The Source - January 10, 2018

Washington – Red Delicious, Golden Delicious, Granny Smith, Galas, Fujis, and Honeycrisp remain relatively steady. The other varietals have also been mostly steady as well. The quality has been good for all varieties. Most variety's have been peaking on smaller fruit so the larger fruit has been priced at a premium. Transportation has been the hardest thing to find in the northwest.

Idaho – Jonagolds, Golden Delicious, Red Romes, Red Delicious, Granny Smith, Fuji's, and Pink Ladies are steady. Granny's and Jonagolds are still peaking on 80/88/100s while the others are peaking on 88/100/113's. The availability remains light for all variety's but they start packing more next week. The quality has been good.

Michigan – Galas, McIntosh, Jonathans, Jonamacs, Golden Delicious, Red Delicious, Cortlands, Empires, Fujis, red Romes, Ida Reds, and Jonagolds are all steady. Michigan still has good quality and color. The quality has been good.

Pennsylvania – Fujis, Red Delicious, Golden Delicious, Cameos, and Pink Ladies are all steady. Red Delicious and Pink Ladies are peaking on 88/100s, while the rest are peaking on 100/113s. The demand is picking up. Granny-smiths have finished for the season. The quality has been good.

New York – Cortlands, Galas, McIntosh, Honeycrisp, Red Delicious, Fujis, Snap Dragons, Golden Delicious, Jonagolds, Red Romes, Macouns, Pink Ladies, Staymen Winesaps, and Empires. Most of their fruit is larger this year. All markets have been steady and the demand has been light. The McIntosh and red delicious have been producing more small fruit lately. The quality has been good.

Alerts:
Washington remains relatively short on 88 and larger Granny-smith apples.

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

Production has started from San Luis, Mexico, and Caborca, Mexico. Weather is excellent in both growing regions, and production should continue to increase in the next 2 weeks. Northern Peru (Trujillo), and Southern Peru (ICA) have very little volume due to seasonality. Both of these 2 regions should be wrapping up in the next 2 weeks with Mexico having more volume, and warmer weather in the regions. Overall market is higher due to Mexico just starting up, and Peru winding down.

Mexico's harvest is increasing, with better volume now showing up to the states. As we move forward into the month, weekly volumes are anticipated to ramp up for the Super Bowl pull. Size curve continuing to be more toward 48's/40's and a larger percent of #2 fruit. The smaller fruit 60's/70's still a lighter percentage of what is being packed. We are see an increasing percentage of #2 fruit starting to come out of the harvest.

Cold weather through out the state of Florida has slowed harvesting on everything. As of now there are no reports of damage on the Bell Pepper crop but harvesting completely stopped for a few days because weather was cold and wet. Temperatures are warming this week but supplies will remain tight through the weekend.

Alerts:
Tight Supplies

Peak Seasons:
Bell Pepper is not in peak season.

Blackberry supplies are good this week. We have seen improved production out of Central Mexico and fruit is filling the pipeline. Demand has been consistent and quality is excellent. Texas has some possible promotional opportunities available, California and Florida will have consistent supplies. Market prices have started to come down gradually on blackberries. There is a chance of rain in Central Mexico later this week, but the crops are under hoops, so we do not expect any disruption in harvest. Expect good supplies next week.

Alerts:
Good supplies with lower markets. Promotional opportunities available in Texas.

Blueberry supplies have improved this week. Central Mexico and Baja production has slowly increased over the last week and we expect better availability moving forward. Quality has been good with occasional smaller berries and light color. Market prices on Mexican fruit has gradually declined with some more aggressive prices being offered in Texas. Chilean arrivals have improved this week as well; with better availability on both the east and west coasts. Quality is being reported as good. Market prices have gradually started to decline on Chilean fruit as well. There is a large number of Pints being packed and shipped out of Chile, so 6oz fruit is still limited. Demand is strong and we expect consistent supplies as we approach peak season late January.

Alerts:
Supplies are gradually improving. Demand is strong markets are steady.

Raspberries have been consistent with slightly better supplies from Mexico this week. We do have possible promotional opportunities if loading in Texas. California and Florida will continue to have product transferred to cover demand with no interruptions expected. Central Mexico is expecting some possible rain later this week, but with most of the acreage under hoops, we do not expect any disruption in harvest. Market prices have been high in California and Florida, but have come down slightly in Texas.

Alerts:
Supplies are slowly improving on raspberries. Markets are still firm.

Strawberries will be extremely limited this week. California received it's first real storm of the season and moderate rainfall disrupted harvest in Santa Maria and Oxnard for the first part of the week. Yields have been greatly affected as well as overall quality. Due to the rain, the strawberries are showing splits, bruising and soft spots. Although the weather is expected to improve moving forward, we expect to see the residual damage and shortages for the next week. Florida has yet to recover from the weather they experienced last week. In addition they received more rain at the beginning of this week and are expecting more Friday. Supplies have been very light and again, quality is being jeopardized. With the rain and freeze that has hit Florida, the strawberries are showing heavy bruising, wet and soft spots and small size. Mexico has been consistent in production this week, but supplies are not enough to cover the demand. This fruit is being sold primarily out of Texas with a little being transferred to California to try and cover demand. Overall we expect strawberries to remain very limited for the next 10-12 days, barring any further weather delays. Market prices will be higher and firm.

Alerts:
Supplies are expected to be very limited for the next 10-12 days. Markets will be higher and quality will be fair.

The broccoli market is three tiered based on loading location. The most competitive being out of McAllen Texas with Mexican broccoli. Santa Maria is also competitive. Unfortunately supplies out of Yuma continue to be limited and the market is much higher than the other growing regions. Supplies in Yuma look to recover by the end of next week. Quality remains really nice despite the market. We are seeing tight beads, green color, minimal yellowing, or dehydration.

Alerts:
Supplies out of Yuma continue to be limited keeping the market at much higher levels.

As the Salinas Valley finishes their acreage, supplies out of Mexico will have to fill the void. But supplies out of Mexico are still a couple weeks away from picking up full steam. This has caused a spike in the market. Quality has been really nice out of both growing regions with dark green color and minimal decay. Although we are struggling with getting any jumbo sized brussel sprouts. They have been running in the small to medium size.

Alerts:
The Salinas growing season comes to a close, Mexico supplies are not ready for the demand. The market is trending higher.

Transitions:
We are slowly transition to Mexico as the Salinas Valley finishes the last of their acreage.

Supplies are steady, still not much size coming from fields, so jumbo size are still tight. Organic fresh carrot are still light production. Quality is good.

The cauliflower market has finally adjusted to lower levels. It looks as if the supplies have increased and the overall demand has decreased significantly. Through the high markets quality has been really good. We have seen minimal bruising / brown spotting, good weights in the 25 to 29 pound level, and minimal yellow color.

Alerts:
The demand has fallen off, as well as supplies have increased causing the market to trend lower.

This market is steady with most shippers. All sizing is readily available. Some quality defects include insect damage, mechanical, slight bowing and branchy. Demand continues to be minimal. Shippers are flexing for volume type orders. Expect good supplies throughout the week. The best deals continue to be in Santa Maria/Oxnard. Production in Yuma is average at best.

We are currently experiencing a two week supply gap in Oxnard. This has created a much higher market for the rest of the growing regions. Quality remains good with minimal yellow to brown leaves, full bunches, and vibrant green color.

Alerts:
Minimal supplies out of Oxnard have created an overall higher market for the other growing regions.

The lemon market remains very active. Demand continues at a strong pace and is exceeding supplies. With this year's Desert crop much lighter in volume, shippers production starting to fall off as they look at an early end of their season. The Central Valley crop has just begun to harvest and pack limited volume, mostly fancy grade. Ventura crop will not start until the end of February. Demand is exceeding supplies on 140s and smaller fruit, and will so through January and into February.

Alerts:
Demand exceeds supplies on 140s and smaller fruit.

Lime supplies remain steady. The industry has seen a slight increase on demand on some of the larger size limes which has firmed up the price a bit, but smaller limes are consistent. Quality has been solid. There has been some delays of fruit arriving in Texas due to trucks being held at the boarder, but our biggest challenge continue to be with LTL deliveries. This has been an ongoing issue for the last several weeks and the situation has yet to improve. Due to new trucking regulations, LTL truck options are extremely limited and freight is very high. Shippers continue to work with logistic companies to find solutions, but progress has been slow. We continue to see weekly delays and missed picks due to the shortages of trucks. Loading FOB is the best option at this point. Otherwise, we will have to remain flexible on delivery dates as we navigate through these challenges.

Alerts:
LTL deliveries are a big challenge at this time.

Rain on the weekend and the first part of the week has keep growers from picking. Weather will be clearing mid week and picking will resume. This has really shorten availability on an already short product. The crop continues to peak on 72s/56s and the percentage of 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 88s/113s/138 both grades. We are looking at peaking on the larger sizes 72s/56 for the balance of the navel season. Small fruit will be in short supply all season long.

Alerts:
Demand exceeds supplies on 88s and smaller size fruit.

A lot of factors at play in the tight supplies of cucumbers being imported from Honduras. Overall acreage is down and some shippers have yet to start. Cooler weather has slowed harvest and political unrest has caused issues getting containers to and from packing houses. On top of that a very tight truck supply from Nogales has prompted more buyers to load imports out of Florida increasing demand for Honduran cucumbers dramatically.

Alerts:
Tight supplies

Peak Seasons:
Cucumbers are not in peak season.

Eggplants love hot weather so it is no surprise that when temperatures late last week dropped into the 30's eggplant production slowed dramatically. The eggplant market is rising sharply since last weeks cold weather and a very tight truck situation in Nogales. Nogales is the primary eggplant supply this time of year and when buyers can't get transportation from Arizona, they have to turn to Florida and the demand has been more than shippers can handle. Expect this trend to continue through the weekend and next week.

Alerts:
tight supplies

Peak Seasons:
eggplant are not in Peak season.

The imported green grape market has eased slightly and will continue to do so over the next few weeks. Supplies will continue to improve on both coasts throughout the month of January. Quality is reported as very good with sizing running from a medium to extra large.

The domestic red grape supply is just about done for the season. Imported Peruvian and Chilean grapes have been arriving with a wide range of sizing and varieties available, with the majority of product arriving on the East coast. Quality is reported as good to excellent, We expect to see the market ease down with increased volume arriving to the ports.

As the supplies ramp up from Mexico, the market is trending lower. The market should be back to normal by next week as the work force in Mexico is back. Quality has been really nice with green tops and minimal yellowing. Although sizing hasn't improved as there are few jumbo size and most shipments have been small or medium size green onions.

Alerts:
As the supplies increase from Mexico, the market has adjusted accordingly.

The kale market is competitive with plenty of supplies. All growing regions have benefited from decant weather. Also kale is extremely hardy and temperature fluctuations temporarily affect growth. Quality remains excellent with dark green color, full bunches, and minimal yellowing.

Overall, this commodity is steady in the marketplace. Defect multiple shippers are reporting include blister and epidermal peel, mishappen heads, and mechanical. Demand is light. Weights on Wrap has been averaging 34-44 pounds. Supplies will be steady throughout the week. The desert region continues to be the main growing region for this commodity. Like last week, Santa Maria has no production at this time.

Romaine as well as all leaf items continue to be steady. There is a gap in pricing depending on the shipper so please be aware. Blister and epidermal peel is being reported on romaine. The depth is reported to be 4-6 leaves. Red and green leaf has had blister reported as well. Twisting , mechanical and tip burn as well as insect damage is also being reported on all romaine and mixed leaf items. Romaine hearts will have steady availability throughout the week.

We are experiencing a bit of a rough patch and a supply gap due to quality in both the conventional and organic tender leaf items. The previous cold weather a few weeks ago coupled with the warm night time temperature we are currently experiencing have taken its toll of the quality. We are seeing yellowing not only in baby spinach and teen spinach, but also baby arugula and wild arugula. Mildew is really limiting supplies of organic baby spinach. Suppliers are having an extremely difficult time filling orders. It is taking more raw product to fulfill the needs of the processors. The only trouble with that is the acreage is 2 weeks ahead of harvesting schedules. The long term outlook is two more weeks for better quality and supplies.

Domestic melons have finished for the season.
The import market is steady to slightly lower on all sizes and on both coasts. The fruit remains large with mostly 9s and 12s and lighter supplies of 15s and 18s but volume is generally better for all sizes. There is better availability on the east coast than the west. Sizing will remain steady as Guatemala production winds down and Honduran production gets going. The quality has been good.

Alerts:
Smaller melons are still more limited but the volume is improving.

Transitions:
Guatemalan production is finishing up and Honduran production is starting up.

Domestic melons have finished.
Imported fruit remains mostly steady on both coasts. The fruit is peaking on 5s with some 6s and few 8s. We expect the sizing to remain the same as Guatemalan production finishes up and Honduran gets underway. The quality has been good.

Alerts:
Honeydews are heavier to 5 count with a few 6s and very few 8s.

Transitions:
Guatemalan production is winding down while Honduran is getting started.

Markets are steady on all color and sizes out of all shipping points. Quality is good. Transportation is still the biggest issue with no light at the end of the tunnel. Freight rates are though the roof. I can't say it enough stay ahead of your inventories.

Alerts:
Transportation is still the main story with no enough trucks to go around. Rates going through the roof.

Peak Seasons:
Northwest Storage onions are in Peak season

Washington – Bartlett pears are steady on all sizes and are still premium priced. The remaining Bartlett pears are mostly large with only limited supplies of smaller fruit. D'anjous are steady and also remain large. D'anjous are also short on smaller fruit. Bosc pears are steady and are peaking on US#1 80/90s. Bosc are short on the smaller sizes. Red pears have transitioned to red D'anjous but the market remains steady on all sizes. They and are still peaking on 40/45/50 half cartons. The quality for all has been good.

Alerts:
Small fruit is more limited in all variety's.

Transitions:
Domestic Bartletts will finish in mid February.

Offshore (Chilean) Bartletts will arrive on the west coast in early February.

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

Volume coming in from the tropic's will begin to pick back up beginning next week. We are looking at good supplies going forward into February.

Market are steady with little change in sight. The truck shortage is not helping and only adding to the cost of the goods as rates have good through the roof. Quality is good. Please stay ahead of your inventories and you cannot count on your next truck being on time.

Alerts:
Truck continue to limited with rates going through the roof.

Western Washington – reds and golds are both steady. A size is still the bulk of the production for both colors. The quality has been good.

Eastern Washington – red potatoes are steady and are still peaking on A-size. The quality has been good. Golds have finished for the season.

Bakersfield, California – reds, whites, and golds are all steady. The new-crop whites and golds continue to peak on A-size. The reds are still producing mostly A size. The quality has been good.

Idaho – red and gold potatoes are steady on all sizes. A size are still the bulk of the production for both colors. The quality has been good.

Wisconsin – reds, and golds are both steady and remain heavy to A size. The quality has been good.

North Dakota – red and gold potatoes are steady and have better availability in the size A. The quality has been good for both colors

Transitions:
Southern Florida will start packing red potatoes in early February with golds and whites a week or two behind.

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

Temperatures in the 30's were reported in many squash growing regions of south Florida. Homestead is the main squash growing area of south Florida where temperatures dipped into the high 30's. Other areas, like Immokalee saw even lower temperature and scattered frost. There was some production still coming from Plant City that was completely lost to freezing weather but that area was not a real factor in the marketplace. We expect production to pick up some as temperatures rise into the 70's this week and weekend.

Alerts:
tighter supplies

Peak Seasons:
squash is not in peak season.

Chilean stone fruit supplies continue to be somewhat sporadic, but more supplies are arriving on both coasts. Sizing is still mostly in the 60/64 tray pack peaches, nectarines, and now plums with some limited availability in other sizes. Quality on the early season fruit is reported as generally good. We continue to expect to see supplies gradually ramp up with much improved volume by the end of the month.

As we head into mid January, FOB’s continue to adjust as availability increases following one of the most demanding tomato markets in recent years. Demand is steady with cold weather plaguing most of the nation as schools get back into session helping to restore buying patterns. Mature greens have increased in volume significantly out of south Florida with good availability across large and medium sizes. XL rounds are sold at a premium but there are no major supply concerns at this time. Overall FOBs are steadily approaching seasonal norms and XL sizing will continue to improve helping to establish traditional step down pricing. Roma tomatoes have not decreased in price as quickly as mature greens, largely due to the lack of transportation coming out of TX and AZ. In addition, the cool temperatures over Florida have slowed down production of domestic grown romas which are planted in far fewer acres since Mexico is the main supplier for the season. Similarly, cooler temperatures are holding prices of grape tomatoes at escalated levels with less volume coming out of the fields. Cherry tomatoes have improved slightly as more come into the united states helping to meet demand. Volume is expected to continue building as acreage is restored by March, carrying the rest of the season through May.

As Nogales continues to increase crossing from Mexico, Baja is finishing up for the season with the last of their fruit available this week. Eastern Mexico is continuing to contribute in a small way, but most all volume will be coming from Culiacan through AZ until California begins in Summer. Nearly all items have fallen by $5 or more this week with another dip forecasted next week helping to pull the market down as all areas produce more week over week. Mexico has also experienced their share of cool weather patterns slowing production but supply has continued to improve none the less. Warm weather in the immediate future will continue to help plants thrive and volume should continue to improve tremendously pending a catastrophic event.