The Source - July 20, 2015

Summary

Strawberries:
Warm and humid weather in California's Central Coast growing region continues to affect quality and availability of fruit. Fruit is ripening to full color very quickly, faster than it is sizing up so berries are full red to overripe, yet small in size. These berries are soft and very susceptible to bruising and subsequent decay. The humidity increases the presence of mildew and any exposure to warm temperature will accelerate mold. Other growers are harvesting the fruit lighter in color to try and avoid the bruising and decay. That fruit is showing up with more white shoulders and green tips.

Weather Update

A very active weekend out west as the remnants of Hurricane Dolores brought thunderstorms and heavy rains throughout the Southwest. Rain totals varied widely, depending on where the thunderstorms developed with Southern California and the Southwestern desert regions receiving the bulk of the energy. We are currently watching another system forming off the coast of Mexico that may take a similar path and development as Dolores did. This looks to be a very active summer and fall as ocean waters continue to warm in the Eastern Pacific. Warm and humid conditions look to continue along the Central Coast this week with tropical moisture and a returning marine layer. Temperatures rebound to seasonal averages by mid-week.
The Southwest regions will continue to see scattered showers and thunderstorms, as a couple of weak cold fronts move into the region with temperatures along with seasonal norms in the mid 90s.

Freight Update

Look for trucks in California to be steady this week. Washington and the Northwest should hold steady as well. Crude oil dropped slightly and is currently 49.97 per barrel. Fuel prices remained steady again this week with CA pricing at 3.111 per gallon and the national average at 2.782.

Commodity Updates (Click row for summary) Expand All

Apples

California now has a few shippers packing gala apples. They are still peaking on 100/113s while 80s and larger are limited. The early varietys are high in color. The market is being quoted steady but there is some volume flex on 88/100/113s.
Michigan is still packing Red Delicious and they should pack through July. They are still peaking on 100s and larger and have limited supplies of 113s and smaller. The quality has been fair.
Washington Red Delicious are steady but the price-flex for 88s and larger is still available. Most packers continue to peak on 88s and larger in the premium and Washington extra #1 grades. Golden Delicious are steady to higher on all sizes due to stronger demand. Gold 125 & 138s are still more limited than the other sizes. Granny-Smith are generally higher and supplies are getting into fewer hands. Washington Granny-smith continue to peak on 72s and larger while100s and smaller remain limited. Fujis and Galas are cleaning up quickly and supplies are limited on all sizes. Most shippers have a lot of holes in their manifests. The markets for both varieties remain active and will remain strong until the CA fruit cleans up.

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

This market is active with all suppliers. Production out of Peru is moderate to light. Jumbo packs continue to be light in availability. Supplies are heavier to standard and large packs. Supplies out of Mexico have fallen off. This product can be loaded in Salinas or LA. Standard and large have the best availability. There are decent supplies of jumbos, if interested. Overall, the quality has reported to be strong in all of the growing areas.

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

California production is expected to decrease slightly over the next several weeks, as the Southern region wraps up its harvest. Peak sizing is on 48s and 60s. Very good demand is keeping supplies on all sizes tight, but currently matching supplies. Quality and flavor are both excellent.

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

Mexican production is picking back up as the Flora Loca crop comes on. The Flora Loca crop from Mexico is in the supply chain now. Expect Flora Loca to have less maturity than the old crop with lower oil, brighter green color and will be 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.

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

Supply and availability have been day to day as some grower/shippers are gapping on volume in between fields. Projections have been off as the fruit is taking longer than expected to color up and therefore staying on the plants longer. As new fields come on, others blocks start to wind down so we are only maintaining our current volume which has been short for the past several weeks. We are looking at another 10-14 days of spotty availability before the plants actually catch up and should eventually begin to peak around mid-late August.

- pa_admin

Peak Seasons:
California peak production should hit by mid-late August!

Growing Region Market Quality
Salinas, CA Steady Good
Watsonville, CA Steady Good
Santa Maria, CA Steady Good
Oxnard, CA Steady Good
Berries (Blueberries)

With many regions providing fresh blueberries, we are still in good volumes overall. Although, we are seeing transitions from region to region and some areas going out of play for the season causing spotty availability as fruit is transferred in from other regions. Some east coast regions have been challenged by local weather and loss of laborers transferring to new upcoming growing regions and some will look to end major production by end of this week. Fruit sizing varies by region, quality has been good overall. Along with our domestic blues, Peru has begun fresh harvest and is beginning to ship by vessel to the US coasts and other markets. More information to come on the early arrivals and locations.

- pa_admin

Peak Seasons:
Michigan will begin with peak volume production this week! Quality is excellent!

Growing Region Market Quality
Grand Junction, MI Steady/Higher Excellent
Hammonton, NJ Steady/Higher Good
Demotte, IN Steady/Higher Good
Salem, OR Steady/Higher Good
Mossyrock, WA Steady/Higher Good
Pitt Meadows, BC Steady/Higher Good
Berries (Raspberries)

Promotional availability and quality are now available as we are coming upon peak volume season for California. Fruit has great flavor and appearance. This is a great time to promote fresh California raspberries!

- pa_admin

Peak Seasons:
We are moving toward our peak volume season for California raspberries with the very best volumes coming in August-September!

Growing Region Market Quality
Watsonville, CA Steady Excellent
Salinas, CA Steady Excellent
Santa Maria, CA Steady Excellent
Oxnard, CA Steady Excellent
Berries (Strawberries) Alert

Warm and humid weather in California's Central Coast growing region continues to affect quality and availability of fruit. Fruit is ripening to full color very quickly, faster than it is sizing up so berries are full red to overripe, yet small in size. These berries are soft and very susceptible to bruising and subsequent decay. The humidity increases the presence of mildew and any exposure to warm temperature will accelerate mold. Other growers are harvesting the fruit lighter in color to try and avoid the bruising and decay. That fruit is showing up with more white shoulders and green tips. With similar weather again today and forecasted for later this week, this will be a challenging period for quality and availability. Growers are diverting much of their fruit into the processing market for frozen and juicing items as it is not reaching specification for the fresh market. They are packing the best quality available for fresh market orders, yet the issues we're seeing are in every label, industry wide. For the time being, we have to consider the situation and adjust expectations for receiving and shelf life. It is of utmost importance to maintain the cold chain on this product, keeping temperatures at 32-34 degrees.

- pa_admin

Alerts:
Hot and humid weather related quality issues are present in most packs and all labels. Fruit is ranging from soft, overripe and bruised to white/green shoulders and green tips.

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

The market is stronger. Expect supplies to be light all week on bunched product as well as crowns. The main production is out of Salinas. The Southern California region will have light production all week and pricing will continue to rise. Production out of Mexico is light to moderate. Texas is light in production. Good quality, overall continues to be reported in all the growing regions. Expect the market to be active all week.

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

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.

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

This market has remained steady overall. There is a gap in the marketplace by as much as four dollars. Demand is light, overall. The quality on this item is being reported as good, with only slight discoloration sporadically being reported. Insect damage is minimal. Expect moderate to good supplies for the rest of the week. Availability should not be an issue.

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

Overall, this market remains steady. Production in Michigan has gained strength. Santa Maria continues to have production if needed in the Southern California region. The quality is good in both these regions. The Salinas Valley has picked up as strong heats have accelerated the growth of this commodity. Expect good quality from all the regions. Large sizing is the most readily available. Small sizing is commanding a higher price.

- pa_admin
Growing Region Market Quality
Michigan Steady Good
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Citrus (Lemons) Alert

Crop is peaking on 140s and smaller. Demand is exceeding supplies on 140s and larger and on all 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.

- pa_admin

Alerts:
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
Oxnard/Ventura, CA Steady Good
Citrus (Limes)

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 may see thinner skin with lighter color in some lots.

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

California Valencia oranges are going with good volume on 72s, 88s, 113s and 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.

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

Green grapes continue to be about steady with no real change in the market. We are moving from Sugarone's to Princess and Thompson with the only result being a slight change in the range of sizes offered. Quality is being reported as very good.

- pa_admin
Growing Region Market Quality
Arvin, CA Steady Excellent
Delano, CA Steady Excellent
Grapes (Red)

Sizing on red grapes is improving, with more of the large to extra large fruit available. This improved availability has resulted in a easing of the market on these sizes. We expect this to continue this week as demand remains steady and supply improves. The recent rain was scattered and limited and appears to have had no long term effect.

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

This market has remained unchanged. Demand is light. Expect supplies to be strong throughout the week out of Mexico. Supplies will likely continue to exceed demand. All sizing is available. Better 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 is steady. Supplies are abundant and shippers are listening to offers. The weights on palletized are ranging from 42-48 pounds. Defects continue with most suppliers. These defects include misshapen heads, light insect damage and mildew. Heat and humidity are current issues in the produce industry. Salinas and Santa Maria are the two main growing areas at this time. Production in Santa Maria is stronger than the previous week. Although rains were strong over the weekend in this region, there is still better availability compared to past weeks. Salinas will have strong supplies throughout the week.

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

The romaine market is flat. High temperatures in the growing regions are creating defects like fringe burn, insects, dehydration and mildew. The weights on romaine cartons are averaging 31-36 pounds. Hearts have good availability if needed. Yields continue to be lighter with many suppliers but all orders are being filled. Chopped romaine continues to show pinking upon arrivals. Fringe burn, mildew damage and insect damage continues to be seen on red and green leaf. This is industry wide.

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

The West Side is a little light in volume on all sizes of cantaloupes for the first few days of this week. Cooler temperatures last week held growth back. The peak size is 12s and 15ct but the size curve continues towards the larger sizes. The West Side has very good quality and good sugar content. The current market is steady on all sizes.

- pa_admin
Growing Region Market Quality
Firebaugh, CA Steady Excellent
Mendota, CA Steady Excellent
Melon (Honeydew)

The West Side is our main producer now. The peak size is currently 6s 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 is currently steady on all sizes.

- pa_admin
Growing Region Market Quality
Firebaugh, CA Steady Excellent
Mendota, CA Steady Excellent
Onions

California received some light rain over the weekend which has most shippers not harvesting today. There was not enough rain to hurt the quality, just enough to keep the growers out of the fields for a day. Market is steady on all colors and sizes. Supplies will improve as this week moves on. Quality is being reported as good.
New Mexico is back into moderate supplies of all sizes of yellow onions the start of this week. Reds and whites are limited with better supplies coming later this week. Market is firm but steady. Quality is being reported as good on the Yellows. Red and white onions are showing some light staining. Weather forecast is calling clear skies through the weekend.
Washington has started with new crop yellow onions. Market is firm but steady. Sizing is peaking on mediums. Quality is good.

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

California Bartlett pears are peaking on US#1 80/90/100s. The market is steady to slightly lower on 100s and larger while 110s and smaller are steady. Stark Crimson pears are still peaking between 35-55 size half cartons and they are steady on all sizes. The quality for both has been good.
Washington is still shipping 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 to higher due to limited supplies. Washington will pack D'anjou pears through July.
The Chilean pears are cleaning up and should be finished soon.

- pa_admin
Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Steady/Higher Good
Chile Lower Good
Stockton, CA Lower/Steady Excellent
Potatoes

New crop Washington potatoes have started this week. Quality is being reported as good. Shippers are reporting a good mix of sizing for these first fields (40 count though 100 count). Market has come out slightly higher than the old crop.
Idaho market is starting to adjust slightly downward on 40 count through 70 count with 80 count and smaller steady. Quality is still good. New crop Idaho potatoes will start with a few shippers the first week of August. Look for the #2 market to firm up around the middle of August as the old crop finishes for the season.
Colorado/Wisconsin market is steady on all sizes with moderate supplies. Quality is still good. New crop will start around the middle to end of August.

- pa_admin

Peak Seasons:
Washington just starting with new crop potatoes this week.
Idaho is slowly winding down on storage potatoes. New crop to start the first week of August.

Growing Region Market Quality
Hamer/Rupert, ID Lower/Steady Good
Quincy/Hermiston, WA Higher Excellent
Eastern Colorado Steady Good
Plover/Bancroft, WI Steady Good
Potatoes (colored)

Bakersfield, California continues to pack red, white, and gold potatoes but this is the end of the season for those colors, then it will be whites only. Most suppliers have finished for the season but the market remains steady. All colors continue to peak on A-size. The quality has been good.
Stockton, California continues to pack red, white and gold potatoes. All are heavy to A-size and the markets are steady for all. The quality has been good.
Muleshoe, Texas is packing red potatoes and a few golds, they are both peaking on A-size. The markets for both colors are steady yet strong, due to strong demand. The quality has been good.
Alabama is steady on reds and they are peaking on A-size. They continue to pack mostly bags and have only light supplies of cartons. The market is slightly lower as more areas are packing now, but supplies are limited on As and Bs and nobody there packs a C-size.
Camden, North Carolina is packing all colors and the availability of As and Bs is good in all colors but there are no Cs. The markets for all colors are slightly lower with the exception of Red Bs which are steady. The quality is being reported as good.
Virginia is packing all colors and the availability of As and Bs is good in all colors but there are no C-size available. The markets for all colors are slightly lower with the exception of Red Bs which are steady. The quality is being reported as good.
Wisconsin is still packing red Bs and they have a few C's but no As of their own. The market is lower.

- pa_admin
Growing Region Market Quality
Bakersfield, CA Steady Good
Stockton, CA Steady Good
Muleshoe, TX Steady Good
Ider, AL Lower/Steady Good
Plover, WI Lower/Steady Good
Elizabeth City/Camden, NC Lower/Steady Good
Hallwood/Horntown/Cape Charles, VA Lower/Steady Good
Stone Fruit

Peaches are showing a stronger market on the small volume fill sizes as they become scarcer. Sizing is increasing weekly with volume fill 60's to tray pack 48/50's being the promotable sizes. Nectarines are about steady with good demand and a better range of sizes available. Quality on both peaches and nectarines is reported as very good. Red and black plums are about steady on the market with a full range of sizes available. The quality on these is reported as generally excellent.

- pa_admin
Growing Region Market Quality
Madera south to Arvin, CA Steady/Higher Excellent
Tomatoes (Eastern)

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 week that should help increase the supply.

- pa_admin
Growing Region Market Quality
Charleston, SC Steady/Higher Good
Exmore, VA Steady/Higher Good
Tomatoes (Western)

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 Hurricane Dolores has been downgraded to a tropical storm to hit Sothern California this week. 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 steady from last week. Quality on California tomatoes 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.

- pa_admin
Growing Region Market Quality
Coachella Valley, CA Steady/Higher Good
Northern Baja California Sur, Mexico Steady/Higher Good

Things You Should Know

Berries (Strawberries)
Hot and humid weather related quality issues are present in most packs and all labels. Fruit is ranging from soft, overripe and bruised to white/green shoulders and green tips.

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 (Blueberries)
Michigan will begin with peak volume production this week! Quality is excellent!

Berries (Blackberries)
California peak production should hit by mid-late August!

Berries (Raspberries)
We are moving toward our peak volume season for California raspberries with the very best volumes coming in August-September!

Potatoes
Washington just starting with new crop potatoes this week.
Idaho is slowly winding down on storage potatoes. New crop to start the first week of August.

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