The Source - January 11, 2017

Washington - red delicious are steady on all sizes and most shippers are still flexing for volume of 88s and larger. Red delicious are peaking on extra-fancy 88s and larger and they have promotable volume. Golden delicious are steady on all sizes and continue to peak on 72/80/88s. Small Goldens remain extremely short with very few if any 125s and smaller. Most suppliers are subbing up in grade to cover the smaller sizes. Granny-smith are steady and are still peaking on 72/80/88's. Granny 100s and smaller supplies remain very short. Most suppliers are subbing up in grade to cover the smaller sizes. 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. Fuji's are steady on all sizes and are still peaking on 72/80/88s. Honeycrisp are peaking on 80/88/100s and are steady but strong due to light supplies esp in the lower grades. The quality for red delicious, golden delicious, granny-smith, Galas, Fujis, and Honey Crisp has been good. Braeburns, Jonagolds, Red Romes, Cameos, and the other varietals are available but only in limited numbers.
Idaho---red delicious, Red Romes, and Pink Lady's are the bulk of the current production and are all fairly steady with light availability. Most varieties are peaking on 64-100s. The quality has been good.
Michigan--McIntosh and Empires are up slightly due to light supplies in New York. Golden delicious, Jonathans, red Romes, Galas, red delicious, and Fujis are all fairly steady. Galas, Red Romes, and Jonathans are all still heavier to the smaller sizes while the Golden delicious, Red delicious, Fujis, and Macintosh are all heavier to medium size fruit. The quality has been good.
New York---Red delicious, Galas, Fujis, and Red Romes are all steady. The sizing has been medium to small with a larger percentage of smaller fruit than other areas. The sizing is going to change on red delicious as more shippers get into larger C.A. fruit. McIntosh and Empires are stronger due to light supplies and higher demand. The quality has been good to fair with more US#1 grade fruit.

Alerts:
Washington small golden delicious and granny-smith remain extremely short! Most suppliers are subbing sizes to cover small fruit.

New York is very light on McIntosh supplies and the market is stronger.

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

Asparagus market is very active. Summertime Peruvian asparagus is winding down and we are transitioning into Mexican product. Recent rain and cold weather conditions in Mexico are resulting in extremely light volume. Asparagus is very active day to day. We expect volatility for the next 10-14 days as Peru declines before Mexico production increases.

Transitions:
We are transitioning into the Caborca, Mexico region

Shipments from Mexico last were up a little and this week as production ramps up for Super Bowl period, projections call for 45-48 million pounds each week for the balance on January. However, the overall size curve is skewing toward smaller fruit and a heaver percentage of #2 fruit. We expect rising demand for 40s/48s/60s and look for availability to tighten and markets to rise on 40s/48s and strengthen on 60s during the Super Bowl push.

Alerts:
Size curve is skewing toward smaller fruit and a heaver percentage of #2 fruit. Demand for 40s/48s is tightening availability and markets firming up.

Excellent Quality, Condition and supply. Supply exceeds demand keeping market on Green Bells low and very reasonable. Mostly offering number one grade peaking on large , xlarge and jumbo.

Colored bells have started strong with good quality and condition. Supply exceeds demand keeping Market on Colored bells modest. Shipping from Mexico crossing in Nogales.

Supplies are steady and demand is fairly light. Favorable weather in Central Mexico is leading to good production volume and more fruit being sent to the US. We have experienced some delayed transfers from the blockades and gas protests in Mexico last week. There have been some challenges with quality as red cell, decay and mold have shown up on recent inspections. Order for quick turns and maintain the cold chain through transportation and storage.

Blueberries are plentiful on both coasts and in most markets. Opportunities available with increased volumes coming from Chile for the next several weeks and promotable pricing. Central Mexico production is steady and there's also still production in Peru. With large volumes available, blueberries are being packed into larger packaging with more availability in 18oz, pints and 6oz clamshells. Quality is good.

Peak Seasons:
Southern Chile production is in the middle of it's peak.

Supply is steady and demand is fairly light. Quality is good. Central Mexican production has already peaked this season and will begin to decline from here on. However, overall availability still looks to remain fairly steady over the next several weeks.

Supplies are limited from all growing areas this week. California's strawberry growing regions have been receiving rain since last Thursday off and on which has continued to disrupt production. Rain and water damage are likely to show up in these packs over the coming week. Florida production has been slow so far this week as the area has experienced a major cooling trend over the past weekend following a round of thunderstorms and showers. This area has since cleared and temperatures are warming which should bring production back to normal levels moving into next week. Mexico production has slowed with reduced harvest estimates and lower volume crossing into the US. Recent protests and blockades have also resulted in some delayed transfers of fruit bound for the US.

Alerts:
Supplies are limited across all growing regions.

So the weather has been the main factor in an increasing broccoli market. Rain in Santa Maria as created quality issues such as pin rot and rain damage. I have provided a picture of this example. The dark discoloration of the broccoli is the rain damage that will eventually turn to pin rot. There are cheaper quotes out of Mexico but the market out of Yuma has already reacted. The market will gain strength into next week. Quality is much better out of Yuma and Mexico.

Alerts:
The current rain has affected quality and supplies in Santa Maria. This has created a higher market in Yuma.

We have increased supplies from Mexico. California is still harvesting in a light way. Quality has improved out of Mexico and California supplies continue to have excellent quality. Most sizes are available depending on the loading day. The market is steady with promotable prices.

Peak Seasons:
We are currently in peak season out of Mexico.

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.

There has been an increase in supplies thus creating a lower market. Demand has also fallen off with the current freezing temperature across the country. Quality has improved slightly with some arrivals showing black to brow discoloration. Some aggressive quotes out of some of the growing regions will have off white to creamy color.

Alerts:
Increased supplies has created a downward trend in the market.

Lighter availability is being reported amongst most suppliers in Southern California and Yuma. This market is active. Supplies look to be tighter for the next 1-2 weeks in both growing regions. The quality continues to be strong in all areas. Pricing is steadily rising daily. Currently all sizes are available.

Transitions:
Production in Yuma as well as Oxnard for this commodity.

The Chilean cherries are coming to an end. The early season rain in Chile had a big impact on the overall production and quality of the last harvests. The remaining inventories are showing heavy scaring and pits. Fruit will be available for the next couple weeks, but quality is something to consider. Market prices have remained steady.

Alerts:
Cherries are showing heavy scaring and pitting.

Pablano - Excellent size and Quality and color will continue with steady to 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 and condition and size are expected to continue as supply improves.

The rainy weather in the Oxnard and Santa Maria growing region has hampered supplies. This has created an upward trend to the market. Supplies from Mexico are steady and have better quality due to the fact they haven't had the rainfall that Oxnard and Santa Maria have experienced. This market will trend higher into next week.

Alerts:
Rain in the Santa Maria and Oxnard growing regions is hampering supplies. As a result the market is gaining strength into next week.

Over all supplies have been impacted by rains in the Central Valley and the small amounts that they have been bring to market. The desert crop is 80% harvested and with size growth, larger sizes predominate peaking 115s/95s/140s making 165s and 200s short.

The lime market is higher on all sizes. The rising market is due to lower volume caused by the new crop harvest being in the larger size profile. The other factors causing our elevated prices are the rains that happened recently, cool weather, great demand across all channels and Mexico's gas protest which blocked imports. The quality is good with a few reports of moldy fruit from the rains. No more adverse weather is being reported for the near future so we should experience normal market fluctuations as we come in and out of holiday demand and export shipments to other countries.

Alerts:
Supplies will be very short for the next two weeks.

The main growing are for California Navels was hit hard with rains last week and over the weekend, with more at the beginning of this week. Growers have been unable to pick, and bin inventories have been used up for most shippers and others with very limited supplies left for this week. Many groves are so wet, that when rains do quit, it could take a few days of drying before growers could get back in to harvest. A dry period looks to come Friday and the weekend and may go into next week, before another wet system comes into the area. Current supplies are very limited.

Alerts:
Week long rains of last week and current rains of this week in California's main growing area, have left supplies very tight and will be so into next week.

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.Northern Mexico (Sonora) will finish and (Sinaloa) will continue to ship heavy.Euro cucumber is also available in very good supply, both #1and #2 both single layer and bushel boxes.

Excellent Quality and size are currently being shipped from Nogales, mostly larger sizes are available in large volume. Some lots showing internal discoloration.

Import green grape supplies are improving. Supplies on the east coast have been consistent and more fruit is expected to arrive on the west coast later this week. Quality has been good, but occasional dark berries have been reported on some older east coast fruit. Moving forward, this should not be an issue. All sizes are available with heavier volumes of L and XL. Market prices have been high without much change. However, we do expect to see a drop next week, as more fruit becomes available on both coasts. Overall, the green grape supplies and market conditions have been steady. We expect good supplies moving into peak season by the end of the month.

Peak Seasons:
We will be in peak Chilean green grape season by the end of the month.

Import red grapes are in excellent supply. Demand has been lower than expected and inventories are building. On the east coast, Chilean and Peruvian red grapes are available with heavy volumes of Medium and M/L. Due to demand being low, shippers have a surplus of product and market prices are changing quickly. This week we have seen the bottom end of the markets drop rapidly. Aggressive prices are available on smaller fruit; this will be the case for the next 2-3 weeks. Quality overall is being reported as good, but older inventories are showing occasional wet and soft berries. We are aware of the situation and shippers are inspecting fruit prior to loading.

On the west coast, another large vessel is expected to arrive this Thursday. This will greatly improve the supply of red grapes and shippers are preparing for the increased volume. Market prices have started to come down and aggressive prices are being offered for volume buy opportunities this weekend. Quality is expected to be very good on the west coast. Supplies are expected to remain consistent moving forward.

Alerts:
Market prices are changing quickly as volumes continue to increase on both coasts.

Peak Seasons:
We will be in the peak season of Chilean red grapes by the end of January.

As supplies increase with more crossings from Mexico, the market has declined to lower levels. Quality remains good with minimal arrival issues of yellow to brown discoloration of the tops. As more crossings become available the market will trend much lower.

Alerts:
Supplies have increased with more crossings from Mexico, and the market is starting to decline.

Kale supplies remain abundant. Quality has been excellent with minimal yellowing or dehydration. The market is promotable as supplies have kept the market favorable.

Peak Seasons:
We continue to be in peak season for kale.

The iceberg lettuce continues on a steady path. Demand is off. There is no rain in the forecast for this week in Yuma. Expect a stable market for the entire week. High temperatures in the 60's to 70s to lows of 48-52 are predicted temperatures in the desert this week. Aside from some slight discoloration and misshapen heads, the quality is good overall. Weights on palletized have has been reported to be 42 -45 pounds.

This market continues to be flat. Demand is minimal. There are some issues of romaine were noting. These issues include blister, decay, twisting and fringe burn seen sporadically in cartons. Supplies are strong. On green and red leaf as well as butter, the issues are less compared to romaine, but do exist. Weather conditions call for no rain in the desert, but southern California will see some. Supplies continue to exceed demand.

Demand is good on all sizes. Supplies are steady to increasing at the moment. 12's continue to get increased demand due to substitution for 9ct. The 15ct are extremely short in supply with a grim availability outlook over the next few weeks. There are virtually no 18's anywhere. The market is lower to steady across the board. The quality is excellent right now and for the long term outlook too. Weather in the growing regions have been ideal.

Honeydew supplies are trending down. Mexico is exporting very nice looking honeydews up to us and their supplies are light for the next few months. Mexican dews are now the same price and higher than the offshore dews. Offshore dews have excellent quality and are peaking on large sizes such as 5's and 6's with 8's being extremely short supplied for several weeks. Offshore dew volume is returning to normal levels. The market is currently steady to higher on offshore dews and higher on Mexican dews.

Alerts:
Dew 8's are now becoming available in a light way.

Northern Mexico is winding down on supplies which will raise the market some, we expect a slight gap as the production region moves south. Quality is just fair as the old district is finishing and waiting for new districts to start. Personal seedless is available in good supply.

Idaho/Oregon - Up to two feet of snow last week followed by Freezing Rain over the weekend is causing all types of issues out the Idaho/Oregon shipping areas. It snowing again today which will be followed by single digit temperatures into the weekend. A few Onions storages and one packing shed has collapsed from the weight of the rained on Snow. This has also caused havoc on transportation with roads closing. The Trucks that are moving are doing it at at snails pace. Run times are limited due to raw product having a hard time getting to the packing sheds. Demand is moderate with limited supplies which is causing the market to firm up on all sizes and colors. Quality of the onions being packed out of the storages is still being reported as good.
Washington - Snow followed by single digits weather is slowing everything down, from raw product to trucks. The forecast is calling for these cool temperatures into the weekend. Demand is steady. Market has a slightly stronger undertone Quality is being reported as good.

Alerts:
Weather is causing havoc on transportation. Market on the rise on all Colors and sizes.

Washington -- Bartlett pears are steady and still peaking on US#1 70/80/90s. Bartlett 100s and smaller remain fairly short. D'anjou pears are steady and continue to peak on US#1 80/90/100s. D'anjou 110s and smaller remain extremely short and will so for the balance of the season. Bosc pears are steady and continue to peak on US#1 80/90/100s. There is generally better volume of small Bosc. Red pears are steady and still peaking on US#1 45/50 half cartons but the availability is fairly light. There is some volume of small full-carton red pears. The quality for all varieties pears has been good.

Alerts:
Washington D'anjou pears -- Most shippers are switching their 12/3# retail bag business from small, low-grade Bartlett pears to small, low-grade D'anjou's. So expect an already short market for D'anjou 110s and smaller to get even shorter.

Transitions:
Washington will start to finish Bartlett pears in mid February.

Peak Seasons:
Washington is in the peak of seasons for Bartlett, D'anjou, Bosc, and red pears.

supplies from the tropics look good and steady through the month.

Idaho - Demand is steady on all sizes and packs. The markets are steadu on Burbanks and Norkotah's with the Burbank's getting a slight premium. Pack-outs are still peaking on 60 counts and larger. As Burbanks become the main variety the sizing looks to size down slightly and will be peaking on 80 counts. Look for the markets to stay steady a current levels into February. Quality is good. Snow and Ice is slowing down trucks coming and going to the Idaho area.
Washington/Colorado - Demand is steady. Quality is good. No change in the markets on all sizes and packs.
Wisconsin - Demand is steady to light. Quality is good. Shippers are raising pricing on all sizes and packs to slow movement so they do not run out of supplies before new crop come in.

Bakersfield California - red and gold potatoes are both steady on all sizes. Whites are steady to higher due to light supplies. All colors continue to peak on A size and the quality is good for all.
Idaho - both red and gold potatoes are steady on all sizes. The red potatoes are peaking on A-size while the golds are split between the As and Bs. The quality is good.
Western Washington - red and gold potatoes are steady and continue to peak on A size. White potatoes are essentially finished for the season. The quality has been good.
North Dakota - red and gold potatoes are steady on all sizes and they are still peaking on A size. Some suppliers have mentioned being short on B-size but it hasn't affected the market thus far. The quality has been good.
Wisconsin - reds and golds are steady on all sizes but the market is strong due to light supplies. Some suppliers are sourcing bulk from North Dakota so they can finish the season. The quality has ranged from fair to good.
Canada - reds, golds, and whites are mostly steady but some sizes are higher depending on the supplier. Some shippers have more sacks while others have more cartons. The quality has been good.

Transitions:
Florida will start packing all colors in approximately 4 weeks.

Peak Seasons:
Idaho, western Washington, and North Dakota (red and gold potatoes for all), and Bakersfield, California (winter whites) are all in the peak of their seasons.

Supply on Italian squash will continue to lighten after many weeks of heavy harvest and S/N Yellow squash will lighten even more. Quality has been good on all sizes, grades and pack styles. Hard Squash is also being harvested in very good supplies ,Mostly larger sizes and number one grade.

Chilean stone fruit is in good supply on the east coast and the west coast is improving. On the east coast, there is good availability of Peaches, Nectarines, Plums and Apricots. Multiple sizes are available in both tray pack and volume fill. Quality has been excellent. Market prices have been steady with gradual declines on sizes 50-60. On the west coast, our options are more limited for this week. However, more fruit is expected to arrive this weekend and we will see supplies improve next week. Market prices on the west have been firm, but as we approach peak season in another 2-3 weeks, we will see aggressive prices and promotional opportunities on both coats.

Peak Seasons:
We will be in peak season of Chilean stone fruit starting February.

Supplies in Florida looking to be a bit less, with a slight tick upwards in demand. Cooler weather and rains slowing things, moving the market. As expected, Roma market also on the rise, with less supplies available. Look for the market to continue, during the transition period. Grape and Cherry market is on the rise, with demand stronger. Cooler weather has slowed up harvest in the Florida area. Look for the market to be stronger with additional weather conditions forecasted. Quality is good.

Demand on Rounds in the west is stronger, with lighter volumes from Baja and Eastern Mexico to Western Mainland Mexico. Cooler, wet weather continues to hit the west, with additional rains forecasted. Lighter supplies with Roma's continue to keep the market a bit stronger. Supplies, along with wet weather, is slowing up product. Grape and Cherry markets are a bit stronger. Supplies are available, however, demand is ticking upwards. Look for the market to continue this pattern, with additional rains forecasted in the west. Quality continues to be good.