The Source - February 8, 2017

Washington - red delicious are mostly steady but the deals on larger fruit are starting to go away. Red delicious are still peaking on extra-fancy 64-88s. Golden delicious are steady on all sizes and continue to peak on 72/80/88s. Small Goldens remain very short with very few 125s and smaller. Granny-smith are steady but strong on 72s and larger 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 worse. Most suppliers are still subbing up in grade and size to cover orders of 100s and smaller and this will continue for the season. The Gala market is steady on all sizes. Galas are still peaking on 80/88/100/72s and they have good volume in the larger sizes. Gala 125/138s are shorter right now than have been. Fuji's are steady to slightly higher 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 esp. and they are still peaking on 80/88/100s. The quality all varieties has been good. Braeburns are available in limited quantitys.
Idaho---red delicious, Red Romes, and Pink Lady's are the bulk of the current production and are all fairly steady. Most of the Idaho varieties are peaking on 64-100s. The quality has been good.
Michigan--McIntosh and Empires are steady but strong due to lighter storage supplies and strong demand. Golden delicious, Jonathans, red Romes, Galas, red delicious, and Fujis are all fairly steady. The Galas, Red Romes, and Jonathans are still peaking on the smaller sizes while the Golden delicious, Red delicious, Fujis, and McIntosh are heavier to the medium sizes. The quality has been good.
New York---The Empire and McIntosh markets are steady to higher 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 because the fruit is larger than it has been. 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 have been short on 100 size and smaller and the supply situation is getting worse. Unfortunately the larger fruit will continue for the balance of the season. Hopefully we will get more small lots.

The New York and Michigan Empire and McIntosh markets are both very strong due to larger size, strong export demand, continual east coast slicer demand, and light supplies.

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

With warmer than usual weather in the evenings, we are seeing lower volumes this week. Valentine's Day AD's are also creating a greater demand for open market pricing. Market is up and volume is tight. We should see volumes improve middle to end of next week.

Shipments from Mexico last week dipped lower than we had expected, with only 32 million pounds to the states. This what we expect to get weekly for the balance of February. The overall size curve is now skewing toward the very larger 32ct/36ct with less of the smaller fruit and now seeing the percentage of #2 fruit lessen. Going forward, supplies will be on the tighter side and markets firming on all sizes and grades.

Excellent Quality, Condition and supply. Supply exceeds demand keeping market on Green Bells low and very reasonable. Mostly offering number one grade peaking on med and choice grade. Availability on larger sizes have lightened up for the next week or so.

Colored bells continue with slightly lighter supply on both blocky and elongated varieties. Good quality and condition. supply has lightened with market and demand improving some. Packing 25# 15# and 11# units.

Blackberries will continue to be very limited in supplies. Central Mexico is the primary growing region and the cold weather they experienced a few weeks back has had a big impact on the overall production. Demand remains strong. Shippers are expecting the shortages to last another 1-2 weeks.

Alerts:
Blackberry supplies continue to be very limited. Low production volume out of Mexico and California.

Blueberry supplies have started to decline as some of the growing regions are approaching the end of their season. Peruvian production continues to slow down as fewer berries remain and the end of the season pruning continues. Chilean volumes are declining and production will begin transitioning into smaller pack sizes to offset the lower volume. Mexico volumes are expected to remain steady for the next several weeks.

Transitions:
Florida production is expected to begin late this month and increase in March.

Raspberry supplies continue to be a challenge. Crop production has passed its peak season in the Mexican and Southern California growing regions. Volumes will continue to be limited over the next 2-3 weeks. As the weather warms up, we anticipate to see better harvest numbers.

Alerts:
Supplies continue to be limited out of Central Mexico and Southern California.

As the Valentine's Day pull is slowing down, shippers expect fruit production out of all areas to improve. Oxnard did see some rain over the weekend, but fields are drying up and harvest is expected to increase over the next couple weeks. Mexico production is expected to ramp up as they approach the peak of their season in the next couple weeks, good availability anticipated for the month of February. Florida continues to see consistent production with increased volumes expected to be available through the end of the month. Markets prices have been fairly steady over the holiday pull, but we expect to see some flex as we approach the end of the holiday demand period.

Transitions:
Santa Maria harvest is expected to start mid February. However, with the recent rains, volumes will be light and delays may occur.

Peak Seasons:
Mexico will continue to be in peak production over the next 2-4 weeks.

Oxnard fruit showing white shoulders and occasional water damage.

The broccoli market is declining at a slow pace. Supplies are not necessarily improving, it is that demand has fallen off. Quality is much better out of Mexico and Yuma versus Santa Maria. Quality in Santa Maria is still a problem with pin rot. I have provided a picture of an example. Supplies will increase into next week. And the market should settle out.

Mexico has provided a steady flow of supplies from all suppliers. This is keeping the market extremely aggressive. Quality is excellent with all sizes available and vibrant green color. This will trend into next week.

Carrot supplies remain good and look continue so, with jumbo, cello and value added product. Cooler weather is slowing size growth slightly and we are seeing market price on the jumbo size carrots firming up.

The cauliflower market is extremely active due to a 2 week supply gap in acreage from Yuma. Santa Maria is having issues with rain and poor quality. They are experiencing bruising and rain damage. That has caused pressure on supplies in Yuma which are decreasing into next week.

Alerts:
The cauliflower market is extremely active as we run into a 2 week supply gap. Also the rain in Santa Maria has provided poor quality and decreased supplies as well.

This market has remained unchanged as supplies continue to exceed demand. Production continues in Southern California as well as Yuma. All sizing is available, and as a whole, this market is quite competitive. Good quality continues with most suppliers. Light twisting has been reported, but these issues have been minimal. Southern California will have plenty of rain this week, but production will be steady. Expect continual good supplies with most shippers throughout the week.

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 cilantro market is taking off and trending much higher. The limited supplies from Oxnard/Santa Maria due to the rain damage. I have provided some pictures to see the issues. The quality is better out of Mexico and Yuma. The only downside is that they do not have the acreage to handle the demand. We will continue to see supply gaps and markets for the next 2 to 3 weeks.

Alerts:
The rain in Santa Maria and Oxnard has drastically affected supplies and quality. The market is extremely active.

The desert crop will be finishing next week. What is left is mostly the lager sizes of 115s/95s/140s and very few 165s and 200s. Central Valley crop is faced with limited production with the on and off rains they are getting. Rains came again this week and with this rain comes size growth, with more 95s/115s/140s and less 165s/200s. The Ventura crop has just began some limited harvest of their crop, but they are also getting rain this week, so harvest has been limited. Over all supplies are beginning to tighten with the desert winding down and rains in the other two areas. Forecast is for clearing weather coming this weekend and into next week, so growers will have a change to start catching up on picking.

The lime market is 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. No more adverse weather is being reported for the near future so we should experience normal market fluctuations.

Alerts:
Large limes from 110-175's are extremely short supplied and will remain so for the next several days.

Rain is back this week in the main growing area for California Navels and is forecasted through Friday. Growers were able to get ahead this weekend and did build some bin inventory, but this inventory is quickly depleting and the balance of the week and beginning of next week oranges will be very limited in availability. Weather looks to clear this weekend and into the first part of next week.

Alerts:
Rain is back this week in the main growing area for California Navels and is forecasted through Friday. Bin inventory is quickly depleting and the balance of the week and beginning of next week oranges will be very limited.

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

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

Supplies of green grapes have been good on both coasts. Quality is being reported as very good. Market prices are steady to lower. 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 steady to lower and feels 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.

We continue to have good supplies crossing from Mexico. As a result the market will be steady into next week. The quality has been good with minimal arrival issues. The tops have been green with little brown to yellow discoloration. Iceless green onion supplies also remain steady.

The kale market is following the cilantro market. This is due to the rain in Santa Maria and Oxnard as well. Quality from that growing region is showing yellowing and rain damage. As a result the market from Yuma and Mexico is reacting and trending higher. We will expect this type of situation moving into next week with relief about 2 weeks out.

Alerts:
The kale market is active due to a supply decrease in Oxnard/Santa Maria due to the consistent rain.

This market is climbing daily as demand exceeds supplies. Value added lettuce items will be light in availability for 2-3 weeks, minimum.There have been quality issues worth noting. Discoloration, pink ribbing, misshapen heads, and mildew have been reported. These defects are being reported from most shippers. The gap in production is upon us and will continue. Processors are attempting to buy huge acreage of product, and if this occurs, the carton business will continue to get stronger. No rain in the desert is in the forecast, however southern California will have lots of rain this week, obviously hurting production numbers in this region.

Romaine as well as all leaf items are active. Defects are arising due to weather conditions in the growing regions. These growing areas are dealing with rain and cool weather, especially in southern California. Blister and peel, twisting as well as light fringe burn is seen on romaine. Similar defects are seen on all leaf items as well. These defects are industry wide. The desert is expected to be dry this week. The quality looks to be only fair for the entire week on all leaf items.

Demand is better than it has been for the last few weeks on all sizes. Supplies are steady from Honduras and Guatemala. 12's continue to get increased demand due to substitution for 15ct. The 15ct are becoming more available. 18's continue to be extremely short in supply. The market is steady to higher 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 large sizes such as 5's and 6's with 8's being available now. Offshore dew volume is returning to normal levels. 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.

Market on Yellow, Red and White Onions is lower overall with improve production out of the Northwest and increase supplies out of Mexico. The white onions are slowing finishing up for the season up north, just in time as supplies increase out Mexico. Quality is being reported as good on all colors out of all areas. Growing condition in Mexico have been excellent which is showing in the quality. Supplies will continue to increase over the next couple weeks out of Mexico. Light rain in the Mexico growing area this week has slowed harvest. The forecast is calling for clearing going into the weekend. Northwest supplies will go into the end of April maybe longer.

Transitions:
Supplies increasing quickly out of Mexico

Washington -- Large Bartlett pears remain steady with good availability while the 110's and smaller are steady but strong due to light supplies. Bartletts continue to peak on US#1 70/80/90s. 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 most 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. Expect the Bosc market to strengthen when the Bartletts disappear. The quality has been good. Red pears are steady and they are still peaking on US#1 45/50 half cartons. The red pear availability is still very light. The red pear quality has also been good.
Chile - Chilean Bartlett pears are steady on both coasts and they are still peaking on larger fruit with more 90s and larger. The quality has been good.

Alerts:
Small Bartlett and D'anjou pears are still very short and will get even tighter once the bartletts finish up around March 1.

Peak Seasons:
Washington D'anjou's and Bosc are in the peak of their season. Washington Bartletts are starting to fall out of peak availability.

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.

Markets remain stable out of all areas with light demand. I don see this changing anytime soon. Quality is still being reported as good. Idaho supplies are starting to transition from Norkotah being the main variety to Burbanks. This will change the size profile from large to more of a normal profile peaking on 70 count and smaller. Good retail demand caused by Potato Lover's Month is causing small carton (100 count and smaller) to tighten up as most of these sizes are going into the retail bags.

Bakersfield California - red, white, and gold potatoes are steady on all sizes and all are peaking on A size. The White market remains strong due to light supplies. The quality is good.
Idaho - red and gold potatoes are steady on all sizes. The red potato sizing is split between As and Bs while the golds are heavier to A-size. The quality is good.
Western Washington - 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 supplier are flexing on volume of #2 A and B reds. The quality has been good.
Wisconsin - reds and golds are steady on all sizes but the market is high and strong due to light indigenous supplies. Most shippers are sourcing from North Dakota or Washington so they can finish the season, and that is keeping the market up. The quality is good.
Florida - they continue to pack all colors and all are steady. The reds are the bulk of the volume currently and are peaking on A-size. The whites and golds are heavier to B size. 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.

Transitions:
Florida has started. Reds are the bulk of the current volume but there a few hites and golds.

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

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 the market is also 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.

Growers in south Florida are packing crown picks and working through strong yields where gas green rounds are trending larger in size. Favorable growing conditions have helped keep quality high and prices low. 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.

Mexico crossings of round tomatoes remain strong. 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.