The Source - July 15, 2015

California has one shipper still packing gala apples and they are peaking on 100/113s with only light supplies of 80s and larger. This early variety is high in color. The market is being quoted steady but there is some volume flex.
Michigan is still packing Red Delicious and they say they will have fruit through the month. They are still peaking on 100s and larger and are short on the smaller sizes. 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 available. Most shippers are still peaking on 88s and larger in the premium and Washington extra #1 grades. Golden Delicious are mostly steady on most sizes, some shippers are higher. 125 & 138s are still more limited than the other sizes. Granny-Smith are mostly steady to higher and supplies are getting into fewer hands. Washington Granny-smith continue to peak on 72s and larger. Supplies of 100s and smaller remain short. Fujis and Galas are cleaning up quickly and supplies are limited, most shippers have holes in their manifests and are quoting higher. The markets for both varieties remain active and will remain so throughout the balance of the storage season.

Rain, scattered thunderstorms and cool weather in the Mexican growing region have limited harvests. This market has strengthened due to quality issues and the resulting drop in yields caused by the weather. Peruvian asparagus is still readily available on the east coast although this market has strengthened due to the increase in demand caused by the drop off in volume out of Mexico.

Alerts:
Inclement weather in the Mexican growing region affecting quality and supply.

California harvest has declined after the July 4th holiday; dropping 15 percent last week. Production is expected to decrease slightly over the next several weeks, as the Southern region wraps up its harvest. Peak sizing on 48s / 60s. Very good demand is keeping supplies on all sizes tight, but currently matching supplies. Quality and flavor are both excellent.

Mexican production dipped down last week by 23 percent. Harvest this week is expected to bounce back up with a mix of old crop and the Flora Loca crop. The Flora Loca crop from Mexico is in the supply chain now; expect Flora Loca to have less maturity than the old crop, lower oil, brighter green and slower to break. Ripe fruit could still be green in color as the skin isn't mature enough for it to darken. Color is not an indication of ripeness, pressure is.

Demand has been moderate to good. Availability has varied by shipper, day to day. Some shippers are still gapping on blackberries and fill-rating orders based on daily availability or ability to purchase product outside of their label. Production volumes should continue to increase as we move through July with projected peak volumes to come at the beginning of August. Warmer weather has continued to bring on the fruit and produce better flavor.

Transitions:
GA and NC volumes have declined significantly and will continue to do so until fresh production ends for the season in those areas.

With several growing regions going at this time, we look to have very good availability throughout the month of July. Quality is good overall in all areas. Larger volume packs are available and are being promoted currently. This is an excellent time to promote fresh blueberries with deals available in large packs/bulk.

Transitions:
GA and NC have ended most major production on fresh blueberries. MI is ramping up on volume this week.

Raspberry production volumes are increasing and the CA crop is lining up to peak in early August. Good quality is reported overall with consistent shelf life. We are approaching an opportune period to promote fresh CA raspberries!

Peak Seasons:
Initial projections show this crop to peak in early August with good volume throughout September.

Demand is moderate overall with better demand for best quality fruit. Most grower/shippers have been diverting fields to processing fruit (freezer, juice) to avoid quality issues on arrivals in the fresh market. Temperatures are remaining warmer than normal, especially overnight, and humidity levels have been high as well. Fruit is ripening quickly, so it is not reaching mature sizing before it's full-colored. Salinas/Watsonville counts are ranging from 19-24 per 1 lb clam and Santa Maria counts are even smaller ranging from 20-25. Increased quality issues are being reported from white shoulders and green tips to soft, bruised, overripe, mildew and generally smaller fruit. Order only what you need at this time as you do not want to get long on fruit. Maintaining proper cold-chain will be of utmost importance to reduce the occurrence of mold popping up on the fruit when exposed to warm temperatures.

Peak Seasons:
We are now in the post-peak production period for California strawberries. Volume will continue to gradually decline and fruit size will continually decrease.

The broccoli market is strengthening as both quality and harvest yields drop. The Mexican broccoli is showing some yellow bead and hollow core. The domestic broccoli is also showing a variety of quality issues (some hollow core, bracketing and cat eye). The warm weather from recent weeks has pushed many growers harvests ahead of schedule; resulting in a glut then and lighter supplies to harvest now.

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

Light supplies and light demand have left the cauliflower market flat. The start of the local cauliflower deals around North America, coupled with the extreme weather events around the U.S., indicate to us a flat market through the coming week.

The celery market is about steady with no change in sight for the near future. Demand is flat and looks to stay that way until the school year begins again. Supplies are plentiful in California as the warm weather is bringing the celery crop on rapidly and Michigan is shipping. Quality is generally being reported as good with few issues anywhere.

The cherry market continues to decline as we approach the end of harvest this week. Quality is reported as fair to good with sizing peaking on the 10.5 to 11 row. We expect to see inventory available well into next week as poor demand overall continues to be the norm.

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 less production of fruit and no size growth. These are the major factors for the demand exceeds supply conditions.

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

The lime market once again continues to be steady on all sizes. Growers continue harvesting less due to low market conditions. Lower prices have helped 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.

California Valencia oranges are going with good volume on 72s, 88s, 113s, 138s. Demand is improving on 88s/113s/138s and seeing prices firm up for some shippers as well as slowing the pace of packing fruit to begin stretching out this year's lighter volume crop. Quality on Valencias is very good.

The green grape market is about steady with some easing off as numbers improve at harvest. This easing should continue into next week with the increasing volumes. Quality and size is generally very good.

The red grape market continues to settle as harvest numbers increase. Size is also improving dramatically with the new blocks of flames being harvested showing much more of the extra large fruit. Quality is reported as generally very good.

The market on green onions is about steady with good demand and adequate supplies. Quality is reported as generally good. This could change later this week as hurricane Dolores is expected to spin off significant amounts of rain into the growing regions in Mexico.

Alerts:
Significant rain event expected in the Mexican growing regions.

The lettuce market has weakened this week as supplies have come on in California. The increase in volume in California, as well as the start of lettuce out of Colorado and other local deals, around the country has put us into a supply exceeds demand situation. Barring any serious weather event in California (heat, rain) we see no reason for this market to change prior to any increase in demand nationwide. Quality is generally good with the occasional insect damage, tip burn or light mildew still being seen.

The red leaf and green leaf markets are steady with adequate supplies to meet light demand. Quality is generally good with the occasional light insect or mechanical damage. The romaine market is weaker in the face of lighter demand and improved supplies out of the Salinas Valley. Quality complaints are light mildew and insect damage in some packs. Overall quality is reported as generally good. The butter lettuce market is steady. Quality issues are the same as all the leaf lettuces with most reported as generally good.

The San Joaquin Valley aka "The West Side" is running at a good pace on all sizes of cantaloupes. The peak size is mainly 12s and 15ct but the size curve is moving back towards the larger sizes. The West Side has very good quality and good sugar content. The current market is steady to lower on 9s. The market on 15s is steady for now at the current level. Lope 12s have very good demand right now and their market is holding steady right now.

The San Joaquin Valley aka "The West Side" is our main producer now. The peak size is currently 6's and is slowly shifting towards the larger sizes. The quality and sugar contents are high for the dews right now and this trend looks to continue. The market on the 5s is trending slowly downwards and should do so through next week.

New Mexico growers are starting to ship onions again after the several days of rain and hail that they where hit with last week. One thing to beware of is you will see some minor staining present on the external root end of the bulbs from sitting in the wet soil. New Mexico has roughly 4 weeks left and with good weather in the forecast we expect things should end on a good note. Market is active on all colors and sizes but should stabilize by next week as supplies improve.
California continues to have light supplies of all colors this week due to growers switching varieties. I do not anticipate any issues filling orders but some orders could be delayed. Supplies will not improve out of this area till late next week.
Washington has just started to break ground on new crop onions this week. The size profile on the first onions has been small, peaking on mediums and smaller. The size should slowly increase over the next couple of weeks. Overall quality is being reported as good.
Idaho is schedule to start to break ground the front part of August.

Alerts:
New Mexico Onion supplies short due to rain and hail last week.

California continues to pack Bartlett pears in Lodi/Courtland. They are peaking on US#1 80/90/100s and the market is steady on all sizes due to strong demand. Stark Crimson pears are peaking between 35-55 size half cartons. The Crimson market is also steady on all sizes. The quality for both has been good.
Washington still has D'anjou pears and they are peaking on US#1 80-100s. Most packers are limited on US#1 110's and smaller and all sizes in the fancy grade. The D'anjou market is steady. Washington will pack D'anjou pears through July.
The Chilean pears are cleaning up and should be finished any day.

Potato demand out of all growing areas is steady with very little change in pricing and availability. Quality is being reported as good. All growing regions continue to feel comfortable on bridging the gap from old crop to new crop. New crop harvest will begin around the end of July in Washington and Wisconsin. Followed closely by Idaho and Colorado. All potato growing areas have had near to perfect growing season this year and expect to see a nice supply of all sizes with good quality. The only wild card is Mother Nature who could still change quality and size profile in the crop.

Bakersfield, California continues to pack red, white, and gold potatoes. Most suppliers have finished for the season, so supplies are light on all sizes especially whites and golds, but the market remains steady. All colors continue to peak on A-size. Bakersfield will pack reds and golds through July 24th and whites through August. The quality has been good.
Stockton, California is packing all colors. All are heavy to A-size and the markets are steady. The quality is good with little if any skinning.
Muleshoe, Texas is packing red potatoes and a few golds, they are both peaking on A-size. The demand has been strong and the market is steady. The quality has been good.
Alabama is steady on reds and they are peaking on A-size. Alabama has more bags than cartons, but both are available. Nobody packs C's in Alabama. They will have golds next week.
Camden, North Carolina is packing all colors but they have more whites and reds available, with only light supplies of golds. All colors are heavy to A-size while the red & golds C's are extremely short. The quality is being reported as good.
Virginia is packing all colors as well and they also have more whites and reds, with only light supplies of golds. All colors are heavy to A-size. Red and gold C's are limited here as well. The quality is being reported as good, but some packers have had minor skinning issues.
Wisconsin has started packing reds but hey still only have B-size, the market is steady.

Peaches and nectarines are now peaking on the larger tray packs. The market on these has stabilized as the freezers have stepped into the picture. Smaller size volume fill packs are still available at a discount as shippers attempt to clean up inventory. Industry projections are now for supplies to tighten up substantially by the middle of August with the majority of shippers finishing several weeks earlier than normal. The plum market is steady as quality and availability continue to be very good. Sizing on both red and black plums is still peaking on the 50's and 60's. Most shippers are calling the apricot deal done but there are still a few of the late season Brittany Gold's available. The market on these is steady.

The round tomato market continues to quietly strengthen as demand increases across the county. We have had significant rain in the east, that has curtailed many crops, just before harvesting. With eastern fields getting underway, none of them have significant volume yet. Roma tomatoes still struggle to find steady supply this week across the county. The aforementioned rain in the east has prevented the Tennessee crop from taking off as it typically does this time of the year. Supplies are very tight on cherry tomatoes. Market is strong, but lack of demand is preventing it from going higher. This is strictly a lack of supply market. The east should have more volume next that should help increase the supply.

Heat has been a problem in the valley and we have already seen two days of rain in California, which is unheard of in July. This is the year of El Nino, and everyone is concerned with the weather patterns. If it starts raining in California, it could cause a significant problem 8 weeks or so from now in September and October. The market for California tomatoes is stronger from last week. Quality on the California tomato continues to be good. The Mexican National Market is good on romas so there is less volume shipped up to the United States. Baja's volume is selling out everyday. The market is strong but they are keeping prices steady. Central California has decent volume, but not enough to make up for the low volume coming up from Mexico. The market should remain firm for the rest of this week. Quality is fair to very good depending on the area and/or grower. Grapes remain strong this week. Markets are about the same between the east and the west. The newer crops in the east have higher quality fruit. The west or Baja grown grapes are also good quality, but generally lighter in color.