The Source - January 17, 2018

Washington – Red Delicious, Golden Delicious, Granny Smith, Galas, Fujis, and Honeycrisp remain mostly steady with some suppliers lower. The rising star varietals have also been mostly steady as well. The quality has been good for all. Most varieties have been peaking on smaller fruit, so the larger fruit is premium priced. Transportation has been the hardest thing to find in the northwest.

Idaho – Jonagolds, Golden Delicious, Red Romes, Red Delicious, Granny Smith, Fujis, and Pink Ladies are steady. Grannys 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 this 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 still peaking on 88/100s, while the rest are peaking on 100/113s. Demand has been steady. 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, Empires, and Ruby Frost. Most of their fruit is larger this year. All markets have been steady along with demand. The McIntosh and Red Delicious have been producing more small fruit lately. The quality has been good.

Alerts:
Washington remains short of large Granny Smith.

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

Production continues to increase day by day as more fields open in San Luis, Mexico, and Caborca, Mexico. Nighttime, and daytime temperatures are ideal for increasing production. Northern Peru (Trujillo), and Southern Peru (ICA) volume is decreasing as their season is wrapping up due to seasonality. Overall markets are lower with more production out of Mexico, and Peru product still in the market. Expect this trend to continue as Mexico will be in full production over the next 4-6 weeks.

Mexico's harvest continues with good steady supplies coming into the states as the ramp up for the Super Bowl pull gets nearer. Size curve continues to be more toward 48's/40's and a larger percentage of #2 fruit coming out of the harvest. The smaller fruit 60's/70's still a lighter percentage of what is being packed.

Green Bell Pepper is in light supply, but demand has been slow keeping the market steady. There is another round of cold weather moving into Florida this week which will slow harvest again. All the bell pepper supply is coming from the southeast and southwest regions of Florida; the heaviest volume is coming from the southwest. The forecast for that region is showing lows dipping into the high 30's.

Alerts:
Light Supplies

Blackberry supplies are good with fruit available in multiple locations to load. We have seen some more aggressive pricing this week, but we have received some reports of soft fruit with occasional light mold. As supplies have been heavier, some shippers may be long on inventory and offer aggressive prices to move older fruit (mostly in Los Angeles). Fresh harvest blackberries loading in Oxnard and McAllen are firm with good flavor. We expect supplies to be steady for the next several weeks.

Blueberry supplies have been improving with good availability of Chilean fruit in the market. We have seen an increase in Pint production from Chile, with lighter supplies of 6oz. Depending on the shipper, repacking into 6oz may be an option. Markets have been slightly lower this week, and we expect to see gradual declines over the next two weeks. We did receive reports of soft fruit from the last arrivals, so some cheaper fruit may be in some markets, but quality may be a factor. Mexico production continues to be consistent with good quality. This fruit is being shipped mostly out of Texas and Yuma with a little fruit being transferred to Oxnard. Moving forward we expect to see good supplies and quality for the next several weeks.

Raspberry supplies remain light but consistent. We did see some increased volume last week, but availability has thinned out this week. More fruit is available to load in Texas than in California. Market prices have remained steady. We expect this to be the case over the next two weeks; then we should begin to see increased supplies in February. Quality and flavor are being reported as excellent.

Strawberry supplies are gradually improving this week. California production has recovered nicely in Oxnard. Shippers have worked through the rain-soaked fruit in the beginning of the week and have transitioned into new harvest. The weather has been cool since the rains and strawberries have firmed up. We expect supplies and quality to continue to improve through the weekend. Mexico continues with consistent harvest, but supplies have been lighter. Shippers expect better availability later in the week. Florida has rebounded from the recent weather-related setbacks but is expecting another cold front later this week. The fruit has been firm in Florida and volumes are increasing. However, depending on the severity of the cold front, Florida may see further delays in harvest over the weekend. As a whole, we expect supplies to continue to improve as we get closer to the Valentine's Day pull. Markets may dip next week if a wave of product comes on, but we expect demand for the holiday to firm market prices by the end of the month.

We have seen an influx of broccoli supplies from all growing regions. The market is extremely competitive as well. Quality is much improved with decent crown size, little yellowing or dehydration, and dark green color.

We are experiencing good supplies out of Mexico and Oxnard. Also, we have a full-size profile from small to jumbo. Quality is excellent with vibrant green color with minimal defects. The market is also very competitive.

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.

Cauliflower supplies have definitely increased over the past week. Supplies look good for this week and into next. Quality is really nice with white color, minimal bruising / brown spotting, and weights in the 26 to 29-pound range. The market is finally back to normal levels.

Although there is a slight gap in the market, this commodity overall is steady. All sizing is available, and Yuma, in particular, has much stronger production compared to past weeks. Some quality defects continue to be reported. These defects include some insect damage, mechanical, slight bowing and branchy. Demand continues to be light. Expect good availability throughout the week with this commodity. The best deals continue to be in Santa Maria/Oxnard. Yuma continues to demand a higher price, so please be aware.

Cilantro supplies remain limited from all growing regions. The market continues to remain elevated above normal pricing. We are still looking at two weeks away from improved supplies and any relief in the markets. Quality although is good with minimal yellow to brown leaves, full bunches, and minimal slimy black decay.

The lemon market remains very active. Demand continues at a strong pace and is exceeding supplies on the 165s and smaller fruit. The desert crop looks to finish in the next four weeks. The Central Valley crop has limited volume, mostly fancy grade. Ventura crop will not start until the end of February. Demand is exceeding supplies on 165s and smaller fruit, and will so through January and into February.

Alerts:
Demand exceed supplies on 165s and smaller fruit.

Lime availability and market conditions have not changed much. Supplies remain steady, and market prices have been consistent with slight increases on larger sizes. Quality has been good. Our biggest challenge continues 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 continue to be a challenge.

Navel crop continues to peak on 72s/56s/88s, 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 fruit.

There are more supplies of Honduran cucumber arriving in Florida. Quality has gotten better over the past week, and more shippers have started production. Expect steady supplies to continue through the weekend. We expect a slightly weaker market moving through the week.

Alerts:
Better Supplies

Peak Seasons:
Cucumbers are not in peak season but it's coming soon.

Eggplant supplies have been tight for the past few weeks with cooler weather slowing production on limited acreage this time of year in South Florida. There is another wave of cooler weather moving into Florida this week that with keep production low. Eggplant like hot weather and so far these winter temperatures have been well below average. Shippers are reporting new acreage is due to start later this week, but we will not see good production for at least two weeks from those farms.

Alerts:
Light Supplies

The import green grape market has eased on the East coast, with West coast grape supplies being more sparse. Supplies will continue to improve on both coasts throughout the end of the month as more vessels unload. Quality is reported as good with sizing running from medium to extra large.

Import Red grape supply has been steady, and the market will start to ease next week. The majority of the product is available on the East coast where more deals will be available. Quality is reported as good to excellent. we expect to see the market ease down with increased volume arriving to the ports.

Although the market has declined to lower levels the supplies of green onions crossing the border remain limited. This has kept the market at higher than normal levels. Jumbo sized green onions are still extremely limited with most of the supplies in the small to medium category. Quality is really good with green tops, minimal yellowing, and minimal decay of the tips. We are still two weeks away from improved supplies.

The kale market is steady with competitive pricing. Suppliers have reaped the benefits of having excellent quality and ample supplies. We have seen dark green color, full bunches, and minimal dehydration or yellowing upon arrivals.

This market has remained unchanged with most suppliers. Supplies exceed demand. Expect very good availability throughout the week. Shippers are flexing for large volume type orders. Some issues on this commodity include blister and epidermal peel, mishappen heads, and mechanical. Weights on Wrap has been averaging 36-44 pounds. Currently, most lettuce is being grown in the desert region.

The market has remained flat on romaine as well as all leaf items. Demand is minimal. Blister and epidermal peel continue to be an issue with romaine as well as other leaf items. Shippers are trying to clean up before the commodity is packed. The leaves being reported as being peeled range from 3-6 wrapper leaves. There continue to be some complaints about quality. These issues include twisting, mechanical and tip burn as well as insect damage. Romaine hearts will have good production throughout the week as well as all leaf items.

We have finally hit a threshold of better supplies both conventionally and organically. Spinach is not an issue as we have seen increased supplies of cello, baby, and organic. Spring mix and arugula supplies are abundant as well. The market has finally settled back to normal levels. Overall quality is much better although we have seen sporadic issues with wetness of the leaves and some minimal bruising of the leaves as well.

The import market is steady to lower on all sizes on both coasts. Some suppliers are discounting for volume especially in Florida where the demand has been light. The fruit remains large with mostly 9s and 12s but more 15s and 18s now. Sizing will remain steady as Guatemala production finishes, and Honduran production gets going. The quality has been good.

Transitions:
Most Guatemalan packers have finished while the Honduran production is fully underway.

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

Transitions:
Most packers in Guatemala have finished and Honduras is fully underway.

Market and supplies continue to stay unchanged on Jumbo's and smaller in both the yellow and red varieties. Super Colossal and Colossal Yellow supplies are starting to get limited with a firming trend. Quality is still being reported as good. Storage supplies are still being shipped from Idaho, Washington, and Colorado. Mexico has started to cross yellow and white onions into the U.S. in a light way this week. Quality looks good. Volumes will slowly increase as we get into the end of January. Transportation is still limited and demanding a premium.

Alerts:
Transportation is still limited

Transitions:
Mexico starting to cross Yellow and White onions into the U.S.

Washington – Bartlett pears are steady on all sizes and are still high priced. The remaining Bartlett pears are mostly large with only limited supplies of smaller fruit. D'anjous are steady and peaking on US#1 80/90s. D'anjous are short on smaller fruit, but they do have better availability in the fancy grade now. Bosc pears are steady and are peaking on US#1 80/90s. Bosc are short on the smaller sizes as well. The Red D'anjou market is steady on all sizes. They continue to peak on 40/45/50 half cartons. The quality for all has been good.

Alerts:
Washington will be shipping Bartletts for the next month or so.

Transitions:
Chilean Bartlett pears will start to arrive on the west coast in early February with Argentinian Bartletts coming two weeks after.

Peak Seasons:
Washington is in the peak of its Bosc, D'njou, and red pear seasons

Volume from the tropics is picking back up will good supplies beginning to arrive in the states. We are looking at good supplies going forward through February.

Market continue to be steady on all sizes of cartons out of shipping areas. Supplies are tight, but the transportation situation is keeping movement almost to a standstill. Some shippers are unable to run due to their floors being full. Quality is still being reported as good.

Alerts:
Transportation still limited

Western Washington – reds and golds are both steady on all sizes. 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.

Bakersfield, California – reds, whites, and golds are mostly steady with a few sizes lower. Whites, reds, and golds continue to peak on 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 are steady to slightly higher while the golds are steady. Both colors are still peaking on A-size. The quality has been good.

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

Transitions:
South Florida will start red potato production on approximately February 1. Golds and whites will be ten days to 2 weeks behind.

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

With cooler weather, all the way down to Homestead squash supplies have been tight. Quality has been hit and miss, especially on yellow squash. Some plant were hurt with scattered frost about two weeks ago, and the effects are showing now. Some light supplies are being imported from Honduras helped cover the shortage. A few cucumber shippers are trying squash as a way to increase their production, and so the quality is pretty good, but supplies will remain light.

Alerts:
Tight supplies.

Chilean stone fruit supplies continue to be hit or miss, but supplies are arriving on both coasts frequently. Sizing is still mostly in the 60/64 tray pack peaches, nectarines, and plums with some limited availability in other sizes. Quality on the early season fruit is reported as generally good. We expect to see better volume as supply generally ramps up by the end of the month.

The eastern Tomato market continues to improve this week. However, there is still a gap in price between Florida grown fruit and Mexico’s grown counterpart. Mexico is crossing at minimums, but trucking constraints are limiting fright lanes going east. Florida is a couple of dollars more for extra large rounds with the dollar gap closing as sizing shrinks. Romas have significantly improved this week with tremendous volume in the west driving price down. Grape and Cherry tomatoes are also continuing to slide in price to seasonal norms this week. Mild demand is driving competitive pricing amongst shippers, and the trend is expected to continue through the rest of the month pending a serious weather event.

Western tomato markets have continued trending downward this week with Mexico crossings at, or near, suspension agreement minimums. Favorable weather in Culiacan has brought a bounty of fruit to Nogales for trucks loading in the west. However logistical challenges related to freight rates and truck availability are keeping markets divided. Rounds are widely available in bulk and two layer formats. Similarly, Roma tomatoes have increased in great number compared to recent weeks with more farms bringing fruit to market to kick off the new year. Grape tomatoes and Cherry varieties have followed the same trend with more availability against mediocre demand help prices to fall quickly. Quality is reported as excellent across all varieties, and the market is expected to remain steady through the rest of January.