The Source - July 5, 2016

Weather Update

A couple of weak low pressure systems moving into California this week will keep the marine layer in place along the coast with near to below average temperatures expected across the west. This return to normal temperatures will be a welcome relief to the heat the past few weeks. Northern Mexico will see seasonal temperatures with an increase of monsoonal moisture providing scattered showers and thunderstorms in the region through the week. Central Mexico will see a slight cooling trend with a decreasing chance of showers the latter part of the week. High pressure in the Southeast brings a warming trend to a few degrees above normal with isolated scattered showers through the week.

Freight Update

California trucks remain steady and look to remain that way for the week. Washington and Idaho potato trucks remain steady. The National Average for diesel hardly changed and is currently at 2.423 per gallon. A difference of .409 from this time last year. California prices remained steady as well and are currently at 2.798 per gallon. Crude oil dropped slightly and is now at 46.86 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples

Washington - Red delicious are steady to slightly hifger. Most shippers continue to peak on extra-fancy 72-88s so the small fruit to remain short. Golden Delicious are steady to higher and are still peaking on Wash-Extra 100/113s but storage supplies are very short. Most suppliers still don't have much larger than an 88-size Golden. Granny Smith are steady on all sizes and continue to peak on 88-113s. Most suppliers still don't have much larger than an 88 or smaller than a 125. Galas are steady to higher on all sizes and the market remains firm due to light supplies. Most Gala suppliers still don't have much fruit larger than an 88. Washington will only be shipping Galas for another couple weeks. The Fuji market is very strong and most shippers have only various sizes. The remaining Fujis continue to peak on extra-fancy 80-100's. Washington will only be shipping Fujis for another couple weeks at the most, some shippers are already finished. Pink Lady's are steady to higher and the market remains firm due to very strong demand. The quality for all varieties has been good.
Michigan - Red delicious are steady but remain firm due to light supplies. They are still peaking on 80/88s. Galas have finished for the season. The red quality has been good.
New York - they have finished packing for the season.
Chile - Chilean Gala supplies are light. Imported Braeburns are peaking on 80/90s and they are steady on all sizes.

- pa_admin
Growing Region Market Quality
Coopersville/Belding/Sparta, MI Steady Fair
Wenatchee/Yakima, WA and Hood River, OR Steady/Higher Good
Chile Steady Good
Asparagus

Asparagus supplies are still steady from Mexico and Peru. Quality is good from both regions.

- pa_admin
Growing Region Market Quality
Ica, Peru to Trujillo Steady Good
Central Mexico Steady Good
Avocado (California) Alert

California is the major supplier at this time and is only supplying about 50% of the current demand created by Mexico's short fall. They are trying to get more harvested, but labor shortages are holding growers back.

- pa_admin

Alerts:
Demand exceeding supplies. Market continues to rise.

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

Mexican fruit shipments are at a historic low and supplies are very limited. Mexico's summer crop (Flor Loca crop) has started, but Mexican growers have halted harvest over the last 3 days and are asking more money for their crop. US shippers are working to come to an agreement. They are hopping to come to an agreement quickly as supplies are down to nothing. It will take time to get the fruit back into the supply chain once an agreement has been made. Harvest will go slow at the start to insure maturity levels of the fruit. 80% of this new crop will be 60s/70s/84s. There will not be many 40s and 48s. This new crop is looking to peak on #1 grade and very limited supplies on #2 grade.

- pa_admin

Alerts:
Demand far exceeds supply and will for awhile. Markets keep rising.

Growing Region Market Quality
Michoacan, Mexico Steady/Higher Good
Bell Peppers (Western)

Due to high temps in California many grower's have been hurt with their crops out of the Coachella Valley. Green supply are steady, with red supply gapping.

Market of red and green will be challenging for the next few weeks. Extreme heat still expected this week for Southern California for one to two more weeks.

- pa_admin
Growing Region Market Quality
Southern San Joaquin Valley, CA Steady/Higher Fair
Berries (Blackberries)

Supply is steady with production out of all CA berry growing regions. We will begin to see a down trend from Santa Maria and Oxnard as Salinas and Watsonville production increase into July. Oregon, Washington, North Carolina, Indiana and Ohio are still ramping up production although some growers are gapping in between varieties out of Oregon. Georgia season has pretty well wrapped up production, much smaller volumes. Quality is good out of all areas. There have been some isolated instances of wet and leaky berries.



- pa_admin
Growing Region Market Quality
Watsonville, CA Steady Good
Salinas, CA Steady Good
Sheridan, OR Steady Good
Berries (Blueberries)

Supplies remain steady with production in Oregon, Washington, British Columbia, Indiana, Michigan and New Jersey. Weather in New Jersey growing regions will likely bring a swifter end to their season. The southeast region has wrapped up major production although you may still find some GA and NC blues in circulation. Promotional opportunity will be available for the coming weeks. Quality has been good in all areas.





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

CA raspberries have now passed peak production and will continue to decrease in volume moving into the summer. We will be in limited supplies from here on. The CA crop hit peak production numbers in early June. Central MX production has pretty well finished for the season. Quality has remained good out of all regions, some isolated instances of wet, leaky or off-color berries.








- pa_admin

Alerts:
We will be in a demand exceeds supply situation for the next several weeks. Mid-July will likely be our lowest point. Production should ramp back up in both CA and Baja Mexico by early-mid August but we will remain in short supplies until then.

Transitions:
Central Mexico has finished major production for the season. Oxnard and Salinas are winding down as Watsonville and Santa Maria will increase production over the coming weeks.

Peak Seasons:
CA crop peaked in mid June. Overall volume will decrease from here on.

Growing Region Market Quality
Watsonville, CA Steady/Higher Good
Santa Maria, CA Steady/Higher Good
Berries (Strawberries)

Supply and demand are both steady. Quality is good with pickers paying extra attention to pack quality and avoid bruised and overripe fruit. Sizing is smaller with berries running 18-22 per 1 pound clamshell. Weather has been cool leading to a reduction in harvest estimates. Labor is becoming more of an issue heading into the summer. Many growers have finished packing in Santa Maria and Salinas/Watsonville will continue to be the main loading region for the summer.









- pa_admin
Growing Region Market Quality
Watsonville, CA Steady Good
Salinas Valley, CA Steady Good
Broccoli

The broccoli market is starting the week steady. There are good supplies of bunched broccoli and broccoli crowns. Quality is really nice with little yellowing. Supplies from Mexico are steady as well with improved quality.

- pa_admin
Growing Region Market Quality
Salinas Valley, CA Steady Excellent
Oxnard/Santa Maria, CA Steady Excellent
Celaya Guanjuato Mexico Steady Good
Brussels Sprouts

There are really good supplies of Brussel sprouts right now. The market is aggressive with offers out there. Quality is excellent for California and has improved from Mexico.

- pa_admin
Growing Region Market Quality
Salinas Valley, CA Steady Excellent
Oxnard, CA Steady Excellent
Northern Baja California Norte, Mexico Steady Good
Carrots

The Bakersfield crop is in full production. Growth is good and starting to yield good percentage of Jumbo size and supplies are getting much better. Supply of baby peeled carrots are good.

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

Supplies are starting to tighten up as we start the week. The market has also firmed up and is trending higher. Quality remains nice with minimal bruising and discoloration.

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

Better supplies continue on large sizing, twenty-four counts in particular. Suppliers continue to flex on this sizing. The market overall continues to be steady, Michigan has begun production, with increased volume expected in a few weeks. Santa Maria and Oxnard continues to have good quality and production numbers. This will continue throughout the week. Demand in general is off.

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

The red cherry market is about steady with good supplies and good demand for the post holiday pull. We are approaching our final 2-3 weeks on the red cherries out of the Northwest. Quality continues to be excellent. The Rainier cherries are essentially done with most suppliers harvesting the last of the crop over the holiday weekend.

- pa_admin

Transitions:
Rainier cherry harvest is done in the Northwest with dark sweet red cherries finishing around the third week of July.

Growing Region Market Quality
Yakima, WA Steady Excellent
Chili Peppers


Anaheim - Sizing and quality remain good. More product being offered. Excellent size and color.

Pablano - Slightly lighter supply with some growers finishing. Good quality and condition expected to continue.

Tomatillo - Good supply of tomatillo shipping from California.

Jalapeno- good quality on new crop pepper, mostly large sizing with good color.

- pa_admin
Growing Region Market Quality
Southern San Joaquin Valley, CA Steady Good
Cilantro

The cilantro market varies form shipper to shipper and growing region. Supplies remain steady with some quality issues such as yellow to black discoloration of the leaves.

- pa_admin
Growing Region Market Quality
Salinas, CA Steady Good
Oxnard/Santa Maria, CA Steady Good
Baja, MX Steady Good
Citrus (Lemons)

The central valley crop is now completely harvested and shipped. The Ventura crop is our main supplier. Demand is very strong and continues to build. We are seeing 140s/165s/200s supplies clean up daily.

- pa_admin
Growing Region Market Quality
Oxnard/Ventura, CA Steady/Higher Good
Citrus (Limes)

The lime market on the110 & 150ct continue coming down. Demand is good on all sizes across the board. The peak size has remained in the smaller sizes such as 250ct and 230ct. The overall long term upward market trend has broken and lower prices are happening. Quality is good overall. The overall supplies are now increasing. The market is lower on the 175 - 250ct limes.

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

Shippers have good supplies of Valencias and peaking on 88s/113s/138s. There will still be a few Navels available into the next week, but peaking on 88s/72s/56s choice grade fruit. Labor to harvest fruit is an issue for some growers.

- pa_admin
Growing Region Market Quality
Merced to Bakersfield, CA Steady/Higher Good
Riverside, CA Steady/Higher Good
Cucumbers (Western)

It is still very hot in this area. Hard squash is now coming out Coachella. Extreme heat causing condition and quality issue for squash being harvested in Southern California .Italian and Yellow S/N are being harvested in Fresno with good quality. Santa Maria temperature has dropped improving quality and condition on squash.

- pa_admin
Growing Region Market Quality
Santa Maria, CA Steady Good
Eggplant (Western)

With temperature's in Coachella dropping eggplant showing improvement in quality and condition. Fresno showing good quality and good volume. Cosmetic issue with egg plant are improving.

- pa_admin
Growing Region Market Quality
Fresno, CA Steady Good
Grapes (Green)

The green seedless grape market is about steady with some premium in price being asked for the new crop fruit out of Arvin. Quality on the Arvin fruit is excellent but supplies are light to start. This has allowed the market to demand a premium on the Arvin District green's over the end of season Coachella and Mexican green's. This market should steady out to lower levels over the coming weeks as supplies ramp up out of the San Joaquin Valley.

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

Red grape production out of the Arvin District continues to increase as we move into the San Joaquin Valley for our principal source of supply. Early reports on the fruit out of Arvin have been excellent. This in contrast to the Mexican and Coachella grape deals which are essentially in clean-up mode on marginal quality fruit. The market on the Arvin fruit is about steady but should ease back as more fruit becomes available over the next 7-10 days.

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

The green onion supplies have been steady and that looks to be the same this week. Quality issues such as yellow to browning of the tops remain minimal. The market is flat with aggressive prices.

- pa_admin
Growing Region Market Quality
Mexicali, Baja Steady Good
Salinas Valley, CA Steady Good
Kale

Kale supplies remain plentiful. The market also is steady with aggressive prices. Quality is excellent with minimal arrival issues.

- pa_admin
Growing Region Market Quality
Salinas, CA Steady Excellent
Oxnard/Santa Maria, CA Steady Excellent
Baja, MX Steady Excellent
Lettuce Iceberg

This market is stronger with all suppliers. The Holiday following on Monday has caused production to be thrown off. Most crews had no harvesting on Monday which left most suppliers sold out to start the week. Production will be to the lighter side all of this week and next. There is a production gap in the industry. Although temperatures have cooled off, defects continue on this commodity. Pink ribbing, spotting, light weights and puffiness are common defects.

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

Romaine hearts continue to be in a supply exceeds demand situation. This will continue throughout the week. Romaine as well as all green and red leaf are steady. Green leaf in particular is coming on in production and shippers are flexing on this item. There continues to be the issues of tip and fringe burn associated with these commodities. These issue are mainly with romaine. Supplies look to be moderate on red and green leaf. Romaine will have gaps.

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

The West Side has started shipping last week and supplies will start increasing from there. Quality out of the West Side is reported to be very nice. The desert looks to be finished this week and some growers have already finished. Quality out of the desert has been acceptable although it has been extremely hot lately in the growing regions down in the desert. Quality has been effected in some lots. The market is higher due to a decrease in supplies.

- pa_admin
Growing Region Market Quality
Mendota, CA Higher Excellent
Maricopa, AZ Higher Fair
Melon (Honeydew)

Some growers started harvesting last week in the San Joaquin Valley and the volume will steadily increase. The desert and Mexican honeydews are looking to finish up for the season this week. Extremely hot weather has been going on in the desert for the last number of weeks and quality has be effected in some lots. The market is up from previous levels mainly due to a decreased supplies. Quality has been reported as good.

- pa_admin
Growing Region Market Quality
Mendota, CA Higher Good
Maricopa, AZ Higher Fair
Hermosillo, Mexico Higher Good
Melon (Watermelon)

Demand for Western Watermelon has risen. Watermelon is being shipped from Western Arizona, Southern and Central California. Quality is good with mostly Large sizes being harvested. Extreme heat has reduced the yield.

- pa_admin
Growing Region Market Quality
Phoenix, AZ Steady Good
Onions

Onions are still coming out of Central California and New Mexico. Sizing is starting to change out of both areas and are starting to trend to smaller onions. Market is steady with a firm undertone on all sizes and Colors. White onions are steady. Heat during the growing season hurt the sizing on the direct seeded onions which growers are just starting to harvest. A few growers in New Mexico are starting to gap on Red onions which should last into the front part of next week. This will help firm the red market till supplies improve. Quality is still be reported as good out of both areas.

- pa_admin
Growing Region Market Quality
Huron/Metler, CA Higher Good
Las Cruces, NM Higher Good
Pears

Washington - D'anjou pears are HIGHER and the market remains very strong due to light supplies. The C.A. fruit continues to peak on US#1 70-90s. The quality has been good.
Chile - Chilean Packhams are finished for the season. Chilean & Argentinian Bosc are both steady to lower and continue to peak on 70-100s. The quality for all the imported varieties has been good.
California - there are a few new-crop crimson pears available in half cartons. The California shippers will start to pack Bartletts between Wednesday and Friday of this week.

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

It's rainy season in the tropics. We are starting to see some water translucency show up in the pineapples and a greener shell color. Shippers will picking the fruit a little earlier to help prevent the water translucency, this leads to the greener shell color. Shell color is not an indication of ripeness. Supplies are tight and are expected to be so through July.

- pa_admin
Growing Region Market Quality
La Virgen, Costa Rica Steady/Higher Good
Heredia, Costa Rica Steady/Higher Good
Guapiles, Costa Rica Steady/Higher Good
La Cieba, Honduras Steady/Higher Good
Retalhuleu, Guatemala Steady/Higher Good
San Luis, Guatemala Steady/Higher Good
Potatoes

Potato market out of all growing areas are slightly weaker due to lighter demand and increase supplies as growers need to get through their storage potatoes before the new crop start. Quality is still be reported as good out all areas with an occasional lot out Idaho showing internal black spotting. Look for the markets to stay at these levels till new crop potatoes start going in the next 4 to 6 weeks.

- pa_admin
Growing Region Market Quality
Hamer/Rupert, ID Lower/Steady Fair
Quincy/Hermiston, WA Lower/Steady Good
Monte Vista, CO Steady Good
Plover/Bancroft, WI Steady/Higher Good
Potatoes (colored)

Bakersfield California - reds, whites, and golds are steady to higher due to lighter supplies. The availability will be good for most of this week and will drop as the week goes on. All colors are still peaking on A-size. The quality has been good.
Stockton California - they will start packing reds and gold potatoes later this week.
Phoenix Arizona - red and gold potatoes are steady to higher and both continue to peak on A-size. They will ship through the end of this week. The quality has been good.
Alabama - Red potatoes are being quoted steady but the availability is light right now due to rain over the weekend.
North Florida - They still have a few reds but are finishing up.
North Carolina - red, white, and gold potatoes are steady on all sizes. The availability ranges from good to poor on all colors depending on the supplier. All colors are peaking on A-size and larger. The quality is good.
Muleshoe Texas - Muleshoe is steady on red potatoes for now but the supplies are minimal today due to rain. Gold potatoes will be next week.
Missouri - they had started packing but are rained out for now.

- pa_admin
Growing Region Market Quality
Bakersfield, CA Steady/Higher Good
Stockton, CA Steady Good
Phoenix, AZ Steady/Higher Good
Ider, AL Steady Good
Hastings/Bunnell/East Palatka, FL Steady Fair
Muleshoe, TX Steady Good
Elizabeth City/Camden, NC Steady Good
Squash (Western)

It is still very hot in this area. Hard squash is now coming out Coachella. Extreme heat causing condition and quality issue for squash being harvested in Southern California .Italian and Yellow S/N are being harvested in Fresno with good quality. Santa Maria temperature has dropped improving quality and condition on squash.

- pa_admin
Growing Region Market Quality
Oxnard, CA Steady Good
Stone Fruit

The market on peaches, plums and nectarines is about steady with the market moving lower on the big tray pack fruit and higher on the smaller volume fill fruit. This is a result of the recent hot weather causing all fruit to size up rapidly. Quality overall is generally good with some heat related issues (soft fruit) showing up in a few lots. The trend towards bigger fruit should continue; pulling up the market on the smaller fruit favored by the foodservice industry. Apricots, while still available, are dropping in supply. Quality on the cot's is generally good as the market firms up due to steady demand coupled with the lighter supplies.

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

South Carolina, Georgia, and north Florida rounds are finishing up this week while Alabama and Tennessee are starting in a light way. With supply shrinking prices will be firming up. The roma market is steady with quality varying by growing area. The Southeast is weathering hot temperatures and crops are finishing earlier than expected cause a week long gap or so until new fields begin harvests. Demand for grape tomatoes has forced price upward and prices have followed by a few dollars. Following suit, cherry tomatoes are also firming up as demand increased over the holiday weekend.

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

California is in good volume. Markets are steady. Mexico is coming from a lot of new areas and markets are steady. Quality is anywhere from fair to excellent, depending on the lot from all areas. The market is on an upward move. The Mexican National Market is better this week, which means less volume is coming to the boarder. This is creating more demand for the domestic romas and driving the market up. Similar to the eastern US, hot weather has also caused production to challenges. Grape tomatoes this week are following US prices upwards as supply shrinks in the states.

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

Things You Should Know

Avocado (California)
Demand exceeding supplies. Market continues to rise.

Avocado (Mexican)
Demand far exceeds supply and will for awhile. Markets keep rising.

Berries (Raspberries)
We will be in a demand exceeds supply situation for the next several weeks. Mid-July will likely be our lowest point. Production should ramp back up in both CA and Baja Mexico by early-mid August but we will remain in short supplies until then.

Transitions and Temperatures

Berries (Raspberries)
Central Mexico has finished major production for the season. Oxnard and Salinas are winding down as Watsonville and Santa Maria will increase production over the coming weeks.

Cherries
Rainier cherry harvest is done in the Northwest with dark sweet red cherries finishing around the third week of July.

A Peak at Peak Seasons

Berries (Raspberries)
CA crop peaked in mid June. Overall volume will decrease from here on.

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