The Source - July 6, 2015

Michigan is packing Red Delicious and they will pack through July they think. They are still peaking on 100s and larger and supplies of small fruit remains light. The quality has been fair due to lighter pressures.
One supplier in California is going to pack gala apples today and they expect to peak on 100/113's with only light supplies of 80's and larger. This early fruit is high in color.
Washington Red Delicious are still being quoted steady but the price-flex for 88s and larger is still there. Most shippers are still peaking on 88s and larger in the premium and Washington extra #1 grades. Golden Delicious are mostly steady on all sizes. 125 & 138 and Goldens are still more limited than the other sizes. Granny-Smith are mostly steady and are still peaking on 72s and larger. Supplies of Granny 100s and smaller remain short. Fujis are steady and continue to peak on the larger sizes but Fuji volume is very light. Galas are steady and are still peaking on 88/100s. The Gala volume is low as the end of the season is getting close.
We still have light supplies imported Cripps-Pink (Pink Ladys) but they are almost finished for the season.

This market is steady, overall. Product from Peru is lighter in availability and is commanding a higher price out of Miami. Jumbo packs are minimal. Good supplies out of Mexico exists. This product can be loaded in Salinas or LA. Standard and large have the best availability. There are decent supplies of jumbos if desired. All sizing is readily available. Overall, the quality has reported to be strong in all of the growing areas. Pricing may go up by the middle of the week as demand is expected to rise.

We are past peak volume for the season and lower volumes are beginning to come out of the fields. California harvest volume is expected to dipped a little again this week , then dip down next week hold fairly steady through July before gently declining thereafter. Peak sizing on 60s / 48's. Very good demand is keeping supplies on all sizes tight. Quality and flavor are both excellent.

Mexican production dipped down last week due to rains in growing areas, and this has really left a shortage this week. Old crop is winding down and look for supplies to dip by 25 percent this week. The Flor Loca crop from Mexico will begin this week. Smaller fruit is limited coming out of Mexico and we are seeing great upward market pressure on 60's and 70's as well as rises on 48's and larger fruit.

We have seen interruptions in California supply over the past few
weeks and again this week. Supply should be increasing week over
week all the way through August however some shippers are seeing
a supply gap that could last later into the summer, with really good
volume coming on by August. Availability has been day to day, shipper
to shipper in CA. Although, the recent heat we’ve experienced has
actually helped to bring on some better volumes of ripe fruit. Georgia
season is winding down and with lower volumes harvested, availability
will now continue to decrease. Oregon volumes have been limited as
they experience a short gap in between varieties.

Transitions:
Georgia blackberries are
winding down rapidly for the season
and volume will continue to
decline until they have finished.

Supply continues to be abundant with good volume and quality
coming from several growing regions. Demand and markets remain
steady with promotional opportunities available. This is an excellent
time to promote fresh blueberries! Best deals will be in the larger volume packs.

Transitions:
Michigan began picking last
week and has strong volume coming this weekend and into next week. Indiana started with
minimal volume but rains
delayed harvesting early last
week. Georgia has ended most
major production and North
Carolina is decreasing quickly as well.

Raspberries are limited out of CA. Many factors have led to this
shortage. The crop started early out of CA due to the unseasonable
warm winter and lack of rainfall. The growth then slowed down due
to cooler temps in May and June. Additionally, the current harvest to
pruning cycles are keeping us in a demand exceeds supply situation.
While the volumes should typically increase as we move through
the summer, the current supply gap looks to be an issue all the way
through July and even limiting availability possibly into early August. Crop should be at peak volume by mid-August.

Alerts:
Demand exceeds supply.
Supply remains limited
and this gap looks to
remain through the month of July
and possibly into early August before the current crop hits peak production.

Recent warm weather coupled with humidity is raising the occurrence of quality issues being reported, industry wide and
affecting all labels. The warm weather has brought on ripe red fruit
which increases the amount of bruises and soft spots when this fruit
is being picked and packed. The sunshine and heat have also colored up
the fruit before it could reach mature sizing so you will notice
smaller berries than normal in the clamshells. Due to the humidity
and the heat, we may also see increased presence of mildew.
Bruising, white/soft shoulders, overripe, soft, mildew, misshapen are among
the quality issues being reported on the daily inspections. It will be
important to communicate and adjust expectation for this current
period. Additionally, cold chain must be managed precisely to avoid
the chances of mold popping up when the fruit is exposed to warm
temperatures.

Peak Seasons:
Production volume estimates
are beginning to decrease as
we move past the Salinas /
Watsonville peak production
season we’ve experienced over
the past several weeks.

The market is steady on bunched product as well as crowns. Pricing is very competitive throughout the industry. Shippers are listening to offers so promote this commodity. The main production is out of the Salinas Valley. The Southern California region will have moderate production throughout the week. Production out of Mexico is light to moderate. Texas is light in production. Good quality, overall continues to be reported in all the growing regions.

Bakersfield crop is now in full swing on production. Weather has been warm and size is coming on and we're seeing much better production of Jumbo carrots.

This market is steady. Demand is light and shippers are looking for orders. Pricing is competitive and deals are out there , so promote this commodity. The quality on this item, overall is being reported as good, with only slight discoloration sporadically being reported. Insect damage is minimal. Expect moderate to good supplies for the rest of the week. There are still a few price gaps, but overall these gaps have closed considerably compared to last week.

Santa Maria continues to have production if needed in the southern California region. The quality is good, overall. The Salinas Valley continues to be a plentiful region for this commodity. The field reports indicate excellent quality from most suppliers. Pricing continues to be competitive. Large sizing is the most readily available. Small sizing is commanding a higher price. This is a good item to promote, especially on large sizing.

The red cherry market peaked in volume last week and is moving into the last 14 days of harvest with substantially lower volume. Demand is about steady with deals being made on the smaller sizes to clean up inventories from the previous week. The Rainier Cherry market is demand exceeds supply as most shippers have finished or are finishing harvest this week.

Peak Seasons:
Red cherries have peaked and are moving into reduced volumes at harvest.

Crop is peaking on 140s and smaller. Demand is exceeding supplies on all sizes and grades of fruit. Very good demand and drought conditions in growing areas means production of less fruit and no size growth are the major factors for the demand exceed conditions.

Alerts:
Demand exceeds supply. Summertime demand and lighter production caused by the California drought. Expect lighter supplies throughout the summer and into the fall.

The lime market continues to be steady on all sizes. Growers continue harvesting less due to low market conditions. Lower prices have helped demand on all sizes. The overall quality is very good on the crop that is being harvested. Growers are starting to get into old crop limes now. We should start seeing thinner skin with lighter color in some lots coming up.

California Valencia oranges are going with good volume on 72s, 88s, 113s, 138's. Quality on Valencias is very good.

The green grape market continues to be firm and short supplied as recent high temperatures have stalled maturity on the vine. With the cooler temperatures (highs in the 90 degree range) in the growing region this week we should see this situation improve. Quality overall is reported as good and should be excellent as the berries sugar up.

The market on red seedless grapes is about steady with deals being made on the smaller medium size fruit. We expect this market to soften as harvest volumes increase this week with little demand to help move the fruit. Quality overall is reported as excellent.

This market has remained unchanged with most suppliers. Demand is non-existent.. Expect supplies to be plentiful throughout the week out of Mexico. Supplies will likely continue to exceed demand. All sizing is available. Light supplies are being harvested in Salinas. The heavier abundance of product is coming in small and medium size packs.

This market is steady to begin the week. The weights on palletized have averaged 43-47 pounds. Defects that have been reported include slight misshapen heads, light insect and mildew. The defects are considered minimal, and overall quality is good. Salinas and Santa Maria are the two main growing regions at this time. Production in Santa Maria is minimal, but some is available. Salinas will have moderate supplies throughout the week.

The market on romaine steady to start the week. Demand is light after the holiday. Defects on romaine continue. These defects include tip and wind burn, insects, dehydration and mildew.The weights on romaine cartons are averaging 32-37 pounds. Hearts continue to be on escalated pricing, but better availability exists compared to past weeks. Yields continue to be lighter with many suppliers but all orders are being filled. Chopped romaine continues to show pinking upon arrivals. Fringe burn and insect damage continues to be seen on red and green leaf. Butter supplies are light to moderate.

The San Joaquin Valley aka "The West Side" has started and is where a vast majority of our orders are now loading. A handful of shippers in the desert continue to ship melons and they look to be completely finished this week. Overall supplies are not as heavy as they were during their peak production several weeks ago. 9's are easier to buy which is a good thing for us. The peak size is mainly 15ct. Maricopa has good quality and the West Side has very good quality. The current market is steady to lower on 9's. The market on 12's and 15's is lower

The San Joaquin Valley has started and is supporting the current demand. The desert supplies are winding down and have light supplies of 5's. The new crop dews have excellent quality and sugar levels. The peak size is 6ct on the dews coming in right now of the. Supplies out of Mexico remain at low levels and will probably be completely finished this week.

The two main growing areas for Onions is still California and New Mexico. Supplies of Yellow onions out of California, are limited due to a few growers gapping with supplies which will improve as we get into the weekend. New Mexico has moderate supplies of Yellow but some growers out of this area are gapping on Red onion. Market on Yellow out of both areas are firm but steady. Reds are steady out of California with an active market out of New Mexico. Supplies of Reds in New Mexico should start to improve the middle of next week. Quality is being reported as good on all colors.

California has started packing Bartlett pears. Today is their first day of packing so not much information on sizing yet. They also have Stark Crimson pears and are producing 35-55 size half cartons.
Washington still has D'anjou pears and they are peaking on US#1 80-100s. Most packers are limited on anything smaller than a US#1 110 and all sizes in the fancy grade. The D'anjou market is steady. Washington will have D'anjou pears through July.
We have imported Chilean Packhams left in various sizes. The Packhams are steady but they will deal to get them cleaned up.

Transitions:
California will start to pack Bosc pears between July 24th and July 28th.

The potato market out of all areas (Idaho, Washington, Colorado and Wisconsin) is steady on 90ct and smaller at low trading levels. Larger cartons 70ct and larger have adjusted down slightly. This trend should continue till new crop starts up in late July or early August depending on growing area. Quality is still being reported as good.

Bakersfield, California continues to pack red, white, and gold potatoes. All colors continue to peak on A-size and the markets are steady but some suppliers are coming to the end of their season so we should see a stronger market. Gold supplies are light right now. The quality has been good.
Texas is packing red potatoes and a few golds and they are both peaking on A-size. The demand has been strong and the availability is light because of it.
Alabama is steady on reds and they are peaking on A-size as well. The pack more bags than cartons but cartons are available. They will have golds in approximately two weeks.
North Carolina continues to pack all colors but they have more whites and reds available, and all are heavy to A-size. The quality is being reported as good.
Virginia has started packing all colors but they also have better availability on reds & whites with light supplies of Golds. All are peaking on A-size.

Transitions:
Stockton, California will start packing red and gold potatoes later this week.

The peach and nectarine markets continue to be steady with excellent quality. Some shippers are discounting the larger size tray packs as volume increased with just steady demand. Apricots are finishing this week with fewer shippers quoting and the market is holding strong. Quality on the late season fruit is reported as good. Plums are available in good quantities with especially good volume in the smaller 60 to 80 count packs. Demand is steady on generally excellent quality.

ROUNDS/ROMAS – Not much has changed in the east with all the challenges of high temperatures, labor issues and supply falling short of demand. Buyers continue to look out west for product. Georgia and Virginia have brought some relief with decent fruit. With the heat issues the Carolinas are wrapping up earlier than anticipated. This is going to cause a push to the West and we should see both markets rise in the coming weeks. Although Roma pricing may have a chance to settle with product becoming available in Tennessee and Alabama in a week or so.

CHERRY/GRAPE – The east continues to rely heavily on the west for volume. Virginia is coming on and should supply some well needed volume. The west is in good supplies and the east will be increasing in their supply with smaller operations having product available shortly.

ROUNDS - Products remains the same in the west. Product in Eastern Mexico is in decent supply and quality for a few more weeks. The San Joaquin Valley production is peaking and will remain steady. Production in Northern Baja is increasing with good supplies and quality. Still keeping our eyes open for a possible gap/shortage situation in about a month.

ROMA - The Northern and Central Mexico growing are still lower volume but quality is good. Northern Baja continues to increase in volume and will remain steady with good quality. California’s Central Valley has increasing volumes and good quality.

CHERRY/GRAPE - Southern California product from Baja Mexico remains steady with more improvement in quality. Central Mexico is continuing to carrying the Midwest and some Eastern demand with good quality and volume. Production in California is in good quality and supply. Heat may become a factor next week but production should remain steady.