The Source - January 9, 2019

Granny Smith, Golden Delicious, and Honeycrisp are in demand exceeds supply situation. This will continue through to next season crop. Markets are active on these varieties with small low-grade Granny Smith being the most limited. All other varieties are steady. Water core is showing up in the Red Delicious and Fuji's which is typical for this time of the season. Heavy snow in the area has slowed transportation down to crawl. The forecast is calling for clearing as this week moves on.

Peak Seasons:
Red variety apples are in peak season

The cold weather pattern continues in Caborca Mexico which is pushing back production. We should see better weather and production in about 10-14 days. Ciudad Constitucion has wrapped up production due to weather, and seasonality. Both regions in Peru (Trujillo/Ica) are wrapping up due warm temperatures, and seasonality. The market and demand are very strong with slow production out of Mexico, and Peru wrapping up their season.

Weather in Michoacán Mexico this week calls for temps in the 80s with some rain in the forecast. We are seeing good/great quality fruit. Cutting great and eating well. The market is a lot stronger this week with prices rising daily. We are a few weeks away from Super Bowl and we can see a higher market with fairly good demand. Reports of good volume on #2 fruit this month. Suppliers recommend locking up volume by this week as sizing and preconditioned fruit will be limited as we approach Super Bowl weekend. California will be harvesting at the end of the month, beginning of February.

Green bell pepper is in very tight supply and may get tighter by the weekend. Supply is concentrated in south Florida on both coasts where two weather fronts have passed through the region in 3 weeks producing tropical storm force winds, blowing blooms and small fruit off plants. The market has been very steady in the high teens to low 20's, now with this weather and cold temperatures in Mexico look for prices to rise further. Planted acreage in south Florida is down considerably over the last two years which magnifies the situation that recent weather has caused.

Alerts:
extremely tight supplies and getting tighter.

Transitions:
Bell pepper is not in transition

Peak Seasons:
Bell pepper is not in peak season.

Green Bell Pepper- Consistent volume on green bell pepper arriving in Nogales this week. Cooler weather in the Sonora has slowed down harvest on green bells from the Northern growing region. Currently, light volume is being harvested in Sinaloa, but production could slow down due to rain that is expected at the back end of this week. Quality on green bells from both regions is good. Supply meets demand on green bells. Market on Green bells is steady and expected to remain steady going into next week. Green bell peppers from Mexico are also available to load in McAllen, TX.

Red Bell Pepper- Better volume of Red Bell pepper available to load in Nogales, AZ from Mexico. Market on choice red bells remains, although production has increased slightly in Nogales, from Sinaloa. Mostly choice and medium size being packed in 1 1/9 bushel box. Better numbers of red bells are expected to as the harvest continues through the month of January. Quality of red bell from Sinaloa has been mostly good. Red bell pepper supplies from Mexico are currently crossing through Nogales, AZ and McAllen, TX.

Yellow Bell Pepper- Yellow bell volume continues to be short in 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 as soon as next week. Demand for yellow bell pepper continues to exceed supply. The market remains strong. Quality has been mostly good. Yellow Hot House bells are also available to load in McAllen, TX.

Good supplies of the Mexican berries has caused a wide variety of pricing to be offered according to loading point, quality, and volume on larger orders. Prices range from $14.00 to $20.00. in most consolidation points both East Coast and West. Quality has been good and the market looks to hold steady to lower with some volume buy opportunities coming available from some importers.

Imported blueberries continue to be readily available from several countries. Distribution points include Miami, Philadelphia, Yuma, Santa Maria, and the LA area. Pricing still fluctuates on all pack styles with the 12/ 6oz clams ranging from $14.00 all the way on up to $22.50 at the premium consolidating shippers .12 oz Pints are $20.00 to $25.00 and the 8/18 oz are also available in the $24.00 to $28.00. The market should continue to be soft due to so many growing areas filtering product into several shippers.

Raspberries continue to be a hit and miss proposition for many shippers. The product is all Mexican at this point and crossings into from Mexico are getting steadier. the quality is good but there is still the occasional delay at the border causing fill rates to be enacted the market remains 30.50 to 32.50 and generally, demand exceeds supply situation. This should remain this way through the end of this week.

Alerts:
Very tight item book orders in advance

The Strawberry market continues to be in light supplies in the Oxnard and Santa Maria Ca. Areas as adverse, weather continued to take its toll on both yields and quality. Rains over the weekend totaling 2 inches in some areas caused severe shortages of product on Monday. More weather is expected Wednesday according to the forecasts. The market is steady with very little open market fruit available for sale. The plants in Oxnard are mostly new crop and are handling the rain much better than previous weeks harvest. Look for markets to remain in the $24.00 to $26.00 price range through the end of the week.
Mexican berries are still crossing in increasing supplies as we move through the week. Weather conditions are ideal and growers are getting into the thick of their product. Yield quality has been good and prices remain in the $22.00 to $25.00 range.
Florida continues to have somewhat dry weather and is produce moderate numbers of fruit. The quality is just fair, but growers are looking forward to the new bloom sets which should be ready in the next week or two pricing is in the $21.00 to $24.00 range depending on quality. It looks to hold steady through the week.

The broccoli market has reacted to the recent cold weather and supply has really tightened up with all suppliers. Quality is fair with slight purpling, some mechanical damage, and occasional yellow cast. Look for supplies to continue to be tight going into next week.

The Brussels Sprouts market has picked up this week with supply being affected by the recent weather. The quality has been affected by the rain and cold weather and sizing tend to run smaller due to this colder weather. Look for the Brussels Sprout market to remain tight 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 really picked up in recent days with the recent freeze in Yuma. Overall, the quality is fair with minor bruising and some yellow cast with weights in the 25 to 28-pound level. Look for this market to continue to stay strong going into next week.

This market is active. Production has begun in Yuma but in a light way. Production numbers are expected to be stronger in this region in about two weeks. The best deals continue to be out of the Oxnard /Santa Maria growing regions. The best sizing available has been in small sizes and this will continue for the week. Common defects to this commodity include bowing, leafy tops, mechanical and insect damage. It is important to note that freezing temperatures were occurring in southern California in past weeks just like in Yuma and Mexico. Yields are down and the markets are expected to be active throughout this week.

Unlike other import fruit, cherries seem to be steady in supplies. Not a lot of change week over week. Fruit is 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. Few growers harvesting jalapeno out of the Sonora and Sinaloa. Quality out Sinaloa being reported as good. Market on jalapeno is expected to remain high/steady through the remainder of the week. Price on #1 jalapeno is currently holding in the high 30’s. 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 is high along with pricing. Price on Serrano pepper is currently at $70.00 on a 40lb box of serrano and expected to remain steady through the week. Light supplies of
Serrano also crossing into McAllen, Texas.

Tomatillo – Husk and De husked tomatillos are available to load in Nogales, from Mexico. Good supplies on both varieties expected to continue through the week. The tomatillo market is steady. Prices remain steady in the low 20’s. Quality on both varieties being reported as fair to 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.

Lemon supplies have continued to increase each week with markets coming off and suppliers able to offer promotional opportunities. Currently harvesting out of all three districts with the majority coming out of District 3 (Desert crop). The Southern California growing regions are expecting rain this week, but most supplies are packing ahead with good inventory and not expecting any shortages. All regions have a good run on sizes and expected to continue to improve as weather permits.

Lime volumes spiked just before the Christmas break, but packing has been light due to the holidays the last week resulting in tight supplies at the moment at the border. Markets are tight in Mexico as well and the FOB Texas prices are rising due to very limited availability for this weekend. Rains are in the forecast for Veracruz next week. Honestly, no one knows when or if there will be another flush of product hit the market because growers are holding back trying to raise the market. The market could be up or down a week from now. It is a very short cycle supply vs. demand market unless you are on contract. We'll continue to monitor the market closely.

California Navels is moving along markets are down with good supplies across the board, plenty of promotable volume and great quality. The pack has been mostly fancy grade and limited choice. With bag business, the choice fruit supplies continue to be limited. With rain expected this week in the growing regions in the San Joaquin Valley suppliers are packing ahead to avoid shortages for the week. We'll continue to monitor this closely as weather permits. Brix averages remain at 10-12, some 13. 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 and Blood oranges supplies continue to get better each week, also California grapefruit started up this week with good volume to start.

Florida is finished for the season, there are steady supplies coming in from Honduras. Cold temperatures in Mexico during this past week have cut supplies coming across the border creating a lot of demand for import cucumbers loading in Florida. Temperatures in Honduras this week will be moderate, so supplies should continue at their current pace but not increase. Honduran production should start to peak around the middle of January. Quality has been good with all shippers and should remain that way through the week.

Alerts:
Lack of supply coming from Mexico is causing prices to rise on import cucumbers.

Transitions:
Florida is finished for the season.

Peak Seasons:
Cucumbers are not in peak season.

Light supplies of cucumber being harvested in Sonora, Mexico. Growers out of this district are expected to finish in January. Quality out of the Sonora district is being reported as just fair. Cucumbers also being harvested in the Mexican State of Sinaloa. Cooler weather in this region has slowed down production. The cucumber market from Sinaloa is expected to move higher through the end of the week with Sonora finishing up. Quality out of Sinaloa is good. Sizing is down, very few Super select, large, and carton cukes being packed.

Supplies of fancy eggplant are very tight, growers are still packing choice. The larger producers of eggplant in Florida are finishing for the season. Over the past few years, production of eggplant in Florida during the winter months has drastically decreased for various reasons, there will still be light supplies through the winter, many consolidators will supplement with Mexican product. Quality is hit and miss with the older fields, most of the product is choice.

Alerts:
Eggplant supplies on Fancy product are drying up.

Transitions:
Eggplant supplies are concentrate in south Florida.

Peak Seasons:
Eggplant is not in peak season.

Eggplant continues to be harvested in the Mexican State of Sinaloa. Cooler weather in the past few weeks has slowed down production and sizing. Light volume expected to continue through next week. Low numbers of fancy and choice grade currently being packed. Market on eggplant has risen and is expected to remain steady through the week. Quality from Sinaloa has been fair to good.

With the domestic supplies of green grapes finished, the industry is relying on import fruit to fill demand. Unfortunately, there has been a major set back at the ports of entry on both the east and west coats. Labor shortages, increased demand, and late vessel arrivals are all contributing to the extremely light green grape supply. This week, we have seen 3-4 day delays at the port and we do not expect things to improve for another 5-7 days. Green grapes are especially short due to the fact there is no domestic fruit left. The industry is in a demand exceeds supply situation and market prices are climbing. Shippers are expected fruit to be released gradually over the weekend, but challenges and delayed load times are expected. Flexibility on load dates will be necessary. We anticipate next week to bring some relief.

Alerts:
Green grapes are extremely limited due to the delays at the port of entry.

Domestic availability is just about done. Most shippers are relying on import fruit to fill orders. However, with the strong demand and the complications of delayed arrivals at the port, supplies of red grapes has been very limited this week. Labor shortages at the port of entry have created some major setbacks this week on both the east and west coasts. These delays are stretching out 3-4 days. As a result, supplies have become very limited and market prices are higher. The industry is now facing a demand exceeds supply situation. Some flexibility on loading days will be necessary. We expect supplies to gradually improve over the next week.

Alerts:
Supplies are limited as delays at the port of entry are having a big impact on availability.

The Green Onion market has really tightened up with the recent freeze in Mexico. This cold weather has been causing occasional leaf minor and mechanical damage. The green onion market will continue to be very tight 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.

Demand has picked up in the marketplace for Iceberg. Although temperatures in the growing regions have been better this week, yields are down. Crews have been able to harvest earlier compared to past weeks, but the quality is an issue. Common defects with this crop include blister and peel, puffiness, misshapen heads, lightweights, fringe burn and mechanical. The quality, needless to say, is fair at best. Growers are concerned what kind of damage has been caused to the crop by the past freezing temperatures. Further defects will likely surface 3-4 weeks later. Rains have also been an issue in the growing regions of Yuma. Shippers have also had difficulties having steady crews daily after the holidays. Weights are ranging between 36-42 pounds on palletized. Expect this market to be active throughout this week.

The market has become stronger on romaine, hearts as well as all leaf items. The freezing temperatures in past weeks have caused damage that is significant. Yields are down. Common defects include blister and peel, mechanical, windburn, twisting, and slight insect damage. Like lettuce, romaine and all leaf items are fair at best in terms of quality. It is important to point out that all shippers are reporting these defects. This is an industry-wide issue. Demand has picked up. Growers are expecting future quality issues with the plants due to the freezing temperatures weeks later. The quality is expected to be fair through the month of January and weeks into February. Expect the market to get stronger throughout the week.

The Tender Leaf market continues to be strong 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 remain strong going into next week.

Offshore-(Guatemala/ Honduras)
Growers in the Zacapa valley of Guatemala were all affected by whitefly during the first growing cycle. This is largely in part to a lack of rain during the Fall rainy season this last year. The lack of rains allowed the whitefly to maintain their population and the plants affected allowed the population to manifest itself. Some suppliers were significantly affected the majority of the first cycle while other suppliers were impacted the last three weeks. Yields were significantly lower which translated to a severe drop in production and sizing is smaller. Some growers are seeing decent volume out of Honduras with fair quality and no weather issues. Quality on both Honeydews and Cantaloupe has been fair as the market is steady with moderate demand. We are seeing a limited supply and fair quality this week on fruit from the growing region of Choluteca, Honduras and Zacapa, Guatemala. The market is steady.

Nogales- (Arizona/Mexico) We are in a demand exceeds supply market. Smaller fruit is easier to come by as large fruit is very limited this week. There is a new crop out of Colima Mexico but no harvest this weekend due to low sugar levels. We can expect some fresh arrivals Wednesday/Thursday in Nogales.

Offshore-(Guatemala/ Honduras)
Growers in the Zacapa valley of Guatemala were all affected by whitefly during the first growing cycle. This is largely in part to a lack of rain during the Fall rainy season this last year. The lack of rains allowed the whitefly to maintain their population and the plants affected allowed the population to manifest itself. Some suppliers were significantly affected the majority of the first cycle while other suppliers were impacted the last three weeks. Yields were significantly lower which translated to a severe drop in production and sizing is smaller. Some growers are seeing decent volume out of Honduras with fair quality and no weather issues. Quality on both Honeydews and Cantaloupe has been fair as the market is steady with moderate demand. We are seeing a limited supply and fair quality this week on fruit from the growing region of Choluteca, Honduras and Zacapa, Guatemala. The market is steady.

Nogales- (Arizona/Mexico) We are in a demand exceeds supply market. Smaller fruit is easier to come by as large fruit is very limited this week. There is a new crop out of Colima Mexico but no harvest this weekend due to low sugar levels. We can expect some fresh arrivals Wednesday/Thursday in Nogales.

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.

Yellow onion market has experienced moderate increases in all sizes at the start of the week. Demand remains very strong, despite the short weeks due to the holidays. Reds are steady. White onion market is extremely limited with a red hot market. This trend will continue on the white onions until new crop Mexico onions start crossing in the coming weeks. Quality in the storages remains excellent. Transportation is limited but should improve over the next week.

Alerts:
White Onions market is very active with limited supplies. Yellow onions market have finally gotten some strength.

Peak Seasons:
Yellow and Red onions out of the Northwest will be in Peak till late February.

D'anjous, Bosc and Bartlett pears have a steady market with moderate demand. Quality is good. D'anjous are peaking on 70/80, Bosc peaking on 80/100 and Bartlett are peaking on US#1 80/90. Bartlett pears quality is good, but you don't want to sit on them for too long as it is late in the season. Red pears remain steady. Snow will limit transportation over the next couple of days.

Current supplies are limited and will continue through the end of January. 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-$13.

Potato market has experienced moderate increases on 80 count and larger with 90 count and smaller steady. Shippers are trying to catch up with demand from last weeks short and very cold week. Retail demand is very light and has shipper only running limited hours. Russet Burbank potatoes are the main variety which are peaking on 90 count and smaller. This looks to be the trend into at least the middle of February. Quality is still looking good with few reports of issues upon arrival. Transportation is still limited but will get better next week.

Color potato demand out of California and Washington is light to moderate with good supplies of all sizes. Quality has been very nice with little to no issues upon arrivals. Idaho, North Dakota and Wisconsin demand is moderate. Quality has been good out of Idaho and North Dakota on most sizes of Reds and Golds. Wisconsin's quality is just fair with moderate supplies of B's and C's and limited supplies of A's and premiums. Trucks are still limited.

Squash supplies are very tight, plants seem to have shut down overnight. Squash plants tend to run in cycles and we are in a down cycle plus demand is up with less volume crossing from Mexico. Whether this week will not be conducive for good production so look for tight supplies to continue through the week at least. Quality is holding up on green, there are some scaring issues with yellow squash. High winds from weather fronts the past few weeks have temporally hurt squash fields. Growers do expect fields to rebound when the temperature warms up.

Alerts:
very tight supplies

Transitions:
Squash is not in transition

Peak Seasons:
Squash is not in peak season.

Italian and Yellow S/N- Light supplies of Italian and Yellow S/N currently crossing through Nogales from Mexico due to rain and cooler weather in the growing districts. Supplies are expected to remain light through the week and into next week. More Italian squash is currently being packed, Yellow S/N is in much shorter supply. Both #1 and #2 labels being packed on all squash varieties. Quality on Italian squash is mostly fair to good. Lighter volume of Yellow S/N being packed as the fruit is more sensitive to the cold weather. Mostly #2 labels are being packed on yellow s/n. The quality of yellow squash has been mostly fair recently. Demand exceeds supply on squash, specifically on yellow s/n.

Import fruit from Peru and Chile has been a challenge in regard to timely arrivals and release from the port. Vessels are being delayed at the port due to labor shortages. As a result, fruit is not being inspected and released in a timely manner. These delays in addition to already limited volumes have caused some supply issues on all stone fruit. This holds true on both the east and west coasts. Shippers are expecting more arrivals of fresh fruit next week and the labor situation to improve. For the next 5-7 days, I expect to continue to see limited availability and higher prices.

Alerts:
Delays at the port of entry is holding supplies at bay. Price remain firm.

The Palmetto/Ruskin growing region is finishing up operations for the winter and the bulk of Florida’s tomato production has transitioned further south for the season as scheduled. The Naples/Immokalee growing districts are producing nice quality fruit with consistent volume but strong demand is firming up prices. Homestead Florida will begin harvest this week helping to meet overall demand, however, a cold front has moved into Florida this week which brings the potential for further supply constraints as the maturity of tomatoes is reduced by the cool climate.

Mexico operations have finished in Baja and Eastern Mexico shifting all western demand to farms growing in mainland Mexico where farmers battle the effects of cool weather which has slowed the start of their season. 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. Warmer weather in
the coming weeks should produce a flush of fruit helping to reduce pricing, however, markets remain steady at this time showing little change from last week.