The Source - July 2, 2015

Weather Update

A strong high pressure ridge remains in charge out West through the weekend with temperatures near the coast continuing in the upper 70s with mid 90s in the inland valleys. The interior regions of the Central Valley will see very warm triple digit temperatures 5-10 degrees above seasonal averages. Monsoonal moisture also remains but the chance of afternoon showers and thunderstorms will be concentrated in the hills while the valley floor is expected to remain dry.
In the Southwest and Northern Mexico temperatures remain unseasonably warm under the large high pressure ridge. Interior regions remain in the triple digits with mid 80s along the coast. Monsoonal moisture will bring a good chance of showers through the weekend.
The Southeast and Mid-Atlantic regions will continue with scattered showers and thunderstorms, mainly in the afternoon while maximum temperatures are expected to be near normal.

Freight Update

Look for trucks in CA to be tight the balance of the week due to the 4th of July holiday. Idaho and Washington trucks remain steady. Be aware of the fires in Wenatchee, WA area which is affecting some of the apple sheds in the area. Fuel prices dropped slightly again this week. Crude Oil remains steady at 58.24 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples

Michigan is packing Red Delicious and will pack through July they think. They are peaking on 100s and larger and supplies of small fruit are relatively short. The quality has been fair due to lighter pressures.
Washington Red Delicious are still being quoted steady but the price-flex for 88s and larger is still there. Most packers are still peaking on 88s and larger in the premium and Washington extra #1 grades with only limited supplies of 100s and smaller. Golden Delicious are still mostly steady on all sizes. 125 & 138 and Goldens are still more limited than the other sizes and are priced at a premium. Granny-Smith are also mostly steady and are still peaking on 72s and larger. Supplies of Granny 100s and smaller remain short. Fujis are steady and continue to peak on the larger sizes. Fuji volume is lower as the end of the season approaches and small Fujis are especially short. Galas are steady and are still peaking on 88/100s. The Gala volume is also down as the end of the season is getting close.
Imported Cripps-Pink (Pink Ladys) are still available on both coasts and the markets are steady to slightly lower. They are still peaking on 70s and 80s.

- pa_admin
Growing Region Market Quality
Coopersville/Belding/Sparta, MI Steady Fair
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Chile Steady Good
Asparagus

This market is stronger. Supplies out of Peru have tightened up a bit but product is available. This region is producing heavy to standard and large sizing. The pack sizes out of Mexico continues to produce good quantities of jumbo packs. All sizing is readily available and demand has picked up. Salinas' production is finished. Overall, the quality has reported to be strong in all of the growing areas. Pricing looks to be stronger throughout the week.

- pa_admin
Growing Region Market Quality
Caborca, Mexico Higher Good
Ica, Peru to Trujillo Higher Good
Avocado (California)

We are past peak volume for the season and lower volumes are come out of the fields. Good demand leading into Independence Day has cleaned up supplies . It will take a couple of weeks to regain these supplies. Market looks to be very active for a while before settling out.

- pa_admin
Growing Region Market Quality
Oxnard/Ventura, CA Higher Excellent
Temecula/Escondido, CA Higher Excellent
Avocado (Mexican)

Mexican production dipped down last week due to rains in growing areas, and this has really left a shortage this week that will roll over into next supplies. Old crop is winding down and look for supplies to dip by 25 percent after the first week of July. Smaller fruit is limited coming out of Mexico and we are seeing great upward market pressure on 60's and 70's as well as rises on 48's and larger fruit.

- pa_admin
Growing Region Market Quality
Michoacan, Mexico Higher Good
Berries (Blackberries)

We have seen interruptions in California supply over
the past few weeks and again this week. Supply should be
increasing week over week all the way through August however some
shippers are seeing a supply gap that could last later into the summer,
with really good volume coming on by August. Availability has been
day to day, shipper to shipper in CA. Although, the recent heat we've experienced has actually helped to bring on some better volumes of ripe fruit. Georgia season is winding down and with lower volumes harvested, availability will now continue to decrease. Oregon volumes have been limited as they experience a short gap in between varieties.

- pa_admin

Transitions:
Georgia blackberries are winding down for the season and volume will continue to decline.

Growing Region Market Quality
Salinas, CA Steady Good
Watsonville, CA Steady Good
Santa Maria, CA Steady Good
Sheridan, OR Steady Good
Alma, GA Steady Good
Berries (Blueberries)

Supply continues to be abundant with good volume and quality
coming from several growing regions. Demand and markets remain
steady with promotional opportunities available. This is an excellent
time to promote fresh blueberries!

- pa_admin

Transitions:
MI began picking
this week. IN started with minimal
volume but rains have delayed
harvesting early this week. GA has ended most major production and NC is decreasing as well.

Growing Region Market Quality
Central Valley, CA Steady Good
Georgia Lower/Steady Fair
North Carolina Lower/Steady Fair
Oregon Steady/Higher Good
Mossyrock, WA Steady/Higher Good
Hammonton, NJ Steady Good
Demotte, IN Steady Good
Grand Junction, MI Steady Good
Pitt Meadows, BC Lower/Steady Good
Berries (Raspberries) Alert

Raspberries are very limited out of CA. Many factors have led to this
shortage. The crop started early out of CA due to the unseasonable
warm winter and lack of rainfall. The growth then slowed down due
to cooler temps in May and June. Additionally, the current harvest to
pruning cycles are keeping us in a demand exceeds supply situation.
While the volumes should typically increase as we move through
the summer, the current supply gap looks to be an issue all the way
through July and even limiting availability into August. The recent heat wave may only further decrease supply as warm weather will cause the plants to hold onto their fruit decreasing the amount of fruit being picked.

- pa_admin

Alerts:
Demand exceeds supply.
Supply remains extremely limited
and this supply gap looks to remain
through the month of July and possibly
into August.

Growing Region Market Quality
Salinas, CA Steady/Higher Good
Watsonville, CA Steady/Higher Good
Santa Maria, CA Steady/Higher Good
Oxnard, CA Steady/Higher Good
South Carolina Steady Good
Berries (Strawberries) Alert

Continued unseasonable heat on the Central Coast of CA is presenting some challenges for strawberries. Record setting high temperatures were recorded in several inland areas yesterday, the hottest spots reaching up to 110* and coastal areas topping out in the mid 80s. This heat will begin to taper off as we head into the weekend and temperatures will level out closer to average by next week. Along with the heat, we are experiencing increased humidity and this will be present into this weekend as well. Quality issues are being reported industry wide and affecting all labels. The warm weather has brought on ripe red fruit which increases the amount of bruises and soft spots when this fruit is being picked and packed. The sunshine and heat has also colored-up the fruit before it could reach mature sizing so you will notice smaller berries than normal in the clamshells. Due to the humidity and the heat, we may also see increased presence of mildew. Bruising, white/soft shoulders, overripe, soft, mildew are among the quality issues being reported on the daily inspections. It will be important to communicate and adjust expectation for this current period. Additionally, cold chain must be managed precisely to avoid the chances of mold popping up when the fruit is exposed to warm temperatures.

- pa_admin

Alerts:
Quality issues present due to excessive heat and humidity in CA growing regions.

Peak Seasons:
Production
volume estimates are beginning
to decrease as we move past
the Salinas / Watsonville peak
production season we’ve
experienced over the past
several weeks.

Growing Region Market Quality
Salinas Valley, CA Steady Fair
Watsonville, CA Steady Fair
Santa Maria, CA Steady Fair
Broccoli

This market was expected to be stronger, but the market did not respond. Overall, most shippers are steady. Pricing is competitive throughout the industry. The main production continues to be out of the Salinas Valley. The Southern California region will have moderate production throughout the week. Production out of Mexico has eased up. Texas is light in production. Good quality continues to be reported for now in all the growing regions.

- pa_admin
Growing Region Market Quality
Celaya Guanjuato Mexico Steady Good
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Celaya Guanjuato Mexico Steady Good
Carrots

Bakersfield crop is now in full swing on production. Weather has been warm and size is coming on and we're seeing much better production of Jumbo carrots.

- pa_admin
Growing Region Market Quality
Bakersfield/Santa Maria, CA Steady Excellent
Cauliflower

This market is softer. Demand has fallen off. The quality on this commodity, overall is being reported as good, with only slight discoloration sporadically being reported. Insect damage is minimal. For now however shippers are looking to keep coolers clean daily with their inventories. Offers are being listened to so promote as much as possible. Expect moderate to good supplies for the rest of the week. There will be price gaps of two-three dollars amongst the different shippers.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Lower Good
Salinas Valley, CA Lower Good
Celery

Supplies in Oxnard is finished. If product is needed down south, Santa Maria is an option. The Salinas Valley is producing plenty of celery. Pricing is very competitive in the industry. Large sizing is the most readily available. Small sizing is commanding a higher price. Good, strong quality exists with all shippers. This is a good item to promote, especially on large sizing.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Cherries

The market on cherries is in a state of flux. The volume on Rainier cherries is dropping and the price on these is strengthening rapidly. The dark sweet red cherries are in their last peak volume of the season and this market is adjusting downward. This will last for one more week at which time volume on all varieties will tail off. The Washington cherry deal will be finishing about the end of the third week of July

- pa_admin
Growing Region Market Quality
Yakima, WA Steady/Higher Good
Wenatchee Valley, WA Steady/Higher Good
Citrus (Lemons)

Crop is peaking on 140s and smaller. Demand is exceeding supplies on all sizes and grades of fruit. Very good demand and drought conditions in growing areas means production of less fruit and no size growth are the major factors for the demand exceed conditions.

- pa_admin

Transitions:
Demand exceeds supply. Summertime demand and lighter production caused by the California drought. Expect lighter supplies throughout the summer and into the fall.

Growing Region Market Quality
Merced/Bakersfield, CA Steady Good
Oxnard/Ventura, CA Steady Good
Citrus (Limes)

The lime market is steady on all sizes. The prices are the same on all sizes whereas in the past the spread has been several dollars. Growers continue harvesting less due to low market conditions. Lower prices have helped spur demand on all sizes. The overall quality is very good on the crop that is being harvested. Growers are starting to get into old crop limes now. We should start seeing thinner skin with lighter color in some lots coming up.

- pa_admin
Growing Region Market Quality
Veracruz, Mexico Steady Excellent
Citrus (Oranges)

California Navel crop is coming to it's end. Still a few left and peaking on 72s/56s. California Valencia oranges are going with good volume on 72s, 88s, 113s, 138's. Quality on Valencias is very good.

- pa_admin
Growing Region Market Quality
Merced to Bakersfield, CA Steady Excellent
Riverside, CA Steady Excellent
Grapes (Green) Alert

The green grape market is strong. Most shippers in the Arvin district have had to delay harvest due to the excessive heat of recent days. When temperatures run over 100 degrees the vines shut down and the grapes do not produce enough sugar. This situation should improve with cooler temps predicted for early next week.

- pa_admin

Alerts:
Excessive heat curtailing harvest.

Growing Region Market Quality
Arvin, CA Higher Good
Grapes (Red)

The red seedless grape market is steady with good supplies fruit. Sizing is running heavily to the medium/large grapes. Volume in all areas of the Central Valley of California is picking up daily. The rain that hit the Arvin district today should have little to no effect upon the quality.

- pa_admin
Growing Region Market Quality
Arvin, CA Steady Excellent
Delano, CA Steady Excellent
Green Onions

A steady market continues to be the story on this commodity. Demand is minimal. Expect supplies to be plentiful throughout the week out of Mexico. Supplies continue to exceed demand. All sizing is available. Light supplies are being harvested in Salinas. The heavier abundance of product is coming in small and medium size packs.

- pa_admin
Growing Region Market Quality
Mexicali, Baja Steady Good
Salinas Valley, CA Steady Good
Lettuce Iceberg

This market has remained unchanged. There continues to be a gap of two to three dollars in the marketplace. Some defects continue to be reported upon arrivals. These defects include puffiness, insect damage and ribbing. The weights on palletized lettuce are ranging from 38-44 pounds. Salinas and Santa Maria are the two main growing regions at this time. Production in Santa Maria is minimal, but some is available. Salinas will have moderate supplies. Demand is expected to be moderate at best for the rest of the weekend. Labor continues to be an issue for multiple shippers as workers tend to flee for a few weeks during this period of the year.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Fair
Salinas Valley, CA Steady Fair
Lettuce Leaf

The market on romaine has eased up with many suppliers. Demand has quieted down and shippers are looking to keep inventories down for the weekend. Defects on romaine continue. These defects include tip and wind burn, dehydration and mildew. Yields are down, but demand overall is off. The weights on cartons are averaging 31-37 pounds. Chopped romaine continues to show pinking upon arrivals. Romaine hearts continue to be on escalated pricing. Fringe burn and insect damage continues to be seen on red and green leaf. Butter supplies are light to moderate.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Lower/Steady Fair
Salinas Valley, CA Lower/Steady Fair
Melon (Cantaloupe)

The desert continues to have good demand for melons. Overall supplies are not as heavy as they were during their peak production a few weeks ago. 9's are now easier to find which is a good thing. The peak size is mainly 15ct currently. Overall quality is good with some growers in the Brawley, Holtville and El Centro areas experiencing lesser quality. Maricopa and the San Joaquin Valley have very good quality. The "west side" is set to mainly start the week of July 6th with but a few growers have started this week with small volumes. The market is steady on 9's, 12's and 15's.

- pa_admin
Growing Region Market Quality
Maricopa, AZ Steady Excellent
Holtville, CA Steady Good
Firebaugh, CA Steady Excellent
Melon (Honeydew)

The desert supplies look to be steady this week with light supplies of 5's. The domestic dews have excellent quality and are commanding a premium compared to the product from Mexico. The quality on Mexican and domestic dews is very nice. The peak size is 8ct on the domestic dews coming in right now. Supplies out of Mexico remain at low levels with 6s and 8s being the main sizes coming in. The San Joaquin Valley has started shipping dews in a light way this week with 8's being the peak size.

- pa_admin
Growing Region Market Quality
Maricopa, AZ Steady Excellent
Firebaugh, CA Steady Excellent
Hermosillo, Mexico Steady Excellent
Onions

Yellow onion market out of both California and New Mexico is steady with moderate supplies. Quality is being reported as good. The Red onion market is active out of both growing areas. Some of the New Mexico growers are in a small gap on their red onions which is causing the active market. The quality of the Red onion out of California is fair with some sunburn showing up in the packs. I feel the Red onion market will stay active for the next month. Trucks are tight out of both areas.

- pa_admin
Growing Region Market Quality
Huron/Metler, CA Steady/Higher Good
Las Cruces, NM Steady/Higher Good
Onions

Supplies of Yellow onions out of California are peaking on Colossal and larger with very few medium yellow being packed. Market is steady on Jumbo's and larger with a firm market on mediums. The red onion market is active as supplies out of New Mexico are light putting more pressure on supplies out of California. This should last into the middle of next week when supplies will improve out of New Mexico. Some shippers out of New Mexico are starting to gap on Yellow onions as they transition from over winter onions in to direct seeded onions. This could again put more pressure on California for supplies for yellow onions. The market has not reacted yet, but could as this week moves on. Quality out both areas are being reported as good. Walla Walla and Vidalia Sweets are available. Market is active with the 4th of July pull going in full swing.

- pa_admin
Growing Region Market Quality
Huron/Metler, CA Steady/Higher Good
Las Cruces, NM Steady/Higher Good
Pears

Washington continues to ship D'anjou pears and they are peaking on US#1 80-100s. Most packers are limited on Us#1 110s and smaller and all sizes in the fancy grade. The D'anjou market is steady. Washington will have D'anjou pears through July.
For imports we have Chilean Packhams and Bosc being imported on both coasts. Both the Packhams and the Bosc are steady to lower. The Packhams are peaking on 100s while the Bosc are peaking on 100/110s. Bartlett pears are set to start in California in a small way next week.

- pa_admin
Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Potatoes

Idaho: Market on large cartons (40-60) has come off slightly last week but looks to have stabilized. Demand is light. All other sizes are holding steady. Trucks have good availability with reasonable rates. Roughly six weeks left before new crop. New crop has potential to be a week to 10 days ahead of last year. Quality is good to fair.
Washington: Market on the large cartons has make a slight down-ward correction due to the Idaho market coming off. All other sizes are steady. Quality is good.
Colorado/Wisconsin: Market is steady on all sizes and packs. Some of the smaller sheds have finish for the season which has tighten supplies slightly. New crop looks to ahead of schedule by a few days earlier than normal. This should creating a seamless supply transition between storage and new crop. Large cartons are limited in supply. Quality is being reported as good.

- pa_admin
Growing Region Market Quality
Hamer/Rupert, ID Steady Fair
Quincy/Hermiston, WA Steady Good
Eastern Colorado Steady Good
Plover/Bancroft, WI Steady Good
Potatoes (colored)

Supplies will start to transition from Bakersfield to Stockton California the week of July 13th. Bakersfield, California is packing red, white, and gold potatoes. All colors continue to peak on A-size and the markets are steady for all sizes. All colors have better availability of premium and baker size. The quality has been good.
Texas is just getting started with reds and golds and both colors are steady. The Texas reds are peaking on A-size and the golds are heavier to B-size.
Alabama is steady on reds and they are peaking on A-size. The quality and maturity are being reported as good. They do not have whites but will have golds in approximately three weeks.
North Carolina continues to pack whites and reds and they are both heavy to A-size. The quality is being reported as good. They will have golds and more volume of reds later in the week.

- pa_admin
Growing Region Market Quality
Bakersfield, CA Steady Good
Stone Fruit

The market on all stone fruit is about steady depending upon the size quoted. Peaches and nectarines are peaking with large tray packs and shippers are promoting these with some aggressive pricing. Plums are peaking on the smaller 70's to 50's; these are selling at a strong discount to the larger sizes. Apricots are winding down out of the California growing regions and this market is firm across all sizes. Quality on all is being reported as excellent.

- pa_admin
Growing Region Market Quality
Coachella Valley, CA Steady Excellent
Tomatoes (Eastern)

ROUNDS/ROMAS – The East is having its share of difficulties during this years transition. From high temperature to lack of labor the supply is not meeting demand. Buyers are starting to look out west for product. Georgia and Virginia have begun to harvest and they are currently seeing decent fruit. With the heat issues the Carolinas are wrapping up earlier than anticipated. This is going to cause a push to the West and we should see both markets rise in the coming weeks. Although Roma pricing may have a chance to settle with product becoming available in Tennessee and Alabama in a week or so.

CHERRY/GRAPE – The east is still relying heavily on the west for volume. Virginia should be coming into some volume in a week that will steady the market a bit. The west is in good supplies and the east will be increasing in their supply with smaller operations having product available shortly.





- Greg Lane

- pa_admin
Growing Region Market Quality
Charleston, SC Steady/Higher Good
Eastern North Carolina Steady/Higher Good
Tomatoes (Western)

ROUNDS - Product in Eastern Mexico remains in decent supply and quality for the next couple weeks. In the San Joaquin Valley production is peaking and should remain steady for the time being. Production in Northern Baja continues to increase in supply and quality is good. With temperatures rising in the west we should keep our eyes open for a possible gap/shortage situation in about a month.

ROMA - The Northern and Central Mexico growing areas are in light supply with good quality. Northern Baja volume is continuing to increase and looks to remain steady with good quality. California’s Central Valley has light supplies with increasing volumes and good quality.

CHERRY/GRAPE - Product crossing into Southern California from Baja Mexico remains steady with some improvement in quality. Central Mexico is still carrying the Midwest and some Eastern demand with good quality and volume. Production in California is in good quality and supply. Heat may become a factor next week but production should remain steady.

- pa_admin
Growing Region Market Quality
Coachella Valley, CA Steady Good
Southern San Joaquin Valley, CA Steady Good
Northern Baja California Norte, Mexico Steady Good

Things You Should Know

Berries (Raspberries)
Demand exceeds supply.
Supply remains extremely limited
and this supply gap looks to remain
through the month of July and possibly
into August.

Berries (Strawberries)
Quality issues present due to excessive heat and humidity in CA growing regions.

Grapes (Green)
Excessive heat curtailing harvest.

Transitions and Temperatures

Berries (Blueberries)
MI began picking
this week. IN started with minimal
volume but rains have delayed
harvesting early this week. GA has ended most major production and NC is decreasing as well.

Berries (Blackberries)
Georgia blackberries are winding down for the season and volume will continue to decline.

Citrus (Lemons)
Demand exceeds supply. Summertime demand and lighter production caused by the California drought. Expect lighter supplies throughout the summer and into the fall.

A Peak at Peak Seasons

Berries (Strawberries)
Production
volume estimates are beginning
to decrease as we move past
the Salinas / Watsonville peak
production season we’ve
experienced over the past
several weeks.

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