The Source - June 1, 2015

Summary

We have just released a new version of The Source, the twice weekly commodity report from your produce partner PRO*ACT. This document can be viewed online, or downloaded, and we encourage you to send on to the relevant staff within your organization to keep them aware of current market conditions for fresh produce.

In addition, we have included features about peak seasons, weather outlook, transportation information and region updates.

Weather Update

The cool moist weather pattern continues along the West coast this week as a couple of deep low pressure troughs move into California. This weather pattern will continue to bring in a deep marine layer, fog and drizzle along the entire coast. Temperatures will remain below average through the week with gusty winds. The coastal regions of California will struggle to reach the low 60s with low 80s forecast for the inland valleys. In the Southwest , Mexico and Baja temperatures remain cool along the coast while inland regions approach triple digits this week. We continue to monitor a couple of tropical systems off the Mexican coast that have the potential to impact the region late this week. The Southeast and mid-Atlantic regions will see showers and thunderstorms through the week with temperatures in the 70s to the north warming to the 90s in the southern (FL) regions. The northern regions are under a flash flood watch over the next couple of days as these cold fronts move through. On a bright note Texas and Oklahoma are forecast to have dry conditions after the tremendous deluge last week.

Freight Update

Trucks in CA are adequate for now but expect to tighten up at the end of the of the week due to DOT safety week. Trucks in ID are steady while WA and Western Idaho remain tight due the increased shipments of nursery stock. Crude oil is steady and is currently at $58.98 per barrel. Fuel decreased $.01 this week.

Commodity Updates (Click row for summary) Expand All

Apples

New York is still packing light supplies of Red Delicious and Red Romes. Both varieties are steady and continue to peak on larger fruit. The New York shippers expect to pack through this week.
Michigan is still packing Jonathans, McIntosh, Red Delicious, and Red Romes. The Red Romes and Red Delicious are still peaking on 100's and larger while the Jonathans and McIntosh are peaking on 100's and smaller. The red delicious and Red Romes are the bulk of the volume. Availability is generally light for all varieties as the end of the season approaches.
Washington is mostly steady on Red Delicious but there is price-flex on volume orders of 80's and larger. Most packers are still peaking on 88's and larger in the premium and Washington extra #1 grades. Small reds remain limited. Golden Delicious are steady on all sizes. 125 and smaller Goldens are more limited than the other sizes. Granny-Smith are steady and are still peaking on 72's and larger. Granny 100's and smaller remain very short. Fujis are steady to higher and are peaking on the larger sizes. The Fuji volume is starting to drop as the end of the season approaches. Small Fujis remain extremely short. Galas steady to higher and are still peaking on 88/100's. The Galas have better availability in the smaller sizes than most other varieties but the Gala volume is all lower as the end of the season is in sight. Opals, Only odd sizes and light supplies of a few varietals remain.

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Growing Region Market Quality
Coopersville/Belding/Sparta, MI Steady Good
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Hudson/Pleasant Valley/Red Hook, NY Steady Good
Asparagus

This market is steady. Peruvian production continues to be strong in availability and represents the best deals offered. FOB pricing directly out of Miami will be better in comparison to California and Mexico product. All sizing is available, although jumbo sizing is getting a little snug. Loading in Southern California is an option as well. Mexican production is moderate. Standard and large sizing are the main packs available on eleven pound cases for Mexican grass.. California production is light and commands the highest pricing.

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Growing Region Market Quality
Caborca, Mexico Steady Good
Ica, Peru to Trujillo Steady Good
Salinas Valley, CA Steady Good
Avocado (California)

California growers continue to harvest good volume. They are peaking on 60's and smaller, with 48's and larger still limited in harvest. We hope to see crop fill in with a broader range of sizing as we move through June. Overall volume of this year's California crop looks to be lighter than first projected due to the drought. Quality and flavor are both very good.

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

Mexico is over 80% harvested for their season. Good supplies continue to come in, and still heavy to 60's and smaller. 48's and larger remain tight, but are showing some slight improvement. Quality and flavor are at their peak.

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Growing Region Market Quality
Michoacan, Mexico Steady Excellent
Berries (Blackberries)

Blackberries are coming out of Mexico, Santa Maria, Watsonville and Georgia currently. Mexico supplies are declining quickly for the season and should finish up in the next week or so. Demand and the market is moderate with little change. Best quality is coming out of Watsonville and Georgia.

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Growing Region Market Quality
Watsonville, CA Steady Excellent
Santa Maria, CA Steady Good
Central Mexico Steady Fair
Berries (Blueberries)

Blueberries are shipping out of California, Mexico, Georgia and North Carolina currently. Supplies out of Georgia and Mexico continue to decline and North Carolina is picking up quickly. Best quality is out of California and North Carolina. Market is steady to slightly weaker depending on pack sizes and growing area. The main pack sizes are the larger packs with very few 4.4oz being packed currently.

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Growing Region Market Quality
Watsonville, CA Steady Excellent
Central Mexico Steady Good
Baja California, Mexico Steady Good
Berries (Raspberries)

Raspberries are coming out of Oxnard, Santa Maria and Watsonville growing areas. Mexico is finished for the season. Production continues to increase as each week moves on for most growers. Demand is moderate. Market is steady. Quality is good.

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

The main growing area currently is the Salinas/ Watsonville. Santa Maria is still harvesting in a very light way for the fresh market but most of their volume has been switch to the freezer market. Some growers in the Salinas/Watsonville area have also put some of their volume into the freezer market due to light demand and low market last week. Quality is great currently with fruit counting 12-16. Market is firming which is partly due to the California cherry crop finishing and Washington not up to speed yet which has retails filling in with strawberries. All growers should hit peak volumes sometime this month.

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

The cool weather in the Salinas Valley has allowed the growth acceleration of broccoli to slow down. Hence the quality is much stronger than in past weeks. Crowns as well as bunched product have better availability. Demand for now is off. The main production continues to be out of the Salinas Valley. Crowns are expected to be moderate for the rest of the week. Santa Maria will be light to moderate in availability for the week. Production in Mexico looks to be steady for the rest of the week, with crowns being more readily available.

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Growing Region Market Quality
Celaya Guanjuato Mexico Lower Good
Oxnard/Santa Maria, CA Lower Good
Salinas Valley, CA Lower Good
Carrots

California desert crop has finished. Bakersfield crop is now fully up and going. Size is fair coming, but improving quickly. Jumbo size carrot supplies are starting to come back into better supply.

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Growing Region Market Quality
Bakersfield/Santa Maria, CA Steady Good
Cauliflower

Multiple offers have been given by shippers on this commodity to begin the week. Demand has simply fallen. The quality has picked up with most suppliers. The yellowing and insect damage that was seen on this commodity in past weeks has for the most part gone away. Supplies will be strong throughout the week. Santa Maria and Salinas are the main growing regions currently.

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Growing Region Market Quality
Oxnard/Santa Maria, CA Lower Good
Salinas Valley, CA Lower Good
Celery

This market is softer on large sizing in the Southern California growing region. Loading in Oxnard/Santa Maria continues to give the best fob price. Small sizing is commanding a higher FOB price. Salinas is scheduled for production in mid to late June. The overall quality down South is being reported as good. A few issues of bowing and insects have arisen, but these have been minimal complaints. The overall quality is favorable.

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Growing Region Market Quality
Oxnard/Santa Maria, CA Lower Good
Cherries

The cherry deal is still winding down out of the Lodi / Stockton region with limited numbers of good quality fruit available. Washington has started but severe weather events in the southern districts (thunderstorms and hail) as well as an unusually slow start in the Yakima Valley have conspired to strengthen this market. Supplies for the early fruit are much lighter than expected. Demand is very strong.

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Growing Region Market Quality
Stockton / Lodi, CA Steady/Higher Excellent
Wenatchee Valley, WA Steady/Higher Excellent
Yakima, WA Steady/Higher Excellent
Citrus (Lemons) Alert

Size curve of the crop is peaking on 140's and smaller. Demand is exceeding supplies on all sizes and grades of fruit. Very good demand and drought conditions in growing areas producing less fruit and no size growth are the major factor for the demand exceed conditions.

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

Growing Region Market Quality
Merced/Bakersfield, CA Higher Good
Oxnard/Ventura, CA Higher Good
Citrus (Limes)

The lime market continues to come down on the larger sizes. The smaller sizes are holding pretty steady with a hint of upside in the prices from some shippers. Supplies are increasing on larger sizes now and decreasing slightly on smaller sizes. Lower prices have helped spur demand on all sizes. The overall quality is very good on the new crop that is being harvested.

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Growing Region Market Quality
Veracruz, Mexico Steady Excellent
Citrus (Oranges)

California Navel crop is dropping off and peaking on 72's/56's. There will be some larger Navels available through June. California Valencia oranges are going in good volume. Labor to pick the fruit has become an issue now with the labor force being spilt with the stone fruit harvest going as well. Quality on Valencias is very good, color is nice and brix are 12.5 - 14.00 average.

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Growing Region Market Quality
Merced to Bakersfield, CA Steady Good
Riverside, CA Steady Good
Grapes (Green)

The Mexican green seedless market has adjusted downward due to increasing supplies and only moderate demand. Quality continues to be very good on both Pearlettes and Sugarones. The Coachella market is also adjusting down in the face of moderate demand (for limited supplies) and competition from Mexico.

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Growing Region Market Quality
Sonora, Mexico Lower/Steady Excellent
Coachella Valley, CA Lower/Steady Excellent
Grapes (Red)

Red seedless grapes continue to suffer from a combination of excellent supply and quality out of all growing regions. While Mexico still dominates with the heaviest volume the numbers out of Coachella are more than enough to meet current demand. This market looks to continue on the down side for the coming week.

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Growing Region Market Quality
Sonora, Mexico Lower/Steady Excellent
Coachella Valley, CA Lower/Steady Excellent
Green Onions

This market is unchanged. Demand is light. Most of the production for this commodity continues to be produced from the Baja region of Mexico. Supplies will be good throughout the week. All sizing is available. Light supplies are being harvested in Salinas. The heavier abundance of product is coming in small and medium size packs.

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Growing Region Market Quality
Mexicali, Baja Steady Good
Salinas Valley, CA Steady Good
Lettuce Iceberg

This market is steady, overall. The Salinas Valley continues to produce the bulk of the lettuce supplies. The quality is stronger with most suppliers, as weights have eased up compared to last week. Weights on palletized lettuce are ranging from 43-47 pounds. Production in Santa Maria is lighter. Local production has fallen off. Expect steady supplies throughout the week. Demand will dictate later in the week how much the market will climb. For now, things are firm.

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

The romaine market, overall is up. Quality issues continue. Tip burn, wind burn and mildew are common defects with this commodity, especially in the Salinas valley. The weights will be 34-38 pounds. These same issues are also evident in green and red leaf items. Both of these commodities are on escalated pricing. Demand is slow to begin the week. Supplies are expected to be light to moderate throughout the week, depending on the shipper. There is a gap in pricing ranging from four to six dollars on romaine and leaf items.

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

The desert is harvesting good numbers cantaloupes currently with the peak size being 12's. Good supplies and quality look to continue for the next few weeks as the desert peaks in production. Very nice quality is coming out of the desert . The market has stabilized and has a hint of upside in it right now especially on 9's. The "west side" is set to start the first week of July.

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Growing Region Market Quality
Maricopa, AZ Steady Excellent
Yuma, AZ Steady Excellent
Brawley, CA Steady Excellent
Holtville, CA Steady Excellent
Melon (Honeydew)

Supplies out of Mexico are at low levels with 6's and 8's being the main sizes coming in. The desert has decent supplies with increased supplies slowly coming onboard. The dews are excellent quality and are commanding a premium to the product from Mexico. The quality on Mexican and domestic dews are very nice and they all have high sugar contents too. The peak size is 6's on the domestic dews coming in right now. The dew market is steady on all domestic and Mexican dews while deals are being made on the final bits of lower quality offshore product.

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Growing Region Market Quality
Maricopa, AZ Steady Excellent
Brawley, CA Steady Excellent
Yuma, AZ Steady Excellent
Onions

Onions are coming out California and New Mexico. Supplies out of California just finished in southern growing area and moved up to the Huron area. Supplies are starting out light, but are building as each day moves on. All colors and sizes are available but the larger sizes are limited. New Mexico is fighting small onions in their first fields in both Yellow and Reds and are peaking on Mediums. This should change by the start of next week. Market is steady. Quality is being reported as good out of both areas.

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

Washington continues to pack both D'anjou and red pears and the markets are steady. The D'anjous are peaking on US#1 80-100's while fancy-grade supplies are limited in all sizes. The red pears are peaking on 50/55 half-cartons and supplies are very light, in fact many suppliers are finished.
On the import side we still have Chilean Packhams and Bosc and Argentinian Packhams and Bosc. Both variertys are lower in the Chilean while the Argentinian fruit is steady to slightly lower. With California fruit coming in 5 weeks the importers want to keep the Chilean fruit moving. The Chilean Packhams are peaking on 100's and the Argentinian are peaking on 90's and larger. The Bosc are heavier to 100/110's while the Argentinian Bosc are producing mostly 90's and larger.
California is set to start packing new crop Bartlett pears the week of July 6th.

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Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Chile Lower Good
Potatoes Alert

The potato market is steady out of all growing areas (Idaho, Washington, Colorado, Wisconsin) the start of this week with light to moderate demand. Large cartons are still limited out of Idaho (40-60 count). Quality is being reported as good.

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Alerts:
Idaho Large cartons very limited (40-60 count)

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

Bakersfield, California is still packing all colors and they are all peaking on A-size. The California market is steady on all sizes and colors except the A reds and all sizes of golds. golds are short on the east-coast and the western shippers have felt stronger demand. The quality has been good.
Phoenix, Arizona continues to pack reds and golds. Both colors are peaking on A-size now. The quality has been good.
Pearsall, Texas is packing reds again and they are peaking on A-size. The quality has been good.
Northern Florida (Hastings) is also packing all colors. The Red market is steady to lower on all sizes and they are producing mostly A-size. The white market is being quoted as steady but there is good availability and some volume flex for all sizes. Gold supplies are light and the market is steady to higher. Some supplies suppliers are reprting only fair quality. The Florida red and white quality has been good.

- pa_admin
Growing Region Market Quality
Bakersfield, CA Steady Good
Phoenix, AZ Steady Good
Pearsall, TX Steady Good
Hastings/Bunnell/East Palatka, FL Steady Good
Stone Fruit

The market on peaches and nectarines is steady with good demand. Sizing is adjusting with more of the larger fruit and less of the smaller sizes being harvested. This trend should continue as we move further into the season. Plums and pluots are readily available in a range of sizes and color. The market on these continues to be good with good demand. Apricots are about steady with sizes running heavy to the 2 layer 70's - 50's.

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

Palmetto growers are continuing to harvesting heavy volumes of round tomatoes. Quality remains good on both rounds and romas. Roma are available in the Southeast but the majority of volume is crossing in the West. Cherry and grape tomato products availability has slowed which continues to drive pricing on both items. Florida grape and Cherry tomatoes are past their flush which is the cause for the slow, the demand has remained the same.

- pa_admin
Growing Region Market Quality
Southern Florida Steady Good
Tomatoes (Western)

Supplies on round tomatoes coming out of the west remain good. Good supplies continue to provide lower pricing, west coast buyers interest mainly. The fright rates are keeping the supply regional. Production has begun in the California desert and the Central Valley is expected to begin as we head into next month. Mexico continues to harvest romas in strong volumes. More production in Baja keeps the outlook good for supply and availability. Grape production is increasing in Baja with good supply crossing into southern California where supplies should be ample through the rest of the year.

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

Things You Should Know

Citrus (Lemons)
LEMONS:
Demand exceeds supply. Summertime demand and lighter production caused by the California drought. Expect lighter supplies throughout the summer and into the fall.

Potatoes
Idaho Large cartons very limited (40-60 count)

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