The Source - January 21, 2016

Weather Update

The last in a series of storm systems rolls into Northern California on Friday with another shot of rain and strong winds. High pressure over Northwestern Mexico will deflect the majority of the energy north of Southern California and the desert locals. A chance of showers and strong winds over the weekend will be the main impact of this latest system in these regions. The strong ridge will remain in place into late next week with above average temperatures (5-10 degrees) forecast throughout the Southwestern growing regions and Northern Mexico.
Frost and freeze warnings are posted for Northern Florida today in front of an approaching cold front expected to bring another round of significant rainfall on Friday. Cold air behind this system will bring another round of frost to the northern regions of the state on Sunday with dry conditions expected into mid next week.

Freight Update

California and Arizona trucks look to be steady for the week. Washington and Idaho potato trucks are steady as well. Idaho onion trucks remain tighter than normal. The National Average Dropped again this week and is now at 2.112 per gallon. A difference of $0.821 from this time last year. California prices dropped as well and are now at 2.489 per gallon. Crude oil continues to drop and is now at $26.26 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples

Washington - red delicious are steady on all sizes but 113s and smaller are firm do to strong demand. Most suppliers continue to peak on 72/80/88s. Golden delicious are still peaking 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 still peaking on 88/100/113s. 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 100s and larger and steady to higher on 113s and smaller. 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 mostly steady but the market is high and strong due to light supplies. Honeycrisp are still peaking on the larger sizes. Lower grade Honeycrisp remain cheaper but supplies are limited. Jonagolds and Braeburns are both steady but limited. 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 shippers are short of 125 and smaller reds. McIntosh are steady and they are heavier to 125/138s. Galas are steady on all sizes and are peaking on 125/138s but the volume is light. 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, Empires, 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.

- pa_admin
Growing Region Market Quality
Coopersville/Belding/Sparta, MI Steady Good
Hudson/Pleasant Valley/Red Hook, NY Steady Good
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Asparagus

The asparagus market has finally fallen to respectable levels. There are much needed influx of supplies from Caborca. Good Quality out of Mexico with good green color and little to no spreading of the tips. Asparagus from Peru is still commanding steady/higher prices as supplies continue to be limited. Quality from Peru is fair with some dehydration and spreading.

- pa_admin
Growing Region Market Quality
Caborca, Mexico Lower Excellent
Ica, Peru to Trujillo Lower Fair
Avocado (Mexican)

The size curve coming from the groves continues to be a real mismatch for the demand and has shippers upside down. The size curve which is running heavy to the 32s/36s/40s is causing supplies issues on 48s/60s/70s which. 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.

- pa_admin
Growing Region Market Quality
Michoacan, Mexico Steady/Higher Good
Berries (Blackberries) Alert

Very limited supply as recent cool weather and rain slowed production in Central Mexico. The rain also affected quality of the blackberries that are not being grown under plastic hoops. As a result, much fruit has been rejected for packing and discarded. Several loads of blackberries on order for the US have been delayed or cancelled. Quality has been a concern with wet, leaky fruit and red cell. Availability will be light for the next several weeks.

- pa_admin

Alerts:
Demand exceeds supply. Recent weather in Central MX, quality issues and logistical challenges with transfers have resulted in cancellations and delays of arrivals.

Growing Region Market Quality
Central Mexico Higher Fair
Berries (Blueberries)

Steady arrivals from South America should continue over the coming weeks. Mexican production has been steady. Baja production is slowly increasing. Delays with transfers coming into coolers have been the biggest concern with both the offshore product coming on vessels and the Mexican product crossing at the border.

- pa_admin
Growing Region Market Quality
Southern Chile Higher Good
Baja California, Mexico Higher Good
Central Mexico Higher Good
Berries (Raspberries) Alert

Recent cool weather and rain in Central Mexico has limited availability of raspberries for the upcoming weeks. Production has slowed down and availability will be light for the next three to five weeks. Delayed transfers from Mexico have left us very short for the week. Very limited production in Santa Maria and Oxnard, California.


- pa_admin

Alerts:
Limited availability as production has decreased and transfers from Mexico have slowed down.

Growing Region Market Quality
Central Mexico Higher Good
Berries (Strawberries) Alert

Strawberries are extremely limited and demand is exceeding supply in all growing/loading regions. Cool weather and rain in both CA and FL have limited production and decreased supply. Temperatures remain cool in both areas again this week. The cooler weather has helped to increase sizing and fruit has firmed up. MX is warming up this week after cool weather and significant rainfall last week. This is a concern and could affect quality as the plants and berries are still holding onto much moisture with warmer temperatures coming on. We are anticipating very limited availability all the way through the Valentine's Day berry pull period.

- pa_admin

Alerts:
Strawberries are extremely limited and demand is exceeding supply in all growing/loading regions.

Growing Region Market Quality
Oxnard, CA Higher Fair
Central Mexico Higher Fair
Central Florida Higher Fair
This picture taken in Oxnard, CA
Broccoli

There is finally better supplies of broccoli which is creating lower markets. This is also helping processors fill much needed floret orders. Good quality from all growing regions with nice green color and tight beads. The market will still try to find a level to stabilize. The value deals are in the Santa Maria and Mexican growing regions.

- pa_admin
Growing Region Market Quality
Celaya Guanjuato Mexico Lower/Steady Good
Oxnard/Santa Maria, CA Lower/Steady Good
Yuma, AZ Lower/Steady Good
Phoenix, AZ Lower/Steady Good
Brussels Sprouts

The Brussel Sprout market remains active with high prices. Supplies are still extremely limited from Mexico. The sizing profile remains small to medium. The weather is still holding back supplies for this week and market will remain high.

- pa_admin
Growing Region Market Quality
Northern Baja California Norte, Mexico Steady/Higher Fair
Carrots

Cold weather continues to hamper size growth in the carrot crop. Jumbo size carrots coming out of fields remain at a very low percent, and demand is very good on them.

- pa_admin
Growing Region Market Quality
Bakersfield/Santa Maria, CA Steady/Higher Excellent
Cauliflower

The Cauliflower market remains flat with good supplies. Aggressive deals are available from various shippers. Good quality with nice white color are in most packs. Look for this market to remain aggressive all week.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Lower/Steady Good
Yuma, AZ Lower/Steady Good
Celery

The celery is firm overall. Rain is expected at the end of the week in Southern California. Demand continue to exceed supplies, especially on the large sizing. Defects on celery in the Oxnard region include some pith, which are soft spots on the stock, epidermal peel bowing, and leafy tops. These defects are directly caused from the past cool temperatures as well as rain. Yuma and Florida has light production. Small sizing has the best availability. Supplies will be light on this commodity throughout the week.

- pa_admin

Transitions:
Yuma and Florida has light production on celery.

Growing Region Market Quality
Belle Glade, FL Steady Good
Yuma, AZ Steady Good
Oxnard/Santa Maria, CA Steady Fair
Cilantro

Cilantro Supplies still remain an issue thus causing the markets to remain strong. Quality issues with yellowing and black slimy leaves due to weather related issues are still in all packs. Supplies look to remain short all week.

- pa_admin
Growing Region Market Quality
Baja, MX Steady/Higher Fair
Oxnard/Santa Maria, CA Steady/Higher Fair
Citrus (Lemons)

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 tight.

- pa_admin
Growing Region Market Quality
Coachella, CA / Yuma, AZ Steady Good
Merced/Bakersfield, CA Steady Good
Oxnard/Ventura, CA Steady Good
Citrus (Limes)

The lime market is steady right now. Demand is decent and supplies are steady right now. The peak sizes are 110's and 150's currently with fewer small sized limes being harvested. Quality is good overvall.

- pa_admin
Growing Region Market Quality
Veracruz, Mexico Steady Excellent
Citrus (Oranges) Alert

California Navel growing area continues to received good rains this week, with more in the forecast. With some brief periods of clearing. Shippers will be picking whenever possible, once the trees have dried between storms, but inventories are very low and an extended period of clearing will be need to truly build inventories back up. Demand is stronger on the 113s/138s and would expect markets to firm on these sizes.

- pa_admin

Alerts:
Continued rains in the California growing areas with only brief periods of clearing has left very low inventories.

Growing Region Market Quality
Merced to Bakersfield, CA Steady Excellent
Riverside, CA Steady Excellent
Grapes (Green) Alert

We are currently sold out and short of green grapes from all suppliers. Supplies of green grapes should improve slightly with the next vessel arrivals but this market continues to be in an extreme demand exceeds supply situation. We are expecting this market to remain unchanged until the second week of February when supplies are expected to improve.

- pa_admin

Alerts:
Green grapes extremely short on supplies.

Growing Region Market Quality
Coquimbo/Valaparaiso/Santiago/Rancagua, Chile Steady/Higher Good
Grapes (Red) Alert

The red seedless grape market is demand exceeds supply. We continue to struggle with limited volume and late vessel arrivals from Chile. The West Coast has been impacted the hardest as the volume shipped directly from Chile is much lighter than needed and the East Coast has no surplus to transfer West. This coupled with a 12 day gap between vessels on the West Coast has left shippers completely out of fruit. We may have seen the worst of supply issues this week but there will be no substantial increase in volume for the next two to three weeks. Most suppliers are now predicting mid-February is when we will finally see an easing in the market.

- pa_admin

Alerts:
Red grape supplies for the West Coast extremely short.

Growing Region Market Quality
Coquimbo/Valaparaiso/Santiago/Rancagua, Chile Steady Good
Green Onions

Falling demand from constant high prices and better volume of iced green onions has created a falling market. Iceless Green Onion supplies still seem to be a problem and as a result the much higher prices remain. Quality is still a problem from the recent rains with brow to yellow tops. We will see better price advantages on the iced green onions for the week.

- pa_admin
Growing Region Market Quality
Mexicali, Baja Lower/Steady Fair
Kale

Kale supplies remains steady from all growing regions. Prices vary from supplier to supplier. Quality is excellent with dark green color and minimal yellowing.

- pa_admin
Growing Region Market Quality
Baja, MX Steady Good
Oxnard/Santa Maria, CA Steady Good
Lettuce Iceberg Alert

Warmer temperatures and no rain in the forecast in the Yuma region is expected over the next few weeks. Temperatures in the Yuma region is expected to be in the Mid 70s with lows in the 50s. Supplies are stronger with most shippers. Volumes are expected to increase throughout the week. Defects will continue to be seen . These defects include light color, misshapen and ribby heads, peeling epidermis and growth crack. The weights look to average 39-43 pounds.

- pa_admin

Alerts:
Quality issues vary on lettuce.

Transitions:
Huron is projected to begin production the third week in March.

Growing Region Market Quality
Yuma, AZ Lower Fair
Lettuce Leaf Alert

This market has softened. No rain in the Yuma region is forecasted through the week, while Southern California is expected to have rain by the end of the week. Blister and peel will not go away however. These defects will continue throughout the month of January. This continues to be an industry wide issue. Quality is suffering with all leafy greens, not just romaine. Butter will be light in availability throughout the month. The weights on romaine have been averaging 27-34 pounds with a length of 11-12 inches , while green leaf has been approximately 20-23 pounds.

- pa_admin

Alerts:
Blister and peel still active in all leaf items.

Growing Region Market Quality
Oxnard/Santa Maria, CA Lower Fair
Yuma, AZ Lower Fair
Melon (Cantaloupe)

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 steady on all sizes. We are seeing the beginnings of a peak size change towards large fruit now which will hit next week.

- pa_admin
Growing Region Market Quality
Choluteca, Honduras Steady Excellent
Zacapa, Guatemala Steady Fair
Melon (Honeydew)

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 . 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 also. The market is steady on all dews.

- pa_admin
Growing Region Market Quality
Choluteca, Honduras Steady Excellent
Zacapa, Guatemala Steady Fair
Caborca, Mexico Steady Excellent
Onions Alert

Idaho - Demand and market continues to be good. Colossal and Super Colossal are limited with firm market. The larger onions will continue to get a premium through the balance of the Idaho season. Red supplies are starting to tighten up, which has firmed the market slightly the middle of this week. White onions are very limited as supplies wind down for the season. This market is very active. Quality is has improved on the yellows. Next growing area to come into play will be Mexico the front part of February. This could stabilize the onion market once they are up to full speed.
Washington - Supplies continue to be limited to Jumbo Yellows and smaller. Demand has been good which has all colors and sizes firming. Quality is being reported as good.

- pa_admin

Alerts:
White Onions out of all growing areas are very limited with a firm market.

Growing Region Market Quality
Ontario, OR to Nampa, ID Higher Good
Quincy/Hermiston, WA Higher Good
Pears

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 or around 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 now but the smaller sizes are firm. D'anjous are peaking on US#1 70/80/90s and all sizes of the fancy grade 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 pears have been good.

- pa_admin
Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Pineapples

Volume is lighter than normal for this time of year and looks to continue so through Easter.

- pa_admin
Growing Region Market Quality
La Virgen, Costa Rica Steady Good
Heredia, Costa Rica Steady Good
Guapiles, Costa Rica Steady Good
La Cieba, Honduras Steady Good
Retalhuleu, Guatemala Steady Good
San Luis, Guatemala Steady Good
Potatoes

Idaho - Demand and supplies are moderate with a steady market on all sizes and packs. Quality is still be reported as good. The size profile on Norkotahs are peaking on 70 count and larger with Burbanks peaking on 70 count and smaller. As the Norkotahs finish up the season over the next couple months, we should see the market flip flop with the larger cartons getting a premium. Weather has not been a factor for the growers transferring potatoes to their storages. Good availability of trucks.
Washington- Demand is light 70 count and larger which growers making deals to keep these sizes moving. Moderate demand on 80 count and smaller have these market steady. Quality is being reported as good.
Colorado/Wisconsin - Supplies of cartons are very limited due to very light retail demand. Cold temperatures have limited run times which is not helping the supply situation. Quality is good.

- pa_admin
Growing Region Market Quality
Hamer/Rupert, ID Steady Good
Quincy/Hermiston, WA Lower/Steady Good
Eastern Colorado Steady/Higher Good
Plover/Bancroft, WI Steady/Higher Good
Potatoes (colored)

Bakersfield, California - all colors are steady and still peaking on A-size. Premium and baker 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 steady as well. 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 are steady but firm and golds are steady, both colors are still 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 - Reds and golds and reds are steady on all sizes. Both colors continue to peak on size A. Premium and baker size potatoes remain limited in both colors. The quality has been good.

- pa_admin

Transitions:
Florida Is scheduled to start packing red potatoes on 1/27. Golds and whites should be to two weeks behind.

Growing Region Market Quality
Bakersfield, CA Steady Good
Rupert to Rexburg, ID Steady Good
Mount Vernon, WA Steady Good
Red River Valley, ND Steady Good
Plover, WI Steady Good
Stone Fruit

The market on peaches, plums and nectarines is about steady. Supplies are light and short as well; due to the late vessels coming out of Chile. We see no real change to this scenario until February when supplies normally ramp up and the vessel arrivals become more consistent. Quality continues to be good with light sugar and hard fruit typical of Chilean fruit this time of year.

- pa_admin
Growing Region Market Quality
Coquimbo, Valaparaiso, Santiago and Rancagua, Chile Steady Good
Tomatoes (Eastern)

Rounds - The market is higher. Florida supplies continue to be on the shorter side. Weather hampering production and yields, with additional rains forecasted over the next several days. Mexico also continues to be lighter supplies. Demand still very strong in all areas. Quality is Good / Fair.
Roma - The market is steady. Supplies still tight in Florida. Mexico was crossing additional supplies, however, that looks to change due to forecasted weather over the next few days. Look for the market to possibly increase again. Demand consistent. Quality is Good / Fair.
Cherry - The market is higher. Florida continues to come up short on supplies and Mexico looking to be shorter as well. Production and yields down in all areas. Demand getting stronger. Quality is Good / fair.
Grape - The market is higher. Production and supplies still very tight in Florida. Mexico was crossing additional supplies, however, demand continues to be strong. Weather in all areas is forecasted for rains in the next several days. Look for the market to continue to get higher. Quality is Good / Fair.



- pa_admin
Growing Region Market Quality
Northern Florida Higher Good
Southern Florida Higher Good
Tomatoes (Western)

Rounds - The market is higher. Mexico continues to be light on supplies. Weather hampering production and yields. Florida also continues to be short. Rains forecasted over the next several days in all areas. demand still very strong. Quality is Good / Fair.
Roma - The market is steady. Supplies in Mexico look to be on the tighter side again. Weather slowing things up and demand is on the rise. Florida also looking to be short. look for the market to turn back up, as rains are forecasted over the next several days. Quality is Good / Fair.
Cherry - The market is higher. Overall, product is still on the tighter side. Florida continues to be low on production and mexico cannot keep up with demand. Rains forecasted over the next several days in all areas. Demand still strong. Quality is Good / Fair.
Grape - The market is higher. Supplies still a struggle out west, due to weather conditions. Rains forecasted over th next several days. Florida continues to be light on production and yields. Demand still strong. Look for the market to continue to be higher. Quality is Good / Fair.

- pa_admin
Growing Region Market Quality
Northern Baja California Norte, Mexico Higher Good
Northern Sonora, Mexico Higher Good

Things You Should Know

Berries (Blackberries)
Demand exceeds supply. Recent weather in Central MX, quality issues and logistical challenges with transfers have resulted in cancellations and delays of arrivals.

Berries (Raspberries)
Limited availability as production has decreased and transfers from Mexico have slowed down.

Berries (Strawberries)
Strawberries are extremely limited and demand is exceeding supply in all growing/loading regions.

Citrus (Oranges)
Continued rains in the California growing areas with only brief periods of clearing has left very low inventories.

Grapes (Green)
Green grapes extremely short on supplies.

Grapes (Red)
Red grape supplies for the West Coast extremely short.

Lettuce Iceberg
Quality issues vary on lettuce.

Lettuce Leaf
Blister and peel still active in all leaf items.

Onions
White Onions out of all growing areas are very limited with a firm market.

Transitions and Temperatures

Celery
Yuma and Florida has light production on celery.

Potatoes (colored)
Florida Is scheduled to start packing red potatoes on 1/27. Golds and whites should be to two weeks behind.

Lettuce Iceberg
Huron is projected to begin production the third week in March.

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