The Source - July 31, 2019

The apple market is active and prices are rising. Schools are re-opening and shippers are at the tail end of their stored inventory. Golden Delicious apples are gapping; therefore, until Ginger Golds become available (week of 8/5), many shippers are NOT able to fill orders calling for Golden Delicious.

Red Delicious – available
Golden Delicious – N/A (Ginger Golds available next week)
Granny Smith – tighter and prices are rising
Honeycrisp – mostly bigger sizes available with some shippers done for the season
Fuji – smaller sizes extremely tight/higher prices, with some shippers done for the season
Gala – tight with some shippers done for the season
Pink Lady – shippers are done for the season with the remaining few attempting to clean up with aggressive deals

It is absolutely essential that orders be sent as early as possible. Orders sent 1-2 days before loading run the risk of having more pick up points (3+) or not getting the item(s) ordered. The more time shippers have, the better your chances of having product consolidated and the order loaded in full.

CA Gala apples are available now. CA Fuji apples are expected mid-August, followed by CA Granny Smith in late August/early September.

Alerts:
Golden Delicious apples are gapping in Washington; Ginger Golds are expected to be available the week of August 5 (next week).

Central Mexico (Guanajuato) production remains unchanged from last week. Production on the larger sizes is still limited, and it now looks like it will remain this way for the remainder of their season. Southern Peru (Ica) is struggling due to cold weather, especially with the larger sizes. Northern Peru (Trujillo) has warmer weather, and better production but only with the smaller sizes. Markets on both coasts are still active, especially on the larger sizes.

There is a strong demand for California fruit. Quality has been excellent and we approach the end of the season. Production is rapidly winding down with limited volume available for the next few weeks. A short California season will only help Mexico drive the market back up.
Peruvian fruit is moving well and also winding down for the season. The last of Peruvian arrivals will hit for the next 2-3 weeks.

Alerts:
Production is rapidly winding down with limited volume available for the next 3 weeks.

Mexican new crop fruit ramped up this month with sizing geared towards small fruit. Growers are also seeing low percentages on #2 grade fruit in the pack-outs. Sizes 48 and larger will remain tight through September. This new crop fruit is stubborn and takes longer to ripen. We are also seeing some checkerboarding (uneven ripening of fruit within a case and or pallet). That is perfectly normal for early season fruit. Field prices continue to rise as Mexico sees they have limited competition with California and Peru tapering off. Expect pricing to increase by the end of the week.

Alerts:
Seeing a lot of checkerboarding on this new crop fruit (uneven ripening of the fruit within a case and or pallet.) This does not cause internal or external damage. It will ripen and taste normal.

Green bell pepper supply is still very light although some new regions have started production. There is light supply coming from the mountains of North Carolina, but most of the supply is in the south. New Jersey has passed its peak but still has a steady supply. Some quality issues have shown up after rain up and down the coast followed by high temperatures. Michigan and Ohio have started a light supply with good quality. Most of their supply is Jumbo size product. Expect supplies and pricing to stay steady through the week.

Alerts:
Light Supplies

Transitions:
Bell Pepper is in Transition to the Mid-West.

Green Bell Pepper- Moderate supplies of green bell peppers are being harvested in Bakersfield and Fresno areas of CA. Mostly choice grade continues to be packed. Very light supplies of large and extra-large retail grade bell pepper being packed. Quality on green bell pepper from these areas is good. Choice grade Green bell peppers supply meets demand. Retail grade green bell pepper demand currently exceeds supply.

• Red Bell Pepper- Good supplies of red bell peppers are being harvested in the Bakersfield and Fresno growing areas. Mostly choice grade currently being packed from these districts. And the quality is mostly good. Market on red bell pepper is steady and showing some strengthening.

• Yellow Bell Pepper- Moderate supplies of yellow bell peppers are being harvested in the Bakersfield and Fresno Growing areas. Majority of the yellow bell is being packed into choice grade. Steady supplies of choice grade yellow bells are expected to continue through the week. Market on yellow bell peppers is expected to remain steady. Yellow bell pepper from California is good.

Blackberries remain very tight with supplies coming almost exclusively from the West Coast. The market remains firm to slightly higher and quality is fair with some red cell still showing in some lots. There are some Guatemalan imports showing up on the Eastern Seaboard but the quality on the early arrivals has been marginal. Look for this trend to continue through the end of the week. We should see somewhat better numbers next week as the plants begin to pull through the weather-related setbacks in early summer.

Alerts:
Tight supplies through the end of this week

As it was last week, blueberries are again plentiful in several loading locations across the U.S. Western regions include Oregon, Washington, and British Columbia. Much of this fruit is being transferred into the main strawberry shipping points of Watsonville and Salinas for consolidation purposes. Eastern locations include Indiana, Michigan, New Jersey, and some Georgia product. The market will remain steady to lower as we see many of these locations peaking simultaneously. Quality has been good especially on non-transferred FOB fruit.

Alerts:
Blueberries are peaking in several growing areas

Peak Seasons:
july mid august

Raspberries are in somewhat light supply with the Central California crop beginning to produce better yields. These numbers are being subsidized with Baja fruit as well. Quality has been fair with some lots showing leakers and soft fruit. Look for the market to get softer as the supplies begin to increase next week against moderate demand.

Strawberries are much easier this week as Watsonville and Salinas are producing better yields coupled with less overall demand. Volume deals are available. Overall quality expected to improve after a trying month of July for most berry shippers and receivers. We are still seeing excessive bruising in some lots as shippers try and tighten up their quality specifications to avoid total losses and freight claims upon arrival. The market will remain softer through the end of the week as shippers struggle to stay ahead of growing inventories and lackluster demand.

The broccoli market has started to pick up a bit as supplies are slightly gapping. This recent warm weather has brought fields forward the last couple of weeks and has affected the overall quality. Quality is fair with slight purpling, some mechanical damage and occasional yellow cast.

The brussels sprouts market continues to get stronger as fields are currently gapping from the recent warm weather. Quality continues to be good. Look for the Brussels sprouts market to continue to adjust going into next week.

Alerts:
The Brussels Sprout market continues to get stronger as fields are gapping and producing low yields.

Carrot supplies remain steady out West in the Bakersfield /Arvin area. The Mexican jumbo carrot market out of McAllen Texas is still firm but looking to ease off next week with pressure coming from Eastern Canada and the Colorado region.

The recent warm weather in the Salinas Valley have brought fields forward and now suppliers are seeing a slight gap in supplies. Overall, the quality is good with minor bruising and yellow cast with weights in the 25 to 28-pound level. Look for the market to continue to adjust going into next week.

The availability of this commodity is good in the marketplace on large sizing, twenty-four and thirty counts in particular. Smaller sizing is less in availability. Overall, demand is steady but looks to firm up in the next week or two. Production will continue out of Salinas and Santa Maria. A few shippers will flex on large orders but keep in mind this market will likely firm up next week, so buying a little extra would be prudent. Michigan has had production and this has helped California to have better availability. Some minimal quality issues include insect damage and leafy tops, but the overall quality continues to be reported as strong. The weights are averaging 48-55 pounds.

Transitions:
Michigan is in production.

The Washington cherry market is extremely active. Many of the smaller shippers are done packing, while the larger shippers will be done at the end of this week. Many have attempted to source Canadian product, but Canada has been dealing with an abundance of rain and quality has been a challenge. With limited supply, prices have escalated and many shippers are sold out.

The cilantro market continues to increase as growers are currently gapping. The recent warm weather has brought fields forward and now shippers are not able to get the supplies they need. The cilantro quality is fair with an occasional yellow leaf. Look for the cilantro market to continue to adjust going into next week.

Alerts:
Cilantro is currently in a demand exceeds situation. Suppliers have now reached a gap in supplies.

California domestic supplies continue to remain tight on 140’s and smaller and this will continue for most of the summer. Market prices on small size fruit are coming off, looking at high $20’s to low $30’s on choice and fancy fruit. Offshore supply continues to improve weekly on inbounds on both coasts which have been helping offset domestic supplies. We’re hearing great feedback on the export quality.

Lime supplies are expected to be snug for the next 2-3 weeks until new crop begins. The market is steadily increasing due to lower crossings and decreased availability. Markets have jumped to the high teens and low twenties on the 40lb. The 10lb market is in the high single digits to low teens. Expect markets to continue to rise, especially if importers continue to have issues with replacing existing supplies. Sizing is still peaking on 175/200.

California Valencia supplies on all sizes and grades will be plentiful this week with great quality. Markets remain steady on both grades in the mid-teens. As we head into August we may experience a slight jump in markets since demand will increase as schools start back up.
Import Navels continue to increase weekly on both coasts, please contact us for any interest import on Navels. On Specialty Citrus, Bloods have about a week left and few suppliers have started import Clementine Mandarins on both coast. Supplies will gradually increase weekly. Grapefruit supplies are looking plentiful through the summer, plenty of opportunities to push volume.

Cucumber supply has decreased since last week due to cooler weather in the mid-west. Supply is still good on selects and carton 24's, super select supply has decreased. New Jersey, Pennsylvania, and Virginia are all harvesting light supply. Demand has been slow this week keeping pricing at reasonable levels. Cooler temperatures have helped quality and giving cucumbers excellent color.

The cucumber market has decreased slightly this week and remained steady out of Baja California. All sizes and pack styles are currently being packed. Supplies are currently exceeding demand on both retail and foodservice quality and quality is good. Moderate supplies of Mexican cucumbers continue to cross through McAllen. Cucumber quality from McAllen is good.

Eggplant supply is very light and there are 2 shippers in Georgia the will cut eggplant through the summer. New Jersey is in the peak of their season but the region does not grow enough volume to supply everyone. Michigan and Ohio, will start next week with light supplies. Demand is typically slow on eggplant this time of year but pricing has gotten stronger with such light supply.

Alerts:
Very Light supplies.

Good supplies of eggplant available to load in Los Angeles from the Bakersfield and Fresno, CA districts. Mostly choice grade supplies of eggplant are expected to be packed through the week. Light supplies fancy grade eggplant expected to be packed. Quality on domestic eggplant is currently fair on retail grade and good on choice grade.

Green grapes are in the exact same position as red grapes this week. We have transitioned into all domestic production out of California's Central Valley growing areas. The season has started off great with good supplies and excellent quality. The main varieties at this time are Sugarone and Ivory. The green grapes are uniform in size, have crunchy berries, high sugar levels, and good color. Market prices have been gradually coming down over the last 2 weeks, but will firm up slightly this week. As the weather continues to be very warm in the growing regions with temps well over 100 degrees daily, the production will slow down due to labor. Harvesters are not able to get a full day's work in and workers are leaving midday as a result of the heat. Although we do not expect any damage to the quality, we do expect less fruit to be available this week, thus holding markets a bit firm. Next week, the weather looks to be cooling down and we should see normal production volumes pick up. Looking forward, we expect to have an excellent season through fall.

Alerts:
Hot temps in the growing regions has slowed down production. Markets will be firm this week.

We have now transitioned into all domestic production out of California's Central Valley growing areas. The season has started off great with good supplies and excellent quality. The main variety at this time is Flames. The red grapes are uniform in size, have crunchy berries, high sugar levels, and good color. Market prices have been gradually coming down over the last 2 weeks, but will firm up slightly this week. As the weather continues to be very warm in the growing regions with temps well over 100 degrees daily, the production will slow down due to labor. Harvesters are not able to get a full day's work in and workers are leaving midday as a result of the heat. Although we do not expect any damage to the quality, we do expect less fruit to be available this week, thus holding markets a bit firm. Next week, the weather looks to be cooling down and we should see normal production volumes pick up. Looking forward, we expect to have an excellent season through fall.

Alerts:
Hot temps are slowing down production. Markets will be firm this week.

The green onion supply continues to be plentiful with the recent nice weather in Mexico and Salinas. The cooler weather in April/May is causing occasional leaf minor. The market will continue to stay steady going into next week.

The kale market continues to remain steady as supplies continue to stay plentiful. Quality is fair with full bunches and an occasional yellow leaf being reported due to the recent heatwave.

Good supplies and light demand is the story of this commodity. Expect steady supplies for the entire week. Multiple shippers are willing to flex on volume type orders. This market will tighten up next week as indicated from a few shippers. There are no lettuce value-added items on escalators and for now, no averages are being watched. The weights and quality of this commodity are good. Weights are at 40-44 pounds on wrap and defects are minimal. Aside from misshapen heads slightly, minor insect damage and puffiness, expect solid lettuce for the week.

Alerts:
Good quality, industry wide with this commodity.

The market is steady on romaine and expect this to continue for the entire week. Escalated pricing does not exist for any value-added item containing romaine as well as all leaf items. Romaine hearts are much stronger in production as well. Green and red leaf have been reported on the strong side. Aside from occasional fringe burn, mildew, and insect damage, multiple reports show the defects are minimal and the overall quality is strong industry-wide. The weights on romaine are averaging 32-38 pounds and green and red leaf range from 22-26 pounds.

Tender Leaf supplies continue to be plentiful as the weather in the Salinas Valley continues to spur growth and produce better yields. Curly parsley, spinach, and arugula have reacted to the recent warm weather and supplies look to be in good shape going into next week. Quality is good with occasional yellowing and bruising of the tender leaves.

Good supply on large fruit this week. Mostly 9s/J9s in the pipeline. The fruit is looking great and eating well. There is no small fruit in the market as it is nonexistent. The extreme heat last week brought the fruit on quicker and also cut the harvest short. With temps in the triple digits, harvest crews were lucky to get 4 hours of labor in. Temps have cooled off this week. Some growers are also breaking new fields. If there is any small fruit (12s/15s) expect to pay a premium.

Very good supplies this week on large fruit. Mostly 4s/5s/J5's this week as the sizing profile has changed drastically. Honeydews are peaking on 5s. Overall quality has been good. If your specs call for small fruit, expect sub-options for the next few weeks.

Watermelon’s currently being harvested in Phoenix, Arizona. The seedless watermelon
market is steady with steady demand. Watermelon quality out of Arizona is good. There is also production in California with good quality available.

Yellow onion markets out of California and New Mexico are steady to slightly lower. Demand continues to be active in these areas with supplies winding down for the season. Red onions in both regions are in good supply with markets also declining. White onions remain limited with firm prices. Northwest suppliers are starting up harvests and expected to begin quoting sometime next week. Limited numbers will be available to start with a very active demand. We are anticipating the yellow onion market to remain relatively firm over the next 7-10 days. The Northwest will ramp up in supply and California/New Mexico will push the season-ending supply to make way for the Idaho/Oregon and Washington season. Red onions will be plentiful and white onions will kick in around mid-August and slowly ramp up as we approach September.

Alerts:
Markets on yellow beginning to ease. White onions to remain limited for the next 3-4 weeks.

Transitions:
New crop Northwest harvests in Idaho/Oregon to begin next. Washington will start mid-August.

Washington D’Anjou Pears are in very few hands; ONLY Green D’Anjou pears are available in Washington (no red pears available until the end of August). Green Bartlett pears are expected, in Washington, by mid-to-late August with red pears available towards the end of August.

Currently, Washington prices are significantly higher when compared to California. If you are able, it is suggested that you load green pears in CA. Both Green Bartlett pears and Starkrimson red pears (1/2 carton) are available now (load volume – FOB-Courtland, CA; mixer volume – FOB-Exeter, Parlier, or Reedley, CA). Volumes are increasing and prices are getting softer as the weeks go on.

CA Bosc pears are expected mid-August.

Transitions:
Wasington has ONLY Green D'Anjou (storage crop). Fresh crop, CA Bartletts are available with CA Bosc available mid-August.

Next week pineapple supplies are expected to be very limited on crownless out of the east coast. Order substitutions will be limited if shippers are able to do so. Both coasts are expected to be in very tight situations until the first week of September. Most customers have been understanding of the situation and flexible with subbing sizes around to fulfill orders in full. Quality continues to be an issue. We’re seeing occasional browning on the interior of the fruit which is usually attributed to excess water absorption from when the pineapples were in the fields. Markets steadily increasing weekly due to limited supplies, we’ll continue to take it week to week.

Idaho potato markets continue to rise as storage Burbanks wind down for the season. Shippers continue to limit the number of potatoes released from cellars and cut back production schedules to stretch out the remainder of the storage supplies. Quality on late storage Burbanks will exhibit more external and internal bruising with an occasional hollow heart. New crop Norkotahs are expected to begin mid-to-late August. Expect markets on all sizes to continue to climb over the next 4-5 weeks due to limited supplies and heavy demand. Colorado and Washington's markets are also rising with an increase in demand. Kansas is starting up with limited supply. Nebraska will start early August and run through January. Wisconsin is expected to start on August 12.

Alerts:
Markets will remain active over the next 4-5 weeks. Supplies will be limited; especially larger sizes. Advanced lead time on russet orders crucial during this time period.

Transitions:
Kansas starting now. Nebraska to begin early August. Wisconsin and Idaho new crop harvests will being mid-August

Color potatoes remain scarce with limited supplies industry-wide; in particular red potatoes. Stockton, CA continues to produce all three colors with active markets and very high demand. Red potatoes are scarce. Texas is winding down for the season on red and yellow with limited volume and high markets. North Carolina/Virginia has finished on reds with some yellow and whites still available. Alabama has finished for the season.
New crop-Washington is producing red and yellow and improving on volume as we head into August. Minnesota has also started the season with red and yellow and Delaware is starting up on red potatoes. Wisconsin will start up mid-August. With the new crop starting up in these additional regions we expect the demand to start spreading out and bringing some relief to these high markets.

Alerts:
Markets remain active with heavy demand and low volume. August expected to see improving production with new crop starting.

Transitions:
Washington and Minnesota red and yellow potatoes along with Delaware reds have started. Wisconsin starting mid-August.

The zucchini supply is very good and Yellow squash supply is getting better. There is a squash supply coming from the mountains of North Carolina and Tennessee, Virginia, New Jersey and Pennsylvania which are taking care of the east, Ohio, Michigan, and Indiana have steady supplies in the mid-west. This time of year local deals pop up all around the country. Cooler temperatures over the past 10 days have slowed production in some regions but quality has gotten better. Expect supplies to stay good through the week.

With schools starting over the next 2 weeks, now is the time to set up some hot buy opportunities for upcoming menus. Plums, Peaches, Nectarines, Pluots, and Pomegranates will all be available in multiple sizes and pack styles. We expect to have good availability as we finish summer and look toward early fall. Quality has been excellent. Market prices have been flat as demand has been lower than normal. However, we expect demand to increase as we move forward. As fruit gets locked up for future business, we will see market prices start to climb. Let us know how we can help plan your school menus.

Alerts:
As schools get started, we expect demand to increase and markets will eventually climb.

Eastern summer programs are harvesting between scattered showers intermittently halting picking schedules. The market is mostly steady from last week and is not forecasted for much change in the first week of August. Mature Green tomatoes in VA will move past peak production next week and begin to contract against lighter harvests. TN farms are still producing in a light way and volume is building into August. NC is harvesting Vine Ripe to supplement round offerings in the east. Roma tomatoes are steady this week with farms harvesting in AL, NC, and TN. A boost in supply is expected in the coming weeks as more farms further North begin harvesting during August. Grape tomatoes continue to improve this week by a dollar or two as harvest begins to spread out. In addition to VA, local deals in AL and NC have begun in a light way to help meet demand. High precipitation has affected quality, increasing shrink in packouts but there is enough good fruit to produce a quality finished product.