The Source - January 29, 2020

MIDWESTERN / EASTERN REGION:

Low winter temps continue to hit the Midwest and East Coast where occasional scattered showers/snow will continue to delay trucks and cause extra weight on scales due to the compacted snow on trucks. This will limit the usual number of cases that would load on full trailers.

We are seeing smaller shippers, with no C.A. program, clean up their floors for the season and that demand is shifting to larger shippers. Looks like smaller Red Del. has better availability vs. Gala, but there are other red varietals commanding more aggressive prices (Cortland, McIntosh, etc.). Quality remains excellent with ideal shelf-life.

WESTERN REGION:

Washington

100ct-138ct sized apples continue to be plentiful vs. larger, retail sizes. Temperatures have warmed a bit—as much as it can in the Northwest (expected High in the low 60’s on Friday), but trucks will still contend with the elements as they make their way across certain parts of the country. This season’s overall harvest is yielding greater amounts of medium-to-smaller fruit (vs. last year), which explains the price ease on a few varieties. Conversely, retail sizes (56ct-72ct) are commanding higher prices due to unavailability. We should have no issues with availability, on foodservice sizes, for the foreseeable future.

San Luis, Mexico has increased production this week with better growing weather in the region, and the volume should get better next week with warmer trends. Caborca, Mexico has started with production, but volumes are still light. Production should increase in the next 7-10 days. Volume is very light from both regions in Peru (Ica/Trujillo), exporters have closed most of their fields due to seasonality. The market on the east coast is very sluggish with the transition from Peru to Mexico. The market on the west coast is less active with production increasing every day.

Weather had been fairly consistent with some rain showers here and there. Rain will only help size the fruit up and causes no damage to the fruit what so ever. The industry is estimating around 365 million pounds for the 2020 season. For this week, we are estimating 2.5 million pounds of fruit harvested. Growers are currently size picking for specific programs. There will be a significant increase in production by the second week of February.

Alerts:
Light harvest for California growers as they await to see how the Mexican market reacts as we close into Super Bowl.

Demand remains very strong this week and the market is steady. That strong retail pull for Super Bowl has died down and has done its damage. Post Super Bowl, the industry will see this market come off slightly. There is good availability on all sizes this week and plenty of opportunity buys on #2 fruit. Come February, harvest will slow down as we will see a dip in demand.

Green Bell Pepper supply is steady but not overabundant, pricing has come down over the past week mainly due to western supplies increasing. Most shippers in South Florida are packing on a daily basis but in light volume. Quality is only fair, with all the weather the region has received over the past 2 weeks peppers are showing some bruising, shriveling and turning color. Cold temperature has been an issue but the main culprit has been excessive wind for a prolonged period of time. Weather this week should be much better with warmer temperatures and calm sunny days, hopefully helping the quality of the fruit. Expect pricing to remain steady at current levels through the weekend.

GREEN BELL
Good supplies of Green bell pepper continue to cross this week. Green bell supplies are currently being harvested in Sinaloa and Sonora. Supplies from Sinaloa are mostly being packed in choice (Chopper) grade. Quality of supplies from Sinaloa varies from fair to good. Supplies from Sonora are mostly being packed in retail grade. Quality of supplies from Sonora is mostly good. The green pepper market has decreased in all pack styles. 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
Moderate supplies on both open field and Hot House Red bell pepper from Mexico this week. Both varieties of red bell pepper from Mexico are expected to continue to be moderate for the next couple of weeks. Quality on Mexican red bell pepper on all sizes and pack styles are good. The red bell pepper market remains steady/high this week. Light supplies of Red bell pepper are also available to load in McAllen, TX.

YELLOW BELL
Light supplies of Yellow bell pepper continue to be harvested in Mexico from Sinaloa this week. The Market on yellow bell pepper remains steady/high this week. Quality on yellow bell pepper crossing through Nogales from Mexico continues to be fair to good with sizing mostly small to medium. Light supplies of Yellow bell pepper are also crossing through McAllen, Texas.

The blackberries are still in relatively good supplies coming out of Central Mexico loading in Texas FOB or West Coast distribution points in Oxnard, Yuma, and Florida. The market is on an upward swing from last week with lighter harvests being projected. Quality has been good overall although red cell is still present in some lots.

Alerts:
The market appears to be tightening up under good demand and declining supplies

Blueberry availability is beginning to taper off for some shippers out of Mexico and demand is shifting to the offshore fruit to cover orders. Peruvian and Chilean product is available in Miami, Philadelphia and in smaller numbers the West Coast. Look for the market to begin to firm up as we see lighter availability overall in the industry. Quality has been good on fresher lots.

The raspberries are crossing in moderate supplies out of Mexico. Quality has been good. Look for the market to remain firm with higher overtones for this week. We may see lower availability next week at the same time we see increased demand for Valentine's day.

Alerts:
Lighter supplies should firm up pricing moving into the end of the week

Strawberries are slowly increasing in yields as a result of moderate climates with slightly warming temperatures, especially on the West Coast. Mexico has just recently experienced cooler weather but their yields are also expected to increase late this week just in time for the big Valentine's day pull. Florida is coming out of a small planting gap but projections are that they will begin to ramp back up towards the end of this week with fair numbers. The Stem Strawberry orders for Valentine's Day are being booked now out of all areas. Look for markets to remain firm through next week in all areas.

Alerts:
The Valentines Day pull is almost upon us. Please make sure you place your advance bookings on Strawberries and Stem Strawberries no matter where you intend to load.

The Broccoli market continues to adjust downward with the help of the warmer weather and better yields. Quality continues to have slight purpling caused by the recent 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.

The carrot market remains steady in all locations with reports of East Coast storage carrots on a sharp decline in both quantity and quality in California and Mexico.

Transitions:
East coast local product is ending soon.

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 start to help supplies. Some suppliers may need to sub sizing to fill orders. Look for the market to come off going into next week with the warmer weather.

Alerts:
Lower yields caused by the recent cold weather has really hampered supplies.

Nothing has changed in the marketplace with this commodity. Supplies continue to be strong in southern California and Yuma has moderate production as well. Expect this to continue for the entire week. Demand exceeds supplies. The quality continues to be very good. The best deals continue to exist out of Santa Maria/Oxnard so keep in mind when booking trucks. The savings are significant. Mexico is expected to have moderate production as well for the entire week. Good weather is reported in all the growing regions. All sizing is available. Weights will average 52-57 pounds.

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 throughout 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 throughout the week due to fair quality on husk variety. Market on peeled tomatillo has decreased and is steady, while the market on husk continues steady/high as the quality remains mostly fair on husk. Light supplies of husk and moderate supplies of peeled tomatillo are expected through the week.

The cilantro market has started to come off a bit as there is warmer weather in Yuma, Mexico, and Southern California. The cilantro quality is good with an occasional yellow leaf. Look for the cilantro market to adjust going into next week with the warmer weather we are having this week.

New crop out of District 1 (Central Valley) fruit is also looking really nice on supplies and quality. This is a perfect time to quote any promotional lids. Supplies are looking steady on the small sizes, while the large sizes are starting to get snug. District 3 (CA Desert/AZ Desert Region) is done but there is 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 with ample crossings. 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 the small sizes 113’s/138’s continue to be very limited industry-wide. It is expected to remain this way going into February. Please continue to place orders for small sizes in advance to allow suppliers to strategize inventories for coverage. Suppliers are peaking on 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. We’re seeing very good natural color, high quality, and great tasting Navels. Brix levels have been consistent between 12-14%. 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 (113/138's) continue to be limited. Please continue sending orders in advance for better coverage.

Cucumber supplies are in peak season coming from Honduras through the port of Miami. Honduras is in peak season and demand has been good mainly because of limited supplies from Mexico. Supply and quality from Honduras have gotten better over the past week. Supplies from Mexico are getting a little better this week, taking some of the business away from east coast shippers. Quality has gotten better from Honduras as well, after going through a spell of bad arrivals where fruit was breaking down in transit. Product now is arriving in very good condition. Expect pricing to come down slightly as the week goes on.

Peak Seasons:
Cucumbers from Honduras are in peak season.

Better supplies of cucumber crossing into Nogales, AZ this week. Cucumber supplies have started to increase with new crops starting in Guaymas, Sonora. All grades and pack styles are expected to be packed from this district in Sonora. Cucumber supplies will continue to be packed from both Mexican states, Sinaloa and Sonora. Quality from Sinaloa varies from fair to good. Quality from Sonora is mostly good. With cucumber crop starting in Sonora, the cucumber market has started to decrease in all pack styles. Light supplies of Mexican cucumbers are also crossing through McAllen. Quality crossing through McAllen is mostly fair as well.

Eggplant supplies are steady in south Florida but there is not a burdensome supply. Demand has slowed mainly due to increased supplies from Mexico crossing through Arizona and Texas. Pricing has decreased slightly over the past week but don't expect pricing to continue to drop much more as long as Florida stays light in volume. Quality is good on eggplant, the fruit tolerates adverse weather better than most vegetables, some scarring will be visible from all the wind in south Florida but eggplants are strong plants as they are staked and tied up so most of the plants are protected. With temperatures back to normal for the season and calmer days, supplies may increase slightly but do not expect huge supplies with mornings starting off in the 50's.

Eggplant supplies remain steady 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 grape supplies have been good on both east and west coasts. Volumes of green grapes have been heavier than red and demand has been lower. This has resulted in heavier supplies of the green grapes and markets are sliding down gradually. However, we do expect the roles to flip come February, red grapes will increase and greens will decrease. Although there is good volume now and some flex on price, we may see things firm up a bit over the next 2 weeks. We have moved past the first round of peak production and will look for another wave in early March. Quality has been excellent. All sizes are available and markets are slightly down. We do have opportunity buys available.

Alerts:
Good supplies of green grapes. Markets are slightly lower. Supplies will decrease as we move through February then pick up in March.

Peak Seasons:
We expect the peak of production to hit late February to early March.

Red grape supplies have been limited over the last 2 weeks due to delayed arrivals from Peru and slower production out of Chile. Fruit has been trickling as containers arrive, but not fast enough for shippers to build an inventory. This has left most of the industry in a supply shortage on both the east and west coasts. Shippers are expecting several containers to arrive this weekend, some of which have been delayed from earlier this week. Barring any setbacks at the docks or with the inspection process, we hope to have improved supplies by next week. This will be a gradual improvement as we move into February with peak production expected to hit mid to late February. Quality on all import fruit has been solid with sizes leaning heavier on the Large - Extra Large range. Markets prices up to this point have been steady and firm, but are expected to gradually come down as supplies improve.

Alerts:
Supplies remain limited this week due to delayed arrivals. Shipments are expected to arrive this weekend with better supplies next week. Markets are firm.

Peak Seasons:
We expect peak production to start mid to late February and last through March.

The green onion market has started to come off with the warmer weather we are having in Mexico. Quality is good with occasional leaf minor caused by the recent colder weather. The market will continue to adjust downward going into next week.

The kale market has started to come off as ground temps and the warmer weather have spurred on growth. Quality has started to improve with full bunches and some yellow leaves being reported. We're hoping this week's warmer weather will continue to help the quality, supplies, and spur on growth.

Supplies continue to be good out of the Yuma region. Santa Maria has light production. The weather in the desert is rain-free and temperatures will be in the mid-seventies for the week. Multiple shippers are flexing for volume type orders. The overall quality is fair. The freezing temperatures no longer exist currently in the growing regions. Some common defects being reported to include mechanical, puffiness, ribbing and slight mildew. Escalated pricing on value-added lettuce items no longer exists. Weights are varying industry-wide, ranging from 34-40 pounds on liner product.

The romaine market is flat and supplies look to be plentiful for the week. Good weather in the desert is expected. Supplies in southern California will be moderate. The overall demand for romaine as well as all leaf items is off. Common defects being reported on romaine to include mildew, mechanical, blister, and slight epidermal peel. These same defects are reported on green and red leaf as well. No leaf items are on escalation for value-added items. The weights vary on romaine, averaging are averaging 27-32 pounds. Weights are being reported on green and red leaf items around 16-20 pounds. Supplies on green and red leaf are expected to be good for the entire week.

The Tender Leaf supplies have started to improve this week. We are now passed the cold weather with the warmer weather helping arugula and spinach supplies. The warmer temperatures this week and next will help growth, quality, and supply. Quality is fair with occasional yellowing and bruising of the tender leaves.

We are seeing optimal growing temps (80's-90's) in Central America this week. Market and demand on the east and west remain steady. Size curve is trending towards larger-sized fruit. As for small fruit, supplies remain limited and will be a challenge for the next few weeks. With consistent and ideal growing temps, these melons are sizing up a lot quicker than normal, almost overnight it seems. Plenty of opportunity buys on large fruit this week.

Alerts:
With fruit rapidly sizing up, small fruit will be a challenge the next couple of weeks.

Overall supplies continue to be a challenge. Currently, the size curve is trending to larger-sized fruit. Temps in Central America are ranging from 80's to lower 90's this week. Those are optimal growing temps and the fruit is sizing up rapidly causing a shortage of small fruit (6's, 8's). This will be the trend for the next few weeks but we do have sub-options. Quality has been consistent internally and externally.

Alerts:
With the size curve trending to larger sized fruit, small sizes will be a challenge.

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

Onion markets have stabilized as supply meets demand. Production continues from Idaho, Oregon, Washington, Utah, and Colorado. Quality from the Northwest is good with some lots showing translucency, pressure bruise, and occasional greening in the center. These are typical issues for late storage onions from the process of converting internal sugars and re-growth. A reminder that translucency is not a scoreable defect until it shows three full layers (rings) deep. 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 will begin crossing onions as early as next week with limited supplies and increase production as we move through February.

Alerts:
Some lots showing translucency. 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 will begin next week with light supplies crossing into South Texas.

Washington:

Now that Bartlett pears are done for the season, many shippers have firmed up their prices on all sizes and grades of Bosc and D’Anjou. 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 for another 1-2 weeks. Quality and shelf-life are excellent.

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

Pineapple 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 active, and demand is looking to pick up for Valentine's pull. We ask orders for the 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.

Markets continue to inch up on all sizes as demand remains active with limited supply. The light supplies of larger size potatoes have demand shifting into smaller sizes and pushing up those markets as well. We will continue to see this trend as we move into February and throughout the remainder of the storage season in Idaho. Washington, Colorado, and Wisconsin continue to feel the added demand and reacting with rising markets. The weather over the next week shows snow and cold temps which will slow transfers and production. Quality remains good with occasional lots showing peepers, light mold, and pressure bruise. We continue to recommend 7 business day lead time prior to ship date to ensure full coverage and on-time deliveries.

Alerts:
Markets continue to inch upwards. Large sizes limited.

Color potato markets remain elevated with some increases on red potatoes; in particular A size. Yellow and white potatoes are relatively steady. Wisconsin supplies are winding down and expect to finish for the season in the next 2-3 weeks. North Dakota remains high with slow movement and look to have supply through February. Idaho and Washington demand remains active with markets moving higher on red potatoes. Mt Vernon, Washington continues to produce excellent quality and will last into March. Bakersfield, CA is also using the Mt Vernon reds which have #2 grade limited due to the excellent quality. Markets will continue to be active into February. Florida is expected to start with limited volume next week and will build inventory as we proceed through February.

Transitions:
Florida color potatoes will start with limited supplies next week.

Squash supplies are still very tight but the signs are there that volume will start to increase as the week goes on. Zucchini has been the first to react with more volume over the last couple of days and yellow squash should be right behind later this week. Quality has been better than one would expect with all the excessive wind in south Florida. Quality should get even better as the week goes on with calm sunny days in the forecast. We expect supplies to get better as the week goes on and pricing should come down to more traditional levels.

Supplies on both Italian and yellow s/n have increased this week. Soft squash supplies are projected to continue to increase moderately as we make our way into the month of February. The new crop of Italian and Yellow S/N has started to be harvested in Guaymas, Sonora. Mostly 4/7 bushel being packed on both varieties. Quality on both varieties is mostly good. With supplies increasing, the market on both yellow and Italian squash has started to decrease slightly.

Stone fruit supplies have been limited due to delayed container arrivals. As fruit arrives and gets unloaded, a large portion of the popular sizes are already spoken for or it gets sold immediately. This will change as more fruit arrives on a regular basis and shippers have an opportunity to build inventory. We expect another arrival later this week and increased supplies through the month of February. All varieties and sizes are expected to be available as we move toward February with peak production rolling on later in the month.

Alerts:
Supplies remain limited as we wait on arrivals. Better availability expected next week. Markets are steady.

Peak Seasons:
We expect supplies to increase during February with peak production coming on later in the month.

The tomato market remains short following poor weather events. Florida yields are approximately 50% from this time last year. Intermittent cold weather systems and sporadic rains have greatly reduced the volume coming out of Florida. 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 that occurred in the early morning of Wednesday last week. Florida temperatures dipped into the low 30's for several hours resulting in some bloom drop. Immokalee remains in crown picks and have began harvesting 2nd and 3rd picks to fill the pipeline helping to even out sizing. Little acreage is devoted to romas where production is also light for the same weather-related reasons. Grape tomatoes have tightened up from minimal pricing as Mexico works past a flush of fruit that caused a 2-week dip in the market. Cherry tomato FOBs have crossed the $20 mark and very short. Some weather models show a chance of significant rainfall near the end of this week. Risk of a cold snap and compromised harvests are likely to directly affect yields in the immediate future. Quality in Florida has been good but likely to show some challenges as a result of windchill and cold temps since last week.

Alerts:
Availability is limited. A freeze in Florida has affected yields. 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 a short reprieve in price but as volume increases each week, prices will continue to soften. Round tomatoes are expected to be light for another 1-2 weeks 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.