The Source - July 12, 2017

Washington – Red Delicious are steady to slightly higher on all sizes and the fruit remains large. Most suppliers are peaking on 80/88s and have limited supplies of the smaller sizes. Golden delicious are higher on all sizes and the market remains strong due to light storage supplies especially 113s and smaller. Golden delicious continue to peak on 72/80/88s. Granny Smith are also higher and the market continues to rise due to light supplies and strong demand. The fruit is still peaking on 72/80/88s. The availability of 88s and smaller is still very light and most suppliers continue to sub up in size and grade. Galas are higher on most sizes and the market is very strong due to light storage supplies. Most Gala suppliers are still peaking on 72/80/88s. The suppliers that have more Galas are rationing them out so they last for the entire summer. Fuji's are steady to higher on all sizes but supplies are light especially on 100 size and smaller. The fruit is still peaking on 64/72/80/88s. The quality for all varieties has been good.

Michigan – Red Delicious are steady on all sizes but supplies are really light. Red delicious are in fewer hands but should last for a couple more weeks. The quality has been good.

Chile – Eastern Chilean Pink Ladys, Fujis, Galas, Braeburns, and Granny-smith are all steady in New Jersey. All variety's are peaking on 70/80 size with a few 90s. The quality has been good. Western Chilean Braeburns, Fuji's, Pink Lady's, and Granny-Smiths are steady but peaking on 70/80s. The quality has been good.

Alerts:
The Granny-smith market continues to rise as storage supplies are very low. The availability of smaller fruit is still very light and supplies are getting tighter.
Golden delicious supplies are also very low and that market is on the rise especially on 113 size and smaller. Some suppliers are finished for the season on C.A. golds.
Gala supplies are cleaning up quickly and that market is very strong, some suppliers are making prices changes daily. Fuji supplies are light as they are almost finished for the season.

Transitions:
California is scheduled to start packing new crop Gala apples the week of August 7.

Peak Seasons:
Washington is still in the peak of its red delicious apple season.

Central Mexico asparagus continues to very limited due to weather. Rain is expected through Saturday, and we're still seeing night time temperatures in the middle 50's that are not helping production. We're also seeing limited production from Peru due to field transition from the Northern growing region (Trujillo) to the Southern growing region (ICA). This will continue for about another 1-2 weeks, night time temperatures in ICA are in the middle 50's.

Alerts:
Asparagus continues to be short in all growing regions (Central Mexico/Peru) due to weather. Market is very active at this time.

Transitions:
Asparagus in Peru is transitioning from Trujillo (north) to ICA (south), we should see better volume in 1-2 weeks.

Quality is very good, fruit is ripening evenly and tasting great. Currently the crop is peaking on 48s and larger, with limited amounts of 60s and smaller fruit. Harvest amount will drop slowly through July and expect light supplies in August.

Mexico continues to harvest fair supplies of the old crop, with size peaking on 48s and larger fruit. This crop has high maturity, so keep supplies tight. The new summer crop has started with light supplies beginning to arrive to the states. This new crop fruit has a lower maturity level and will take longer to ripen.

Tight Supplies on eastern bell pepper are keeping markets at higher levels. The Carolinas and New Jersey are the majority of supply on the east coast. Quality has been good for the most part in the Carolinas and very good in New Jersey. Michigan and Ohio are still another 10 days to two weeks from starting. Expect the Market to stay strong until then.

Alerts:
Expect tight supplies for 10 days.

Peak Seasons:
Bell pepper will be out of peak availability for about two weeks.

Green Bell Pepper are becoming more limited, peaking and large, XLarge and Jumbo sizes. Number 2 choice will become more available as heat starts to effect the quality

Red bell Pepper are becoming more available that is has been. Better demand on choice grade followed by #1 25lb and 15lb, Yellow bells are very limited on field grown in California.

Alerts:
Red pepper has been very short in supply but expected to improve this week. all condition are related to the excessive heat.Yellow pepper grown in the field is very short and in very few hands.

Blackberry supplies have been consistent and are expected to remain strong through this week. Then, starting next week, we will see a gradual decrease in production as we move toward the end of the month. Santa Maria, Salinas and Watsonville growing regions are past their peak and volumes will begin to fall. The next cycle of plantings will be ready in August. As supplies decrease over the next 2-3 weeks, we can expect market prices to firm up. Advanced orders are recommended.

Alerts:
Blackberry supplies will start to decrease next week and gradually become more limited through July. Market prices will increase as supplies lighten.

Peak Seasons:
The new cycle of plantings are expected to peak in August.

Are we finally past the recent blueberry shortages? According to shippers, the answer is an optimistic YES! The weather in Oregon has been mild and dry, helping to push fruit along and increase production. This will be the first full week of production in this area. We expect good supplies moving forward as we continue to harvest in Oregon, Washington and British Columbia. Michigan started last week with lighter volumes than expected due to some rain. However, production is expected to move forward this week with peak production anticipated for later in the month. Quality ha been reported as strong in all regions. Market prices have been escalated and firm, but we do expect to see them decline as more fruit arrives in Salinas / Watsonville by the end of the week. Spot buy opportunities will be available to load direct.

Peak Seasons:
Oregon, Washington and British Columbia will be entering peak production over the next 2-3 weeks. Michigan is expected to reach peak by the end of July.

Raspberry supplies will continue to decrease through the month of July. Santa Maria, Salinas and Watsonville growing regions have all past their peaks and production is on the down trend until the next cycle of plantings begin in August. Availability will increasingly become a challenge as we move later in the month. I expect market prices to increase as supplies become lighter. Advance orders are recommended.

Alerts:
Raspberries will continue to decrease in production through the month of July. Availability will be limited and prices will increase.

Peak Seasons:
Next cycle of planting expected to peak in August.

Strawberry supplies and quality continue to improve this week. The weather in all growing regions has been cooperating nicely, helping to increase yields and size up fruit. In Salinas / Watsonville areas, we have seen mostly cool morning with sunshine through the afternoon. Quality is being reported as strong with counts ranging between 16-20 depending on variety. Santa Maria weather has been slightly warmer with highs in the low 80's. Production has been consistent and quality is improving. The fruit size is smaller with counts between 22-26. Overall markets have started to decline this week as more fruit becomes available. I expect to see another slight drop in market price by the weekend with volume spot buy opportunities readily available. If the weather stays the way it has been, we can expect to see this same trend last 2-3 weeks.

Peak Seasons:
We expect to see excellent supplies of strawberries for the next 2-3 weeks.

The broccoli market firmed up last week but has steadied out since then. Even though Mexico has struggled with volume the California deal has had adequate supplies to meet a fairly moderate demand. Quality is good out of all regions with few problems being reported. Another heat wave could be on the horizon for early next week along the coastal regions. If this happens we could see another disruption in supply. With many local growers now producing around the country any movement in the market due to this should be minimal.

Inconsistent supplies and quality are driving the market on Brussels Sprouts. Early indications of better supplies have proven to be more hopeful than fact. Quality has also suffered as weather from Northern Mexico to Salinas has been abnormally warm for this time of year.

The hotter than normal weather in the California growing area has slowed the growth of the carrots. This combined with good demand for the jumbo sized carrot, we are seeing the jumbo market tighten up and markets are firming. We currently don't expect and shortages or quality issues as we move forward. Supplies on value added and baby peeled are still good.

Moderate demand for cauliflower has held the market back despite lighter supplies. We attribute this to the extreme weather around the country as well as the local supplies ramping up. Quality is generally good with some discoloration reported in some lots. We attribute this to the recent extreme heat some of the growers have had to deal with.

Although there is a gap in pricing, this market is steady, overall. Production in Oxnard is finished. Suppliers are struggling on bins and this will continue for 2-3 weeks minimum. Carton celery is available and is the avenue to choose when being shorted on bin orders. Large sizing has the best availability amongst all the sizing. Aside from some slight insect, and seeder issues, the overall quality has been good. Suppliers are expecting moderate to good availability for the rest of the week.

Light supplies and inconsistent sizing continue to fuel the celery market out of California. Quality is also an issue as late plantings in outlying areas have suffered from the recent extreme heat. Yields in these areas have suffered as production is lost to heavy seeders. The advent of light supplies out of Michigan and other small local deals have helped to ease demand for the West Coast celery and steady the market.

Cherries supplies are increasing with the holiday behind us now. We will start seeing more 10 row and larger cherries being available. Supplies are coming out of Washington and Oregon.

Pablano – Fair quality will continue with new crop in Baja California. Heat has made availability more limited

Tomatillo – much lighter supply and just fair quality, both peeled and husked. Sizing is only fair. Color and condition will continue to be only fair.

Jalapeño – fair quality on new crop pepper. size, color, and condition with supply dropping. Some number 2s are being shipped.

Anaheim – poor quality, condition, and size are expected to continue as supply are lighter than last week.

Alerts:
Poor quality and short supply as Baja crop is damaged by heat and Fresno Ca. is waiting for production to improve.

The cilantro market has remained steady with good quality and good supplies from all regions. We are seeing the occasional brown leaf and yellowing due to the recent warmer temps but overall there has been little negative affect.

The lemon supplies continue to be limited and demand is very strong. We are seeing demand exceed supplies on all sizes and grades of fruit that looks to last into the early fall. We will begin to see a little relief as Chilean lemons start arriving in better volume over the next couple of weeks. Mexico is trying to start, but has been hindered by rains. Even with the imports, over all supplies will remain short.

Alerts:
Demand exceeds supplies.

Limes are now priced the same across the board. Quality isn't as nice as it has been previously due to some recent rains. Some styler is showing up but other than a few lots here and there the limes are really good. The market is coming up due to lower supplies which is a fairly normal pattern. The market is higher.

Demand for California Valencia orange remains very strong and doesn't look to weaken any time soon. Short supplies look to continue to be an issue for entire Valencia crop season. With this year's lighter crop, we are seeing some packers take time off packing and others moderate their pack weekly to make the crop last through September. We are seeing demand exceed supplies on all size and grades of fruit.

Alerts:
Demand exceeds supplies.

Better supplies of eastern cucumbers have started in New Jersey, Michigan and Ohio with New York set to start next week. Small local deals are starting in the mid-Atlantic, northeast and mid-west. The market is steady but has a weaker undertone, quality is very good in most producing areas. New York and other new England states should begin production next week so steady supplies should continue for the rest of the month.

Transitions:
Cucumbers are transitioning to Michigan, Ohio and the Northeast.

Peak Seasons:
Eastern cucumbers are moving into peak availability.

Steady supply on cucumber crossing in Baja California. Excellent color, quality and condition on all grades, sizes and pack styles. Peaking on Super Select.
Started to get better supply of cartons, heavy to 42s volume will decline as temperatures continue to rise.

Georgia is winding down for the season and quality is only fair. The Carolinas do not have a lot of acreage planted and the northern regions have yet to start. New Jersey has started in very light production and it will be 10 days until they will be up to normal production. All this will keep the eggplant supply tight for the next two weeks. Michigan and Ohio are set to start the third week of July with good supply. The outlook for Michigan, Ohio and New Jersey is good.

Alerts:
tight supplies for the next 2 weeks

Peak Seasons:
Eggplants are not in peak availability.

Eggplant is currently being shipped from Fresno Ca, Very limited supply. Quality is improving from the recent heat wave. Look for supply and condition to improve as we move into the month.

Green grapes are being harvested in the San Joaquin Valley now. Volumes are currently low but getting better as more growers start packing. Mexico is finished now finally with packing and old inventory is almost completely shipped out. Quality on the new crop is excellent with nice size grapes and good uniformity on the current lots being packed. The market is lower to steady.

Red grapes are being harvested in California now and Mexico is out of the picture. Supplies are ramping up while demand is good but not enough to keep the new crop higher priced grapes from slowly adjusting downwards. Quality is excellent with many of the lots being large and uniform. We have smaller sized grapes for value buys and XL for high end customers. The market is lower to steady.

The green onion market is steady with good supplies and good quality. Sizing is an issue as most shippers are running heavily to medium with limited pencil or jumbo available.

The kale market is steady with abundant supplies of excellent quality. Good sizing, full bunches and large dark green leaves are the norm.

This market is very active as supplies have tightened up with all suppliers. Weather always plays a factor in production and past heats in the growing regions for multiple days has hindered production yields. Some shippers are only covering contract business for the week with no open market product available. Good weights, 41-46 pounds on palletized continued to be reported. Very minimal mechanical and insects is being reported. The availability in Southern California is moderate to light. Supplies in Salinas are snug. Light availability will continue throughout this week for this commodity.

This market has remained flat, overall. Although lettuce demand has picked up, romaine as well as all leaf items continue to be low in demand. Suppliers are flexing. The overall quality has been good on romaine. Only slight mechanical, and insect damage has been reported but minimal. The weights are being reported at 35-40 pounds. Green and red leaf as well as butter continue to have good availability and quality as well. Expect good supplies available in Santa Maria as well as the Salinas valley throughout this week, much the same as last week.

Cantaloupes are being harvested in the San Joaquin Valley now. Supplies are increasing as more growers start packing. The desert is finished for the season. The quality on the new crop lopes is excellent and looks to continue to be that way for a while. The market is lower to steady as growers production works on evening out.

Honeydews are being harvested in the San Joaquin Valley now. The desert and Mexico are finished for the season. Honeydew volume is picking up as more growers begin harvesting while demand is a steady. Quality is excellent and the market is steady to lower right now.

Seedless Watermelon in the west is in very short supply and only fair quality due to the heat . Bakersfield is shipping in a limited way with only fair quality and size peaking on 45s mostly bins and some cartons. some personals being offered peaking on 6s.

Alerts:
poor quality due to heat

Onions are still coming out of California and New Mexico and will be till the middle of August. Supplies of red and white onions are limited out of both shipping points with a strengthening market. Market on white onions should improve in the 5 to 7 days. Red onions look to be limited till Washington gets going with volume the middle of August. Yellow market is steady at slightly higher levels. Yellow and red onion quality is good over all. Quality on white onions is fair. Washington has started with Walla Walla sweets and some light volumes of overwinter yellow and red onions.

Peak Seasons:
New Mexico and California are both in peak production on Yellow onions.

Washington – D'anjou pears are steady on all sizes and are still peaking on US#1 80/90s. Smaller size fruit remains relatively short. The quality has been good. D'anjou's are expected to last through July.

Chile – Both Argentinian and Chilean Bosc are steady and heavy to 90 size and larger but supplies are light, most shippers are finishing up with the little inventory that they have left. The quality for both has been good.

Transitions:
California will start packing new crop green Bartlett and Starkrimson red pears this Friday. They are expecting more small fruit than last year especially to start the season off.

Supplies from the tropic's are light and looks to be so through July and August as this is a planed lighter production period. Shippers do this as to not compete with the domestic summer time stone fruit and melon production.

Idaho - Market is steady all sizes of cartons with better availability of 70 count and larger. Demand is moderate. Overall quality is still being reported as good. Retail bags market is strengthening with good demand. New crop is on track to start the first week of August.
Washington, Colorado and Wisconsin - Carton supplies are limited out these growing areas. Market is firm with a demand exceeds supply situation as supplies slowly wind down for the season. Quality is still being reported as good. Colorado will start to packing new crop New Mexico potatoes in about two weeks in a light way. Washington will start up with new crop the first week of August. A few shippers out of Washington will finish with storage crop next week and will gap till new crop starts.

Peak Seasons:
Storage supplies are slowly winding down for the season, just in time for new crop

Bakersfield, California – all colors are steady but the Bakersfield suppliers will only pack through this week and next week before the season comes to and end. Stockton will start packing next week though so we expect a smooth transition.
West Texas -- Reds are steady to higher and the market remains strong due to generally light supplies and strong demand. They only have carton #1s. The quality has been good.
Alabama -- reds are steady to lower and they are still peaking on A size with bags only, no cartons. The quality has been good.
North Carolina – reds are steady to higher while whites are steady on all sizes. The white availability is better while the reds are low due to strong demand. Number-twos remain limited in all colors. The quality is good.
Virginia ---reds are steady to higher on all sizes while the gold and white potatoes are steady on all sizes but the availability is still low due to strong demand. Number-twos of all colors are still short. The quality is good.

Transitions:
Stockton, California will start packing new crop red, white, and gold potatoes at the end of this week.

Eastern Washington will start packing new crop red, white, and gold potatoes in one to two weeks.

Minnesota is scheduled to start packing new red and gold potatoes in 2 weeks.

The mid-west started out a little behind but the weather has gotten better over the last two weeks and production has turned on. New Jersey is in peak production and small deals are starting all over the northeast. Quality is good in all regions and the market has been gradually declining for ten days now. With more supplies starting in New York and the northern tier of the country continuing to produce look for the market to stay at reasonable levels for the remainder of the week.

Transitions:
Squash is transitioning to the northeast and mid-west.

Peak Seasons:
Green and Yellow squash are in peak availability.

Yellow Squash and Italian Squash are being harvested in Santa Maria and Fresno has improved due to heat, many condition issue. Sizing is mostly medium followed by fancy and xfancy with very few W/B being offered. Hard Squash is still being offered from the central valley in California, Butternut and Kabocha are good supply, Acorn and Spaghetti are very limited.

Alerts:
condition issues due to excessive heat.

Another week of high heat is predicted for the Central Valley. Over 100 degrees will be consistent for the next 10 days. This will impact sizing and availability. Quality has been good over the last few weeks. Yellow flesh fruit will be in short supplies all week. The ability to use both yellow and white will help cover orders. Plums are in good supply with many shippers having aggressive pricing on smaller sizes.

Alerts:
Yellow peaches and nectarines will be in shorter supplies for the next 10 days.

Round tomatoes are finishing up in South Carolina and will be transitioning to operations in Virginia next week. Shortly after by the end of July, Tennessee and North Carolina will also be harvesting to help regional supply. Roma volumes are improving from recent weeks but the lion share of tomatoes are out west where California will boast most of the national supply over the next 3 months. Rain has kept picking to a minimum tightening up the grape and cherry supply firming up FOBs however more supply is expected to come to market with Virginia beginning operations in the next 7-10 days helping prices to ease off again.

The round tomato market is now controlled by California with all the major shippers well into the start of their operations for the summer season. For the rest of July we expect a supply exceeds demand scenario with affordable markets regarding gas greens. Roma tomatoes are also improving as California gets into their season and heavier volumes increase crossings at southern entry points out of Mexico. Grape and cherry tomatoes are steady crossing the boarder and supply is consistent. With Virginia beginning soon pricing is expected to remain steady with better quality as programs move into new crops. California is expected to remain the primary supplier of Tomatoes over the next 3 months and usually continues operations until the first rain of the season which in some cases has neared Thanksgiving in recent years.