The Source - June 13, 2016

Washington - Red delicious are fairly steady but the market remains firm. Most shippers continue to peak on extra-fancy 72-88s and most are still subbing up to the extra-fancy grades to cover volume orders of fancys. Golden Delicious are steady on all sizes and are still peaking on Wash-Extra 100/113s. Most suppliers still don't have much larger than an 88-size Golden. Granny Smith are also steady on all sizes and they 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 but firm due to light supplies. Expect the market to continue to slowly rise until the end of the season. Most Gala suppliers still don't have much fruit larger than an 88. Fujis are steady on all sizes and the market remains firm due to light supplies. The Fuji market will also continue to slowly rise until the end of the season. Washington Fujis continue to peak on extra-fancy 80-100's. Pink Lady's remain steady but firm due to very strong demand. The quality for all varieties has been good.
Michigan - Red delicious are steady but firm and supplies remain limited, some suppliers are finished for the season. The remaining reds continue to peak on 80/88s. Galas are still available in limited quantities. The quality for red delicious and Galas has been good.
New York - Red delicious and red Romes are steady but supplies are still very short. Small fruit remains limited for all varietys. McIntosh have finished for the season. The remaining McIntosh are very large. The fruit quality has been good.
Chile - Chilean Galas are steady to slightly lower on both sides of the country. The Galas are now peaking on 90-size and larger and the quality is good. Imported Braeburns and Pink Lady's are steady and both are peaking on 90s and larger. Imported Granny-smith are steady and are peaking on 70/80s. Offshore Fuji's are steady and peaking on 70-100s.

Asparagus supplies are steady this week with all growing regions. Mexico will start to ramp up by the end of the week. Peruvian supplies are steady but limited volume on extra large and jumbo. New Jersey has stated as well with decent supplies. Quality is nice from all growing regions.

California's harvest is at it's peak with good volume. Size is still skewed to the smaller size fruit and creating a supply issue for the mid-sized and large fruit. Demand and supply is steady.

Mexico's shipments to the US has stabilized, but volume continues to drop as their main crop comes to its end. Demand is beginning to exceed supplies on 40s and larger sizes and 48s remaining very tight. It is now looking like Mexico's next crop, the Flor Loca crop, isn't going to be ready until the end of July and we see any real volume increases.

Due to record heat in California many grower's have been hurt with their crops out of the Coachella Valley. We expect the market of red bells will be challenging for the next few weeks. It will be important to monitor the quality in Bell's out of Coachella.

Mexican production has really slowed down with many growers ending production for the season. California production is underway out of Oxnard, Santa Maria and the Salinas/Watsonville regions. Quality has been good on CA product overall. Oregon production has begun and quality is excellent. GA has also begun production in a light way and will be increasing weekly.

Blueberry supplies are still somewhat limited after the Tropical Storm in the southeast region early last week, extreme heat in the central valley of CA and slow production as the new areas get started in the Pacific Northwest and New Jersey. GA and NC are both reporting some quality issues with splitting, water damage etc. CA valley blues have been softer than normal with some decay, mold. There's still a lot of fruit being diverted to processing from GA, NC and CA. Oregon and British Columbia have started in a small way and will continue to increase in production volume over the next several weeks. Quality is excellent on the PNW blues. NJ will also start to ramp up in the coming weeks. Baja MX is still producing some blueberries as well.

Transitions:
Oregon, British Columbia and New Jersey are all beginning production.

Mexican production continues to decline. California production continues in Oxnard and is increasing out of Santa Maria and the Salinas/Watsonville regions. Quality has been good overall.

California strawberry production has slowed down some out of Santa Maria, Salinas, Watsonville and Castroville. Cool, foggy days and a lack of sunshine are affecting the ripening process and harvest estimates have fallen some. There are a lot of flowers on the plants and a lot of green fruit so better volume is coming but very good demand is also keeping the deal tighter overall. Sizing has fallen off as well. Strawberries have been running in the 12-18 count range and are now more along the 18-24 count range per 1 pound clamshell. Quality is good with only minor bruising and some white shoulders reported.

There are plenty of supplies of broccoli this week. In fact there are more broccoli crowns than bunched broccoli. Quality is really nice from Salinas and Santa Maria. Mexico is still quoting hallow heart. The market is at competitive levels as well.

The market on Brussel Sprouts has finally reached competitive levels. Demand is not quite there at the same time. Good supplies from Oxnard and Mexico will be the story for this week.

The Bakersfield crop has begun and is picking up in production. Growth rate is also showing some improvement and starting to yield a better percentage of Jumbo size, will continue to improve. Supply of baby peeled carrots are good.

The cauliflower market is still trying to find a lower level. Supplies have been steady with more volume for this week. Quality has been really nice with minimal bruising and brown discoloration.

Production in Salinas is in swing with multiple suppliers. Although growers can stay in the ground until mid-July in Oxnard, shippers will be finished in production within two-three weeks. Supplies simply came on earlier than expected. The best sizing continues to be in twenty-four counts and offers are being listened to. Good quality is being reported from all shippers. Supplies will be strong for the entire week on large sizing. Moderate supplies will exist for thirty-six counts and smaller.

Supplies on sweet dark cherries have been heavier than expected due to the warm weather in the Washington growing regions. We have good availability on all sizes of the 18lb packs. Quality is being reported and excellent and market prices continue to gradually decrease. We expect to have good availability and promotional opportunities through the July 4th holiday. Rainier variety cherries have increased in production as well. Good supplies are expected through the holiday.

Serrano - Quality remains good with better demand. Mostly medium to large size.

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 crossing from Baja .

The cilantro market is steady with no change from last week. Supplies are abundant with three growing regions packing. Quality has been nice as well with minimal yellowing and dehydration.

The central valley crop is now completely harvested. They will ship for another week or two. 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 and many shippers sold out for the week by mid week.

The lime market continues to remain high on the 110 & 150ct. 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.

Shippers have good supplies of large sizes with crop peaking on 72s/56s. Smaller sizes (88s/113s/138s) are in better availability as demand drops with school demand fails away. Shippers are packing new crop Valencia oranges for export and domestic use, but availability is limited as they are working on finishing up the Navel crop. Labor to harvest fruit is an issue for some growers.

Good quality and condition on cucumbers coming out of Northern Baja coast. Supply has lightened since last week. Mostly select, super select's, and large being packed. Watch for cucumber market to rise in California and demand to pick up.

With record heat in Coachella Valley egg plant quality will be fair out of there. We should start to see better quality this week when Fresno begins to harvest. There is a lot of cosmetic issue with egg plant out of Coachella.

Green grape supplies continue to be steady in both California and Mexico growing regions. Sugarone variety is what is available in both areas. Quality overall is being reported as strong, but due to the recent hot temperatures, we have seen some issues with amber coloring on the larger grapes. Sizes are peaking in the L to XL range. Market prices have been fairly steady and comparable in both areas. We expect to have consistent supplies until the new regions start up in California (last week of June).

Red grape supplies have started to get a little snug. Fruit in Mexico endured some very hot weather over the last week and some growers have walked past acres due to quality issues. With the limited supplies of good product in Mexico, we have seen the market price jump up substantially today. There might be some cheaper prices being offered on small fruit with quality issues, so please beware. California production has been consistent, but shippers are concerned about making the remaining fruit last until we start San Joaquin harvest at the beginning of July. Again, we have seen the market firm up on red grapes loading in Coachella. We expect to have steady supplies until we transition into new growing regions, but market prices will stay firm and may continue to increase.

Alerts:
Supplies are becoming limited on red grapes. Market prices are climbing.

Transitions:
New California harvest will begin in the San Joaquin Valley the last week of June and production will increase as we start July.

Plenty of supplies has been the story for the past few weeks and looks to continue this week. Also the start of domestic green onions out of the Salinas Valley will keep prices competitive. Quality has been really good with minimal quality complaints.

Transitions:
The Salinas Valley has started production on Domestic Green Onions.

The market for kale varies from shipper to shipper and loading region. Quality is excellent from all growing areas as well. Supplies for the week will be steady as well.

The market is steady with this commodity. Pricing gaps are seen in the marketplace. Quality issues continue as the weather conditions fluctuate daily. The major defects include insect and mechanical damage,discoloration as well as puffiness . All suppliers continue to have these issues when harvesting. Expect this pattern of quality fluctuations to continue throughout the week. The weights are averaging 41-44 pounds. Expect competitive pricing throughout the week amongst multiple suppliers.

Romaine hearts are in a demand exceeds supply situation. For some suppliers this will continue for approximately two weeks. All leaf items are having common defects suppliers are having to deal with. These issues include insect damage, fringe and tip burn as well as internal burn. Weather conditions in the growing regions is the direct cause of these defects. These issues are identical to last week. Yields continue to suffer, however demand has fallen off. There continues to be pricing gaps in the marketplace on leaf items. Leaf items, overall are firm in the marketplace.

The desert supplies are steady to slightly less than last week. Quality out of the desert has been very nice although it has been extremely hot lately in the growing regions down in the desert. Quality will be effected in some lots. The market is steady to higher due to lighter supplies.

The desert and Mexico are supplying our markets with honeydews. The desert honeydews have been nice so far. Extremely hot weather has been going on in the desert for the last week and quality will be effected in some lots. The market has picked up somewhat and is now a little higher than last week due to lighter supplies and the heat.

Watermelon is still crossing from Sonora. With the bad weather condition's in Florida the demand for Western Watermelon has risen. Watermelon is being shipped from Northern Mexico, Western Arizona, Southern and Central California. Quality is good with mostly Large sizes being harvested.

California -Jumbo Yellows and Red are available in good numbers with all other sizes limited especially Supers and Colossal. The size will start improve by next week as they switch fields. Market on jumbo's yellow and reds have some flex with the larger onions having a strong market. Quality is being reported as good. White onion market is steady.

New Mexico - Jumbo yellows and larger are available in good to moderate numbers while mediums are limited. Red and white onion markets are steady. Quality is being reported as good.

Washington - D'anjou pears are steady to higher and the market remains very strong due to light supplies. Small D'anjous are still extremely short! The remaining C.A. fruit is peaking on US#1 70-90s so expect the smaller sizes to remain limited for the rest of the season. The quality has been good.
Chile - Chilean Packhams are steady and they are peaking on US#1 80/90/100s. Chilean Bosc & Argentinian Bosc are both steady to slightly lower and both are peaking on 70-100s. The quality for all the imported varieties has been good.

Supplies are beginning to drop off for shippers and now looks like June will be a tight supply period. Volume should be come back as we move into July.

Idaho - the carton count market is fairly steady with the larger counts 80 and larger are gaining strength. Carton 90 count and smaller are steady. Quality is still good with an occasional lot showing some internal black spotting. Washington/Colorado/Wisconsin supplies are steady with a firm market. Washington is the only shipping area that has slightly larger sizing. Quality is being reported as good.

Bakersfield, California - reds, whites, and golds are steady and the availability remains good for all. Reds, whites, and Golds are still peaking on A-size. The quality has been good.
Phoenix, Arizona - red and gold potatoes are steady and both colors continue to peak on A-size. The quality has been good.
North Florida - Red potatoes are steady while the whites and gold potatoes are steady to higher with many suppliers saying they are finished. The availability of reds is still fairly good but last weeks tropical storm knocked out most of the whites & golds although there are a few left. The quality is reported as good to fair.
Pearsall, Texas - The red market is steady and the shippers are still bullish due to strong demand. The quality has been reported as good.

Alerts:
Eastern gold and white potato supplies are light due to last weeks tropical storm. Most packers are already finished because of the heat that north Florida is getting now.

Transitions:
Alabama will start packing new-crop red potatoes at the end of the week.

North Carolina and Virginia are supposed to start packing new-crop gold and white potatoes the week of June 20th and then reds the next week.

Hard squash is now coming out of Coachella Valley. With the Record heat in the Coachella Valley mostly large sizes on Italian and Yellow S/N are being harvested. Temperature is causing quality to break down sooner . Many Coachella Squash Grower's are requiring repacking before shipping. Weather is still very hot in this area.

We continue to have excellent availability on all stone fruit. As we start the third week of June, we enter the peak of the season for California summer stone fruit. Apricots, peaches, nectarines, plums and pluots will be in good supply with plenty of promotional opportunities available for the holiday. The warm weather has helped move the fruit forward. We are seeing mostly larger size fruit with high sugar levels. Quality is being reported as excellent.

Peak Seasons:
We are in the peak of California summer stone fruit. We will continue to have excellent availability for the July 4th holiday. Promotional opportunities are available.

Prices are holding steady with fewer tomatoes in the market as Palmetto/Ruskin finish for the season. Arkansas have started in a small way leaving most of the Eastern U.S. looking to Quincy and South Carolina for tomatoes. Despite rain delaying picking schedules last week, South Carolina has continued out of new fields with light production of good quality fruit. Grape and Cherry production have slowed and have grown tighter this week while new fields work to get started this week. Overall market volumes are lighter than what we’ve experienced over the past month and could get a little tighter until numerous local deals and East Coast growers start up over the next few weeks.

In the West, Mexico has been holding back imports because they are required to sell at the Suspension Agreement minimums which have been higher than the market in the US. Mexico is into crown picks and has good production out of Baja which may begin crossing in greater numbers as the market firms up in America as Florida production has tapered down. California has started with crown picks as well and helping with supply for round tomatoes, however volumes are still light. Roma tomato production has also increased out of Baja with fruit trending towards larger sizes and the market remains steady. Grape tomato production remains steady in Baja as well and will pick up over the next 10-14 days as more growers enter the mix and demand picks up in the Midwest and out East.