The Source - February 5, 2020

MIDWESTERN / EASTERN REGION:

Snow…showers…and more snow for the Midwest and East Coast. We will continue to see delayed trucks for those loading in Michigan and the Northeast. This will limit the usual number of cases that would load on full trailers.

We are seeing smaller shippers, with no C.A. program, clean up their floors for the season and that demand is shifting to larger shippers. Looks like smaller Red Del. has better availability vs. Gala, but there are other red varietals commanding aggressive prices (Jonagold, McIntosh, Empire, etc.). Quality remains great with ideal shelf-life.

WESTERN REGION:

Washington

We saw a spike on apple movement last week, but the overall market remains steady with no anticipated shortages on foodservice sizes. Some shippers seem to have more Gala apples available, but we do not expect prices to come off much. This season’s overall harvest is yielding greater amounts of medium-to-smaller fruit versus last year, which explains the price ease on a few varieties. Conversely, retail sizes (56ct-72ct) are commanding higher prices due to unavailability. We should have no issues with availability, on foodservice sizes, for the foreseeable future.

Temperatures have warmed a bit—as much as it can in the Northwest (expected High in the low 60’s heading into the weekend). Trucks will still contend with the elements if their deliveries take them to the upper Midwest and Northeast. Quality remains excellent with great shelf-life.

San Luis, Mexico is increasing production every day with the improving weather. Caborca, Mexico is also increasing production with warmer weather in the region, but volumes are still not as much as San Luis. Production should increase in the next 7-10 days. Both regions in Peru (Ica/Trujillo) have wrapped for the season due to warm weather and seasonality. The market on the east coast is very sluggish with the transition from Peru to Mexico. The market on the west coast is less active with production increasing every day.

As far as California, some growers started harvesting to capture some of the Super Bowl volumes but the dry matter levels (oil) are extremely low and it will take up to 10 plus days for the avocados to fully ripen. With that said, the majority of the growers will hold off of harvesting for the next 4 weeks and wait for those levels to increase before they fully start the California program. Growers are also monitoring how the Mexican market will react post-Super Bowl.

The market is slightly lower on larger fruit (48's and larger) post-Super Bowl. This will be short-lived as we anticipate this market to shoot right back up. The reason being, Mexico had little to no harvest over the weekend. Monday the 3rd is Constitution Day in Mexico and there will be no harvest. Field prices remain under pressure on 48's and larger. Post Super Bowl, the slowing in demand won't be long term and we do not expect to see extended softening in the market. As for #2 grade fruit, we continue to see plenty of opportunity buys for the next few weeks.

Green Bell Pepper supplies are light in South Florida. Growers have fewer plantings in the ground this time of year because of the high risk of cold weather, so they are planting for contracts and core business. The product is being harvested from the traditional regions of Immokalee on the west coast and Del Ray on the east coast. Quality on bell pepper is getting better, growers have some new plantings that they have just begun to harvest and south Florida is receiving better weather since the cold, rainy stretch the region received 2 weeks ago. Mexico is having a string of rainy days followed by some cold nights, this is going to affect their production and the amount of product that crosses into the U.S. Expect pricing on bell peppers to rise because of this through the rest of this week.

GREEN BELL
Good supplies of Green bell pepper continue to cross this week. Green bell supplies are currently being harvested in Sinaloa and Sonora. Supplies from Sinaloa are mostly being packed in choice (Chopper) grade. Quality of supplies from Sinaloa varies from fair to good. Supplies from Sonora are mostly being packed in retail grade. Quality of supplies from Sonora is mostly good. The green pepper market is increasing on all pack styles this week due to recent weather. Green bell pepper quality on supplies crossing through Nogales, AZ range from Fair to Good. Light supplies of green pepper are also available to load in McAllen, Texas.

RED BELL
Red bell pepper supplies have decreased this week on both varieties from Mexico. Red bell supplies are expected to remain light as Mexican growers transition from fields. Both varieties of red bell pepper from Mexico are expected to continue to be moderate for the next couple of weeks. Quality on Mexican red bell pepper on all sizes and pack styles are good. The red bell pepper market remains steady/high this week and is expected to continue. Light supplies of Red bell pepper are also available to load in McAllen, TX.

YELLOW BELL
Light supplies of Yellow bell pepper continue to be harvested in Mexico from Sinaloa. The Market on yellow bell pepper remains steady/high this week. Quality on yellow bell pepper crossing through Nogales from Mexico continues to be fair to good with sizing mostly small to medium. Light supplies of Yellow bell pepper are also crossing through McAllen, Texas.

Blackberries are still in moderately good supplies coming out of Mexico. Quality has been good with the occasional red cell still present in some lots. Look for the market to remain steady with higher undertones.

Blueberries are becoming a little lighter out of Mexico. Offshore fruit is becoming spottier as well. Peru and Chilean offerings are somewhat sporadic keeping markets firmer. Look for this trend to continue through the weekend. Quality has been good out of Mexico with Peruvian product showing a little weakness in shelf life.

Raspberries continue to shorten up in supplies as we see lighter numbers coming out of Mexico causing lack of transfer product to the West and East coasts. Quality has been good. Look for slightly higher pricing moving into the end of the week.

The strawberry market is exceedingly tight as shippers struggle with cooler temperatures out West in the midst of a heavy Valentine's day pull period. Mexico and Florida are producing steady numbers but not enough to keep demand in check. Stem berries are being offered up in moderation out of all areas. Demand is heaviest in California as the traditional quality is superior at this time. Look for the markets to remain firm through next week.

Alerts:
West Coast projected harvest numbers are reduced due to recent colder temperatures This is creating problems for the increased demand we are experiencing during the Valentines day pull.

The Broccoli market continues to adjust downward 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 stay strong but has recently shown signs of coming off slowly. The warmer weather this week should further help with supplies and quality. Currently, quality is fair with occasional internal decay. Look for the Brussels sprouts market to continue to come off going into next week.

Carrots are a steady go with production coming out of the West Coast and Mexico. Quality has been good on most sizes. There are some exceptional deals being offered on both Mexican Jumbo carrots and also the California product.

The cauliflower market continues to come off slowly as there are better yields and more supply in the pipeline. The quality is good with slight bruising and yellow cast with weights in the 25 to 28-pound level. The warmer weather we are having in Yuma has started to help supplies this week. Look for the market to keep coming off going into next week with the warmer weather.

Strong production continues out of the Oxnard/Santa Maria growing areas. Supplies clearly exceed demand. The best offers from shippers are in this region so please keep in mind. Yuma has good production as well but expect higher pricing compared to southern California. The quality continues to be strong as has been the story since December. Flexing will continue with multiple shippers all week. Mexico has production as well. All sizing is available. Weights will average 53-58 pounds.

Jalapeno- Moderate supplies of Jalapeno are crossing through Nogales, AZ this week. Moderate supplies are expected to remain throughout the week. Jalapeno quality from Mexico is good. The Jalapeno market has decreased this week due to good supplies. Jalapenos from Mexico are also available to load in McAllen, Texas.

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

Anaheim- Moderate 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 steady. Anaheim from Mexico also available to load in McAllen, Texas.

Serrano – Good supplies of Serrano peppers available to load in Nogales from Mexico. Good supplies are expected throughout the week. Supplies currently meet demand. Serrano supplies also crossing through McAllen, Texas.

Tomatillo – Very light supplies on both Husk and peeled tomatillos available this week in Nogales. Light supplies are due to transitioning from fields. Market on both varieties is high.

The cilantro market has leveled off as there are 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.

New crop out of District 1 (Central Valley) fruit is also looking really nice on supplies and quality. This is a perfect time to quote any promotional lids. Supplies are looking steady on the small sizes, while the large sizes are starting to get snug 200/230’s. District 3 (CA Desert/AZ Desert Region) is done but there is fruit still lingering around. 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. Markets are steady across all sizes. Please reach out for any advance pricing.

Lime supplies are looking good this week with ample crossings. Current markets continue to remain soft and overall the quality has been solid. We have opportunities to load FOB Texas and California as well as delivered options. Please reach out if you have any interest.

Navel supplies on the small sizes continue to be tight industry-wide, but a few suppliers have hit a couple of blocks that brought on some 113’s this week. Please continue to place orders for small sizes in advance to allow suppliers to strategize inventories for coverage. Suppliers continue to peak on 88’s and larger as an option for better coverage and deals. Current markets are steady on the large sizes and the small size market is staying firm and looking to climb. We’re seeing very good natural color, high quality, and great tasting Navels. Brix levels have been consistent between 12-14%. On Specialty citrus keep pushing mandarins. The quality has been looking solid and markets have been steady. We have Grapefruit opportunities out of Texas and California, please reach out if you have any interest. The Cara Cara’s and bloods supplies are looking solid with excellent quality. The Minneola Tangelos are looking good on the small sizes, while the large sizes are improving weekly.

Alerts:
Small size oranges remain tight. Please continue putting orders in advance.

Honduras is in peak cucumber season during most of the month of February. Quality is very good from Honduras, much better than just two weeks ago. Demand has been good for Honduran cucumbers with Mexico sending less products to the U.S. over the past few weeks. Volume in Mexico has increased this past week and pricing has lowered slightly but don't expect that to continue. Mexico has had a stretch of rain and later this week will get some cold mornings, this will slow their production drastically. This should create a strong demand for Honduran cucumbers, so expect pricing to be higher for the weekend.

Peak Seasons:
Cucumbers are in peak season.

Steady/moderate supplies of cucumber crossing into Nogales, AZ this week. Cucumber supplies have stabilized from both growing districts due to recent weather. All grades and pack styles are currently being packed, but supplies are expected to decrease on all pack styles for the upcoming weeks. Quality from Sinaloa varies from fair to good. Quality from Sonora is mostly good. With light supplies of Mexican cucumbers, the market is expected to increase slightly. Light supplies of cucumber are also crossing through McAllen. Quality crossing through McAllen is mostly fair as well.

Eggplant supplies are light in south Florida. Growers are harvesting on the east and west coast the traditional regions of Immokalee and Del Ray. Production is down due to cooler average temperatures than normal and less acreage. Demand for eggplant is traditionally not very high during the month of February, so growers reduce plantings because of the threat of freezing weather. Quality has been good on eggplant for the past few weeks and we expect that to continue through the weekend. Pricing has been fairly steady and with light supplies in Mexico. Don't expect any big changes.

Eggplant supplies continue to be 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 has started to increase due to ranges on quality.

Green grape supplies have been consistent and in better shape than red. This is due to a combination of more green production as well as lower demand. As we transition into Chilean production, we expect supplies to level off a bit, but remain consistent. We anticipate to see more sizes become available and prices to slowly decline. Again, the peak production period for Chile is expected to last through mid-March and taper off slowly as we approach April. The transition between Chile and Mexico may be a challenge, but we will need to monitor crop production as we get closer. Quality has been very good and the markets have remained flat. This week we are seeing prices come down slightly and we expect to see more promotional opportunities as we move forward.

Alerts:
Green grape supplies will remain consistent with promotional opportunities becoming available as we move forward.

Peak Seasons:
We are starting peak production in Chile this week. Supplies will improve starting next week and peak production will last through the next 4-6 weeks.

Up to this point, we have been relying upon the limited supply flow from Peru with a little bit of fruit coming in from Chile. Availability has been consistent, but light and market prices have been firm. Demand has been stronger than supplies and we have not had any promotional opportunities. However, Peru is phasing out and we are now approaching the beginning of Chile’s peak production period. We expect supplies to improve quickly over the next 2 weeks. The industry is anticipating good arrivals of fruit on both the east and west coasts. A wider range of sizes will become available, pricing will start to decline and we will see promo / spot buy opportunities arise. We expect Chilean peak production to last for the next 4-6 weeks, then slow down as we get closer to April. Quality has been very good.

Alerts:
Red grape supplies will be improving as we move forward. Look for improved supplies and promotional opportunities.

Peak Seasons:
We are starting peak production in Chile this week. Supplies will improve starting next week and peak production will last through the next 4-6 weeks.

The green onion market continues to come off with better supplies brought on by the warmer weather we are having in Mexico. Quality is good with occasional leaf minor caused by the recent colder weather. The market will continue to adjust downward going into next week.

The kale market continues to come off as ground temps and the warmer weather have spurred on growth. 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 will continue to help the quality, supplies, and spur growth.

Warm weather this past week had many suppliers overloaded with this commodity. The weather accelerated the growth of this commodity quickly. Multiple shippers were flexing. Santa Maria had moderate production but Yuma came on strong. The weights have picked up with liner product averaging 39-41 pounds. No rain is expected in Yuma until next week possibly. Expect lettuce to firm up as the weather has been cool all this week and will not be warming up till the weekend. Supplies are expected to be lighter by the end of the week. The quality is fair. Common defects include mildew, misshapen heads and mechanical.

Alerts:
Cool weather in the desert has caused some ice delays at harvesting time.

The market is flat on romaine as well as all leaf items. Supplies exceed demand. Production is expected to tighten up by the end of the week due to the cool weather that has plagued the desert this week. There have been some ice delays reported this week from multiple shippers. Supplies in southern California will be light. Common defects being reported on romaine to include ribbiness, mildew, blister and mechanical. These defects are showing up on romaine more than red and green leaf. The weights are better this week with romaine averaging 32-37 pounds while green and red leaf has been 18 -22 pounds.

Alerts:
Ice delays have occured in the desert this week.

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

Steady supply of cantaloupes on both east and west coast. The industry is seeing lighter offerings on 15's this week but we do have options. Arrivals into the US from Costa Rica, Guatemala and Honduras are all showing good quality fruit. We will continue to see opportunity buys this week with promotable pricing.

Good supply of large-sized fruit (4's/J5's/5's) this week for both eat and west coast. Demand has tapered off this week and the market is slightly lower. Plenty of opportunity buys on larger sizes. Smaller fruit seems to be holding at a premium with lighter offerings in the pipeline. The overall quality has been consistent internally and externally.

Watermelon supplies crossing through Nogales, AZ is being harvested in Nayarit, MX. Watermelon supplies from Nayarit are steady. Mostly cartons being packed. Quality from this district is fair. The watermelon market is currently higher/steady on all sizes.

Yellow and red onion markets have stabilized with white onions slightly higher. Pacific Northwest storage onions continue to ship from Idaho, Oregon, and Washington. Quality remains good with some lots showing translucency and pressure bruise. Suppliers are switching over to cold storage which will improve overall quality for the remainder of the storage season. It is recommended to store onions in a cool, dry and well-ventilated area with temps ranging from 36-40 degrees. Yellow onions will be in good supply with relatively steady markets. Red onions are plentiful and markets will remain low. White onions are a bit more scarce as the northwest winds down for the season. Utah and Colorado continue to produce onions while Mexico has started light crossings of yellow and white. Red onions will begin crossing late next week. Fresh run onions will have thin flaky skin.

Alerts:
Optimal storage for onions is cool, dry, well ventilated area with temps from 36-40 degrees.

Transitions:
Mexican yellow and white onions available in South Texas. Red onions will begin crossing late next week.

Washington:
Prices have firmed up on all sizes and grades of Bosc and D’Anjou. Bosc will be available through February with Anjous available through the summer months. Prices have definitely risen with fewer pears to choose from and import Bartletts not yet available for another 1-2 weeks. Quality and shelf-life are excellent.
Red Anjous are available and are packed in ½ (20#) and full cartons (40#). Markets are steady and quality is excellent.

Pineapple supplies out of the growing region in Costa Rica are tight for all shippers industry-wide. Mexico also seems to be experiencing a shortfall as well. We can expect pineapple supplies to be tight through February. Markets are active, and demand is strong for Valentine's pull. We ask orders for Valentine's pull to be put in advance to allocate fruit. Quality continues to be consistent and looking good!

Russet potato markets remain elevated on larger size 40 count through 80 count as well as 10oz #2 grade. Cold weather in Idaho with freezing temperatures, snowdrifts and road closures has slowed production. Transfers from cellars to packing facilities are limited to avoid freezing the potatoes. Markets have slowly increased as overall demand is light. Washington, Colorado, and Wisconsin markets are in line with Idaho markets due to shifting demand out of Idaho. Quality is good with occasional lots showing peepers, light mold, and pressure bruise. Lead time for orders remains crucial for full coverage and on-time deliveries. We are recommending 7 business day lead time prior to ship date.

Alerts:
Large sizes remain limited. Cold weather slowing production

Red potato markets are increasing as Wisconsin winds down and demand shifts west into North Dakota and Idaho/Washington. In particular, B size reds along with #2 grade are limited in supply. Pricing is reacting in the Pacific Northwest as well as Bakersfield, CA utilizing product from Washington. Expect to see a steady climb on the red potato markets as we move through February. Wisconsin will finish up for the season adding more pressure to the remaining areas. Yellow and white potato markets are holding steady to slightly higher. Florida has started with red potatoes and markets are elevated to start; mirroring prices out of Wisconsin and North Dakota. Quality from Mt Vernon, WA remains excellent.

Alerts:
Red potato markets rising; B size and #2 grade limited.

Transitions:
Wisconsin finishing for the season

Squash supplies are getting tight again. After a month of very light squash supplies, it seemed as if production was picking up over the past week. Now supplies are disappearing again due to some cool mornings and squash being in a downward cycle. Cold wet weather in Mexico is hurting their production and creating more demand for east coast product. Quality has been good for the most part especially on zucchini, yellow squash is still having a few issues with scaring due to all the wind that Florida has received in the past few weeks. Days have gotten sunnier and much calmer so expect the quality to get better for the weekend.

Alerts:
Very light squash supplies.

Supplies on both Italian and yellow s/n are expected to remain moderate through the week and into next week. Cooler weather that started on February 1st in the mid 40’s along with rain in Culiacan, Sinaloa and making its way up north towards Guaymas, Sonora will slow down production from both districts. Soft squash supplies are expected to remain steady/moderate for the next two weeks due to recent weather from both growing districts. Quality on Italian squash from Sinaloa ranges from fair to good on the newer crop from Sonora. Quality on Yellow S/N remains fair as crop is only being harvested in Sinaloa. Market is currently steady but could increase with lighter supplies.

Supplies of Chilean stone fruit are improving as we move forward. This week, prices have come down slightly on all varieties and more sizes are available. We have availability of yellow and white nectarines and peaches as well as red and black plums. Sizes are still on the larger side, but more options are becoming available. Quality has been excellent with strong fruit and good shelf life. Markets up to this point have been firm, but we saw some decreases this week and expect more aggressive promotional opportunities as we look toward peak production later in the month.

Alerts:
Supplies are slowly improving and prices are starting to decline. More sizes are becoming available on all varieties.

Peak Seasons:
We expect Chilean peak production period to start up mid February and last through March.

Tomato supplies are showing improvement this month, but the market remains short following poor weather events. Florida yields are near 50% from this time last year. Intermittent cold-weather systems and sporadic rains have greatly reduced the volume coming out of Florida. More growers have begun harvesting showing promise for the market eventually, but the weather continues to be a factor affecting picking schedules and the maturation of the fruit. Rounds today are in the mid to high teens with some cheaper quotes lingering in the market where product has since been sold off. Similarly, Roma quotes have dipped for the first time this year following the western market last week, however, there is little availability in Florida. Grape tomatoes remain above the $20 mark with the expectation for better availability by the end of next week. Cherry tomato also remain at the $20 mark and very short. Intermittent rain is expected over the next 3 days with a cooler temperature forecasted for the end of the week. It is reasonable to expect a stronger market for the beginning of next week.

Western tomatoes came into a flush of fruit last week dragging the market downward quickly, however, the main growing region of Mexico has received several inches of rain since Monday. This will likely cause some issues for outdoor growers and slow maturity for those in adapted environments. Expect to see supplies tightening up towards the end of the week after shippers clear up some of their existing inventory. Markets have already begun to increase several dollars into the mid to high teens since this time last week. The western market continues to adjust amid swings in changing supply affected by the weather. Culiacan is harvesting in stronger numbers and quality has been good, however, challenges can be expected in a couple of weeks as a result of current weather. New farms have large fruit coming into the market, but color has been on the light side. Grape tomatoes are near the price floor but there is a wide range of quality. Looking long term, there is uncertainty where the market will settle. Traditional market indicators must now take into account trade agreements and preventative measures against disease that may cause an influx in the market for months ahead or more. 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 which may affect markets for some time to come.