The Source - January 3, 2019

Specific varieties and sizes are becoming more limited. In particular, the Golden, Honey Crisp and Granny Smith varieties seem to be the tightest in supply. All other varieties seem to be fairly steady. Quality is being reported as very strong and markets are becoming active. We expect this to be the case as we move toward the end of the season.

Alerts:
Overall supplies are fairly consistent with a few varieties becoming limited.

The weather remains cold in both Mexican growing regions (Caborca/Constitucion), volumes are still being affected by this cold weather, and seasonality in southern Baja. Production should wrap up in Southern Baja in the next 7 days. The warm weather also continues in the south of Peru (Ica), and the north of Peru (Trujillo). Growers are starting to close fields due to heat, and seasonality. The market is starting react on both coast due to the low volumes out west, and less volume scheduled to arrive from Peru.

Weather in the growing region of Michoacán Mexico calls for temps in the 80s with no rain in the forecast. There will be no harvest this week on 12/31-1/1. There will be a light harvest the remainder of the week as there is plenty of fruit in the pipeline. We ca expect a dip in supply the first few weeks in January and will likely bring as increase in price. California to start harvest in mid to late January. Reports of good quality fruit on all sizes.

Florida growers in various regions continue to struggle with low-yields, specifically on smaller/choice-type pods. Many suppliers are saying the January projected bell pepper yields will continue at the lower than normal pace that we’ve experienced in recent weeks. Look for markets to remain on the stronger side to begin the first quarter of 2019.

Green Bell Pepper- Light volume on green bell pepper being seen this week. A hard freeze in Sonora at end of last week and at the beginning of this week have some growers assessing possible damage to bell pepper crop. Lower than normal temperature being seen Sinaloa has slowed downsizing and harvest. Good growing temperature is expected in Sinaloa. Green bell market is currently steady in the mid to upper teens on all #1 and choice pack but could increase the second January. Steady demand on both packs. Green bell pepper from Mexico is also available to load in McAllen, TX.

Red Bell Pepper- Very limited volume of Red Bell pepper available to load in Nogales, AZ from Mexico. Market and demand continues very strong and expected to remain strong. Cool weather and cloudy skies are affecting coloring and size on Red hothouse bell pepper. Some shippers expect production to increase in January from Culiacan and La Cruz, Sinaloa. Red bell demand continues to exceed supply. Red bell supply from Mexico crossing through Nogales, AZ, and McAllen, TX continues to be extremely limited. Mexico.

Yellow Bell Pepper- Yellow bell volume continues to be short the first week of January. Cool weather and cloudy skies are affecting coloring and size on Yellow hothouse bell pepper. Yellow bell production expected to increase with some growers in Sinaloa in January. Demand for yellow bell pepper continues to exceed supply. The market remains strong. Yellow Hot House bells are also available to load in McAllen, TX where supplies are also limited.

Blackberries continue to cross from Mexico inadequate supplies. The market remains steady with a slightly lower tone as we experience the post-holiday lull in demand. Look for availability to increase in the short term with the possibility of slightly lighter numbers down the road. Quality has been fair to good.

Blueberries continue to be available from several; exporting areas by cargo container offloading at ports in the Philadelphia and Miami area in the east and Los Angeles area on the west coast. Pricing is lower but steady and fluctuates mildly from the front end of the week to the end as inventories are pushed through the system and importers await new offshore arrivals. Mexico is also producing decent numbers. Quality has been good out of all areas.

Raspberry production continues to come exclusively out of Mexico. Quality has been good as long as the product is rotated properly and proper temperatures are maintained. Cooler temperatures have caused a slight increase in pricing as production is being curtailed because of the poor growth rate. Look for availability as the normalcy returns to the crossing schedules at the border. Some shippers have expressed concerns about crop damage due to adverse weather including hail, rain, and sleet. As there are many microclimates in the growing areas, so what actual effect this may have on markets remains to be seen.

Alerts:
Adverse weather may affect future crop yields

Strawberries prices are easing on down a bit as a result of post holiday lack of demand . What may possibly counter this is the fact that the Oxnard and Santa Maria areas have both had 3 days of below average temperatures with overnight lows warranting freeze watches in lower inland areas. The Santa Maria area was hardest hit and it will result in lower yields due to frost damage to plants already past their prime production. This should somewhat stabilize prices overall . Mexico will be ramping up production after the holidays although they too are experiencing colder than normal weather inhibiting maximum harvests. The Florida area is currently recovering with light but steadier yields than in the past few weeks due to the drier weather they are enjoying . Although quantities are still snug some open market fruit is becoming available on any given day.

Alerts:
Freezing temperatures in California will affect yields

The broccoli market continues to stay steady with all suppliers. Look for supplies to tighten on broccoli in all areas as suppliers are battling the cold weather. Quality is fair with slight purpling, some mechanical damage, and occasional yellow cast. Look for supplies to tighten up a bit going into next week.

The Brussels Sprouts market has come off with more steady supplies coming out of Salinas, Santa Cruz, and Watsonville areas. Quality has been affected by the rain and cold weather as well as the insect pressure particularly the Diamondback Moth and will be an ongoing battle this season. Look for the Brussels Sprout market to remain steady going into next week.

The carrot market continues to remain steady. Quality is good, and supplies are adequate to meet current demand. We see no change in the carrot market going into next week.

Cauliflower market has picked up in recent days with the recent cold weather in Yuma. Overall, the quality has been good with minor bruising and some yellow cast with weights in the 25 to 28-pound level. Look for this market to continue to adjust going into next week.

This market is firm. Supplies were stronger last week but cool weather in the growing regions of southern California have slowed production down. Demand is steady. The best sizing and most readily available continues to be on large sizing, twenty-four counts in particular. This pattern of production looks to run thru the end of this week and into next. As temperatures are expected to be cool next week early forecasts indicate that yields will be lighter than expected with multiple shippers. The quality is above average. Slight bowing, mechanical, and insect has been seen but minimally.

Import cherries are readily available on both coasts. We have several sizes available. Market prices have come down slightly. Quality is being reported as very good. Demand seems to be very light and shippers are looking for help.

Jalapenos- Jalapenos continue to be available to load in Nogales, from Mexico. Hard freeze in Sonora at end of last week and at the beginning of this week have some growers assessing possible damages to Jalapeno crop. Few growers also harvesting jalapeno out of Sinaloa. Quality out Sinaloa being reported as good. Market on jalapeno is expected to remain high to start of the month of January. Price on #1 jalapeno is currently holding in the mid 30’s and expected to remain at that price through the remainder of the week. Jalapenos from Mexico also available to load in McAllen, Texas.

Pasilla-Moderate pasilla volume currently crossing through Nogales from Mexico. Moderate pasiila production expected to continue through the remainder of the week. Pasilla crossing through Nogales is being harvested in the Mexican states of Sinaloa. Quality from Sinaloa being reported as good. Market on pasilla is steady along with pricing. Pasilla from Mexico also available to load in McAllen, Texas

Anaheim- Moderate Anaheim volume currently crossing through Nogales from Mexico. Moderate Anaheim production expected to continue through the week. Anaheim crossing through Nogales is currently being harvested in the Mexican states of Sinaloa. Quality of peppers from Sinaloa being reported as good. Market on Anaheim is steady along with pricing. Anaheim from Mexico also available to load in McAllen, Texas

Serrano – Very limited supplies of Serrano peppers are available to load in Nogales, from Mexico. Supplies expected to remain light possibly through Mid-January. The demand and market are high along with pricing. Price on Serrano pepper currently @ $1.25lb and expected to rise. Light supplies of Serrano also crossing into McAllen, Texas.

Tomatillo – Husk and Dehusked tomatillos are available to load in Nogales, from Mexico. Good supplies on both varieties expected to continue through the week but better supplies of peeled expected to be seen next week. The tomatillo market is steady. Prices remain steady in the mid to high 20’s. Quality on both varieties being reported as good. Both varieties of tomatillos also available to load in McAllen, TX.

The Cilantro market has picked up a bit with the colder weather in Yuma and Mexico. The cilantro quality is fair and will be affected by this colder weather. Look for the cilantro market to continue to stay strong going into next week.

Supplies are improving, some suppliers offering promotable volume. Currently harvesting out of all three districts with the majority coming out of District 3 (Desert crop). With the upcoming holidays, District 3 will be a challenge with the labor shortage, markets expected to be firm. District 1 volume is starting to come on stronger with markets coming off on all sizing as inventory and supplies begin to build. All regions have a good run on sizes and expected to continue to improve as weather permits.

Lime supplies are tight, market prices are climbing weekly during the holidays. With cooler weather in the growing regions in Mexico and limited transportation, availability is driving the markets up. Going into the New Year market prices on big sizes expecting to drop and small size pricing looking to climb. Current market prices range from $8 -$16 depending on the size.

California Navels is moving along markets are down with good supplies across the board, plenty of promotable volume and great quality to start off the New Year. The pack has been mostly fancy grade and limited choice. With bag business, the choice fruit supplies continue to be limited. Through the holiday week, most suppliers continue to harvest and pack 4-5 days per week. Brix averages remain at 10-12, some 13. With the cooler temperatures, gas hours are slowly coming down and the color of the fruit showing more uniform color. Satsuma Mandarins supplies are ample on any size or pack style. Brix is 12-14 and extremely juicy. Delite Mandarins are coming along peaking on 32/28/24 followed by size 36. Plenty of Pummelos available sizing and quality look great. Cara Caras & Blood oranges have started with supplies getting better by the week.

Domestic cucumbers have finished up in Florida, leaving offshore cukes from Honduras being the primary source for this commodity, which is loading at various points in Florida. Quality on the offshore product has been very nice, and supply has been steady.

Good cucumber volume continues as we move into the month of January from Mexico. Hard freeze in Sonora at end of last week and at the beginning of this week have some growers assessing possible damage to cucumber crop. Cucumber harvest out of Sinaloa continues with all sizes and packs. Good quality being reported on cucumber from Sinaloa. The current cucumber market is steady but could possibly rise pending any damage in the Sonora region. Cucumbers from Mexico also available to load in McAllen, TX.

The Florida eggplant market and supply has remained steady for the month of December. Quality has been good depending on the region they were harvested from. Moving into January, look for Florida eggplant supply to decrease, potentially causing a stronger market for good quality eggs.

Alerts:
good supplies and weak demand

Transitions:
Eggplant is not in transition.

Peak Seasons:
Eggplant is in peak season.

The Florida eggplant market and supply has remained steady for the month of December. Quality has been good depending on the region they were harvested from. Moving into January, look for Florida eggplant supply to decrease, potentially causing a stronger market for good quality eggs.

Eggplant- Good volume continues to be available to load in Nogales, AZ from Mexico. Good production continues on 18ct and 24ct eggplant. Both fancy and choice grade pack available. Current Market for eggplant is Low/steady and is expected to remain the same through the end of the week. Supplies exceed demand on 18ct and 24ct sizes. Good quality being reported on eggplant loading in Nogales, AZ.

Green grape supplies continue to be very limited. There are very little remaining domestic green grapes and what is left, is poor quality. We are seeing reports of amber color, soft and wet berries and early signs of decay. Most shippers are refusing to send fruit across the country. We need to focus our attention on the new import fruit coming from Peru. Import fruit is slowly arriving and we expect better supplies by next week. Quality is being reported as very good on the imported fruit. Market prices are still higher and firm. We expect to see better availability next week as we anticipate more arrivals from Chile and Peru on both coasts.

Alerts:
Supplies are limited as domestic is finishing up and import fruit is slow to arrive.

Red grape supplies remain fairly steady this week. We continue to have both domestic and import fruit available. The imported fruit is still light as we wait on more arrivals from Peru and Chile. Quality is being reported as strong and market prices remain higher. On the domestic fruit, supplies are starting to decline and we are seeing more issues with quality as the storage crop gets older. Market prices jumped up and have been steady this week. Overall, we expect the transition of import fruit to occur over the next 7-10 days with the anticipation of more availability on both coasts.

Transitions:
Import fruit is slowly improving. We expect more arrivals of Peruvian and Chilean grapes by next week.

The Green Onion market continues to pick up steam. The recent heat followed with rain and now cold weather has been causing some occasional leaf minor and some mechanical damage. The green onion market will continue to be in demand going into next week.

The kale market continues to stay strong with the recent and current cooler weather in Yuma. Quality is fair with full bunches, and only an occasional yellow leaf being reported.

Very cool weather in the growing regions of Yuma has slowed down production. Harvesting crews last week and this week have started late due to ice on the plants. This has lead to the product arriving late to coolers as well as smaller harvesting numbers. Southern California, like Yuma has been altered in their production as well due to cool temperatures. The market is steady for now but should get stronger next week as temperatures are again expected to be low. Labor continues to be an issue as well as multiple shippers have struggled to keep steady crews harvesting on a daily basis. The quality has been fair with puffiness, mechanical, slight discoloration as well as misshapen heads. Blister, epidermal peel, and burn will also be seen in varying degrees as well. Weights are ranging between 38-42 lbs.

Romaine as well as romaine hearts continues to have plenty of availability with multiple suppliers. Demand continues to be off after the holidays. There continues to be apprehension of large purchases of this commodity due to overall perception of safety that lingers over this item. Red Leaf, Green Leaf and Butter are steady and commanding a higher price in the marketplace, compared to romaine. The overall quality of romaine as well as all leaf items are fair at best. Fringe burn ribbing, mechanical, and twisting are common defects being reported. Blister and peel will start to be seen likely by next week due to the cold growing temperatures. Expect supplies to remain steady for the entire week.

The Tender Leaf market has picked up on spring mix, arugula, baby spinach, and cello spinach with the colder weather in Yuma. Quality issues are fair with minimal yellowing and bruising of the tender leaves. Look for these items to continue to adjust going into next week.

Weather in the growing region of Zacapa Guatemala calls for some rain this week with temps in the 90s. Reports of better volume on all sizes. Demand is moderate with a steady market. We are also seeing some fruit arrive out of Honduras with good volume on all sizes. Quality is fair.

Weather in the growing region of Zacapa Guatemala calls for some rain this week with temps in the 90s. Reports of better volume on all sizes. Demand is moderate with a steady market. We are also seeing some fruit arrive out of Honduras with good volume on all sizes. Quality is fair.

Light supplies of watermelon continue to be available to load in Nogales, AZ. Light volume continues to cross through Nogales, AZ as demand remains high. Few shippers receiving watermelon from Jalisco. New crop mini watermelon also available to load in Nogales from Colima. Market on watermelon being reported as steady/high and expected to remain the same through the week. Quality on new crop watermelon being reported as good.

Onion supplies have become slightly more limited. Yellow onions specifically have been tighter. Market prices have started to climb gradually this week. Other varieties seem to be steady. Quality on all is being reported as good. Transportation in and out of the growing regions has improved slightly after the holidays.

Peak Seasons:
We expect onion production to reach peak volumes in February

Pears are in peak production periods currently with good supplies of all varieties and sizes. Bartlett, D'anjou and Bosc pears are all available with promotable volumes and prices. We expect production to continue to be consistent with good supplies for the next 2-3 months. Quality on all is being reported as strong. Markets have been steady with spot buy opportunities available.

Peak Seasons:
We are currently in peak production on all pear varieties.

Current supplies are limited, and will continue as we go into the New Year. The decrease in supplies is due to Costa Rica having issues with Basal Staining. This causes a discolored ring around the base of the pineapples causing too much moisture in the soil from previous heavy rains. Shippers have stepped up their selection process for packing to ensure the best quality arrives, hence causing lower volumes moving forward. This is industry wide and forecasted to remain limited until January. Volumes should gradually increase as we move through the first quarter of 2019. Current market prices on all sizes between $10-$12.

Potato supplies have become slightly limited this week on particular sizes. More specifically out of the Idaho growing regions, we are seeing smaller sizes being more prevalent and larger sizes being snug. As we move past the holidays, we expect everything to normalize. However, we did see some price increases this week and demand has been strong on larger sizes. Weather has been fairly consistent, but we are coming off of a cold snap that should end this week and shippers expect warmer weather by the weekend. Quality has been good.

Alerts:
Markets are slightly higher on larger sizes this week.

Not much change on colored potatoes this week. We are seeing peak production with steady supplies and markets in all areas. Quality is good and prices have been fairly flat.

Yellow and Green Squash markets have been on the lower side for the last 7-10 days, but growers are indicating that supply is shortening up from the main growing regions in Florida. This coupled with recent cold weather in Mexico could cause squash markets to be trending up once again. Quality has been good for both colors loading in Florida.

Alerts:
There are good supplies of squash but that could change soon

Transitions:
Squash is not in transition.

Peak Seasons:
Squash is in peak season.

Yellow and Green Squash markets have been on the low side for the last 7-10 days, but growers are indicating that supply is shortening up from the main growing regions in Florida. This coupled with cold weather in Mexico could cause squash markets to be trending up once again. Quality has been good for both colors loading in Florida.

Italian and Yellow S/N- Consistent volume on both Italian and Yellow S/N continue to be harvested in the Mexican state of Sinaloa. Mostly #1 label being packed with few #2 label on Italian squash. Cooler temperatures in the past couple of weeks in this growing region have slightly slowed down production and sizing. Quality on both varieties currently being reported as good. Supplies on both Italian and Yellow S/N currently exceed demand. Lower market and pricing being reported on both Italian and yellow S/N.

Import stone fruit availability is still light. Supplies are slowly improving as more containers arrive from Peru and Chile. Nectarines, Peaches and Red Plums are currently available from a handful of shippers. Sizes are limited. Market prices are currently high and firm, but will adjust as more boats arrive. We expect to see better availability next week on both coasts.

A cold front is pushing into Florida growing regions this weekend and is forecasted to drop temperatures by 10 degrees or more. Temperatures are estimated between highs of 70 degrees and lows in the 50s. The change in weather also brings the chance of rain in the coming week potentially furthering the gap between FOBs that currently exists between XL and smaller size fruit. This week, round tomatoes continue to maintain more than a $7 difference between XL and medium sized tomatoes. Roma tomatoes have improved greatly over the past 10 days and are continuing their downward trend this week as Mexico continues to improve the number of imports flowing through the border. Falling a couple more dollars this week, the market is nearly half of where it was days before Christmas. Similarly, grape and cherry tomatoes have returned to more averaged type pricing for the season. Markets are just above the $10 mark but may increase slightly going into next week if weather slows yields and production.

A week-long cold snap has caused damage to some commodities in Sinaloa Mexico, however, no damages have been reported for tomato crops at this time. While the weather has greatly affected the rate of tomato production, the sheer volumes of operations have still allowed the market to improve this week with imports increasing at the border. Round tomato production has picked up with crossings now in both Texas and Arizona. Roma tomatoes continue to improve as harvest increase out of new fields crossing into Nogales helping to soften the market again this week. Grape tomatoes are improving as well as shipments through Nogales increase, however cool weather in Mexico have contributed to a slow start. The same cold front that is moving through Yuma and Western Mexico snowed over Nogales on Wednesday causing delays to loading times, however, prices continue to soften headed into the weekend.