The Source - July 5, 2018

Weather Update

Coastal marine layer keeps Central and Southern California fields cooler through mid-week as a strong high pressure ridge sets up by Thursday. Very warm temperatures are expected across the state with many record high temperatures in jeopardy. Slightly cooler early next week with another strong warm up expected late next week. Isolated showers continue across Central Mexico with scattered and occasional thunderstorms expected to the west. Florida will see rains across the Panhandle due to a disorganized system with seasonal temperatures with scattered showers elsewhere.

Freight Update

California trucks remain extremely tight. Look for capacity to remain tight until after the 4th of July holiday. CA freight rates continue to increase. Washington apple truck supply is steady. Idaho potato trucks remain steady as well. The national average on diesel remained steady this week and is currently at 3.236 per gallon. An increase of .764 from this time last year. California prices remained steady as well and are now at 3.960 per gallon. Crude oil is up this week and is currently at 74.24 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples

Washington late C.A. storage Red Delicious, Golden Delicious, Granny Smith, Pink Lady's, Gala's and Fuji's will be slowly winding down over the next two months. Pack-outs are heavy to WAXF #1's and Premiums. Sizing overall are peaking on 88/100/113/125. Red Delicious has gone from an enormous crop to a "demand exceeds supply" situation. This has been brought on by a smaller storage crop from the last few years and high export demand that started about a month and a half ago. Domestic demand has lightened slightly due to school being out for summer. Look for supplies of reds to get very limited as we get into late August. Just in time for schools to start back up. Golden Delicious have good supplies and demand. Pricing will be steady at higher levels. Granny Smiths are in a "supply exceeds demand" situation keeping this market low. This is a drastic change from last year's record high pricing. Galas and Fujis are in good shape with moderate demand and steady market. Quality has been very good with very few reports of issue.

- Mike Gorczyca
Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Steady/Higher Good
Chile Steady/Higher Excellent
Asparagus

The rain finally has stopped in Central Mexico, we should see a steady increase in production. We're waiting to see what effect the standing water has had on their crop. Gonzales, CA is just about wrapped with their season due to seasonality. Weather in both regions in Peru (Trujillo/ICA) still remains cooler than usual which is slowing production. Sizing from Peru is off due to the cooler weather in both regions. Markets are steady/higher this week on both coasts due to the weather in Central Mexico over the last 2 weeks, cooler weather in Peru, and California production almost done.

- Tony Pinto
Growing Region Market Quality
Ica, Peru to Trujillo Steady/Higher Good
Central Mexico Steady/Higher Fair
Avocado (California)

California continues to harvest at a good rate. Fruit is ripening well and tasting great. Expecting good supplies into August. Size peaking on 48s/60s/70s. Market pricing has been very stable, but with Mexico's volume declining, prices are beginning to strengthen. Demand remains strong on 48s/60s/70s keeping supplies tight.

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

Mexico's weekly volume will continues to decline to the seasonal end of their normal crop sometime in July. We are still waiting for the Flor Loca crop the gain maturity. This summer crop is difficult to predict, but light volumes are expected. Demand remains good, and we are still seeing tighter supply situation on 48s and very limited supplies on 60s and 70s number one fruit.

- Tim Kelley
Growing Region Market Quality
Michoacan, Mexico Higher Good
Bell Peppers (Eastern) Alert

There are good bell pepper supplies up and down the east coast. With Georgia still in production and North Carolina in full swing, New Jersey just getting started, there are supplies in multiple locations for buyers to choose from. Demand has been good the week prior to the 4th of July but is starting to slow the week of the holiday. Georgia is winding down and should finish this week, North Carolina will be over their peak next week and Michigan is 2 weeks from starting, so supplies could tighten up next week.

- Steve Sterling

Alerts:
Supplies starting to spread out across the east coast.

Transitions:
Bell Pepper is transitioning up the east coast from Georgia to North Carolina to New Jersey.

Peak Seasons:
Bell Pepper is in peak season.

Growing Region Market Quality
Duplin County, NC Steady Good
Henderson / Buncomb County, NC Steady Good
Lee / Grady County, GA Steady Fair
Berries (Blackberries)

Blackberry supplies have been steady this week. We are still not seeing the availability we would like, but production is slowly improving. On the west coast, California production is increasing. Order fulfilment hasn't been an issue, but we are still limited on open market fruit. We expect Salinas and Watsonville areas to continue to increase production and reach the first peak by middle to late July. Market prices have been steady. Quality is good with big size berries. On the east coast, Georgia and North Carolina continue to have fruit. Quality is strong and markets are lower. We expect Oregon to start with production next week.

- Sean Azzelio

Transitions:
We will start Oregon production in the next 1-2 weeks.

Growing Region Market Quality
Salinas, CA Steady Good
Watsonville, CA Steady Good
Alma, GA Lower Good
Berries (Blueberries)

On the west coast, Oregon and Washington production is increasing and shippers expect to have excellent availability next week. This fruit can be loaded direct in the Pacific Northwest or you can load it in the Central Valley, CA. The fruit is being transferred and packed to order in Selma and Reedley. Quality is very good. Starting next week, I expect to see prices drop in an effort to move volume. On the east coast, we have several areas in production. Michigan, North Carolina and New Jersey are all harvesting blues. North Carolina will be winding down over the next 2 weeks, New Jersey is expecting a shorter season this year and Michigan should have consistent supplies. Quality in all areas is good and market prices have been steady.

- Sean Azzelio
Growing Region Market Quality
Oregon Lower Good
Michigan Steady Good
North Carolina Steady Good
New Jersey Steady Good
Berries (Raspberries)

Not much change on Raspberries. Supplies are steady this week with some additional open fruit in Lompoc. As expected, availability will gradually improve as we move forward. Salinas and Watsonville areas are expected to reach first peak by mid July. We will have promotable volumes by then. Demand and market prices have been fairly steady with occasional opportunity buys down south. Quality is being reported as strong in all areas.

- Sean Azzelio

Peak Seasons:
We expect first peak and promotable volumes out of Salinas and Watsonville by mid July.

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

Strawberry supplies continue to be limited this week. Although we didn't see any major disruptions in fill rates, some substitutions into organic were necessary to cover orders. Available fruit for the weekend is very light. We are expecting the weather to warm up in all growing regions this weekend. Santa Maria is expected to reach temps in the 90's, this will certainly have an effect on the remaining fruit and it will halt harvest for the weekend. In Salinas and Watsonville, the temps will be in the high 70's. Shippers are expecting supplies to remain limited next week and we may see some issues with quality (soft fruit and dark color), depending on how hot it gets over the weekend. Market prices have been higher and firm. We expect this to be the case for the next 2-3 weeks.

- Sean Azzelio

Alerts:
we expect supplies to remain limited for the next 2 weeks.

Growing Region Market Quality
Salinas Valley, CA Higher Good
Watsonville, CA Higher Good
Santa Maria, CA Higher Good
Broccoli

The broccoli market has strengthened and looks to be higher; especially on crowns. Quality is generally good but weather related issues in Mexico have affected supplies. This, along with a generally lighter volume in the Santa Maria and Salinas growing regions, has created the uptick in the market. Local supplies around the country should normally fill in for this shortfall but that has not been the case. Regardless, we see a slightly stronger market for the short term. The approaching weather system moving towards Mexico may further impact supplies but it is too soon to project that with any certainty.

- Brad Tremblay
Growing Region Market Quality
Celaya Guanjuato Mexico Steady/Higher Good
Oxnard/Santa Maria, CA Steady/Higher Good
Salinas Valley, CA Steady/Higher Good
Brussels Sprouts Alert

The current market on Brussels Sprouts is demand exceeds. Mexico is finishing and the Oxnard region is not able to cover the additional volume needed to meet demand. Salinas is still several weeks away from stepping in with supplies. In addition to this quality has suffered; which further exacerbates an already difficult situation. We are seeing insect damage, black spotting and decay. This market will maintain it's current strength until we have a supply of good quality sprouts to offer.

- Brad Tremblay

Alerts:
Brussels Sprouts market demand exceeds supply with quality issues

Growing Region Market Quality
Oxnard, CA Higher Fair
Northern Baja California Norte, Mexico Higher Fair
Carrots

Cooler than normal weather in the California growing area has slowed size growth, causing a very low yield of jumbo size carrots and strengthening the market on jumbo's. Value-added packs and medium sized supplies remain good.

- Tim Kelley
Growing Region Market Quality
Bakersfield/Santa Maria, CA Steady/Higher Excellent
Cauliflower

The cauliflower market is about steady with no change on the horizon. We see normal supplies here with average demand. The local deals around the country have started and are helping to flatten demand for California product. Quality is generally reported as excellent.

- Brad Tremblay
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Excellent
Salinas Valley, CA Steady Excellent
Celery

Light supplies will be the story with this commodity for the rest of the week. This market is active. Small sizing is the tightest in availability, but large sizing has firmed up considerably, compared to past weeks Supplies in southern California are moderate at best, and production in Salinas is light. Growers have hit a gap for a seven to 10 days . Oxnard will finish production by July 15th as scheduled. Value added product will continue to be transferred from Oxnard for a fee, so please keep in mind.

- Mike Pacheco
Growing Region Market Quality
Oxnard/Santa Maria, CA Higher Good
Salinas Valley, CA Higher Good
Cilantro

Cilantro continues to be plentiful with very good quality everywhere. This market is steady and shows no signs of changing in the coming week.

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

The Ventura/Oxnard is now the growing area to get through the summer and early fall and is 80% completed on harvest and peaking on larger sizes choice and standard grade. Demand is strong for all sizes and grades, especially on the medium and smaller sizes of 140s/162s/200s. We are now seeing the demand exceed the supplies for all sizes. Some small relief will come as we see Chilean lemons enter the market over the next few weeks.

- Tim Kelley

Alerts:
Demand exceeds supplies on all sizes and grades of fruit.

Growing Region Market Quality
Oxnard/Ventura, CA Higher Fair
Citrus (Limes)

Smaller size limes are becoming more limited. We are seeing a shift in production where larger fruit will be higher in volume. We expect to have good supplies of sizes 150 - 175ct this coming week. Quality overall has been fair. We are seeing lighter color and smooth skin. Market prices have remained fairly steady with occasional spot buy opportunities on larger fruit. Looking out over the next 4-6 weeks, shippers are expecting limited supplies as we transition between crops.

- Sean Azzelio
Growing Region Market Quality
Veracruz, Mexico Steady Fair
Citrus (Oranges)

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

- Tim Kelley
Growing Region Market Quality
Merced to Bakersfield, CA Steady Good
Riverside, CA Steady Good
Cucumbers (Eastern) Alert

Cucumber supply is very good with product coming from the mountains of North Carolina and Tennessee, Ohio, Michigan and New Jersey among other small shipping points. So far quality has been good with most locations in newer fields, there is a heat wave moving across the northern tier of the country that could have an adverse effect on the quality of product.

- Steve Sterling

Alerts:
Michigan, Ohio and the Mountains of western North Carolina are all shipping product.

Transitions:
Cucumbers are in transition to the northern tier of the country.

Peak Seasons:
cucumbers are in peak season.

Growing Region Market Quality
Duplin County, NC Lower/Steady Good
Seneca / Summit County, OH Lower/Steady Good
Ottawa / Kent / Berrien County, MI Lower/Steady Good
Eggplant (Eastern) Alert

Georgia is still the primary supply of eggplant. Supplies have tightened with some growers finishing for the season but demand is low and the market has been slow to react. South Carolina is shipping some product and North Carolina will start this week but neither state as a whole are big producers of eggplant. New Jersey will be the next big region starting in two weeks followed by Michigan the first week of August.

- Steve Sterling

Alerts:
supplies will tighten next week

Transitions:
Eggplant is transitioning to the Carolinas

Peak Seasons:
Eggplant is not in Peak season.

Growing Region Market Quality
Lee / Grady County, GA Steady Fair
Grapes (Green)

Green grapes will be starting out of the Arvin area this weekend and will be ready to load starting Monday. A few growers have reported that they may be picking a few days early, but so far nobody has pulled the trigger. We still have Mexican greens available at very low prices, and product out of Coachella is still available. Most growers have started transferring product up to areas such as Arvin, Delano, Dinuba, and Parlier so they can load with the new crop reds. Quality in all areas is being reported as good.

- Matt Connelly
Growing Region Market Quality
Arvin, CA Steady Good
Caborca, Mexico Lower/Steady Good
Coachella Valley, CA Lower/Steady Good
Grapes (Red)

Red grapes are available in multiple locations at the moment. We had our first reds picked this week in the Arvin area, quality and sizing are being reported as excellent. We still have cheaper Mexican fruit, as well as minimal numbers of domestic reds out of Coachella. Both Mexican and Coachella grapes have excellent flavor but due to very hot temperatures, the color profile is very hit or miss.

- Matt Connelly
Growing Region Market Quality
Arvin, CA Steady Excellent
Coachella Valley, CA Lower/Steady Fair
Caborca, Mexico Lower Fair
Green Onions

There continues to be a steady flow of supplies from Mexico with sizing still trending to the smaller sizing. This has kept the market competitive. Jumbos are basically non existent at this point. . Quality has been improving overall and the presence of thrip damage is minimal. The weather is helping fight off thrip presence. Due to the heat, harvesting at night has kept the quality issues in check.

- Steve Cagle
Growing Region Market Quality
Mexicali, Baja Steady Fair
Kale

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

- Brad Tremblay
Growing Region Market Quality
Salinas, CA Steady Good
Oxnard/Santa Maria, CA Steady Good
Lettuce Iceberg

Excellent weather conditions for growing, coupled with a lack of current demand has created a surplus of product in the marketplace. This market is softer. Shippers are flexing on volume type orders, and this will continue thru the middle of next week as well. The weights on palletized lettuce has been running at 42-46 pounds. Overall the quality is above average in both northern and southern California. With no rain or cool weather in the forecast, expect production to continue to exceed demand. Southern California has moderate production numbers and Salinas is much stronger.

- Mike Pacheco
Growing Region Market Quality
Oxnard/Santa Maria, CA Lower Good
Salinas Valley, CA Lower Good
Lettuce Leaf

This market has remained flat as we head into the fourth of July holiday. There were a few shippers expecting the market to get more active at the beginning of the week but this never came to be. Suppliers continue to offer sharp pricing on romaine, green and red leaf throughout this week. There has been some fringe burn reported upon arrivals, but weights and size have been good . As mentioned last week, the loss of school business has hurt the sales of these commodities. Expect steady supplies for the entire week.

- Mike Pacheco
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Lettuce Tender Leaf

Supplies continue to be steady with most shippers . The growing regions have had excellent weather conditions and this has created a surplus of product in the marketplace. The only real issue were noting has been a few orders had to be filled with wild instead of regular arugula but this I minor. Growers are expecting plenty of product with good quality for the entire week. Bruising and decay continues to be reported in a very minimal fashion. Demand is moderate at best.

- Mike Pacheco
Growing Region Market Quality
Salinas Valley, CA Steady Good
Melon (Cantaloupe)

Weather has been ideal and had brought on fruit sooner than planned.Cantaloupe harvest in the San Joaquin Valley has started and the fruit is looking good with Brix/sugar levels ranging from 12-14. Plenty of larger fruit available 6 count jumbo, regular 6s, jumbo 9s, regular 9s and 12s. Smaller fruit is limited 15s and 18s.

- Mike Magana
Growing Region Market Quality
Brawley, CA Steady Good
Firebaugh, CA Steady Good
Mendota, CA Steady Good
Melon (Honeydew)

Weather has been ideal for the San Joaquin Valley growing region and has brought on the fruit a lot sooner than planned. Quality has been good as the brix/sugar levels are 12-14. All sizes are available 4 count 5count 6 count 7 count and 8 count. Shippers reported a good 4th of July holiday pull but there is plenty of fruit going into the weekend and next week.

- Mike Magana
Growing Region Market Quality
Brawley, CA Steady Good
Firebaugh, CA Steady Good
Mendota, CA Steady Good
Onions

Yellow Onion Market is unchanged on all sizes out of both shipping points. (California and New Mexico) Red and White onions have good demand with a firm market. Quality out of both areas are being reported as nice. Look for the sizing out of New Mexico to shift to Jumbo's and smaller which will tighten the Yellow Colossal and Super Colossal markets. California will have enough to fill the void. Freight is tight out of both areas.

- Mike Gorczyca
Growing Region Market Quality
Huron/Metler, CA Steady Good
Las Cruces, NM Steady Good
Pears

Washington D'anjous pears and offshore supplies of 'Chile Packam and Bosc pears are all winding down just in them for the California Bartlett & Crimson Red pears season to begin. Quality is still being reported and good. Market's are steady at high levels.

- Mike Gorczyca
Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Steady/Higher Good
Chile Steady/Higher Good
Pineapples

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

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

Russet potato market's are unchanged from last week on both cartons and retain bales. Quality is good. Supplies out of Washington, Wisconsin and Colorado are wind down quickly. Reports of new crop russet out of Washington are being reported to start the week of July 23rd. Weather has been ideal in all growing area's which has the 2018/2019 on schedule. Still a little to far out to tell what the size profile is going to be for this crop.

Transportation is limited out of all growing areas. Please book you orders with an much notice as possible

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

Red potato supplies still out way demand keeping this market steady. Supplies out of the East Coast are shipping out of Missouri, North Carolina, Alabama and Texas. Quality is good. White and Gold supplies are limited out of the East with moderate to good demand on supplies coming out of California. California supplies will start the transition to Stockton California the middle to end of July.

- Mike Gorczyca

Transitions:
Supplies of Color potatoes on the East Coast are slowly transitioning North

Growing Region Market Quality
Bakersfield, CA Steady/Higher Good
Red River Valley, ND Steady/Higher Good
Ider, AL Steady/Higher Good
Elizabeth City/Camden, NC Steady Good
Muleshoe, TX Steady/Higher Good
Squash (Eastern) Alert

Squash is in every back yard it seems but demand is very steady. Georgia is still shipping light supplies but will finish this week. There are supplies coming from the mountains of North Carolina and Tennessee, the Ohio Valley, Michigan all of New England and Canada. Demand has been very steady leading into the 4th of July. Prices have been good for promotion and at high enough levels growers can make a profit. Quality has been good in most regions, the Georgia product is showing wear from the weather and with a heat wave moving across the US we could quality issues in other areas. Supplies could tighten next week after the heat subsides as plants slow down.

- Steve Sterling

Alerts:
Good supplies, good demand

Transitions:
Squash supplies are moving North to the Midwest, New England and Canada.

Peak Seasons:
Squash is in peak season.

Growing Region Market Quality
Lee/Grady/Echols County, GA Steady Fair
Seneca / Summit County, OH Steady Good
Ottawa / Kent / Berrien County, MI Steady Good
Henderson / Bucomb County, NC Steady Good
Stone Fruit

Stone fruit quality, size, and quantity continue to be excellent. Plums are continuing to be harvested on a consistent basis and prices are beginning to fall slowly. Peaches and nectarines are starting to see much better size overall. Most growers/shippers are peaking at 48/50ct sizes on 2 layers on both items. Cherries are still available in the Northwest out of both Washington and Oregon, with most shippers peaking on larger sizes, available in several different pack sizes.

- Matt Connelly
Growing Region Market Quality
Madera south to Arvin, CA Steady Excellent
Tomatoes (Eastern)

There is very little change in the eastern price of tomatoes compared to last week. As South Carolina finishes picking over their crops, FOB shipping point quotes are growing more difficult to find. On the contrary, many local programs are continuing to produce this week helping to better supply across the eastern US including Alabama, Arkansas, Louisiana, and Georgia to name a few. Although the better value tomato may be California grown as we get into July, Eastern buyers have to account for freight cost before sourcing outside of the eastern region for what is available. Roma tomatoes also remain steady with the best value and heavier supply coming from Mexico and California. Grape and cherry tomatoes are a bit tighter as a result of operations in South Carolina finishing up. Prices may strengthen going into next week while a small production gap is realized until mid month when Virginia can begin shipping for the season.

- Aaron Aliotti
Growing Region Market Quality
Charleston, SC Steady Good
Tomatoes (Western)

Supply from Mexico remains steady while operations transition south of our boarder, and California begins bringing heavy yields of round tomatoes to market, moving prices down again the week to the lowest prices of the year so far. On Mexico’s mainland, Sinaloa is finishing up for their season while Baja undergoes a slow start helping to keep the market steady at the minimums again this week. Roma tomatoes are steady with excellent quality reports from all regions. Supplies of Grape tomatoes continue to increase out of Baja in tandem with new operations in the eastern U.S. helping to maintain minimal markets. Similarly cherry tomatoes are steady out of Baja as mainland Mexico finishes up where quality has been par at best recently. Circulating quotes this week are the first indication of the lower markets to follow in the weeks ahead as the summer season gets underway.

- Aaron Aliotti
Growing Region Market Quality
Northern San Joaquin Valley, CA Steady Good
Northern Baja California Norte, Mexico Steady Good
Southern Nayarit/Sinaloa, Mexico Steady Good

Things You Should Know

Bell Peppers (Eastern)
Supplies starting to spread out across the east coast.

Berries (Strawberries)
we expect supplies to remain limited for the next 2 weeks.

Brussels Sprouts
Brussels Sprouts market demand exceeds supply with quality issues

Citrus (Lemons)
Demand exceeds supplies on all sizes and grades of fruit.

Cucumbers (Eastern)
Michigan, Ohio and the Mountains of western North Carolina are all shipping product.

Eggplant (Eastern)
supplies will tighten next week

Squash (Eastern)
Good supplies, good demand

Transitions and Temperatures

Squash (Eastern)
Squash supplies are moving North to the Midwest, New England and Canada.

Eggplant (Eastern)
Eggplant is transitioning to the Carolinas

Cucumbers (Eastern)
Cucumbers are in transition to the northern tier of the country.

Bell Peppers (Eastern)
Bell Pepper is transitioning up the east coast from Georgia to North Carolina to New Jersey.

Berries (Blackberries)
We will start Oregon production in the next 1-2 weeks.

Potatoes (colored)
Supplies of Color potatoes on the East Coast are slowly transitioning North

A Peak at Peak Seasons

Squash (Eastern)
Squash is in peak season.

Eggplant (Eastern)
Eggplant is not in Peak season.

Cucumbers (Eastern)
cucumbers are in peak season.

Bell Peppers (Eastern)
Bell Pepper is in peak season.

Berries (Raspberries)
We expect first peak and promotable volumes out of Salinas and Watsonville by mid July.

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