The Source - January 25, 2017

Washington - red delicious are mostly steady on all sizes and most shippers continue to flex for volume of 88s and larger. Reds are peaking on extra-fancy 64-88s and they have good volume. Golden delicious are steady on all sizes and continue to peak on 72/80/88s. Small Goldens remain very short with very few 125s and smaller. Granny-smith are slightly lower on the larger sizes and slightly higher on the smaller sizes. The fruit is still peaking on 72/80/88's. Granny 100s and smaller are exceptionally short. Most suppliers are still subbing up in grade and size to cover orders of 100s and smaller. The Gala market is steady on all sizes. Galas are still peaking on 80/88/100/72s and they have good volume in the larger sizes. Fuji's are steady to slightly higher on all sizes and are still peaking on 72/80/88s. Honeycrisp are steady to slightly higher due to light supplies esp. in the lower grades . They are still peaking on 80/88/100s. The quality for red delicious, golden delicious, granny-smith, Galas, Fujis, and Honey Crisp has been good. Braeburns, Jonagolds, Red Romes, Cameos, and the other varietals are available but in limited numbers.
Idaho---red delicious, Red Romes, and Pink Lady's are the bulk of the current production and are all fairly steady to slightly higher but they are starting to pack better numbers again. Most varieties are still peaking on 64-100s. The quality has been good.
Michigan--McIntosh and Empires are steady but strong due to lighter storage supplies. Golden delicious, Jonathans, red Romes, Galas, red delicious, and Fujis are all fairly steady. Galas, Red Romes, and Jonathans are still peaking on the smaller sizes while the Golden delicious, Red delicious, Fujis, and McIntosh are peaking on the medium sizes. The quality has been good.
New York---Empires and McIntosh are steady but strong to light supplies and strong demand. Red delicious, Galas, Fujis, and Red Romes are all steady. The sizing has been more medium recently. The quality has been good.

Alerts:
Washington 100-size and smaller Granny-smith are very short due to larger sizing on their C.A. fruit. Many suppliers are subbing up in size and grade to cover granny-smith orders and it has many of them limited on anything smaller than a 72. Expect these trends to continue through the season. Small golden delicious are also limited.

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

The Asparagus Market has slowed down with less demand in the market. Peruvian Summertime Asparagus is just about finished with Mexican (Caborca) product in the market. We should see better volumes from Mexico in the next week.

Mexico's Caborca growing region experienced some rain and colder weather over the weekend, but with more acreage opening up, volumes were not affected. The market should continue to slowly decrease with the increase acreage in production.

Shipments from Mexico this week are expected to be remain around 44 million pounds and drop of next week to around 35 million as the main pull for Super Bowl begins to drop off in demand. Shipments will continues to tapper downward into early February. Overall demand leading up to he Super Bowl will likely be higher than available supply. Many retailers have switch for 48ct to 60ct and driving 60ct price upward and causing the 48ct price to soften and ease off in price. The overall size curve is now skewing toward the very larger 32ct/36ct with less of the smaller fruit and still see heaver percentage of #2 fruit.

Excellent Quality, Condition and supply. Supply exceeds demand keeping market on Green Bells low and very reasonable. Mostly offering number one grade peaking on large , xlarge and jumbo.

Colored bells have started with strong supply on both blocky and elongated varieties. Good quality and condition. Supply exceeds demand keeping Market on Colored bells modest. Shipping from Mexico crossing in Nogales.

Supply is limited and demand is very good. Central Mexico is the main production region for the winter months and is beginning their seasonal decline. Weather has also slowed production and fruit maturation over recent weeks. Decreased volume is industry wide and we will remain in light supplies for another 3-4 weeks.

Alerts:
Supply is very limited and expected to remain short for another 3-4 weeks.

Raspberry production has slowed and supply has begun to decrease from Mexico and Southern California. These crops have now passed peak production for the season and we will be heading into very light availability for the next several weeks. We are about 4-6 weeks out before we see the crop start to come back with better volumes.

Strawberries are limited in California following numerous weather systems and several inches of rain over the past week. While wet weather has cleared, temperatures remain fairly cool. The next 7-10 days are forecasted to be clear and slightly warmer heading into the weekend. With each day we get further past the rain, quality should begin to improve. Much fruit has been stripped to clear out damaged and subpar quality berries. Bruising, water damage, white shoulders are still showing up in the packs. Florida strawberries are limited and with a cooling trend in the forecast, it is possible we will see volume continue to decrease over the coming week. There's a chance of rain in the coming weekend which could disrupt production as well. Mexican strawberry production is showing an increase in volume over recent weeks and is expected to continue to ramp up toward seasonal peak in the coming weeks.

Alerts:
Supply remains limited in both California and Florida.

Peak Seasons:
Mexican strawberry production is ramping up toward the peak of season in the coming weeks.

Bruising in Oxnard strawberries

White Shoulders in Oxnard strawberries

Bruising and White Shoulders in Oxnard

Culled Fruit in Oxnard

Water Damaged Berries in Oxnard

Broccoli supplies are extremely limited from all growing regions. Processors are looking for acreage to meet demand. This is causing the market to continue to rise to higher levels. The long term outlook is that we are 2 weeks away from better volume. Quality is still nice out of Yuma and Mexico but fair at best due to the rain in Santa Maria. The market continues to trend higher. Also suppliers will be holding customers to their respective averages.

Alerts:
Supplies are extremely limited due rain in Santa Maria as well as supply gaps in Yuma and Mexico.

The current supply situation from Mexico is really plentiful. All sizes are available. Quality is really good with minimal complaints. An aggressive market is present with several shippers. This will trend well into next week.

Peak Seasons:
We are currently in peak season for supplies coming from Mexico.

Carrot supplies remain good and look continue so, with jumbo, cello and value added product. Cooler weather is slowing size growth slightly and we are seeing market price on the jumbo size carrots firming up.

The cauliflower market is two tiered depending on growing region. Yuma is commanding a price premium versus Santa Maria due to fair quality out of that growing region. Supplies in Yuma vary from shipper to shipper. Quality out of Yuma is really good with minimal arrival issues. We will see this trend into the next week.

Alerts:
The quality out of Santa Maria is fair at best with bruising being quoted before shipping due to the previous rain.

There has been plenty of rain in southern California. With this being said , the market on this commodity has remained firm. There is a pricing gap amongst multiple shippers by a few dollars. Good quality continues out of Yuma and Oxnard /Santa Maria. Pricing is a bit higher for some in the desert. Currently all sizes are available for shipping. This rain is supposed to occur on Tuesday, then we should be dry for about a week.

Pablano - Excellent size and Quality and color will continue with steady to heavier supply.

Tomatillo-Heavy supply and excellent quality on fresh crop, both peeled and husked. Sizing is good. Color and condition will continue to be great.

Jalapeno- good quality on new crop pepper, Excellent Size color and condition with huge supplies. Many number 2s are being shipped.

Anaheim- good quality and condition and size are expected to continue as supply improves.

The previous rains in the Oxnard and Santa Maria growing region have really affected quality. Supplies have decreased from that area and Yuma/Mexico does not have enough acreage to cover demand. The quality from Yuma & Mexico is far superior. Quality issues such as yellowing / Black leaves, to brow discoloration have been showing up on arrival. The market hasn't reacted yet but look for it to trend higher moving into next week.

Alerts:
The rain in the Oxnard/Santa Maria growing region has affected quality of cilantro. This will last well into next week.

Over all supplies have been impacted by rains in the Central Valley and the small amounts that they have been bring to market. The desert crop is 90% harvested and with size growth, larger sizes predominate peaking 115s/95s/140s making 165s and 200s short.

The lime market is slightly lower on all sizes. The lower market market is due to an overall increase in volume. The old crop harvest is in the larger size profile 110/150's while the new crop is 230/250's. We are experiencing a little bit of a short supply on 175's and 200's which looks to be the case for the next week or so. The quality is good with very few problems being reported. No more adverse weather is being reported for the near future so we should experience normal market fluctuations.

Rains in the main growing area for California Navels are over and we now have clear weather forecasted through next week. New limited harvest will begin today, but groves are very wet and harvest will be slow. Shipping will begin again on Thursday for most shippers, and not until Monday for a few. It will take harvest into next week for shippers inventories to come back up to normal. Expect supplies to remain very tight into next week.

Alerts:
California's Navel orange harvest has began again, but supplies will remain very tight into next week until shippers can regain their normal inventory.

Good supply on cucumber coming out Mexico, Excellent color, quality and condition on all grades sizes and pack styles. Supply will continue with slightly less volume for the next week.Euro cucumber is also available in very limited supply, both #1and #2 both single layer and bushel boxes.

Good Quality and size are currently being shipped from Nogales, mostly larger sizes are available in limited volume. Many number 2s being shipped. Some lots showing internal discoloration.

Green grape supplies are improving on both coasts. Unlike the wave red grapes, green grape supplies have been consistent and gradually improving. Market prices have been steady with a slight decrease this week as more product arrives. We now have more loading options on the west coast and a wide selection of shippers on the east. All size ranges are available with the heaviest volumes being large and extra large. Quality has improved with the new arrivals as well; we are getting fewer reports of amber berries. Supplies are expected to remain consistent moving forward. Promotional opportunities are available.

Red grapes are in a supply exceeds demand situation on both east and west coasts. Looking at the market trends year over year, it's amazing to see what a difference a season can make. Last year at this time, supplies were extremely limited and markets were very active. This year, it seems to be the complete opposite. Shippers have more fruit than orders and market prices have been declining rapidly. This week, however, it seems the steep market drops have tapered off. Prices have leveled out and are expected to remain steady moving forward. Quality overall on the red grapes has been strong. All sizes are readily available. Supplies are expected to remain consistent moving forward. Volume and promotional opportunities are available.

We are finally in some sense of normalcy with supplies and labor. The market has also adjusted enough to be competitive again. There are plenty of supplies of iced green onions and on the iceless front better supplies arrive daily. Quality has been good with little arrival issues. Some sporadic arrivals of browning of the tops have been reported.

Despite the rain in Oxnard, supplies remain steady. The market is unchanged as supplies are abundant. Quality has been excellent with full carton, little dehydration, and minimal yellowing.

The lettuce market has gained a little strength in the marketplace. Demand continues overall to be down, however. There is a gap in the market and quality is all over the board. Issues being reported include misshapen heads, pink ribbing, rusting, browning, mechanical damage and some mildew. The desert did have rain this past week, but no rain is expected for the rest of this week. Temperatures are expected to be in the mid 60s to mid 40s throughout the week. The quality is reported to be fair. Weights on palletized have has been reported to be 41 -45 pounds.

This market is up on all leaf items. Rain as well as cool weather has created multiple defects on all leaf items. On romaine, in particular, some blister and peel has been seen, along with twisting, mechanical damage and pink ribbing. These defects are industry wide. On green and red leaf as well as butter, the previous mentioned defects have also been seen, not to the extent of romaine however. The desert is expected to have no more rain for the week, but temperatures will be mild, never eclipsing seventy degrees. The quality looks to be only fair for the entire week on all leaf items.

Demand is good on all sizes. Supplies are steady to increasing. 12's continue to get increased demand due to substitution for 15ct. The 15ct are becoming more available. 18's continue to be extremely short in supply. The market is steady to lower across the board. The quality is excellent right now and for the long term outlook too. Weather has been ideal in the growing regions .

Honeydew supplies are leveling out and starting to increase slowly. Mexico is exporting very nice looking honeydews up to us and their supplies are light for the next few months. Offshore dews have excellent quality and are peaking on large sizes such as 5's and 6's with 8's being short supplied. Offshore dew volume is returning to normal levels. Demand is beginning to increase from the low levels we just went through. The market is currently steady to lower on offshore dews and Mexican dews.

Northern Mexico has finished and production from Southern Mexico is improving. Quality and condition are good with high sugar all sizes are available in both bins and cartons . Personal seedless is available in limited supply.

Onion market out of all areas have been extremely active over the last two weeks due to severe weather that brought supplies to almost a complete stop. As most of you have heard, a few onion storages and packing facilities collapsed due to the combination of snow and rain in the Idaho/Oregon areas. The long term affects of this damage on the markets is still unknown. Only time will tell. The weather finally cleared enough to allow shippers to slowly catch up on orders which has stabilized the markets for now. Transportation has also improved in both Washington and Idaho. Quality is being reported as good. Mexico has started crossing yellow, red and white onions with limited but building supplies. Quality is being reported as good. This area will not be much of a factor for about two weeks.

Alerts:
Onion markets have been active due to severe Weather bring supplies to a stop the last two weeks.

Transitions:
Mexico has started crossing limited supplies of Yellow, Red and White onions

Washington -- Large Bartlett pears are slightly lower while the smaller sizes are slightly higher. They are still peaking on US#1 70/80/90s and the 110s and smaller remain limited. The storage quality has been good. D'anjou pears are also slightly lower on the larger sizes and slightly higher on the smaller. They are still peaking on US#1 80/90/100s while the 110s and smaller remain extremely short. The quality has been good. Bosc pears are also steady and are peaking on US#1 80/90/100s. The quality has been good. Red pears are steady to slightly higher and they are still peaking on US#1 45/50 half cartons. The red pear availability is very light. The red pear quality has also been good.
Chile - Chilean Bartlett pears have started coming in to L.A. and New Jersey and like Washington they are peaking on larger fruit. This is their first week so no definitive quality report yet but we hear it is good.

Alerts:
Many shippers have finished packing Bartletts and will be finished shipping them between mid February and early March. Losing Bartletts will definitely put upward pressure on the D'anjou market!

Transitions:
Chilean Bartlett pears have started to come in to both coasts.

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

Supplies will begin to lighten next week for two to three weeks due to a period of heavy rains at the end of November of last year. This tighter supply currently looks to be momentary tighten event.

The potato markets out of all areas continue with little change on all sizes and packs. Look for this to continue into May. Idaho has the largest supply of russet in storage out of all the other growing areas. Quality is still being reported as good. Transportation has improved.

Peak Seasons:
Potato out of Idaho, Washington and Colorado are still in peak season

Bakersfield California - red, white, and gold potatoes are all steady on all sizes. The White market remains strong due to light supplies. All colors continue to peak on A size and the quality is good.
Idaho - red and gold potatoes are steady on all sizes. The red potato sizing is split evenly between As and Bs while the golds are heavier to A-size. The quality is good.
Western Washington - red and gold potatoes are steady and continue to peak on A size. The quality has been good.
North Dakota - red and gold potatoes are steady on all sizes and they are still peaking on A size. The quality has been good.
Wisconsin - reds and golds are steady to higher on all sizes but the market is strong due to light indigenous supplies. Most shippers are sourcing from North Dakota or Washington so they can finish the season, and that has pushed the market up. The quality has ranged from fair to good.
Canada - reds, golds, and whites are mostly steady but some sizes are higher depending on the supplier. Some suppliers have more sacks while others have both sacks and cartons. The quality has been good.

Transitions:
Florida will start packing reds and golds in approximately two weeks and whites will shortly follow them.

Peak Seasons:
Western Washington, Idaho, North Dakota, and Bakersfield, California (winter whites) are in the peak of their seasons.

Supply on Italian and yellow squash have become very short due to a gap in production, Quality and condition continue to be only fair and shortage is expected to continue for at least the next 10days to 2 weeks. Hard Squash is also being harvested in very good supplies.Mostly larger sizes and number one grade.

Alerts:
Yellow and green squash are in very limited supply coming from Mexico and crossing in Nogales. Market has spiked and will continue to be short for the near future.

The Chilean stone fruit season is in full swing. Over the past two weeks vessels have been arriving with good volumes of high quality fruit. We have several loading options on both coasts with good inventories of peaches, nectarines and plums. Sizes on the peaches and nectarines are ranging on the larger side (40-50's) on tray packs and (50-60's) on volume fill. Plums are smaller ranging between 60-80's on the volume fill. Quality is being reported as excellent. Market prices have seemed to level off and have been consistent, but spot buy and promotional opportunities are available. We expect supplies to remain strong through the month of February and begin to taper off by March.

Peak Seasons:
We are in peak season with stone fruit. Excellent quality and availability.

Tomato crops continue to thrive in Florida with no slowing to supply, leaving markets steady. Ideal growing conditions are carrying crops longer than usual keeping markets relatively lower than normal this time of year. As we move into Florida's winter season when less acreage is planted, overall supply will begin to decrease as we get into the month of February. Production is now focused in South Florida, where there are rounds, romas and grapes available daily. Demand is low allowing for a wide variety of product and open market orders to keep product moving.

In Mexico, the vine ripe and gas green winter programs have come on to full production. Heavy volumes of tomatoes crossing from Mexico are keeping the markets low as Eastern supply also shows to be bountiful. Roma cherry and grape varieties are also in great supply. With no spikes in demand expected in the near future, with winter storms tracking a majority of the buying markets across the county, these markets will remain steady for the near future until demand begins to match its supply counterpart.