The Source - July 18, 2018

We are one month away from new crop in Washington, New York, Michigan, and Pennsylvania apples. The current storage crop of Red Delicious looks to get extremely limited as we finish up the storage season. Start dates for new crop red delicious apples are not until mid-September. The market on Red Delicious looks to increase weekly. Other varietals are still available minus pink lady and limited supplies of honey crisp. Galas are also dwindling in supply as well. We have plenty of supplies of granny smith apples if you are looking for volume deals. California apples are available with sizes in the 88 to 125 count as well as bagged apples too. Quality remains really good with decent pressure left in the storage crop and good sugar content.

The weather has improved in both Mexican regions, Central Mexico, and Northern Baja. Volume has started to increase due to the better weather in both regions; we should see this trend continuing for the next couple of weeks. Weather in both regions in Peru (Trujillo/ICA) has remained unchanged; we're still seeing very few larger size asparagus due to the cooler weather over the past month. Markets are overall lower with very good production, and with little demand.

The recent heat wave growing areas of Southern California, with temps reaching 105 - 115 degrees for several days has caused fruit drop. Growers are assessing the damage. Early estimates look like a 10 to 15 percent drop of total of total crop volume. This year's crop is 80 percent harvested. California has reached its peak in volume and beginning its seasonal decline through August.

Mexico harvest continues with primarily their old crop and weekly volumes continue to decline and looking to be complete by the end of the month. Their summer crop is still behind in maturity but is expected to begin with light volume by next week. Mexico's summer crop is a small crop and is difficult to predict volume. Going forward through July and August, expect lighter supplies and stronger markets.

South Georgia is all but done on bell pepper; South Carolina will finish next week as will Eastern North Carolina. New Jersey has steady supplies with a few quality issues being reported, Michigan will start light supplies next week, but most shippers will not start until the 1st of August. Expect supplies to get tighter for the next ten days to two weeks.

Alerts:
Green Bell Pepper supply is getting tight.

Transitions:
Bell Pepper is transitioning to New Jersey and Western North Carolina.

Green Bell Peppers - Most pepper supplies are now coming out of the Arvin / Bakersfield area. High heat in the growing area has slowed production. Some growers have begun to harvest new fields, but supplies remain light, especially on choice grade peppers. Quality is good. The market is stronger, and the pricing is higher. Shipping areas include Fresno, Gilroy, and Oxnard, as well as Bakersfield.
Red Bell Peppers – Red bells are available to load out of San Diego, with hothouse peppers being grown in Baja California. There are also peppers available from Bakersfield, as we have moved into the summer growing areas. Volume is expected to increase in Bakersfield, but extreme heat in the area has slowed production. The market remains strong. Shipping areas are San Diego, Fresno, Oxnard, Gilroy, and Bakersfield.
Yellow Bell Peppers – Bakersfield area growers have begun to harvest yellow bells. Quality is good with very few peppers available to offer. Volume is due to increase, high heat in the area has slowed production. Light supplies of hothouse peppers are also available to load in San Diego, from Baja California. The quality of the fruit from Baja has improved and is mostly good. The market remains strong.

Supplies are steady and slowly improving. There are several areas in production this week. Salinas / Watsonville harvest remains limited and below expectations. We expect harvest to improve in this area as we move forward. Santa Maria harvest has been steady, and quality is being reported as good, considering the heat. Central California (Selma) is finishing harvest this week. Oregon / Washington has started with light volume. Some of that fruit is being transferred to cover orders in Salinas / Watsonville, but the majority of that volume is being sold direct. On the east coast, we continue to have limited availability in Georgia, North Carolina, and New Jersey. However, we expect supplies to really slow down in these areas after this week. We will need to focus on loading on the west coast. Market prices have been slowly coming down. We expect to see improved supplies on the west moving forward.

Not much change this week. We continue to have excellent supplies of Blueberries. On the west coast, we have full production in the Pacific Northwest. This fruit is available to load in Oregon, Central California, Watsonville and Los Angeles, CA. Shippers have plenty of fruit to push with aggressive prices for volume opportunities. Quality is being reported as very good. On the east coast, Michigan is in full production with good availability. North Carolina and New Jersey are winding down quickly. Quality on the Michigan fruit is good. They are packing mostly Pints, and the markets have come down slightly. Again, promotional opportunities are available.

Alerts:
Excellent supplies and aggressive prices being offered.

Supplies remain steady. Salinas, Watsonville and Santa Maria are in production. The heat has slowed down harvest, but supplies seem to be better than expected. Quality is being reported as very good. Demand has been flat. Market prices have been slowly adjusting down, but still no real aggressive prices yet. We do expect supplies to continue to improve and we will have opportunity buys available over the next 2-3 weeks.

Strawberry supplies remain very limited this week. Harvest volumes continue to decrease due to the heat. This weekend, temperatures in Salinas, Watsonville and Santa Maria hovered between mid 80’s to low 90’s. The hot weather is causing some sunburn, discoloration and softer fruit. Additionally, the berry sizes have been stunted, which is resulting in more berries per container to meet weight requirements. Between walking past damaged fruit and decreased yields, supplies are expected to remain limited for the next 2-3 weeks until we start new fall harvest in August. Until we break into new bloom, we can expect to see compromised quality and limited availability. As mentioned above, please be aware of the heat damage causing smaller sizes, dark color, soft fruit, and easy bruising. Although we do not expect any major disruption in order fulfillment, same day additions and open market fruit will be a challenge. Market prices are higher this week and will remain firm.

Alerts:
Due to the recent heat, strawberries are showing darker color and soft fruit. Markets are higher. Supplies are limited.

The broccoli market has come off slightly from last week. Supplies have been slowly increasing as we go through the typical growth cycle. The outlook is for supplies to remain at normal levels. Quality remains good with minimal yellowing, little mechanical damage, and decent crown size.

The current market on Brussels Sprouts has been coming off slowly as of late. Supplies in Salinas have improved. Quality is much better from the previous weeks and is seeing less insect damage, black spotting and decay.

We are seeing low yields of jumbo size carrots and a firm market on jumbos. Value-added packs and medium-sized supplies remain good.

Cauliflower market remains very competitive with abundant supplies from both the Salinas and Santa Maria growing regions. Overall, the quality has been good. The quality reports have shown weights in the 27 to 30-pound level, little yellow cast to cream color, and occasional bruising.

This market has remained firm, even though Michigan has begun production. Salinas and Santa Maria have moderate supplies with small sizing, 36s, in particular, leading the way with the least availability. This will continue throughout the week. Some slight defects include yellowing leaves, seeder due to the warm temperatures and slight bowing. The overall quality, however, continues to be good. Oxnard production is finished, and planting will not begin again for about three weeks.

Jalapeño – The market remains strong. The Jalapenos being harvested in Baja are mostly going directly to the L.A market. Production remains lighter than usual from Mexico. Quality is mostly fair. Santa Maria has now started harvesting jalapeños, volume in Santa Maria is expected to increase in late July. The hot weather in California has slowed production.
Pasilla – Most of the Pasilla for the west coast is coming from the Baja growing areas. There is a high demand, and the market is firm. Quality from Baja has been mostly good; however, last month’s storm affected the shelf life of the peppers. New fields will be ready to harvest this week in Baja. Pasilla will also be available to load in Santa Maria, high heat in the area has slowed production.
Anaheim – Anaheim peppers are being produced in Baja, where the quality of the fruit has been good. Production in Baja is expected to increase in the next week. Growers in Santa Maria are expected to start in the next week. High heat in Santa Maria has slowed production. The market is firm; pricing remains high.
Tomatillo – Better supplies available on both husked and peeled tomatillos. The market remains higher on the peeled variety. Most Baja fruit is still being sent directly to the L.A market. Tomatillos are now available in Santa Maria, mostly the husked variety. Volume is light and pricing is higher.
Serrano – Light supplies are now available to load in L.A from Baja. The market remains strong, quality is reported as good.

Good supplies continue to bring competitive pricing from multiple shippers from Salinas and the southern region. Cilantro supplies also exist out of Mexico. Quality has been a little more hit or miss out of this region. Minimal decay and yellow leaves have been reported upon arrivals out of the California growing regions.

The overall lemon demand far exceeds the limited supplies. Domestic production out of Ventura County is nearly finished with picking and working out of limited storage fruit. Importers of offshore fruit are still waiting on usable volume of fruit to begin to arrive toward the end of July, with crop reporting to be lighter in volume and larger in size.

Alerts:
Demand greatly exceeds supplies.

On Limes we are seeing a steady supply of larger fruit (150-175ct) due to the extreme heat in the growing region of Mexico. Smaller fruit is pretty tight right now (200-250ct). Overall quality has been fair with lighter color and smooth skin. We will see some light supplies these next few weeks with the heat in Mexico and also transitioning between crops.

California Valencia harvest is moving at a steady pace. Packers are packing only 2 to 3 days a week to spread this light crop out into September. Fruit quality and color are good, with size currently peaking 88s/72s/113s. Demand remains strong and increasing as early school demand is beginning. Small size fruit 113s/138s will be limited through to entire Valencia season.

We have Summertime Cucumber Supplies, which means there are small pockets in a lot of places across the east but no big supplies. Western North Carolina, Ohio, Michigan, Virginia and New England all have supplies of cucumbers, but none have any big volume. There have been some quality issues in Michigan and Western North Carolina because of rain, but the quality is mostly good. Prices are starting to climb, supplies of super selects are tight, and carton 24's and selects are steady, but shippers are getting higher prices.

Alerts:
Supply of super selects is tight and selects and carton are steady.

Transitions:
Cucumbers are in their summertime regions; Michigan, Ohio, Western North Carolina, and New England.

The San Diego (Baja California) crop will continue production through the summer. The quality from San Diego has been mostly good. High volume is expected out of Baja for the season. Extreme heat in Baja has slowed production slightly, while demand remains steady. Pricing is higher in the west.

Expect tighter eggplant supply over the next two weeks. Georgia is winding down quickly along with South Carolina and eastern North Carolina. New Jersey is shipping steady supplies, and Western North Carolina has light volume. The southern regions will finish next week, and the next big supply will be Ohio/Michigan starting the first week of August.

Alerts:
Tighter supply of eggplant.

Transitions:
Eggplant supply is transitioning to New Jersey and western North Carolina.

Eggplant is now also available from the Arvin / Bakersfield district, where supplies are expected to increase slightly. Demand and pricing have been steady. Some deals are available on choice grade eggplant. High heat in the growing area has affected quality. Shipping areas include Bakersfield, Fresno, and Gilroy.

Mexican grapes are done for the season. The floors have mostly been swept up, and any cases left are not making arrival. California greens are readily available and of excellent quality. The main area for harvesting right now is Arvin CA, pulling all colors. The Fresno area started a few weeks after Arvin but is now also in full swing. Fruit is seeing excellent size, color, with very healthy stems.

California greens are readily available and of excellent quality. The main area for harvesting right now is Arvin CA, pulling all colors. The Delano and Fresno area started a few weeks after Arvin but are now also in full swing. Fruit is seeing excellent size, color, with very healthy stems. Mexican grapes are done for the season. The floors have mostly been swept up, and any cases left are not making arrival.

The market continues to be competitive. Sizing is still trending to the smaller sizing with a target date of August 13th for Jumbo Green Onions. At this point, Jumbo Green Onions are nonexistent. With the hot weather in Mexico, quality has been improving overall, and the presence of thrip damage and leaf minor is minimal. This hot weather is helping fight off thrip and leaf minor presence.

The kale market is steady with no signs of changing in the coming week. Supplies continue to be good with steady demand. Quality is generally good with good color, full bunches, and only an occasional yellow leaf being reported.

Demand has fallen off in the marketplace for this commodity. A few shippers have remained steady while others flex on volume type orders. The weather continues to be ideal for growing conditions. The overall quality has been good. Slight defects being reported including ribbing, puffiness, and some mechanical. The weights continue to be strong, with palletized being reported at 42-47 pounds. Expect steady supplies both north and south for the entire week. There is no rain in the forecast.

Ideal weather conditions and a lack of demand has created a surplus of romaine and all leaf items in the marketplace. Shippers continue to flex on all leaf items. This can be expected for the rest of the week. Production in Salinas is stronger compared to down south, but ample supplies exist in both growing regions, regardless. The quality has been good. Slight defects include fringe burn, insect damage, and mechanical, but again minimal. Weights on romaine are reported at 33-37 pounds, while green and red leaf has been 19-24 pounds. Warm temps will continue throughout the week. Expect plenty of product for the entire week, both north, and south.

Tender leaf supplies are abundant for arugula, spring mix, baby spinach, and cello spinach. The weather for growing conditions has been optimal for all tender leaf items. The quality has been really nice with minimal yellowing, excessive moisture, or bruising of the tender leaves.

The weather has been ideal in the San Joaquin Valley growing region with temps ranging from the upper 90s to 100s. Plenty of larger fruit is available in 6s, 9s, and 12s. Smaller fruit (15s and 18s) is minimal. Overall quality has been good and brix/sugar leve[ of 12. Growers will reach the peak of the season come August.

The weather has been ideal for Honeydews in the San Joaquin Valley growing region with temps in the 90s to the 100s. The market is steady with good quality fruit. Brix/sugar levels remain in the 10-12 range. All sizes available from 5s, 6s, 8s and even some 9s. Come August we will be at the peak of the season.

The Bakersfield area has begun watermelon production. Increased volume is expected in mid-July throughout Central California. Demand remains steady; pricing has adjusted down slightly with additional supplies creating pressure to promote sales. Quality is good out of Bakersfield.

The market has firmed slightly on Yellow onions shipping out of New Mexico and California. This has been caused by thunderstorms all of last week in New Mexico that interrupted harvest. Sizing has shifted to Jumbos and smaller out of this area which has put more pressure into the California growing region. Demand still exceeds supplies on Red Onion out of both areas. Supplies will improve on red onions the last week of July. White onions are limited out of both California and New Mexico with supplies in few hands. Quality is being reported a good on all colors and sizes. Washington growers are almost finished with there over-winter yellow onion crop with direct-seeded varieties to follow.

We will start California Bartlett pears this week with a full range of sizes. The market will start off strong, but as more volume ramps up, we will see a significant decrease. So please order only what you need to start. We still have storage Danjou pears in Washington, but the market is strong. Imported pears are also still available but will finish within the next few weeks. Overall quality is really good with decent sugar content.

Pineapple volume coming from the tropics remains good, but we are beginning to see a small seasonal decline for the summer and fall. This is planed production drop as summer time a period of good availability of other fruit types which compete with pineapples. Size peaking on 6s/7s.

Potato market continues at steady markets with decreasing seasonal storage supplies out of all areas. Washington is down to a couple of shippers still running storage crop with very limited supplies available. The new crop will start next week in a very light way. Idaho will follow the week of August 6th. All reports on the upcoming 2018/2019 potato crop are looking good on quality. Sizing is always the big question, so stay tuned. Pricing on the new crop will always start out high and slowly weaken as more supplies and areas come online. Number two will become very limited as we transition into the New Crop Norkotah's as they produce around 80 % number ones.

Transitions:
New crop Washington russet to start up in a light way next week. Idaho scheduled to start the week of August 6th.

Color Potato Supplies out of North Carolina and Alabama will be slowly winding down over the next two weeks. Big Lake, Minnesota is set to start August, 1st. Quality is still being reported as good. Market off the East is steady.
Texas is still going strong on Red and Golds with a strong market. Quality is good. California has made the transition to Stockton on all colors. Market is steady with good quality being packed. Look for the market to stay steady at current levels over the next couple of weeks.

Transitions:
California has made the transition to Stockton. Big Lake, Minnesota will start the first week of August.

Much like cucumbers, squash supplies are spread across many pockets along the eastern half of the U.S. and Canada. Demand has been very good for both colors of squash keeping the market healthy and supplies on the tighter side. Western North Caroling, Virginia, New Jersey, Michigan and New England are all shipping supplies of squash along with other regions. Quality has been good in most regions and supplies should remain steady.

Alerts:
Good demand is keeping supplies tight.

Transitions:
Much like cucumbers, squash supplies are in many pockets across the eastern U.S. and Canada.

Peak Seasons:
Squash is in peak season.

Zucchini and Yellow S/N - Good supplies are available from Santa Maria, CA. Quality is mostly fair. Production in Santa Maria is expected to remain consistent through the summer season. High heat in the last few weeks has affected the quality and shelf life of the squash. The market is steady; demand has slowed with additional supplies being offered across the country from local growers.

We are in peak season for stone fruit. There is plenty of fruit available in larger sizes, and in tray packs. As the fruit sizes up, there are less smaller sized fruit and volume fills available. Growers are willing to make deals while fruit is prevalent, and the demand is slow before the school season starts up.

Tomato production continues to improve out of new farms in Virginia, North Carolina, New Jersey, Tennessee and Alabama this week. Although supply is improving, the market is still hovering around double digit quotes while California continues to crank out mature greens at nearly half the price of Eastern Shipping points. With much of eastern farms harvesting crown picks, sizing is trending upwards where XL packs are selling at the best value. Similarly, Tennessee and Alabama are increasing Roma production helping local supply in the east and selling two to three dollars above their western counterpart. Virginia is steadily promoting both grape and cherry tomatoes with no change in the market this week. The market is forecasted to be steady over the next 7-10 days while volumes continue to build and the weather is favorable.

California continues to harvest heavy yields of tomatoes helping to keep markets depressed with no indication of change in the immediate future. Bountiful supplies of mature greens and vine ripe tomatoes continue to stabilize markets at very low prices. California rounds remain near half the price of the mandated minimums set for Mexico imports. Roma tomatoes are available from both California and Mexico stabilizing markets at seasonal norms and forecasted to remain steady through July. Baja underwent a slow start to the season but has improved quality and supply helping to further create cheap grape tomato markets in the west. Quality and supply have both improved from just a few weeks ago and circulating quotes this week are again an indication of the lower markets to follow in the weeks ahead as the summer season gets underway.