The Source - January 24, 2018

Washington – Red Delicious, Golden Delicious, Granny Smith, Galas, Fujis, and Honeycrisp are mostly steady with some flex. The rising star varietals have also been mostly steady with a few deals here and there. 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 – Golden Delicious, Red Delicious, Granny Smith, Fujis, and Pink Ladies are still being packed. Grannys are still peaking on 80/88/100s while the others are peaking on 88/100/113's. The availability remains very light for all variety's as they are just getting back into full production. 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, Empires, Red Romes, 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, Red Delicious, Fujis, Snap Dragons, Golden Delicious, Red Romes, Macouns, Pink Ladies, Empires, and Ruby Frost are still being packed. Most of their fruit is large this year, so they haven't been as much of a factor in food-service. All markets have been fairly steady along with demand. The McIntosh and Red Delicious have been producing more small fruit lately. The quality has been good.

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

Caborca and San Luis Mexico are in good production as their seasons ramp up. The weather was cold over the weekend but has not hurt the volume from these two regions. The production will continue to increase as the weather gets warmer. Both regions in Peru are closings more fields every week due to seasonality, and with Mexico increasing production. Peru should be finished in the next two weeks. Markets are overall lower due to less demand, and an increase in production from Mexico.

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.

Warmer temperatures have allowed for more production of green bell pepper. Fruit is growing a little faster, and growers can get out in the fields and work longer days. Demand has been down for the past two weeks which is also creating the appearance of better supply. Quality is good, and some newer fields have started, so sizing is heavier to Jumbo and XL pepper. Expect the market to stay steady through the week.

Alerts:
Better supplies.

Peak Seasons:
Green Bell Pepper is coming into peak availability.

Blackberry supplies have been consistent but did lighten up slightly this week. Quality has been strong with good color, size, and flavor. Demand has been good, and market prices have been steady to slightly higher. Central Mexico did experience some cooler weather last week, but the blackberries were not affected due to the fruit being under hoops. Moving forward we expect continued good supplies and quality. The market will be steady.

Blueberry supplies have been consistent this week. Availability has gradually been improving as more fruit arrives from Chile. There is fruit available to load on both the east and west coasts. Quality has been good with occasional soft fruit being reported. Demand has been strong, and market prices have started to decline slightly this week. Mexico continues to have consistent but light supplies. Quality on these berries is being reported as excellent. Market prices are higher than the Chilean fruit, and loading options are more limited. As a whole, we expect supplies to continue to improve from Chile and markets to adjust accordingly.

Raspberry supplies remain limited. Central Mexico production is at it's lightest point. We do not expect any major disruption in order fulfillment, but we will see some substitutions into organic to avoid shortages. Quality has been good, and market prices have been high and firm. We expect supplies to remain snug for the next two weeks, then gradually improve as we start February.

Alerts:
Supplies will remain limited for the next two weeks.

Strawberry supplies are improving in all areas. California had a bit of a slow start this week with a cold snap, but the weather has warmed up and is expected to remain ideal for the next ten days. Demand has been strong, and the market has been steady. Quality is being reported as good. The berries are firm, but color has been light due to the colder mornings. With the warmer weather expected for the next week, we anticipate seeing good supplies and quality as we get closer to the Valentine Days pull. Florida has slowly been recovering, and yields are improving. The weather has warmed up, but a chance of rain is expected for the weekend. Demand has been steady, and markets are lower this week. Some aggressive prices were offered earlier this week to move through some volume. Depending on the weather, we may see some lighter supplies and higher prices next week. We expect good supplies for Valentines Day. Central Mexico increased production early this week, and we saw some aggressive offers for volume. Quality has been solid, and markets are expected to remain steady through the weekend. Overall, as we prepare for Valentines Day demand, we expect good supplies and quality industry-wide. Sizes should yield good stem berry volume. Demand will be very strong, and we expect markets to start to rise as we get closer to the pull dates.

There has been a surge of supplies of broccoli from all growing regions. This has created a very competitive market. Quality is excellent with decent crown size, dark green color, and minimal yellowing or dehydration.

The supplies from Mexico are increasing weekly. Coupled with the help of the Oxnard growing region, supplies look to be plentiful. We are experiencing a full range of sizes. Quality is excellent with vibrant green color and little to no decay. The market is extremely competitive.

Supplies are steady, still not much size coming from fields, so jumbo size are still tight. Organic fresh carrot production is improving.

The shift in the supply front is the theme here for cauliflower. Supplies have increased and thus forcing the market to extremely competitive levels. Quality is excellent with weights in the 26 to 30 pounds, snow white color, and little to no bruising/brown spotting.

This market continues to be steady. All sizing is available in Yuma and southern California. Some quality defects that have been reported include insect damage, mechanical, slight bowing and branchy. Demand continues to be average at best. Supplies are expected to be good throughout the week with this commodity. The best deals continue to be in Santa Maria/Oxnard. Yuma pricing is definitely commanding a higher fob price compared to Oxnard and Santa Maria.

Cilantro supplies have increased over the past few days. They also look to be steady this week. This has caused the market to trend lower. Through all of the ups and downs quality remains really good with minimal yellow to brown leave, full bunches, and little dehydration. Look for this trend into next week.

The lemon market remains very active. Demand continues at a strong pace. The desert crop looks to finish in the next 2 to 4 weeks. The Central Valley crop is slowly picking up in some volume, mostly fancy grade. Ventura crop will not start until the end of February. Demand is still keeping supplies on 165s and smaller fruit limited in availability, and will carry through January and into February.

Lime supplies have been consistent, but we are expecting a cold front with a chance of rain over the next three days. Depending on the severity of the weather, we could see some slowed production for the remainder of the week. This will ultimately impact the availability of fruit for the next 4-5 days. Currently, market prices have been fairly steady, but we can expect to see an increase next week. In addition to the possible supply challenges, LTL deliveries continue to be very limited. Freight rates remain high, but truck availability is improving. We hope to see more improvements over the next 2-3 weeks.

Alerts:
Cold weather may slow production over the next several days. Freight continues 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 of 113s/138s both grades.

A few more shippers of Honduran cucumbers started in the past week bring better supplies to ports in Florida. Less demand has also contributed to a slowly declining market. Quality on cucumbers is mostly good with a few issues on lots from older fields. Weather in Honduras has been cold by their standard this time of year but started warming up over the weekend. We expect the market to be steady over the weekend.

Alerts:
Better supplies

Peak Seasons:
Honduran cucumbers are coming into peak availability.

Eggplant supplies are still tight in south Florida. There was not a lot of eggplant planted for this period and cooler weather has slowed production. There is some relief in sight as new acreage is starting with very good quality and production should pick up by next week with the warmer temperatures the region is getting. Cheaper product from Mexico crossing in both Arizona and Texas should keep the market from getting any higher. Trucks are still an issue in all regions, but rates are slightly cheaper than last week.

Alerts:
Tight supplies

The green seedless grape market is about steady with light supplies and light demand the norm. Volumes arriving at the port are slightly improved and should increase again for the coming week. The green seedless market should ease off slightly for the coming week. We have a wide spectrum of sizes available with Thompson Seedless running slightly smaller than the Sugarone's. Quality is reported as good on all.

Despite erratic vessel arrivals; volumes of red grapes are slowly rising. This combined with stunningly cold temperatures throughout the North East has led to a softening of the market. Quality is generally good with sizing spread fairly evenly from medium / large to extra large fruit. We expect to see this market remain about the same through the coming week.

We have seen more crossings of green onions from Mexico. We are not completely back to normal prices, but we should see that by next week. The market is slowly trending lower. Quality remains very good with green tops and minimal decay. The only issue here is the limited availability of jumbo-sized green onions.

Kale supplies continue to flourish under optimal growing conditions. The market is steady with competitive prices from all suppliers. Quality is really nice with full bunches, dark green color, and minimal yellowing.

Demand continues to be minimal with this commodity. Good availability will exist throughout the week. Supplies clearly exceed demand. The quality is fair, however. Common defects include misshapen heads, ribbing, puffiness, and mechanical are being seen upon arrivals. Shippers continue to flex for bigger orders so promote as much as possible. The availability will begin to tighten up by the middle to the end of next week. Weights on Wrap has been averaging 38-44 pounds.

This market has remained unchanged on romaine as well as all leaf items. Demand continues to be light. Blister and epidermal peel are minimal but still seen. Bigger issues include ribbing, insect damage, discoloration and mechanical. Romaine hearts continue to have strong production, and this will continue throughout the week. Supplies on all leaf items are expected to firm up in the marketplace early next week. Romaine hearts are expected to firm up as well. Both Southern California and Yuma have similar quality characteristics.

The weather has cooperated in Yuma to get a balance of supplies of both organic and conventional tender leaf back into the pipeline. The markets are also stable due to the influx of supplies. Quality has improved, but we are seeing the occasional wetness in portions of the bags and some minor yellowing.

The import market remains steady to lower with price-flex on all sizes. Discounting for volume continues especially on the smaller sizes and in Florida. The fruit remains mostly large with 9s and 12s being the bulk of the volume but more smaller fruit is available as well. We expect sizing to remain steady as Guatemala fruit comes to an end and the Honduran production continues. The quality has been good.

Alerts:
Expect less small fruit next week and more large fruit.

Transitions:
Guatemalan fruit is almost completely finished.

Imported fruit remains mostly steady on both coasts with price-flex from some suppliers. The fruit is still peaking on 5s with some 6s and a few 8/9s. The Guatemalan fruit will clean up this week, and we expect the sizing to get larger once we get into Honduran only. The quality has been good.

Alerts:
We are expecting more large fruit next week with less of the smaller sizes.

Transitions:
Guatemalan fruit is almost cleaned up, should finish at the end of this week or the beginning of next.

Idaho storage supplies look to be on track to finish up with the smaller to midsize grower/shippers around the end of March. A few of the larger growers will make it till the end of April. Quality is still nice with very few issues being reported. Markets are steady across all sizes and colors. Demand is moderate on Colossal and Super Colossal Yellow Onions with others steady.
Washington storage supplies also look to be on track to finish up sometime in April/May depending on demand and quality. Demand and markets are flat on all sizes and colors. Quality is still being reported as good.
Mexico supplies of yellow have started to cross into the U.S. shipping out of McAllen, Texas. Peaking on Jumbos. The market is softer. Quality is being reported as nice. Remember that once you switch to new crop onions, they do not have the thick skin like the storage onions.
Transportation seems to have loosened slightly, but the rates are still high.

Alerts:
Transportation has eased slightly.

Transitions:
Mexico supplies yellows have started crossing into the U.S.

Washington – Bartlett pears are steady and remain as the most expensive pear variety right now. Bartletts are mostly large with only limited supplies of smaller fruit. D'anjous are steady on the larger fruit and steady to higher on 110s and smaller. Supplies of smaller D'anjous are still limited, and they still have better availability in the fancy grade. Bosc pears are steady and are peaking on US#1 80/90s. Supplies of small Bosc are also limited. 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 Bartlett pears will finish up in the next 3 to 4 weeks.

Transitions:
Chilean Bartlett pears are scheduled to hit both coasts next week.

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

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

Idaho - Demand is moderate with a fairly steady market on most sizes and packs. Supplies of both Norkotah and Burbanks are still available. Look for supplies of Norkotah to start to wind down the end of next month. Burbanks are still getting a slight premium. As the Norkotah variety winds down look for supplies of 60 count and larger to get a little harder to come by. Quality is being reported as good with very few quality issues being reported.
Washington - Demand is good to Moderate with a steady market on most sizes and packs. Storage supplies are lower than years past which has grower/shippers limiting supplies being packed to extend supplies. Quality is still being reported as good. Sizing is peaking on 60 count and smaller.
Colorado/Wisconsin - Demand is good with a firm market on most sizes and packs. Quality is being reported as good.
Transportation has gotten a little better, but rates are still high

Alerts:
Transportation rates continue to be high with slightly better availability.

Western Washington – all sizes of red and gold potatoes are steady. A-size is still the bulk of the production for both. 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 mostly steady with some lower. Both colors are still peaking on A-size. The quality has been good.

Wisconsin – both reds and golds are steady. Both colors are still peaking on A-size. The quality has been good.

North Dakota – red and gold potatoes are steady. We expect market change lower after Florida gets underway, but it may take a couple of weeks. The quality has been good for both colors.

Transitions:
South Florida is scheduled to start new-crop red potatoes next week. Golds and whites are one to two weeks behind.

Peak Seasons:
Idaho, Bakersfield, North Dakota, and western Washington are all still in the peak of their seasons.

With warmer weather in Florida over the weekend and this week, squash supplies have gotten better. Demand is good but not outpacing supply bringing the market down slightly. Last week quality was hit and miss, but it seems to be much better this week with the better weather. There have been light supplies of good quality squash coming in from Honduras, but availability is hit and miss depending on the shipping.

Alerts:
Better supplies

Peak Seasons:
Squash is coming into peak season.

Availability of Chilean peaches, nectarines, and plums continues to be light. Vessel arrivals have bee erratic. Sizing on peaches and nectarines is mostly in the tray pack 48/50's and 54/56's with some volume fill 60's and 70's. The market on these remains steady as most suppliers are cleaning up between vessel arrivals. Plums are predominantly reds with some black's coming in. Sizing on these ranges mostly from 40/45 and 50/55 tray packs to volume fill 60's. Quality on all the stone fruit is good. We see no reason for the markets to move as supplies should remain relatively unchanged through the end of January.

There is an extreme fright shortage occurring in the industry since the enforcement of electronic logs has come into law; however tomato supply is booming at this time in spite of logistical challenges to move product. Overall demand is steady, and quality is reported as good across all varieties. In Florida, mature green FOBS have continued to slide this week making round markets fairly similar between Arizona and Florida shipping points. Roma tomatoes are slightly higher in the east compared to Mexico fruit shipping at the minimum helping Florida grown Romas stay closer to eastern buyers. Cherry and Grape tomatoes are slightly higher in the east where quality is superior in comparison to Mexican imports. As cold weather patterns relinquish and schools get back into session demand may start to pick up again but there is enough supply at this time to where prices are not expected to move much through the rest of the month.

Tremendous supply has been crossing Nogales into the United States helping to pull markets down to minimal levels. All varieties are loading at mandated minimums and supply is reported to be very good. Roma tomato volumes have been heavy, and there are concerns of older product being mixed in to help shippers move product that has bottlenecked in the pipeline. There is a wide range of quality throughout grape and cherry tomato lots, but FOBs are nearly half the price of Eastern counterparts making them an attractive alternative.