The Source - January 4, 2018

Washington – Red Delicious, Golden Delicious, Granny Smith, Galas, Fujis, and Honeycrisp are all fairly steady. The other varietals have also been mostly steady. The quality has been good for all varieties and most have been peaking on smaller fruit. Transportation has been the hardest thing to find in the northwest so plan ahead to avoid shortages.

Idaho – Jonagolds, Golden Delicious, Red Romes, Red Delicious, Granny Smith, Fuji's, and Pink Ladies are steady. Granny's and Jonagolds are still peaking on 80/88/100s while the others are peaking on 88/100/113's. The availability remains light for all variety's. 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 great quality and good color. The quality has been good.

Pennsylvania – Fujis, Red Delicious, Golden Delicious, Granny Smith, Cameos, and Pink Ladies are all steady. Red Delicious and Pink Ladies are peaking on 88/100s, while the rest are peaking on 100/113s. The demand has been light for all variety's. Granny-smith are coming close to the end of the season. The quality is good on all varieties.

New York – they are packing Cortlands, Galas, McIntosh, Honeycrisp, Red Delicious, Fujis, Snap Dragons, Golden Delicious, Jonagolds, Red Romes, Macouns, Pink Ladies, Staymen Winesaps, and Empires. Most of their fruit is larger this year. All markets have been steady and the demand has been light. The McIntosh and red delicious have been producing more small fruit lately. The quality has been good.

Alerts:
Washington is still limited on larger Granny-smith.

Stay ahead on inventories due to the tight truck situation.

Peak Seasons:
All areas are in the peak of their seasons with the exception of Pennsylvania Granny-smiths which are close to finishing.

San Luis, Mexico, and Caborca, Mexico have started to cut fern, and we should see asparagus from these two areas in the next 7-10 days. Weather has been very good in both areas so expect quality to be excellent. Northern Peru (Trujillo), and Southern Peru (ICA) are closing fields due to seasonality, and heat in the fields. We're seeing a larger amount of seeding, and spreading due to this heat. Overall markets are higher with Mexico, and Peru in transition.

Mexico had another good harvest last week, and we expect similar for this week. As we move forward into the month, weekly volumes are anticipated to ramp up for the Super Bowl pull. Size curve continuing to shift toward 48's/40's and a larger percent of #2 fruit. The smaller fruit 60's/70's reducing in availability. We are see an increasing percentage of #2 fruit starting to come out of the harvest.

Weather is going to slow production this week. There is some light rain early in the week and by Wednesday/Thursday temperatures will dip into the high 30's in some areas. Expect production to slow for the entire week. Supplies are already a little tighter and should continue to tighten as the week goes on.

Alerts:
Tighter supplies

Peak Seasons:
Green bell pepper is not in peak season.

Blackberry supplies are good this week. Mexico is the primary source and harvest numbers have been up. We have opportunities for volume orders and aggressive prices in Los Angeles and Texas as well as consistent supplies in Oxnard. Quality has been good. Demand has been lighter this week and market prices are slightly lower. We expect supplies and markets to remain consistent over the next 2 weeks.

No major changes in supply or market conditions this week on Blueberries. Supplies are light and are expected to remain limited through next week. We anticipate better availability of Chilean fruit by mid January. Then supplies will ramp up as we move through peak Chilean production late January. Market prices have been steady this week as fruit is still limited. We expect markets to fall gradually as we increase supplies through January. Central Mexico continue to be consistent on production and will slowly improve over the next 2-3 weeks. Quality in all areas has been good. Delayed arrivals and transfer trucks are our biggest challenge on order fulfillment.

Raspberries supplies continue to be light. Mexico is the primary producer (Central and Baja) with fruit crossing in Texas and Otay, California. That fruit is then being transferred to fill demand in Oxnard, Yuma and Florida. Delayed arrivals of transfer trucks are our biggest challenges. If loading in Otay or McAllen are an options, you will have better availability. Quality has been strong, demand is consistent and market prices have remained firm. No major changes in supply or market prices are expected for the next 2 weeks.

Strawberries are expected to remain very limited in supplies for the next 7-10 days. We will be facing several weather related set backs in multiple growing regions. This week in Florida, we started off with some rain, followed by cold morning temperatures. This delayed harvest and lowered yields, pushing more demand on the west coast and Mexican suppliers. Due to the increased demand, southern California and Mexican supplies have become tighter and market prices are higher. As Florida production will resume back to normal next week, California is expecting some rain showers. Forecasts are calling for mild to moderate rainfall for the front part of next week in Santa Maria and Oxnard. This will have a big impact on the availability and quality of fruit in California all next week. Central Mexico is expected to have consistent temps in the mid 70's with steady production. However, the volume from Mexico will not be enough to cover demand, so we do expect an industry wide supply shortage beginning late this week and lasting all through next week. Market prices will be higher in all locations and quality will be fair in Florida and California for the next 2 weeks.

Alerts:
Due to rain in Florida and California, we expect an industry shortage of strawberries for the next 7-10 days. Supplies will be very limited and market prices are expected to be higher.

We have different markets from all growing regions. Out of Mexico seems to have the best value, with runner up being Santa Maria, and Yuma brining up the rear. The market out of Yuma is much higher than the other two growing regions mainly due to the lack of supplies. The quality although is really nice out of all three growing regions with decent crown size, minimal yellowing, or dehydration. Supplies look to increase out of Yuma in 2 weeks.

Alerts:
We are experiencing a supply gap in Yuma on broccoli causing the market to trend much higher than normal.

The colder weather in the Salinas Valley has hampered growth in the majority of supplies of brussel sprouts. This has caused the market to trend higher. The quality has been really nice with dark green color and little defects. Although due to the weather we have seen limited jumbo size brussel sprouts.

Alerts:
We have had much colder temperatures in the Salinas Valley causing a decrease in supplies and a higher market.

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

The cauliflower market has reached its peak and is trending lower. Supplies are not necessarily increasing but demand has fallen off to create a downward trend in the market. Quality is nice with minimal brown to black spotting, which is called bruising, and weights in the 25 to 30 pound level.

Alerts:
The cauliflower market is trending lower as a result of decreased demand as a whole.

This market has remained unchanged. The overall quality is average, Some defects seen include insect damage, bowing and slight mechanical. These defects are seen in Yuma as well as southern California. All sizing is available. Demand is off. The best deals continue to be in Santa Maria/Oxnard. Supplies look to be steady for this week as well as next. Yuma production is moderate.

The Chilean cherry market is steady with adequate supplies of 9.5 - 10.5 row to meet current demand. Quality is good with supplies expected to gradually taper off as we work through the month of January.

Cilantro supplies are decreasing in all growing regions. This is causing the market to trend much higher than normal. Quality remains really good despite the shortage with green color, minimal yellow leaves, and full bunches. The market does vary with each supplier.

Alerts:
We are experiencing decreased supplies from a short term supply gap in acreage. This is causing the market to trend higher.

The lemon market remains very active. Demand continues at a strong pace and is exceeding supplies. With this year's Desert crop much lighter in volume, shippers production starting to fall off as they look at an early end of their season. The Central Valley crop has just begun to harvest and pack limited volume, mostly fancy grade. Ventura crop will not start until the end of February. Demand is exceeding supplies on 140s and smaller fruit, and will so through January and into February.

Alerts:
Demand exceeds supplies on 140s/165s/200s

Not much change on supplies or markets this week, as arrivals remain steady from Mexico. However, as discussed last week, our biggest challenge with Limes continues to be LTL truck options. All of our lime shippers are experiencing the same challenges. Due to the new trucking regulations and limited availability of drivers, it is becoming increasingly difficult to find dependable rides. Additionally, when an LTL option does become available, the freight charges are extremely expensive. We will continue to search for all available options, but delayed arrivals can be expected. Flexibility on arrivals dates will be necessary.

Alerts:
LTL delivery options continue to be a challenge for all lime shippers.

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 on 88s/113s/138s

Cucumber supply this time of year is predominantly coming from Honduras, with Florida all but finished. Weather in Honduras is average for this time of year, production is good and some shippers will come into more supply next week. Demand is good for the import cucumbers with transportation from Nogales being a big issue more buyers are switching. We expect the market to stay steady through the weekend.

Alerts:
Demand is very good.

Peak Seasons:
Cucumbers are not in peak season but the peak will be coming soon.

Eggplant supply is typically light this time of year to meet low demand and pressure from ample Mexican supplies. With cooler temperature moving into Florida this week we do not expect that to change. Demand is low so there are enough supplies to fill orders. The east coast market is steady and we expect that to continue through the weekend.

Alerts:
Light supply

Peak Seasons:
Eastern Eggplant is not in peak season.

The domestic green grape market is about steady with good quality fruit still available. We expect this to be the last week of good supplies as shippers clean up the last of their fruit. The imported green grape market has eased slightly and should continue to do so in a limited fashion over the next few weeks. Supplies are expected to continue to improve throughout the month of January. Quality is reported as very good on most lots with sizing running from a small (medium grape) to extra large.

The domestic red grape supply is winding down rapidly. We expect to see the domestic supply all but finished after this week. Imported Peruvian and Chilean grapes have been arriving with a wide range of sizing and varieties available. Quality is reported as good to excellent on all. We expect this market will ease down as volume ramps up during the month of January.

Minimal supplies from Mexico is the theme here. The labor shortage continues but we should see better supplies next week with a market decline. But for now the market is still elevated. Quality is good with green tops and minimal yellowing. The sizing profile is trending to the small and medium level with extremely limited supplies of jumbo size.

Alerts:
We continue to have limited supplier and escalated markets due to the labor shortage from the holidays.

Kale supplies remain abundant with little change in the market. Quality is excellent with full bunches, dark green color, and minimal yellowing.

This market has gained some strength in the marketplace. There are some shippers that have remained steady from the previous week while others are seeing less yields and have attempted to increase pricing . The weights have been averaging 34-41 pounds on wrap. Blister, mechanical, and puffiness has been reported upon arrivals. Shippers are reporting these defects up front. Overall availability is good. The desert region continues to be the main region for the production of this commodity.

This market is similar to lettuce. Some shippers are having less production, partly because of small labor forces while other shippers are expecting strong numbers throughout the week. Defects on romaine as well as all leaf items include mechanical, twisting, and some blister. Romaine hearts continue to have steady production, overall. Gapping in production is not an issue. Demand is moderate at best.

We are currently experiencing a struggle with quality and supplies with cello spinach, arugula, organic kale, and organic baby spinach. We are seeing arrivals with yellow spinach and arugula causing major problems with rejections from end users. The long term outlook from growers is that we will continue to see this type of quality for another 2 weeks. Some suppliers have taken their prices up on these items due to the availability.

There are a few domestic cantaloupes available in both California and Arizona but they are almost finished for the season.
The import market is steady on all sizes on both coasts. The fruit is still mostly large with mostly 9s and 12s with only light supplies of 15s and smaller. Sizing will remain steady as Guatemala finishes and Honduras gets going. The quality has been good.

Alerts:
Small imported fruit is limited as most shippers are peaking on 9s.

Transitions:
Arizona is finishing up.

Guatemala is finishing as Honduras is getting started.

Domestic fruit is finishing up in Arizona. The remaining fruit is peaking on 6s and 8s. We expect the domestic supplies to finish up soon.

Imported fruit remains steady on both coasts. The fruit is still heavier to 5/6s with a few 8s and we expect the sizing to remain the same as Guatemalan production finishes and Honduras gets started. The quality has been good.

Transitions:
Arizona is finishing up.

Guatemalan production is finishing and Honduras is getting started.

Northwest Storage season is still in full swing out of Idaho and Washington. Markets are steady on all sizes and colors. Demand is moderate after the holidays. Yellows, Red and Whites are peaking on jumbos. The quality has been good. Transportation continues to be limited which has supplies building.

Transitions:
Transportation is still very limited

Washington – Bartlett pears are steady on all szies and the fruit remains large. Small Bartletts and supplies of the fancy grade remain limited. D'anjous are steady and also remain large. D'anjous are also short of small fruit and all sizes of the fancy grade. Bosc pears are steady and are still peaking on US#1 80/90s. Bosc are short on small fruit and all sizes in the fancy grade as well. Red Sensation pears remain steady on all sizes and are still peaking on 45/50 half cartons. The quality for all has been good.

Alerts:
Small Bosc, Bartletts, and D'anjous remain limited in Washington.

Stay ahead on inventories to avoid the truck shortage.

Transitions:
New York has finished up its Bosc pears.

Peak Seasons:
Washington is in the peak of its pear season for all variety's.

We a currently seeing a short period of lighter volume coming in from the tropic's. Expected volume to pick back up by mid month with good supplies going forward into February.

Idaho – Norkotah and Burbank potato markets are steady on all sizes with moderate demand. Quality is still being reported as good. Transportation remains very short. The Norkotah have a larger size profile peaking on 60 count, while the burbanks are peaking on 80 count. Look for the markets to stay steady to slightly weaker over the next couple of weeks.

Washington–cartons are steady on all sizes and are still peaking on 80's and larger. The quality has been good.

Colorado/Wisconsin–market are slightly stronger on all sizes which are peaking on 80/90s. The quality has been good.

Alerts:
Truck and Rail transportation is very limited

Western Washington – reds and golds are both steady. Both colors are peaking on A-size with good quality.
Eastern Washington – reds and golds are steady and both are still heavier A size. The quality has been good.
Bakersfield, California – reds, whites, and golds are all steady. The whites are new-crop and are peaking on A-size and there are some new-crop golds now as well. The reds are also producing mostly As. The quality has been good for all.
Idaho – red and gold potatoes are steady. There is good availability on A size while Bs and smaller are more limited in both colors. The quality has been good.
Wisconsin – reds, and golds are both steady and remain heavy to A size. The quality has been good.
North Dakota – red and gold potatoes are steady with good availability on the size A. B size and smaller are more limited in both colors. The quality has been good.

Peak Seasons:
Color potato are in peak season out of all growing areas

With cooler weather coming to south Florida this week, look for production to decrease. The past week has seen cooler and mostly cloudy weather slowing production, now temps will dip into the high 30's as far south as Homestead bringing squash production to a near halt. Forecast show a warming trend by next week but until then we need to watch the temperatures.

Alerts:
supplies will tighten as the week goes on

Peak Seasons:
Squash is not in peak season.

Chilean stone fruit supplies continue to be somewhat sporadic as we are still in the early season buildup. Sizing is still mostly in the 60/64 tray pack peaches and nectarines with some limited availability in other sizes. Quality on the early season fruit is reported as generally good. We expect to see supplies gradually ramp up with much improved volume by the end of the month.

Sothern Florida production continues to improve but the rate of which tomatoes are being harvested has been reduced due to cold weather systems in the East. Large and Medium rounds are widely available, however XL sizes are tighter selling at a premium. Fobs at shipping point continue to slide this week and are expected to be at normal price levels by mid month pending a weather event. Limited trucks from Mexico are slowing the pace at which the roma market comes down and recent storms are pressing fobs upward a dollar or two. Similarly demand for grape tomatoes is also putting upward pressure on the bite size category. Cherry tomatoes remain steady against steady demand. Overall quality is very good on all varieties.

Eastern Mexico and Baja are finishing up for the season while Culiacan continues to build momentum. Volume will continue to increase through Arizona restoring normal markets by mid month. Quality is very good and pricing is expected to continue its downward trend through next week. Roma availability is also improving helping price to come down this week and expected to me near minimums by the end of January. Grape tomatoes are available but cool weather is reducing yields and picking schedules slowing down the rate of production, however availability continues to improve resulting in softer markets this week. Cherry tomato supply is reported to be healthy against steady demand from Mexico keeping prices steady this week. Quality is reported as Excellent