The Source - January 14, 2016

Washington - red delicious are steady and most suppliers continue to peak on 72/80/88s. 113 and smaller reds are still short. Golden delicious are steady and continue to peak on Wash-Extra 100/113s. Most suppliers don't have much larger than an 88-size Golden. The Granny-smith market is steady on all sizes and they are peaking on 88/100/113s but the market remains very strong. Most Granny shippers still don't have much larger than an 88 and are also short on 125's and smaller. Galas are steady on all sizes and continue to peak on 100/113s. Most Gala shippers don't have much fruit larger than an 88. Fujis are steady and continue to peak on extra-fancy 80/88/100's. Honeycrisp are steady to higher and the market is strong due to light supplies. Honeycrisp are still peaking on 64/72s. Lower grade Honeycrisp remain relatively cheap but supplies are limited. Jonagolds and Braeburns are both steady and continue to peak on 72/80/88's. The quality for all varieties has been good.
Michigan - Red delicious are steady on all sizes and are still peaking on 80/88s. Most Michigan packers have limited supplies of 125 and 138s. McIntosh are steady and they are heavier to 125/138s. Galas are steady on all sizes and are peaking on 125/138s. Golden delicious are steady and they are still peaking on 125/138s. Jonathans are steady on all sizes and they are still peaking on 150/138/125s. Jonathans are still the low-price leader in Michigan. Fujis are steady and they are peaking on 125/138s. Jonagolds and Red Romes are all still available.
New York - Red delicious, Macs, Galas, Cameos, Romes, Crispins, Empire, and Golden delicious are all steady. Empire and Red Rome volume is good and some shippers will flex for volume on the smaller sizes. The quality has been good on all varieties.

The asparagus market is still extremely active with limited supplies from Peru and Mexico. Jumbo and Extra Large asparagus are virtually nonexistent. There are better supplies of small, standard, and large. Look for better supplies next week and the market to see some relief. Quality from Mexico is far superior to the product from Peru.

Alerts:
Extremely Limited Supplies and Active market

Transitions:
Caborca Mexico has started but with limited volume

Rain in growing areas of Mexico today has halted harvest. Shipments to the US will be down just a little for the week. The size curve which is running heavy to the 32s/36s/40s is causing supplies issues 48s/60s/70s. There are very limited availability on the smaller sizes of 60s/70s and as customers move up to 48s, we are see 48s becoming very tight and a real issue for shippers.

Cool weather and rain has slowed production in Central Mexico. Availability will be sporadic as slower production means fewer transfers of fruit from Mexico to the US. Mexican Customs has also had system issues which has caused bottlenecks and delayed crossings at the border. Quality has been a concern with wet, leaky fruit and red cell.

Availability is limited this week as several vessels from South America have been delayed coming into ports on both coasts and quality issues have taken some of the fruit that came in last week. Increased arrivals from South America and additional volume should continue over the next few weeks. Mexican production has been steady. Baja production is slowly increasing. Delays with transfers coming into coolers has been the biggest concern with the Mexican product. Quality has been a mixed bag. Mexican fruit has been strong overall. The containers from South America that arrived last week had varying degrees of quality from both Chile and Peru. Some containers of fruit were very nice while others had shriveled and soft, overripe fruit.

Cool weather and rain in Central Mexico has limited availability of raspberries this week. Production has slowed down and system issues with Mexican Customs has delayed transfers of fruit to the US.

Strawberries are extremely limited and demand is exceeding supply in all growing/loading regions. Cool weather this week has followed last week's rain and thunderstorms in CA. Fruit is ripening more slowly due to the cooler temperatures and harvest crews are covering much more acreage to find red fruit. Harvests are being delayed/cancelled due to lack of ripe fruit and there are less pick days per week as well. Central Mexico has been cool and receiving rain this week as well. So for the same reasons as CA, the expected ramp up in volume is being delayed and production is limited. Mexico has also had system issues this week at border crossings and with customs which has slowed transfers of fruit to the US and subsequently delayed transfers to coolers within the US. Florida has also been cooler this week and dealing with rain and thunderstorms which has limited harvests and supply. Between all areas, we are coming up extremely short for the week and this current supply gap could continue through the next several weeks. Weather challenges including rain and cooler weather remain in the future forecasts across the growing regions.

Alerts:
Strawberry supplies are extremely limited across all growing/loading regions. Demand exceeds supply and the current supply gap is expected to continue through the next several weeks.

Broccoli supplies have remained steady but demand has fallen off. Cheaper prices out of Mexico are driving down the domestic market down. Processors are still buying acreage to keep up with the demand on florets. Overall quality is good with firm beads and green color.

Salinas is finished with the limited acreage that was left. Supplies from Mexico are still extremely limited. Sizes remain small to medium. The market remain active with no signs of relief for a few weeks. The current cold temperatures in the growing region of Mexico continue to plague supplies.

Alerts:
Limited Supplies and High markets

Cold weather continues to hamper size growth in the carrot crop. Jumbo size carrots coming out of fields are at a very low percent.

We are finally seeing relief in supplies as well as the market. Demand has fallen off tremendously creating a sliding market. Quality is improving in both growing regions with nice white color. Look for the market to stabilize to some sense of normalcy this week.

The celery is lean in availability. Soft spots on the celery are seeing sporadically due to heavy past rains. Pith is the term for the soft spots. Although this issue is minimal for now, it may become a bigger issue if heavy rains in California continues. Demand exceeds supplies. Yuma and Florida has begun production but the volume has been minimal. Temperatures this week in the Southern California region is expected to be in the mid 60s to low 40's for the week. Overall, the quality has been good. Small sizing has the best availability. Supplies will be light throughout the week.

The current cold weather in Mexico and rains in both the Oxnard and Mexico growing regions have created serious supply issues. Quality is a problem with yellowing and black slimy leaves upon some arrivals. Supplies are projected to be the same for the next 2 weeks. This will continue to create expensive markets and sourcing problems.

Alerts:
Limited Supplies, Fair Quality, and High Markets

All 3 growing areas are being harvested. The desert is 71% harvested and the central valley crop is 29% harvested and both areas are heavy to 140s and larger fruit. The harvest of the Ventura crop has just begun, and it too is looking to be peaking on 140s and larger fruit. Lemon demand is strong and with size peaking on 140s and larger fruit from all areas; 165s and smaller fruit remaining very tight.

Alerts:
Small size fruit 165s/200s/235s remain very tight. Expect tight supplies on these sizes to continue.

The lime market is up due to previous adverse weather and transportation delays into the U.S. from the growing areas in Mexico. Demand is good while supplies are lower right now. The peak sizes are 110's and 150's right now with fewer small sized limes being harvested. Quality is improving overvall.

California Navel growing area has received good rains all of last week and more rain predicted for this week. We did have a clearing this weekend growers where able to get into some areas to harvest, but harvest will be an in and out thing this week as growers work around the wet orchards and predicted rains of this week. It will take a while to build bin inventory of picked fruit back up, so supplies could an issue for many shippers through the week.

The green seedless grape market is a demand exceeds supply sell out. We will have no supplies on the West Coast for about another 10 days with light supplies only available on the East Coast this weekend. Projections are for slightly more volume of green's next week but not enough to fill current demand. Quality is generally good.

Alerts:
Green grapes are a demand exceeds sell out.

The red seedless grape market is demand exceeds supply. We are in a historically high market with little hope of any improvement for the next several weeks. Supplies are projected to continue to be light for the coming weeks. Late vessels and light supplies have left the "pipeline" dry. Even when supplies and deliveries become more consistent we will have a lag time in getting fruit to everyone who needs it. Quality is generally good.

Alerts:
Red grape market continues it's historic pace.

Supplies remain extremely limited with all crossings out of Mexico. Rains and cold temperatures have created major supply issues. This situation will remain the same for the next 2 weeks. The historically high markets continue this week. Sourcing remains the same with trying to find supplies from all shippers. Quality is still fair with Brown to yellow tops upon arrivals.

Alerts:
Extremely Limited Supplies and High Markets

Kale supplies remain steady with all shippers. Quality is very nice with good green color. Prices may vary depending on loading areas. Supplies and the market look to be steady for the rest of this week.

Ice in the fields has caused delays in harvesting and affected quality with all suppliers. Demand exceeds supplies. The frigid weather the Yuma continues with lows in the 40-42 degree range. Expect pricing to be stronger throughout the week. Low yields and lightweights are forecasted for this commodity for the rest of the month, at a minimum. The frost and freeze has damaged much of the young plants as well as the product ready to harvest. Blister and epidermal peel will continue to be seen.

Alerts:
Ice continues to hinder production of lettuce.

Low temperatures in the growing regions continues to delay harvest and affect quality of all leaf items.Blister will continue to be seen on all leaf items through the month of January in all the growing regions. This is an industry wide issue. Frigid temps continue ranging in the lows from 40-42 degrees in Yuma to 44-48 degrees in Southern California. Expect active markets throughout the week. Quality is suffering with all leafy greens showing epidermal peel both on the outer ribs and down into the heart. Romaine, red and green leaf will all show some discoloration and "breakdown" where the blister is occurring. Suppliers are struggling to meet demand.

Alerts:
Ice slowing down production on all leaf items.

Cantaloupe supplies continue to increase. West coast supplies continue to build slowly and with the increase in supplies we are seeing better availability. The quality is very good overall. The peak size is shifting smaller and is currently 12ct. We are experiencing good demand on the cantaloupes that are arriving. The current market is lower on all sizes.

Demand is good on all sizes. The peak size for the offshore is 6ct and the small amount of Mexican dews are peaking on 6ct . Offshore dews once again continue to arrive on the west coast in low volumes. Honduran grown honeydews are arriving in Florida and the west coast and their quality is really good. Mexican dews continue to ship out of Nogales AZ and the volume is very light. The Mexican dews are very nice. The market is lower on all dews.

Idaho - Pricing has firmed up as demand has increased on all sizes and packs. Jumbo yellow have shown the largest price increases. We could see further price increases until Mexico growers begin shipments by the end of the month or first of February. Quality is being reported as good for the most part. A few reports of Transparency showing up in the outer layers in both reds and yellows.
Washington- Pricing has also firmed up out of this growing area on all sizes and packs. Demand is very good. Quality of the red onions out of this area is poor to fair at best. Many reports of Mold and light decay. Quality on the yellow onions is being reported as good. Sizing on the yellow is peaking on Jumbo's and smaller.

Washington - Bartletts are steady on all sizes and the market remains strong due to light supplies. Bartletts continue to peak on 110/120s and the larger sizes are still short. Washington will finish packing Bartlett pears on approximately February 15. Bosc pears are steady and continue to peak on US#1 90/100/110s. Fancy bosc are short on all sizes. D'anjou pears are steady on all sizes. D'anjous are peaking on US#1 70/80/90s now while all sizes of the fancy grade are limited. US#1 Danjou 100s and smaller are limited. Red pears are steady on all sizes and are still producing mostly half carton 45/50s and full carton 90/100s. The quality on Bartlett pears has varied. The D'anjou, Bosc, and red D'anjou pear quality has been good.

Transitions:
Chilean Bartlett pears are supposed to arrive in L.A. on approx. 1/28.

Supplies are dropping and volume will be lighter, but steady through Easter.

Idaho - Demand and supplies are in check which has the markets steady on all sizes and packs the middle of this week. Quality is being reported as good. Some growers are only getting 40% #1 in their pack outs which is early in the year for this to happen. I feel the growers are trying to run through some of their problem storages now and keeping the good ones for later in the season.
Washington - Market is steady with moderate demand. Good mix of sizing is being packed out of this growing area. 120 count to 40 count. Quality is good.
Colorado/Wisconsin - Market is steady with limited supplies be run due to very light retail demand. Quality is being reported as good.

Bakersfield, California - all colora remain steady and continue to peaking on A-size. Premium and baker size reds and golds remain short. The quality on all colors has been good.
Western Washington - reds and golds are steady and they are peaking on A size. There are a few storage whites and they are also steady. The quality has been good on all sizes and colors.
Idaho - reds and golds are steady. All colors continue to peak on A-size and the quality has been good.
Wisconsin - reds and golds are steady and both are peaking on A-size. Reds are strong because of poor quality in some storage lots. Premium and baker reds, premium and baker golds, and gold Cs remain limited. The quality has been good.
North Dakota - Golds and reds are steady on all sizes and both colors continue to peak on size A. Premium and baker size potatoes remain limited in both colors. The quality has been good.

Chilean stone fruit is still available as supplies have been adequate to meet light demand. The early fruit is generally reported as good although sugar is just enough to make grade. Also, as is typical, the fruit is generally hard. Sizing is mostly 50's to 60's with a few 70's being quoted.

Rounds - The market is steady/higher. Weather conditions with rain and colder temps continue to lighten supplies. Production and yields continue to be hampered. Mexico yields are also down, due to the colder temps out west. Demand continues to be strong. Quality is Good / Fair.
Roma - The market is lower. Product continues to be a bit lighter on supplies in the east, however, more product is crossing from Mexico. The additional product out of Mexico is bringing down prices. Quality is Good / Fair.
Cherry - The market is steady. Weather continues to be a bit of a struggle in the east. However, Mexico is crossing additional supplies. Quality is Good / Fair.
Grape - The market is steady. Product continues to be a little more tighter due to weather. Demand consistent in all regions. Mexico a bit tighter as well due to colder temps. Demand consistent throughout all regions. Quality is Good / Fair.

Rounds - The market is steady/higher. West still struggling with weather conditions slowing up production and yields. Crossings from Mexico are sporatic. Back east, rains ad colder temps also slowing up supplies. Demand continues to be strong. Quality is Good / Fair.
Roma - The market is lower. Supplies are still not 100%, however a littler better out of Mexico. Demand a little lighter. Back east also continue to be a little lighter, but, demand is off as well. Quality is Good / Fair.
Cherry - The market is steady. Weather continues to be a struggle in the west and back east. Demand continues to be consistent. Rains forecasted in the west and east over the next several days. Quality is Good / Fair.
Grape - The market is steady. Supplies still a struggle out west. Weather still slowing things up, with rain and colder temps forecasted. Back east also looking for rains this week. Demand still consistent. Quaity is Good / Fair.