The Source - July 26, 2017

California - Gala apples still have excellent color and continue to peak on 88/100 size. The market is very strong and will remain so due to the current supply issues in Washington. The quality is good.

Washington – Red delicious are steady to higher on all sizes and we will see this trend continue as the other variety's are so short. Most red shippers are still peaking on 80/88s. Golden delicious are higher on all sizes but are so short that most shippers will only quote regular business. The few remaining Golden delicious are peaking in the 72/80/88 range. The two larger shippers in Washington have 1 to 2 shifts of Golden delicious left so expect a gap until new-crop starts. We still expect Earli/Ginger golds to begin between early and mid August. Granny Smith are higher again and the market continues to rise due to light supplies. The remaining Granny-smith apples are larger but even the bigger sizes are demand-exceeds now. Galas are higher on most sizes and the demand continues to exceed the supplies. The suppliers that have more Gala volume in storage are rationing them out so they last for the entire summer but the season for most shippers is close to being over. Fuji's are higher on all sizes but supplies of the smaller sizes are esp. short. The Fuji season is basically done with the exception of very large fruit. The quality for all varieties has been good.

Michigan – Red delicious are steady on all sizes but supplies are very low. Reds are in few hands and should last through July. The quality has been good.

Chile – Chilean Pink Ladys, Fujis, Galas, Braeburns, and Granny-smith are all steady. All variety's are peaking on 70/80 size with very few 90s. The quality has been good.

Alerts:
Granny-smith, Golden delicious, Gala's, and Fuji's are in a demand exceeds supplies situation in Washington! Red delicious are climbing rapidly because the other varietys are so short.

Transitions:
California Galas have started with one supplier and we expect two more to start packing next week.

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

Central Mexico is still experiencing rain, and cold nights which continues to slow production. Season is winding down quickly due to seasonality in this region. Northern Baja is seeing more volume on smaller sizes, but larger size asparagus is still very short. Peru continues it's transition from the Northern growing region (Trujillo) to the South (ICA). Weather is cooler than expected during the evening which has slowed this transition. All markets are very active, and we will continue to see a shortage on larger sizes from all growing regions.

Alerts:
Larger size asparagus will continue to be short from all regions.

Transitions:
Peru is still in transition from the North (Trujillo) to the Southern growing region (ICA)

The crop continues to peak on 48s and larger, with limited amounts of 60s and smaller fruit. Harvest continues to drop and some shippers are only packing a few days per week. Crop volumes will continue to trend down as we move into August and expect light supplies in August as the crop finishes for the season. Fruit is ripening evenly and tasting very good.

Mexico's summer crop is starting slowly and volumes will increase in the coming weeks. Size is peaking on 60s and smaller will with limited amounts of 48s and larger fruit. Mexican growers have raised their field prices. With lighter volume currently and higher field prices, we are seeing market prices rise. This new summer crop fruit has a lower maturity level and will take longer to ripen.

Better supplies of bell pepper are on the way with new regions starting and New Jersey picking up in volume. Michigan and Ohio started this past weekend and should get more volume as the week goes on. Western North Carolina has started and will be in better volume this week. New Jersey has been shipping on very little acreage for two weeks and now larger growers are starting, increasing the volume significantly. Quality reports are good from all the newer regions and volume should be steady for the next few weeks. Look for markets to lower to more normal levels next week.

Transitions:
Bell pepper is transitioning to the northern tier of the country and western North Carolina.

Peak Seasons:
Bell Pepper will move into peak availability next week.

Green Bell Pepper remain limited out of Fresno, CA. Should see more availability mid-next week when Gilroy starts to kick in production.

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

Blackberry yields have been better than initially expected. Supplies have been fairly consistent and will remain so this week. However, it looks like the new crop will be coming on sooner than anticipated, so we should see an increase in availability as early as next week. Quality is being reported as excellent. Market prices have been steady, but we will see some opportunity buys become available if the next cycle of crops come on as quickly as shippers are now expecting.

Peak Seasons:
New California crop is coming on quicker than expected. Harvest numbers will begin to increase as early as next week and peak mid August.

Blueberries continue to be in excellent supply this week. We have several growing regions in production currently. Oregon continues to harvest this week, but this area has past its peak in production and will start to down trend moving forward. Washington is very much in the same situation as Oregon, production is steady this week, but will start to decline moving forward. Canada (BC) area is in the middle of peak season and will continue to produce big volume through the end of the month. Michigan continues to move along at a good pace with harvest and is expecting to be in good supplies over the next 2 weeks. Quality in all areas has been excellent. Supplies are abundant and market prices have started to drop rapidly this week. However, as Oregon and Washington slow down, we expect the markets to firm up slightly next week.

Not a whole lot has changed on Raspberries. Availability will continue to be light this week. Santa Maria, Salinas and Watsonville growing regions are all down trending on production. Market prices have increased again this week. The new crop is expected to start in August and supplies will be a challenge until then. Volume will gradually increase toward the beginning of August and peak at the tail end of the month.

Alerts:
Supplies will continue to remain limited until new crop begins in August.

Peak Seasons:
New California crop is expected to start in August and peak toward the end of the month.

Strawberry supplies will continue to be excellent this week. The weather in Salinas / Watsonville areas will be sunny with warm temperatures in the afternoons. Production will remain steady with good volumes expected. Quality overall has been good, but we have had reports of darker color fruit with occasional soft berries. This is due to the fruit being exposed to the warm temps. Quality should improve this week, but sizing will be a bit smaller as growers are picking earlier to avoid over exposure to the sun. Market prices have been down with plenty of opportunity buys available on volume orders. We expect this week to be much of the same.

Alerts:
Darker color fruit with occasional soft berries have been reported.

The growing regions are benefiting from ideal growing conditions. Supplies are abundant and the market has reflected this. As we move into the end of this week, supplies and markets will remain steady. Quality is really nice with vibrant green color, minimal yellowing, or dehydration. Although with school business about to kick into gear look for the markets to change as a surge of demand will be heading our way.

Brussels Sprout supplies are extremely limited. We have finished one growing region in Mexico and another small growing region in Mexico is starting. But supplies from Mexico are extremely light. Also we are seeing a slow start in supplies from the Salinas Valley. We are 3 weeks away from getting back to normal conditions. As a result the market is extremely active. Sizes are ranging in small to medium and jumbo size is extremely limited.

Alerts:
We are experiencing extremely limited supplies from Salinas, Oxnard, and Mexico. This has caused the market to trend much higher than normal levels.

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 supplies 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.

We are experiencing ideal growing conditions for cauliflower as well. Supplies from most suppliers this week are steady. The market does vary depending on the shipper and loading location. Quality has been really nice with little brown to black spotting, and weights in the 25 to 29 pound range.

Supplies are up and down depending on the shipper. There is a gap in the marketplace. Santa Maria has had a few reports of heavy harvesting to occur over the next few days,. This region is where the best deals are being offered for volume type orders. Seeder continues to be reported. This has created production numbers to be sporadic. In other words, yields have been affected. Salinas production is moderate. The best availability is occurring on thirty counts. Michigan production has helped out demand for this commodity out of California.

Cherry season is rapidly coming to a close in the Pacific Northwest. Some shippers have already finished for the season. Most others will wrap up within the next two weeks. Quality remains excellent with good availability.

Peak Seasons:
Northwest cherries will be ending over the next two weeks.

Pablano – Seeing better quality and condition with new crop in Baja California. California growers have started harvesting this week good quality, condition, and size.

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 to good quality on new crop pepper. Good size, color, and condition with supply increasing. Baja and Fresno volume increasing.

Anaheim – Good quality, condition, and size coming out of Baja California and growers now Harvesting in Fresno.

As an industry we are seeing extremely poor quality that is directly a result of the previous heat in the growing regions. We are seeing black slimy decay, brown to yellow leaves, and spotting. This has caused a serious spike in the market. We will continue to see these quality issues for the next 2 weeks. Harvesting crews are doing their best to eliminate the quality issues as they pack, but the raw product isn't holding up during transit times to end users.

Alerts:
We are seeing severe quality issues from all suppliers. The previous heat in the growing regions has directly affected supplies and as a result the market is trending much higher.

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 are beginning to see a little relief as Chilean lemons start arriving in better volume. Mexico is trying to start, but has been hindered by rains and start up has been slow. Even with the imports, over all supplies will remains short.

The larger 110's and 150's are now priced a little lower than all of the other sizes which are 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 was pushed up too high and too fast so we are in a steady market currently. The market is looking for direction here and could go in either direction depending on demand.

Demand for California Valencia oranges remains very strong and is getting stronger. School demand has started for some and will just increase as we move forward. School demand paired with the retail juice demand, will cause shortages on small size fruit trough the Valencia season. Even with packers moderate their pack weekly to stretch crop, many expect to see their crop finish sometime in September.

Alerts:
Demand exceeds supplies on all sizes and grades.

With many regions producing there are good supplies and good quality cucumbers on the market now. Western Carolina has started their summer deal, the mid-Atlantic, Northeast and mid-west are all in steady supplies this week. The market is showing a slightly weaker undertone with a wide range of pricing between supers and selects. The weather has been good in all growing regions with a few summertime thunderstorm but mostly sunny with normal temperatures.

Peak Seasons:
Cucumbers are in peak supply now and will remain that way through the weekend.

Improved 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 increase as temperatures continue to drop.

Eggplant supplies are still tight with North Carolina winding down and quality declining. Newer regions are beginning which will bring some relief but it may take a week for the newer regions to get up to full speed. Michigan, Indiana and Ohio are all starting new acreage with light volume and good quality. New Jersey has been in light production for about two weeks and is just starting to get better supplies. The northeast has been consuming more than New Jersey can produce. Better supplies will start in all these growing areas later this week and next week. Look for the market to stay strong through the week.

Alerts:
Eggplant are still very tight and quality varies a lot from the mid-Atlantic to the newer regions

Transitions:
Eggplant are transitioning to the mid-west and the northeast.

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

Green grapes are being harvested only in the San Joaquin Valley now. Volumes are currently getting better as more growers increase production. Demand has picked up a bit over last week. 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 only in California now. Supplies are gradually ramping and demand is good so the market is holding steady for now. 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 steady.

As the heat is Mexicali continues, it is finally affecting growth rates of green onions. We will see decreased supplies moving into the end of the week. This will definitely make the market react. We are seeing extremely limited supplies of jumbo sized green onions. Quality up to this point has been good with little yellow to brow tops. But it looks as if we will see this change moving into next week.

Alerts:
The heat in Mexico has finally affect growth rates of the green onions. We will see supplies decreasing as we move into the end of this week and into next week as well.

We continue to see abundant supplies of kale from all growing regions. Quality is excellent with full bunches, little dehydration, and vibrant dark green color. The market has remained relatively flat and competitive. This looks to be the case well into next week.

Ideal weather conditions in northern as well as southern California has allowed good supplies of lettuce to be available in the marketplace. This week, expect steady inventories with most suppliers but some shippers are expecting this market to tighten up next week. The overall quality continues to be strong. Weights reported are 41-47 pounds on palletized with minimal mechanical and insect damage. The availability in Santa Maria has picked up as well. Expect good availability throughout this week in all growing regions.

Although a few suppliers have hinted of a stronger market, overall romaine as well as all leaf items are steady. Demand continues to be soft. The quality continues to be favorable with weights on romaine being reported at 35-40 pounds. Green and red leaf as well as butter has had solid quality reports as well. Slight insect and mechanical damage is being reported, but minimally. Supplies are expected to be moderate to good throughout the week.

Cantaloupe supplies are coming out of the San Joaquin Valley only now. Quality is excellent and they are peaking on 9's with very few 12's or 15's being packed. 18's are not available at all and look to be so for a number of weeks. We are experiencing good demand and we have a steady to higher market.

Honeydews are only being harvested in the San Joaquin Valley now. Honeydew volume is picking up as more growers ramp up production. Demand is a increasing right now so the market is steady to higher. Quality is excellent but there are grower reports of netting showing up in some fields.

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.

Onion market is steady on all colors and sizes out of both California and New Mexico. Demand is moderate. Supplies of Red onions are limited out of both growing areas. If Demand picks up we the red onion market will get very active till supplies from the Northwest kicks in the middle of August. Monsoon rains have hit the New Mexico Growing regions over the weekend and are forecast on off for the 7 to 10 days. Rain totals range from a trace to up to 6 inches of rain. Supplies coming out of the Hatch, NM growing will have some light staining from the rain once the onions have dried enough to be packed. Sizing is peaking on Jumbo's and smaller. Look for the yellow onion market to stay steady at current levels into the middle of August. Light supplies of transplant Yellow and Red onions have started being packed out of Washington.

Stockton, California - Bartlett pears are steady on the larger sizes and steady to lower on 110-size and smaller. They are peaking on 100/110/120s. Red pears are steady on all sizes and continue to peak on 50/55s. The quality is good for both reds and Bartletts.

Washington – D'anjou pears are higher on all sizes and are still peaking on US#1 80/90s. The quality has been good. D'anjou's are expected to last through the month.

Supplies from the tropic's are light and looks to be so through 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.

The 2016/2017 potato storage crop is coming to a quick end. Idaho will have enough storage supplies to have some overlap on new crow the will start with a few shippers the week of August 7th. Storage supplies out of Washington, Colorado and Wisconsin are very limited and only in a few hands. New crop Washington potatoes will start up in a light way next week. Market is steady on 70 count and larger with a firming market on 80 count and smaller. The last storages that shippers are getting into are peaking on 70 count and larger. Once we transition into New Crop supplies of #2's will be limited with a firm pricing. This happens every year as the New Crop Norkotah don't produce very many #2's.

Eastern Washington -- they have just started packing red and gold potatoes but the quality is looking good with minimal skinning.
Bakersfield, California – a couple suppliers are finishing shipping their last few pallets but packing is finished for the season.
Stockton, California -- the red/white/gold potato markets are all steady. They have good availability on all sizes and colors other than on Premiums/Bakers in any color. The quality is good.
West Texas -- Reds and Golds are steady on all sizes but the season is winding down.
Wisconsin -- They are into smaller red potatoes so no A size or larger currently. The quality has been good but strong demand has them mostly cleaned up currently.
Minnesota -- they have started packing red potatoes and a few golds. The size profile is larger so B-size are limited.
Alabama -- red and gold potatoes are steady but the season is winding down.
Virginia --- the markets for all colors are steady but the season is winding down.

Transitions:
Delaware will start packing gold and red potatoes at the end of this week and white potatoes next week.

Minnesota will start packing more volume of gold potatoes the week of August 10.

Peak Seasons:
Stockton, California is still in the peak of its red, white, and gold potato season.

There are steady supplies on both colors of squash coming from all across the eastern half of the country. Western North Carolina has started their summer deal. Michigan, Ohio, New Jersey and New York are all shipping steady volume with good quality. The market is steady at very reasonable levels, buyers have plenty of choices and these supplies should continue through the weekend.

Peak Seasons:
Both colors are in peak availability now and will continue through the weekend.

Yellow Squash and Italian Squash are being harvested in Santa Maria and Fresno. Good Supply on 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.

Stone fruit markets continue to be strong. Volume for peaches and nectarines are still on the low side. Plums are more readily available. Yellow varieties of peaches and nectarines are still in somewhat short supply. New yellow varieties will start to be harvested over the next 10 days. Pluots and apple pears are in good supply if you are looking for something different to promote for school programs.

Alerts:
Consider pluots or apple pears for your school programs as an alternative.

Virginia is producing at decent volume considering the weather that has been endured during the growing cycle. Tennessee, North Carolina, and Alabama are all producing at yields far exceeded by demand pressing prices upward. 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. New roma tomatoes are expected in low numbers out of the North Carolina crop and are selling out daily across the east for local markets. Cherry and grape tomatoes are steady but with less coming across the border in the west, shippers are edging prices up while over supply is reduced.

The mature green market in California has tightened up again this week with reduced yields suffering the affects of extreme temperatures into the 100's since early June. Market pricing is higher than last week, and quality, remains sub par during what has been a shoddy transition for the west. Mexico has had a lot of rain as hurricane Hillary churns out multiple rain systems into parts of Baja and mainland Mexico creating a strong national market south of our border. With less crossing into the states, roma tomatoes have virtually disappeared selling out daily jumping another couple of dollars since Friday. As a result grape and cherry tomatoes have shown strength as well as overall imports slow. The Northern California valley is expecting more temperatures in the low 100s this week while southern California has a chance of light rain closing out July with market trending upward.