The Source - January 22, 2020

MIDWESTERN / EASTERN REGION:

Steady go in the Midwest and East Coast. Severe winter weather (rain, snow, ice) will hit Michigan later this week, delaying trucks and causing extra weight on trucks due to packed snow and tire chains. Naturally, this will limit the number of cases on full truckload orders. NY/PA forecasts show sun with isolated showers throughout the week and into next week.

We see demand slowly shifting to bigger shippers who have begun packing C.A. fruit. With plenty of other varieties available, Gala apple prices have firmed up with fewer foodservice sizes (125/138ct) in circulation, but there are other red varietals commanding more aggressive prices (Cortland, McIntosh, etc.) to keep fruit moving. Quality remains excellent with more than sufficient shelf-life.

Alerts:
Winter storms in the Northwest and Michigan are delaying trucks due to road closures (ice) and snowfall. Please account for delays when placing orders and setting load dates.

San Luis, Mexico production is better this week with warmer weather in the region, the volume is still light. We should see more volume from this region in the next week. Caborca, Mexico is still burning fern, but cooler weather in the region is slowing production. All sizes remain tight from Mexico. Volume continues to decrease from both regions in Peru (Ica/Trujillo), their season is about a week away from wrapping up. Markets on both coasts are still very active and should remain this way until both regions in Mexico start with better production.

We are just weeks away from the Super Bowl and avocados are in high demand. The avocado market will remain relatively active leading up to the big game. Crossings from Mexico are up year over year and Inventories are not as lean as they were just weeks ago. We are seeing better availability on open market fruit, especially on #2 grade fruit. Post Super Bowl we will see this market come off on price and there will be some opportunity buys available. Overall quality has been consistent, fruit is cutting good and eats great.

Alerts:
We are seeing strong retail promotions as we head into Super Bowl, and with that comes higher prices.

Green bell pepper supply has gotten better over the past week, a lot of that is due to more supplies crossing from Mexico taking some business away from the east coast. Warmer weather the past 10 days has helped production also but customers need to keep an eye on supplies, cold weather moving to the southeast and south Florida will slow production and could possibly cause damage to crops. Freeze warnings are out for Tuesday 2/21 and Wednesday 2/23 in southwest Florida. There are reports from Mexico that pepper supplies will get tighter next week due too heavy rains during the growing season causing disease issues in the crop. These two issues need to be monitored and we will send updates as we get them. Quality in South Florida has been fair with some busing issues from high winds and growers in south Florida are still working on older fields with mostly smaller pepper that tends to bruise and shrivel more than newer pepper.

GREEN BELL
Good supplies of Green bell pepper crossing through Nogales, AZ this week. With good weather through the weeks, Green bell pepper supplies have increased. The green pepper market has decreased on all pack styles and sizes. Green bell pepper quality on supplies crossing through Nogales, AZ range from Fair to Good. Light supplies of green pepper are also available to load in McAllen, Texas.

RED BELL
Both open field and Hot House Red bell pepper supplies from Mexico are decreasing this week. Both varieties of red bell pepper from Mexico are expected to continue light for the next 10 days until new crop begins. Quality on Mexican red bell pepper on all sizes and pack styles are good. The red bell pepper market has increased this week. Light supplies of Red bell pepper are also available to load in McAllen, TX.

YELLOW BELL
Light supplies of Yellow bell pepper are being harvested in Mexico from Sinaloa this week. The Market on yellow bell pepper has increased this week due to light supplies. Quality on yellow bell pepper crossing through Nogales from Mexico is mostly fair this week. Mostly small sizing being packed. Light supplies of Yellow bell pepper are also crossing through McAllen, Texas.

Blackberries are following the same type of availability profile as the raspberries. Reduced crossings will decrease the availability and we expect slightly higher markets going forward to next week. Quality has been just fair with red cells and leakers present in some lots upon arrival.

Alerts:
Due to lower crossings from Mexico expect higher pricing moving into next week

Blueberries remain in good supplies with promotable volumes coming from Mexico, Peru, and Chile. Promotable numbers are going to last through the month of February so there is plenty of time to plan Ad campaigns and in-store promotions. Quality has been good in all countries of origin.

Alerts:
Good promotable numbers will prevail through February

Raspberry crossings out of Mexico are on the decline bringing firmer markets along with the fewer numbers. Quality has generally been good on the fresher lots. Some of the older pack dates are arriving with some mold or leaker issues. Look for this market to rise slightly as we move into the weekend.

Alerts:
Expect higher markets

The market remains firm this week with heavy retail commitments keeping pricing buoyant. School business is back in high gear adding to the already brisk demand. Quality out of California and Mexico is being reported as very good with the occasional light color and some white shoulder being reported. Shelf life is much improved over previous offerings and movement is good. Florida berries are in a natural planting gap and look to remain lighter in yields for the next 5 to 7 days. Growers in Florida are hoping to be ramped back up just in time for the Valentine's Day pull. Look for the markets in all areas to remain firm through the weekend.

Alerts:
Demand will be good over the next 2 weeks as we move into position for the Valentines Day promo period on both 8/1 lb clams and the 4/1lb stem strawberry packs. Place your orders early for optimum coverage

The Broccoli market has started to come off a bit due to slightly better yields. The warmer weather in Yuma is helping supplies. Quality continues to have slight purpling caused by the cold weather, some mechanical damage, and occasional yellow cast. Look for Broccoli to stay steady going into next week with the warmer weather this week in Yuma.

The brussels sprouts market continues to stay strong as the recent cold weather in Mexico and Yuma has slowed down the growth process. We are hoping the warmer weather this week spurs on supplies and quality. Currently, quality is fair with occasional internal decay. Look for the Brussels sprouts market to continue to stay strong going into next week.

West Coast carrot production has not changed and the demand has been good particularly on the back to school-related pack styles. Jumbo carrots are back in good numbers as we see the carrot sizing improved over last week. Mexican production is still going strong and proving to be a viable alternative to the more expensive California product.
look for all markets to remain steady through the weekend.

The cauliflower market continues to stay strong due to lower yields caused by the recent wet and cold weather in Yuma. The quality is fair with slight bruising and yellow cast with weights in the 25 to 28-pound level. The warmer weather we are having in Yuma should help supplies. Some suppliers may need to sub sizing to fill orders. Look for the market to continue to adjust going into the weekend.

Steady production will continue with this commodity throughout the week. Santa Maria/Oxnard is expected to have good quality as well as Yuma. Production in Yuma is moderate. Southern California shippers continue to flex on large orders so promote as much as possible. Mexico will have production as well. Good weather is reported in all the growing regions. Demand continues to be moderate at best. All sizing is available. Weights will average 52-58 pounds per carton.

Jalapeno- Good supplies of Jalapeno are crossing through Nogales, AZ this week. Good supplies are expected to remain throughout the week. Jalapeno quality from Mexico is good. The Jalapeno market has decreased this week due to good supplies. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Moderate supplies of Pasilla continue to cross through Nogales, AZ this week. Moderate supplies are expected throughout the week. Pasilla quality from Mexico crossing through Nogales is good. The Pasilla market remains steady. Pasilla from Mexico is also available to load in McAllen, Texas.

Anaheim- Moderate supplies of Anaheim crossing through Nogales this week. Quality on Anaheim crossing through Nogales is good. Size on the pepper is mostly medium to large. The Anaheim market is steady. Anaheim from Mexico also available to load in McAllen, Texas.

Serrano – Good supplies of Serrano peppers available to load in Nogales, from Mexico. Good supplies are expected through the week. Supplies currently meet demand. Serrano supplies also crossing through McAllen, Texas.

Tomatillo – Light supplies of Husk tomatillos are available to load in Nogales, from Mexico. Sinaloa crop is expected to start within a week. Better supplies of peeled are expected through the week due to fair quality on husk variety. Market on peeled tomatillo has decreased and is steady, while market on husk continues steady/high as quality remains mostly fair on husk. Light supplies of husk and moderate supplies of peeled tomatillo are expected through the week.

The cilantro market continues to stay steady as there is warmer weather in Yuma, Mexico, and Southern California. The cilantro quality is fair with an occasional yellow leaf. Look for the cilantro market to stay steady going into next week with the warmer weather we are having this week.

New crop out of District 1 fruit is also looking really nice on supplies and quality. This is a perfect time to quote any promotional lids. Supplies are looking steady across the board on large and small sizes. There is District 3 fruit still lingering around, suppliers are trying to clean it up with deals out there. Be mindful it could be storage crop so shelf life might not be as strong. We continue to have optimal growing weather and the fruit will continue to be exceptional as long as we have this weather. Markets are steady across the board, please reach out for any advance pricing.

Lime supplies are looking good, almost 700 loads crossed last week. Current markets continue to come off and overall the quality has been solid. We have opportunities to load FOB Texas and California as well as delivered options. Please reach out if you have any interest.

Navel supplies on small fruit 113’s/138’s continue to be very limited industry-wide and is expected to remain this way the remainder of January. We asked that you place orders for small sizes in advance to allow suppliers to strategize inventories for coverage. Suppliers have 88’s and larger as an option for better coverage and deals. Current markets are steady on the large sizes and the small size market is staying firm and looking to climb. Weather patterns this week show for fog in the middle of the week and rain over the weekend. We’re seeing very good natural color, high quality, and great tasting Navels. Brix levels have been consistent between 12-13%. On Specialty citrus keep pushing mandarins, quality has been looking solid and markets have been steady. We have Grapefruit opportunities out of Texas and California, please reach out if you have any interest. The Cara Cara’s and bloods supplies are looking solid with excellent quality. The Minneola Tangelos are looking good on the small sizes, while the large sizes are improving.

Alerts:
Small size Navels continue to be limited, better coverage on the large sizes. Please send orders in advance.

Cucumber supplies have been steady coming in to south Florida from Honduras. Supplies are not heavy and pricing reflects that, staying consistent for the last few weeks. Quality has gotten better over the past two weeks when shelf life was a big issue with product on arrival. Supplies from Mexico crossing into the US have decreased over the last few days and that will have the biggest impact on the east coast supply. Shippers of Honduran cucumbers tend to follow the Nogales pricing when supplies start to tighten. We expect higher pricing for the weekend and continuing through next week.

Light supplies of cucumber continue to be harvested in Sinaloa this week. Supplies are expected to remain steady through the remainder of January. Quality on cucumber crossing through Nogales, AZ remain fair to good. The cucumber market continues to steady/high this week. Light supplies of Mexican cucumbers are also crossing through McAllen. Quality crossing through McAllen is mostly fair as well.

Eggplant supplies are steady but not abundant and pricing has stayed steady since rising sharply a month ago. Growers are harvesting on both the east and west coast, cold weather this week will slow production down but the quality has been good with very few issues. Demand for eggplant this time of year is low so the supplies in Florida are adequate for the orders shippers are receiving. Expect this trend to continue for the near future, Florida does not have a lot of eggplant acreage planted for this time period.

Eggplant supplies have started to decrease this week. Eggplant crossing through Nogales, AZ continues to be harvested in Sinaloa. Supplies from Sinaloa continue to be packed in all pack styles and in all sizes. Quality on eggplant crossing through Nogales varies from fair to good. The eggplant market has started to increase due to ranges on quality.

Green grapes are fairly steady. Supplies and market prices are equal on both coasts. Availability seems to be slightly better on green than red grapes. This is mostly a result of lower demand on the green grapes. Quality is being reported as very strong with good color and firm berries. Market prices have been steady with slight decreases. We expect supplies to remain good and gradually build over the next 2 weeks with promotional opportunities available. As we look further down the road, we are hearing of possible lighter supplies in February, but we will have to watch closely to see if it will actually affect markets. Currently, we have both Chilean and Peruvian fruit available.

Alerts:
Green grapes are better shape than red. Prices have been steady and slowly declining. Quality is strong.

Transitions:
Chilean production may taper off a bit in February. We will watch closely to see how this effects markets.

This week, both east and west coast supplies and market prices are similar, so no need to break it up by region. That being said, supplies are fairly snug in all areas. Overall, import shipments are lower year over year at this time. Chilean production remains limited and arrivals from Peru continue to be delayed. The arrival dates get pushed back with little notice; leaving small gaps in supply as we wait for the next arrival to land. This is causing some uncertainty in regard to day to day availability and it is keeping market prices elevated and firm. Demand is very strong with a high number of pre-committed ads and contracts that are taking priority on fulfillment. Open market fruit is available, but loading dates may need to be flexible depending on arrivals. Quality is being reported as very good. Sizes are still ranging on the larger side with the majority of fruit falling in the Large to Extra Large range. Getting demand filled should not be a problem and we are here to help find what you need. We expect to see increased production from Chile over the next 2 weeks and anticipate much better availability by February.

Alerts:
Supplies are lighter due to delayed arrivals and slow Chilean production. Demand is strong and market prices remain elevated.

Transitions:
We expect Chilean production to increase as we move into February.

The green onion market continues to stay strong as supplies remain tight as the recent cold weather slowed the growth process. We are hoping the warmer weather this week spurs on growth. Quality is fair with occasional leaf minor caused by the recent colder weather. The market will continue to stay strong going into next week.

The kale market continues to stay strong with the recent cold weather in Yuma. Baby Kale seems to be hit the hardest with the freezing mornings last week. Quality is fair at best with full bunches and some yellow leaves being reported. We're hoping this week's warmer weather will help the quality, supplies and spur on growth.

Production with this commodity is stronger to start the week. Expect better supplies throughout the industry. The weather will be warmer over the next two weeks and no rain is in the forecast. Some common defects being reported include lightweights, misshapen heads and mildew, as well as slight sclerotinia. Escalated pricing is in effect currently, but expected to fall off by the end of the week on all value-added lettuce items. Weights are varying industry-wide, ranging from 33-38 pounds on liner product.

Production on romaine is very good in the desert. Warmer temperatures in Yuma will occur this week as well as next. No rain is in the forecast. Santa Maria/Oxnard will have moderate production as well. Demand is moderate to light at best. Common defects being reported on romaine include slight blister, mildew, tip burn, blister, and epidermal peel. green and red leaf have similar issues as well. Green and red leaf are very light in availability and this will continue throughout the week. Escalated pricing is in effect on green and red leaf fillets. The weights on romaine are averaging 28-34 pounds. Weights are being reported on green and red leaf items around 16-21 pounds.

The Tender Leaf supply continues to struggle due to lower yields caused by the recent wet and cold weather in Yuma. The wet weather and the continuous cold temperatures have certainly damaged the quality and lowered yields on Arugula and Spinach. The warmer temperatures this week should help growth, quality, and supply. Quality is fair with occasional yellowing and bruising of the tender leaves.

Supplies on larger sized fruit are plentiful on both east and west coast. Demand has tapered off a bit and with that, the market has come off on price. Currently, there is some overlap with Guatemala, Honduras and Costa Rica ramping upon production. Smaller sized fruit (12's/15's), we are seeing lighter offerings this week. Plenty of opportunity buys on large fruit (J5's/5's/6's) to take advantage of going in to the weekend. Quality has been solid as well as brix levels.

Offshore Honeydew market remains active. This week, the size curve is leaning heavily towards larger-sized fruit (J5's/5's/6's.) We are seeing better arrivals this month but also facing major delays at the port. Small fruit (8's) will be limited this week but we do have options. Overall quality had been consistent as well as brix levels.

On Mexican honeydew this week, we are seeing very light offerings on large fruit (J5/5).

Watermelon supplies crossing through Nogales, AZ continue to be harvested in Colima, MX. Watermelon supplies from Colima have decreased this week. Mostly smaller sizes being packed in both carton and in bins. Quality from this district is mostly fair. The watermelon market on bigger sizes has increased due to lighter supplies. Market on smaller sizes remain steady.

Yellow and red onion markets have leveled off with white onions remaining active due to lighter overall supply. Storage supplies are available from Idaho, Oregon, Washington, Utah, and Colorado. Quality from the Northwest storage supply is showing occasional issues of translucency and greening in the center, typical issues for January and February for early season onion varieties. Quality will slowly improve as we start to get into the late-season varieties and expect to finish the storage season strong for the months of March and April. Until then it is recommended to store onions in a cool (36-45 degrees), dark, dry, and well-ventilated area to extend shelf life and preserve quality. Mexico and Texas fresh run onions are expected to start early this year and should see some supply by mid-February.

Alerts:
Recommended to store onions in a cool (36-45 degrees), dark, dry, and well ventilated area to extend shelf life and preserve quality.

Transitions:
Mexico and Texas onions expected to start mid-February

Washington:

With Bartlett pears done for the season (for the most part), many shippers have Bosc or D’Anjou pears available. Bosc will be available through February with Anjous available through the summer months. Prices have definitely risen with fewer pears to choose from and import Bartletts not yet available until next week. Quality and shelf-life are excellent.

Red Anjou's are available and are packed in ½ (20#) and full cartons (40#). Markets are steady and quality is excellent.

Alerts:
Winter storms in the Northwest and Michigan are delaying trucks due to road closures (ice) and snowfall. Please account for delays when placing orders and setting load dates.

Currently supplies out of the growing region in Costa Rica are tight for all shippers industry-wide. Mexico also seems to be experiencing a shortfall. We can expect pineapple supplies to be tight through February. Markets are starting to get active, and demand is looking to pick up for Valentine's pull. We ask orders for Valentine's pull to be put in advance to allocate fruit. Quality continues to be consistent and looking good!

Alerts:
Pineapple supplies are tight industry wide due to light production from the growing regions. Please continue sending orders in advance.

Russet potato markets on larger size 40 count through 70 count, as well as 10oz #2 grade, continue to inch up as we head into February. Demand has also shifted into the 80 count as customers downsize due to the lack of availability on larger sizes and creating increased markets for that size as well. Washington, Colorado, and Wisconsin markets are also on the rise with added pressure from demand shifting to those regions. We do expect markets to continue showing slight increases heading into Potato Lovers Month. Quality remains good with occasional lots showing peepers and light pressure bruise. We highly recommend 7 business day lead time prior to date of ship to ensure proper coverage and on-time deliveries.

Alerts:
Markets continue to rise on larger counts

Color potato markets remain elevated in all regions. Wisconsin continues to ship out very limited supplies of red and yellow with expectations to finish mid-to-late February. North Dakota markets remain high with slow sales. Red and yellow potatoes are expected to last until March pending on demand. Idaho and Washington continue to see the most demand with active markets across the board, particularly on red potatoes. Mt Vernon, Washington has high color reds that are also getting transferred into Bakersfield, CA to supplement those orders. Red #2 grade is very scarce in Mt Vernon and California due to the excellent quality. Markets will continue to be active through the month of January. Florida is expected to start early-to-mid February and forecast to have good supplies and quality to start the season.

Alerts:
#2 grade red loading in California very limited.

Transitions:
Southern Florida expected to start early-to-mid February

Squash supplies are extremely tight and the situation will not get better this week. Squash supplies have been tight for some time due to weather issues a month ago and plants have not rebounded. Supplies from Mexico have been very light due to their own weather issues. Shippers will typically supplement shortages with product from Nogales but under the circumstance that is not an option. South Florida is going to get some very cold temperatures this week that will slow production even further and could potentially hurt crops. So far the quality has been good with a few scaring issues on yellow straight - neck, the cold temperatures could impact quality also, we will send updates on quality and supply as we get them.

Alerts:
Extremely light supplies and the situation will not get better this week.

Light supplies on both Italian and yellow s/n continue the front part of this week. Soft squash supplies are projected to continue light through the week from the Mexican state of Sinaloa. Quality on all soft squash continues to be Fair. The soft squash market continues to remain steady/high this week. Soft squash from the Mexican state of Sonora continues to be on pace to start in the month of February. Light supplies of soft squash continue to cross through McAllen, TX.

We are seeing consistent weekly arrivals of Chilean stone fruit. All varieties are available including white and yellow peaches and nectarines as well as red and black plums. The fruit is ranging in the typical size profiles for import product (sizes 50 and larger). Quality is being reported as strong. Demand has been light, but there is not much of a push on the supply side either. Market prices have been flat. We expect to see increased production, better availability in sizes and more aggressive prices as we look toward February.

Alerts:
Supplies are sizes are still hit and miss. We expect better availability by February. All varieties are now being harvested. Markets are firm.

The tomato market has shown slight improvement in the last week prematurely giving hope for relief in the market by February. A turn of events last night with a shot of freezing temperatures in Florida now has some speculating a cold snap further delaying a market recovery until March. The original forecast for better markets by February has now been adjusted out further by another 6 weeks as a result of the sudden Freeze. Florida temperatures dipped into the low 30's last night where temps remain in the low 40's this morning. Some weather models show a chance of significant rainfall near the end of next week. Farm operations are just getting into fields to assess any damage that may have occurred. Risk of a cold snap and compromised harvests are likely to directly affect yields in the immediate future. Round and Grape tomatoes are slightly higher this morning already and roma's have increased by several dollars as Mexico also works through diminished supply. Quality in Florida has been good but likely to show some challenges as a result of windchill last night.

Alerts:
Demand Exceeds Supply. Availability is limited. A freeze in Florida is pushing markets higher. Elevated Markets expected through most of February.

There is favorable weather over Mexico this week however farms are still dealing with major virus issues in the fields where it is speculated that as much as a 40% loss of yields are responsible for delayed supply. Additionally, a stronger national market in Mexico has caused Romas to tighten back up after crossings began to improve in the last 7 – 10 days. Round tomatoes are expected to be very light for another 2 weeks minimum until Culiacan gets going on their much-awaited winter harvests expected to begin the first part of February. Supply is expected to slowly increase over the next couple of weeks. New farms have large fruit coming into the market, but color has been on the light side. Grape tomatoes are near the price floor but there is a wide range of quality. With the newly appointed Suspension Agreement’s inspection provisions, and delays resulting from the USDA’s phytosanitary controls to prevent the spread of the Tomato Brown Rugose Fruit Virus, many shippers speculate tight supply until February when volume overall picks up at the farm level and the law of large numbers yields higher availability in the market.

Alerts:
Demand Exceeds Supply. Availability is limited. Elevated Markets expected through mid February