending on what is shipped from Chile.

Alerts:
Plums remain limited as we wait for the next arrival of Chilean fruit.

Transitions:
We expect domestic stone fruit production to get started in late April.

Tomato supplies are showing improvement going into March following a warm weather system that has helped bring out fruit over the last 10 days or so, however markets are being driven by the severity of Mexico’s shortage of imports. Florida rounds are on the larger side while farms begin harvesting the first fruit of new crops. Quality is good and the better alternative to Mexico imports that have been battling weather-related challenges for months. The roma tomato market remains strong in Florida while Mexico struggles to overcome weather damaged crops. FOB’s remain in the low to mid $30s and may not adjust downward until well into March. Grape tomato volume is steady but inconsistent availability from Mexico is strengthening the demand in the Florida market where quality has also been better. Cherry tomatoes should improve but the market is short against demand. A cold weather system is moving into Florida today with chances of rain through the weekend that will potentially slow production yields in the market the first part of next week.

A shot of warm weather has helped the Culiacan growing region of Mexico come into a flush of fruit this week, however much of the supply coming into the US is very green with little to no color. Fortunately, more warm weather is expected in the immediate future but much of what has been harvested already has left crops depleted of fruit until harvest can resume. Mexico continues to struggle virus-related shortages and weather reduced quality posing challenges at the time of inspection. Supply will eventually improve as crops get further away from the weather events that have setback growers the past several weeks. Roma tomatoes have been affected the most with a majority of crops grown outside most exposed to the elements. It may be 3 weeks or so before we see better supply and relief in the market. For all the same reasons grape tomato supply and quality remain inconsistent. Spring crops in Sonora faced multiple nights of freezing temperatures during the growing phase and may delay the start of new programs set to begin in mid to late March. It may not be until April before markets return to minimums. Potential delays occurring from the newly appointed Suspension Agreement’s inspection provisions set to be enforced at 100% by April 1, in conjunction with the USDA’s phytosanitary controls to prevent the spread of the Tomato Brown Rugose Fruit Virus, both may affect markets for some time to come. Traditional market indicators must now consider these trade agreements and preventative measures against disease that may cause an influx in the market for months ahead or more.

Alerts:
Western Tomato Supplies Very Short