The Source - January 8, 2020

EASTERN REGION:

HAPPY NEW YEAR!!!! Now that the holidays are behind us, the apple movement seems to be slowly getting back to normal. As smaller, regional shippers clean up their stored/refrigerated fruit and close their doors for the season, larger shippers are dipping into their C.A. inventory which should carry us into the spring. This will put pressure on the larger shippers and possibly move some volume to the Northwest. All in all, market prices are firming up and the aggressively cheap deals will disappear. Quality remains strong to start off the new year.

WESTERN REGION:

Washington

We are definitely seeing more movement this week versus the recent holiday weeks. Many shippers have begun packing C.A. apples and are offering aggressive, load-volume deals on stored/refrigerated product in an effort to increase overall space on their floors. Prices are definitely firming up, especially on larger sized fruit. Conversely, smaller fruit (88-113ct) remains prevalent this season versus last season and should continue for the foreseeable future. Quality remains excellent with sufficient shelf-life.

The season from these two regions in Mexico (Ciudad Obregon/Northern Baja) is wrapped up due to seasonality. San Luis, Mexico has started but cold weather is slowing down production. We should see Caborca, Mexico start in about 2-3 weeks. All sizes are still tight due to the weather and seasonality. Volume continues to decrease from both regions in Peru (Ica/Trujillo). Markets on both coasts are very active and higher this week with production being down from all regions.

We are seeing a stronger market with price increases in all sizes. Mexico had little to no harvest these previous two weeks during the holiday season, triggering the market to react. The pipeline seems to have cleaned up on extra fruit and inventories are looking lean. The overall quality has been great. The fruit is cutting great and eats well. There is plenty of fruit on the trees, but we do anticipate a stronger market leading up to Super Bowl next month. As far as California, production is expected to fully open up mid to late February.

Green Bell Pepper supplies have gotten extremely tight. A combination of events has caused this shortage, rain and cold weather has slowed production and caused some quality issues. Most growers are at the end of what they call their early season crop and waiting to begin their mid-season crop. The cooler temperatures created more of a gap than anticipated. The rain that hit the region a week ago coupled with older fields being harvested is creating quality issues like bruising and decay, being the most prevalent. Pricing has risen sharply over the past week and may continue to rise this week. Expect these market conditions to continue for at least a week to 10 days.

Alerts:
Extremely tight supplies and quality is only fair.

Green bell pepper - Extremely light supplies of green bell pepper are crossing through Nogales, AZ this week. The green bell pepper supply is expected to remain extremely light as one Mexican district finished early and the other is scheduled to start late due to cool temperatures. Quality from Mexico is mostly fair. The green bell market has increased this week substantially due to extremely light supplies. Light supplies of green pepper are also available to load in McAllen, Texas.

Red bell pepper - Red bell peppers continue to be harvested in the Coachella Valley in California and in the Mexican state of Sinaloa. The red bell pepper supplies from California are light with quality fair at best. Red Hot House supplies from Sinaloa continue to increase. Quality from the Sinaloa crop is good. The red bell pepper market is steady this week. Light supplies of Red bell pepper are also available to load in McAllen, TX.

Yellow bell pepper - Good supplies of yellow bell pepper continue to be harvested in Mexico from Sinaloa. The Market on yellow bell pepper remains steady this week due to steady supplies. Quality on yellow bell pepper crossing through Nogales from Mexico is good. All pack styles currently being packed from the Mexican growing district. Light supplies of yellow bell pepper are also crossing through McAllen, Texas.

Blackberries are easing off from the heavy numbers some shippers were reporting crossing in from Mexico the past several weeks. Quality is fair with many lots still reporting red cell defects. Proper rotation of inventory is essential at this point with the fruit traveling an extra day or two from the Mexican interior. Look for the market to firm up towards the end of this week as the volume of crossings from Mexico subsides.

Blueberries are coming into the market in large volumes as Mexico, Peru, and Chile are all harvesting vigorously. The quality has been good out of all of these areas. Look for this market to remain steady with the only possible disruption in inventories caused by late container ships.

Alerts:
Good Volume for the entire Month of January

Raspberries are in lighter supplies with cooler weather and a downward yield trend expected over the next few weeks. Quality has been good on fresher fruit. Look for the market to strengthen somewhat as we move into next week.

The strawberry market has loading options in Oxnard Ca, McAllen Texas and Plant City Fl. Quality is good out of all areas right now as we are seeing Ideal weather patterns promoting good yields. The demand has been good keeping markets buoyant. There should be a slight downward trend as we see all these areas converge with product moving into the weekend. Look for the quality to continue to improve with no rain seen in the immediate future out West. There are always micro-climate rainstorms that may slightly affect Mexican production but no major issues are forecasted at this time.

The Broccoli market continues to increase with the cold and wet weather causing lower yields. All shippers are struggling to cover regular business. This cold weather is going to continue for the next 10 days. Quality continues to have slight purpling caused by the cold weather, some mechanical damage, and occasional yellow cast. Look for Broccoli to adjust upward going into next week with the cold weather this week in Yuma.

Alerts:
The cold and wet weather in Yuma has caused lower yields on Broccoli. Growers are seeing slow growth in the fields caused by the cold weather.

The brussels sprouts market continues to stay steady as there is plenty of supply in the pipeline. Quality has improved causing better yields. Look for the Brussels sprouts market to continue to remain the same going into next week.

The Carrot market is steady with schools starting back up this week. Numbers are moving through the pipeline again after the brief Holiday lull. California jumbo sizing is set to improve through the end of this week returning to normal next week. Mexican production is running smoothly as we wait for the last of the storage carrots in the Canadian Northeast to be depleted.

The cauliflower market continues to upward due to lower yields caused by 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. Some suppliers may need to sub sizing to fill orders. Look for the market to continue to adjust upward going into next week with the cold weather this week.

Alerts:
The cold and wet weather in Yuma has caused lower yields on Cauliflower and inconsistent sizing. Growers are also seeing slow growth in the fields caused by the cold weather.

Production currently is coming out of Santa Maria/Oxnard as well as Yuma. Mexico has production as well. The best deals are coming out of southern California and this will continue for the entire week. The savings are significant. All orders have been getting covered in full and this will likely continue throughout this week. The weather has been cool at night but celery is not as affected in comparison to other commodities. This product has the ability to absorb rain much better and handle cool weather compared to other row crop items. Small sizing is the least available. Weights on average are 52-58 pounds. The overall quality continues to be good.

Transitions:
Production in Yuma is picking up with multiple shippers.

Jalapeno- Moderate supplies of Jalapeno are crossing through Nogales, AZ this week. Good supplies are expected to resume next week. Jalapeno quality from Mexico is good. The Jalapeno market is steady. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Moderate supplies of Pasilla are crossing through Nogales, AZ this week. Better supplies are expected to resume next week. Pasilla quality from Mexico is good. The Pasilla market is steady this week. 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 through the week due to fair quality on husk variety. The 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 pick due to wet and cold weather. The cilantro quality is fair with an occasional yellow leaf. Look for the cilantro market to adjust higher going into next week with the wet weather we are having this week.

District 3 is done, but there is some storage fruit from district 3 still around that suppliers are trying to move out. New crop out of District 1 fruit is also looking really nice on supplies and quality. The 95’s and larger are snug but we’re looking good on the 115’s and smaller. We are having optimal growing weather and the fruit will continue to be exceptional as long as we have this weather. Markets are steady across the board and this is a perfect opportunity to quote advance prices on the small sizes.

With harvest crews back to normal packing schedules we can expect supplies to improve weekly all month. Current markets are steady and overall the quality has been consistent. We have opportunities to load FOB Texas and California as well as delivered options. Please reach out if you have any interest.

The Central Valley will have steady supplies this week. Most supplies are peaking on 88’s and larger while the small sizes are expected to be snug this week. Markets are steady on the large sizes and the small size market is staying firm. Demand has started to pick up as more institutions have resumed from Christmas break and we can expect demand to stay strong the rest of the month. With the current weather patterns, we are starting to see very good natural color and gas hours are falling off. We’ll continue to see very high quality, high color, great-tasting Navels. Brix levels have been consistent between 11.5% – 12.5% with good quality. 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 continue to get better weekly with excellent quality. The Minneola Tangelos are looking good on the small sizes, while the large sizes are limited. More shippers are expected to have them by the week of the 20th and we should have better supplies.

Cucumber supplies are steady and Honduras shippers are in peak season. Florida is still shipping very light supplies of domestic product that is not having much of an impact on the market. Quality is fair and customers are only using it on government business. There have been some quality issues on import cucumbers on arrival. The product has looked good at shipping point but breaking down on arrival. Supplies from Honduras should remain steady but demand is picking up because Mexican supply crossing through Arizona and Texas is light.

Light supplies of cucumber are currently crossing through Nogales from Mexico this week. Cucumber supplies crossing through Nogales have decreased this week as the crop from Sonora has finished. Cucumber supplies from the Sinaloa district are light/moderate due to the rains in November and cool temperatures in December. Cucumber supplies are expected to increase within 10 days from Sinaloa. Mostly big box pack styles are being packed from the Sinaloa district. Quality from Sinaloa is currently good. Moderate supplies of Mexican cucumbers are also crossing through McAllen. Quality from McAllen is being reported as fair.

Eggplant supplies are steady in Florida and cool temperatures have slowed production some and pricing has risen slightly. Quality is good, rain and cool weather have not affected eggplant as much as it affected other commodities. Eggplant is being harvested on both the east and west coast of Florida and supplies should continue being harvested at a steady pace through the week.

Steady supplies of eggplant crossing through Nogales, AZ from Mexico. Eggplant crossing through Nogales, AZ continues to be harvested in Sinaloa. Supplies from Sinaloa are being packed in all pack styles and in all sizes this week. Quality on eggplant crossing through Nogales ranges from fair to good due to recent heavy volume.

All domestic fruit is gone. We have fully transitioned into import fruit. Currently, most of the green seedless grapes are coming from Peru with small volumes of Chilean fruit trickling in. Quality is excellent. Sizing has been on the larger side with most of the volume falling between an XL and Jumbo profile. Availability continues to remain limited, especially on the west coast. Increased demand and lower production in Peru has led to limited supplies. We expect Chilean production to increase over the next 2 weeks and we should see better supplies of fruit on both coasts by the end of the month.

Alerts:
We have transitioned into all import fruit. Supplies remain limited, especially on the west coast. We expect better supplies by the end of the month.

Transitions:
Chilean production will improve over the next 2 weeks with better availability on both coasts by the end of the month.

We have now transitioned into all import fruit. There is still some domestic red seedless available on the west coast, but the quality is too poor to ship beyond local areas. Currently, we only have Peruvian fruit available, but we expect Chilean production to ramp up over the next 2-3 weeks. Supplies are still fairly limited, especially on the west coast. A combination of increased demand and lower production in Peru has contributed to limited availability. Additionally, delayed arrivals of containers on the west coast have made the situation even worse. This week will continue to be very snug in the west and fairly consistent on the east. Quality is being reported as very strong and market prices are expected to remain firm for another couple weeks. We will look towards the end of the month for improved supplies in all areas.

Alerts:
We have transitioned into all import fruit. Supplies remain limited, especially on the west coast. Markets are firm. We expect to see improvements in availability by the end of the month.

Transitions:
Chilean production is slowly ramping up. We expect the first arrival next week and look for better volume by the end of the month.

The green onion market continues to increase and supplies remain extremely tight as the continuous cold weather is slowing growth. Although crews have started to come back there is still a shortage of harvesters. Quality is fair with occasional leaf minor caused by the recent colder weather. The market will continue to adjust higher going into next week.

Alerts:
The wet weather and continuous cold temperature is causing slow growth and quality issues. Growers are struggling to keep up with demand.

The kale market continues to pick back up with the wet and cold weather in Yuma this week. Quality is fair with full bunches and an occasional yellow leaf being reported. Depending on the severity of this cold weather, look for the market to continue to strengthen going into next week.

Demand exceeds supplies with this commodity. Although no rain is in the forecast in all the growing regions this week, cool weather continues to slow the growth of this product. Ice delays will be daily for harvesting with all shippers. The high temperatures are expected between 66-69 degrees. Low temperatures will be in the low to mid-thirties. Today was the first day of triggers on value-added lettuce products, and expect an increase near the end of the week on all value-added lettuce items. Weights are down, averaging 31-34 pounds on liner product. This will likely continue for the entire week. Labor is expected to be better this week as many workers are returning from the holidays. Yuma and Santa Maria are the main areas of production. Mildew, misshapen heads, and mechanical continue to be issues arising upon arrivals to customers.

Alerts:
Light weights will continue for the entire week with this commodity. Ice delays will be daily all week with harvesting.

The market is active on romaine as well as all leaf items. Although there is no rain in the forecast for the week in Yuma, cool weather will exist. This will be a direct cause for the plants to slow down its growth pattern and harvesting will be affected. The good news is that labor should be better now as workers return from the holidays. Yuma, as well as Santa Maria/Oxnard, will continue to be the main growing regions for all leaf items. Demand has picked up. Some issues being reported upon arrivals to include decay, blister and peel and mechanical. These are reported on romaine as well as all leaf items. The weights on romaine are averaging 25-30 pounds. The green and red leaf items will be 16-19 pounds. Expect this market to get stronger throughout the week.

Alerts:
Cool weather will hurt production for romaine as well as all leaf items. Ice delays are daily.

The Tender Leaf market continues to increase due to lower yields caused by the wet and cold weather in Yuma. The wet weather and the continuous cold temperatures have certainly damaged the quality and lowered yields on Arugula. Curly parsley and Spinach have tightened as well this week and looks to be tight going into next week. Quality is fair with occasional yellowing and bruising of the tender leaves.

Alerts:
Arugula quality has been damaged by the recent and continuous cold and wet weather. This has caused extremely lower yields as crews are walking by the damaged product.

Plenty of cantaloupe in the pipeline. We are seeing good arrivals this week with plenty of opportunities buys on the east and west coast. Demand is steady and will strengthen with schools starting back up. Quality has been consistent. The fruit is showing great internal and external quality with great netting and brix levels.

The honeydew market remains active this week for both the east and west coasts. Currently, we have Mexico, Honduras and Guatemala going. Costa Rica is expected to start production in the next week or two. As of last week, the USDA daily movement report shows crossings into the US are down 12% year over year. That is with Mexico, Guatemala and Honduras combined. Suppliers anticipate stronger arrivals by next week. With the majority of offshore fruit staying on the east, Mexico is struggling to cover the west coast. Open market fruit continues to be a challenge but we do have options.

Watermelon supplies crossing through Nogales, AZ continue to be harvested in Colima, MX. Watermelon supplies from Colima are expected to continue steady throughout the week. Good growing weather is expected to continue this week. Quality from this district is good. The watermelon market is expected to remain steady for the remainder of the week. Both cartons and bins are currently being packed.

Yellow and white onion markets are on the rise in all regions. Demand is very active after the holidays and will continue into next week. Red supplies are good across the board and exhibiting flat markets at this time. We are expecting an active market over the next few weeks. Idaho, Oregon, Washington, Utah, and Colorado continue to produce good supplies of storage yellow, reds, and whites. Onions out of Mexico are expected to start somewhere around mid-February.

Alerts:
Markets rising on yellow and white onions; demand active.
Mexico will start mid February.

Washington:

Bartlett pears are done for the season. Bosc pears should be available through February, possibly mid-March and D’Anjous will take us into July. The market is steady and quality is excellent.

Red Anjou is the variety currently available for red pears and is packed in ½ (20#) and full cartons (40#). Markets are steady and quality is excellent.

Alerts:
Bartlett pears are done for the season. Bosc and D'Anjou are the preferred varieties going forward.

Pineapple supplies out of the east coast are looking light on 5ct & 6ct again this week. We can expect subs to fulfill orders in full. On the west coast, supplies are steady. Markets remain fair, and demand is looking to pick up for the start of the year. Quality has been consistent and looking good!

Russet potato markets continue to climb in all regions. Larger size 40 count through 70 count, as well as 10oz #2 grade, are extremely limited. Demand has been very active out in Idaho and the shift to other growing regions has pushed markets higher. Idaho suppliers were also reaching into Washington to bring down larger size potatoes to supplement orders but those are quickly drying up with the increased demand industry-wide. We expect to see the larger size potatoes, including 80 count size now, to continue to rise in Idaho as well as the other regions of Washington, Colorado, and Wisconsin. It is highly recommended to provide 7 business days lead time prior to the ship date to ensure proper coverage and on-time deliveries.

Alerts:
Demand very active in all regions. Markets climbing. Larger size 40 count through 80ct limited in supplies.

Red potato markets are on the rise with yellow and white remaining steady. Wisconsin continues to limp along with very minimal supplies and look to finish for the season next month. North Dakota supplies are decent as the demand has been sluggish from the higher than normal markets. Idaho and Washington are also seeing a higher demand for reds which in turn is pushing markets higher. Mt Vernon, Washington continues to produce high-quality color potatoes with excellent color on the reds but lighter supply as well. California is using those reds from Mt Vernon and struggling with #2 grade due to the excellent quality. Expect to see markets on red potatoes continue to climb as supplies become lighter. Florida is expected to start early to mid-February.

Alerts:
Markets rising on red potatoes. #2 grade loading in California very limited.

Transitions:
Florida color potatoes will start early-to-mid February

Squash supplies are extremely tight and pricing has escalated in the past four days. Cold temperatures in South Florida have slowed squash production to a halt. Squash plants tend to run in cycles and we are in a down cycle on top of temperatures in the low 40's for most growing regions. Mexico is not producing much volume of squash because of storms earlier in the growing season and this is putting a lot more pressure on eastern shippers. Quality is good with most shippers. South Florida is getting high winds, which is typical this time of year and is creating some scaring issues.

Alerts:
Extremely tight supplies.

Supplies on both Italian and yellow s/n have decreased this week and are expected to remain light through the week due to cool temperatures. Temperatures have been in the high 60’s in the Sonora region, and in the mid 70’s in the Sinaloa region this past week. Temperatures in the Sinaloa region are expected to increase on the back end of the week to mid 80’s. The higher temperature in the growing region should increase production and stabilize supplies. Quality on soft squash from Sonora continues to be fair. Quality on the newer crop from Sinaloa is good. Supplies of soft squash from the Sinaloa district are backed up due to the heavy rains in November and cool temperatures in December. The market on both yellow and Italian squash have increased this week with lighter volume. Light supplies of soft squash continue to cross through McAllen, TX.

Not much has changed on the Chilean stone fruit. Supplies are still fairly limited, but we are seeing more varieties trickle in. We have white and yellow peaches and nectarines available as well as limited volumes of red plums. Overall supplies are still fairly snug and market prices remain steady and firm. Quality is being reported as strong and sizes are on the larger side. The fruit is available on both the east and west coasts. We expect supplies to continue to improve as we look out over the next 2-3 weeks and promotional opportunities to become available by late January.

Alerts:
We are seeing more fruit slowly trickle in this week. Some white varieties as well as plums have been introduced. Better supplies are expected by the end of the month.

Florida tomatoes remain light this week yet again. Similar market conditions are expected for another week with more rain in the schedule keeping the market elevated through the first part of January. Sizing is down due to rain delaying harvest schedules at the start of new operations in the southern growing areas of Homestead, Immokalee, and Naples. Overall availability is limited, and quality is average but should begin to turn around by the end of this week as production increases. XL rounds are in a critical state with FOBs continuing to rise as a result of weather delays. Florida does not have much acreage devoted to Romas. The market will remain elevated until the end of January. Fortunately, Roma volume in Mexico is beginning to increase and expected to turn around slightly sooner than rounds. By mid-month pricing with soften in both the East and West.

Alerts:
Demand Exceeds Supply. Availability is limited. Elevated Markets expected through most of January

Mexican imports are very light and have been considerably higher than Florida FOBs but starting to even out as volume slowly improves. Sinaloa has had a delayed start working through a declared Natural Disaster and working to get back on track from flooded programs in early December. Baja has finished for the season and Culiacan is not expected to get started for another 2 weeks which will give the market a much-needed boost in supply. Roma tomato volume in Mexico is beginning to increase and expected to turn around slightly sooner than rounds, which will soften pricing in both the East and West. 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 the week of January 26 when volume overall picks up at the farm level and the law of large numbers yields higher availability in the market.

Alerts:
Demand Exceeds Supply. Availability is limited. Elevated Markets expected through most of January