The Source - June 14, 2017

Washington – Red Delicious are steady on all sizes. Most fruit remains large and is peaking on 80/88s while the smaller sizes are limited. Golden delicious are steady but strong due to light supplies especially on the smaller sizes. Golden delicious continue to peak on 72/80/88s so supplies of the smaller sizes are limited. Granny Smith are steady to higher again on all sizes due to strong demand and light supplies. The fruit is still peaking on 72/80/88s. The availability of 88s and smaller is extremely light and most suppliers continue to sub up in size and grade just to cover business. Galas are steady on all sizes but 125/138s and smaller are very short. Galas continue to peak on 72/80/88s. Fuji's are higher on all sizes due to light supplies and they are still peaking on 64/72/80/88s. Fuji supplies are still very light especially on 113s and smaller. The quality for all varieties has been good.
Michigan – Red Delicious are slightly higher on all sizes due to lighter supplies. Some suppliers will finish at the end of this week while some will continue through the month. The quality has been good.
New York – they are essentially finished for the season.
Chile – there are some Chilean Pink Ladys, Fujis, Galas, and Granny-smith on the east coast. The Pink Ladys and Granny's are peaking on 90s and larger while the Fujis and Galas are evenly spread between 70-110s. The quality has ranged by variety. There are also some Chilean Braeburns, Fuji's, Pink Lady's, and Granny-Smith on the west coast they are steady but peaking on 70/80s. The quality has been good.

Alerts:
Washington is still extremely short of small Granny-smith and golden delicious apples. Storage supplies are way down for both so expect them to remain for the season.

Peak Seasons:
Washington is still in the peak of its red and golden delicious as well its Gala season.

Central Mexico is in full production, and should be strong through mid July. California production, and growing weather remains unchanged. Washington State still has good production, and should continue through the end of June. Michigan will see rain this week which should wrap up their production. Peru is starting to slow down due to lower prices in the market place. Overall market is lower due to 4 of 5 region going strong.

The demand for California avocados continues to be in full swing as we approach the summer months. The quality of fruit is excellent with great oil content. We will see no real change in California avocado production this week with volume expected to sustain itself in the 10 to 11 million pound range. This looks to be the trend for the month as far as supplies are concerned. We will see the sizing profile of 48 count to be the theme here.

The market on Mexican avocados remains at higher than typical seasonal prices. Supplies look to be steady at the 23 million pound level this week but look to taper off next week. Demand keeps it's surge keeping supplies and markets interesting. The quality is excellent with decent oil content and minimal arrival issues.

green bell pepper has gotten tighter, mainly due to weather keeping growers out of the fields. The pipeline has cleaned up on bell pepper with so little volume being shipped. Georgia is by far the primary supplier, South Carolina has started light volume this week and North Carolina is set to start this weekend. The quality in Georgia is good not great. With the hot humid weather some of the older field are showing signs of bruising and turning color. We have not gotten any quality reports out of South Carolina yet but they have gotten as much rain as the shippers in Georgia only on newer fields. North Carolina has issues from Hail damage in their bell pepper, the plan is to pack all the peppers as #2 product the first time through until they can clean off all the damaged fruit then let the remainder size before going back in.

Alerts:
Rain and cloudy, humid weather for the past 10 days and forecast for the rest of the week are a concern on bell pepper quality, issue could start to show up.

Transitions:
The bell pepper transition is stating to move from Georgia to the Carolinas over the next 10 days.

Green Bell Pepper are finished in Nogales completely. Green Pepper from Coachella Ca. has also come to a finish this week. The Southern San Joaquin Valley ( Bakersfield ) is just getting started are in limited supply with excellent quality peaking on large and X large sizes. Very little choice ( #2 ) being packed.

Colored Bells ( Red, Yellow and Orange) are finishing in Nogales this week. Good quality and condition are shipping from Coachella Ca, Supply is increased this week due to warmer weather. Quality and sizing have improved. Packing 25# and 15# units Both #1 and #2 grade Warmer weather is expected to continue.

No much change on blackberries this week. Supplies have gradually been improving. Salinas / Watsonville harvest has been increasing weekly and will continue to ramp up over the next several weeks as we approach peak season. Quality is strong with good size and flavor profile. Santa Maria volume has improved as well as we begin this next cycle of harvest. Quality looks good with dark color and big size. Georgia has now started their harvest on blackberries as well. Harvest has been slow, but is expected to increase moving forward with peak season expected for later this month. Mexico production is trending down and quality has been reported as fair with some soft wet berries. Market prices have a wide range depending on growing and loading region.

Blueberry supplies are becoming increasingly limited. On the west coast, the Central Mexico and Baja supplies are finishing up this week and the Pacific North West is still 2 weeks away from starting. This leaves only the Central Valley (CA) product to bridge the gap. Overall, supplies are expected to be limited over the next couple weeks with just a few shippers loading in the Salinas / Watsonville areas. If loading direct in the Central Valley is a possibility, we will have more options to fulfill orders. The Pacific North West is expected to start harvest the week of June 26 and we should be back on track by the end of the moth. On the east coast, Georgia and North Carolina have been struggling with weather related issues and poor yields. Supplies are expected to remain limited as we finish up these regions and look toward New Jersey harvest to fill the demand. New Jersey will get started next week with light volume, but will increase quickly and supplies will be steady for the next 4-6 weeks during the NJ season.

Alerts:
Supplies will be very limited for the next 2 weeks as we transition growing regions.

Transitions:
Pacific North West is expected to start the last week of June. New Jersey will start next week and increase by the end of the month.

Raspberry supplies have been consistent in Salinas and Watsonville areas. Quality is being reported as very good. Availability is expected to be steady for the next 2 weeks as we approach the peak of the first harvest cycle. Demand has been strong and market prices have been slightly lower and steady this week. Mexico harvest has declined rapidly with limited fruit available throughout the market. Prices are cheaper on Mexican product, but quality is being reported as fair with wet and soft berries.

Strawberry supplies are slightly limited this week. Salinas and Watsonville areas experienced some unfavorably cold and wet weather late last week. This slowed down harvest over the weekend and had an impact on the front part of this week's production. Due to the water damage and temperature swings, shippers walked past a big portion of ripe fruit in the beginning of the week to avoid quality concerns (see picture below). This affected yields; limiting the availability of fruit and raising market prices. The Salinas weather forecast calls for sunny afternoons with highs in the 70's for the remainder of this week. We anticipate better quality and supplies as we move toward the weekend. Santa Maria production has been on the decline over the last week. However, the weather is expected to warm up and quality will be improving this week. We should see better supplies by the weekend. Overall, quality should bounce back after we get through the rough patch this week and market prices should remain steady with possible opportunity buys by next week.

Alerts:
Salinas and Watsonville strawberries were exposed to some rain over the weekend. Yields are down and quality may be effected in the front part of the week. Condition and supply is expected to improve by the weekend.

The supplies of broccoli vary from supplier to supplier. Also depending on the growing region, the market is also inconsistent. It looks like supplies will remain steady through this week. But with the much warmer temperatures in Salinas and Santa Maria for the end of the week, it could change this forecast. Quality on the other hand has been very nice with vibrant green color, minimal yellowing or dehydration.

We continue to see quality being the main issue here. As supplies out of the growing region in Mexico are limited due to the current hot weather. We have seen brown to black discoloration and inconsistent sizing being the main problems. We will see this type of problems for the next 3 to 4 weeks out of Mexico. Oxnard supplies are limited and the suppliers are utilizing their supplies for processing. The market will remain at current levels well into next week.

Alerts:
The main issue here with supplies is poor and inconsistent quality out of Mexico. This has kept the market at much higher levels.

As the heat turns up in the Bakersfield growing region, supplies remain steady and plentiful. We will see a transition to the coastal Santa Maria region later this month. We will not see any disruption in supplies. The market is also steady with competitive prices. Quality is excellent!

We have seen a shift in supplies due to inconsistent plantings and weather. All suppliers have limited supplies moving into the end of the week and into next week as well. The market has reacted and trending much higher. Although quality remains really nice with little creamy to yellow color, good weights in the 22 to 25 pound range, and minimal bruising (which is the brown to black spotting of the cauliflower).

Alerts:
Cauliflower supplies this week are experiencing a short term supply gap. This is related to the inconsistent weather patterns and plantings fro all suppliers. The market will trend higher well into next week.

This celery market continues to get softer with all suppliers. Demand has fallen off as schools finish up for summer break. Many suppliers are flexing for volume type orders. Salinas production as well as Santa Maria has picked up. Better supplies on large sizing is much more readily available. The quality has picked up as weather in the growing regions have been favorable.

Pablano – excellent size and Quality will continue with new crop in Baja California.

Tomatillo – much lighter supply and just fair quality, both peeled and husked. Sizing is only fair. Color and condition will continue to be only fair.

Jalapeño – good quality on new crop pepper. Excellent size, color, and condition with supply dropping. Some number 2s are being shipped.

Anaheim – good quality, condition, and size are expected to continue as supply have improved

The cilantro market remains steady with good supplies. Although we have seen some arrival issues with yellowing, brown leaves, and some minor black decay, it has been few and far between. The market and supplies loo to be stable well into next week.

The lemon market continues to strengthen. Limited volume along with limited availability of the smaller profile fruit will become even more of an issue for the next several months. Delays in loading orders as well as multiple pick are becoming more of an issue. This will be the case throughout the summer months.

Limes continue to peak on smaller sizes such as 230's and 250's. 110's through 175's are available now. New crop limes are smaller in size and due to the lack of rain and hot temperatures they look to remain peaking on the small sizes for several more weeks. Quality has been excellent on the limes over the past several weeks and looks to keep this trend. The market is steady on all sizes.

The Valenica orange harvest is in full swing but sizing and availability are an issue. We are seeing limited availability on the larger 88's as well as with the 113's - 138's. Multiple picks are becoming the norm as well as the longer waits to get orders booked. Overall supply on all sizes is just fair although quality is generally good. Per normal there is some re-greening of the early fruit but this should dissipate fairly quickly as we move into summer.

There is a wide range in eastern cucumber pricing. Good number one product is in tight supply while selects and cartons are still very reasonable and supplies are good. Quality is only fair in as Georgia starts to wind down and weather damage has affected the crop in North Carolina. Virginia and New Jersey are starting slowly, the past month has been cooler than normal and the two regions are a little behind schedule.

Alerts:
Supply is spread out from Georgia to New Jersey. Quality is only fair in any region.

Transitions:
Cucumbers are transitioning up the coast, Georgia is starting to wind down, North Carolina is in the peak of there season but the supply is in few hands and only has a very short window. Jersey id just starting and will move into volume by the third week of June.

Limited supply on cucumber coming out of Nogales Az. excellent supply has also started crossing in Baja California. Excellent color, quality and condition on all grades, sizes and pack styles. Peaking on Super Select.

The eggplant market is cheaper. Supply in Georgia is peaking and quality is good. The southeast is experiencing rainy weather. There was spotty rain all over last week and the forecast is more of the same for this week. Accumulations varied a lot from area to area. Eggplant is one product that can be more easily harvested in wet conditions. Eggplant are a more hardier fruit than bell pepper or squash so they hold up better in wet conditions, however if they weather doesn't soon clear production will slow down and issues with bruising will start to show up. Good production of eggplant should continue until the end of June.

Peak Seasons:
Eggplant is in peak production now would be a good time to promote Fancy Eggs.

Eggplant in Nogales has finished, limited supply from Coachella is now available with very limited supply. Quality is good with both number one and number two being offered.

The green grape market much like the red grape market is at or very near the bottom right now. Mexico is within a few weeks of finishing up and the Coachella Valley supplies are still building. The growers up in the San Joaquin Valley are gearing up for production in July. Supplies are ample and quality is very good. The market is currently steady.

Peak Seasons:
Mexican supplies are past their peak.

The red grape market is at or near it's bottom now. Some of the Mexican growers are finishing up over the next few weeks which will help lighten supplies and cause increased prices. The domestic growers volume down in the desert is picking up but isn't overtaking current Mexican supplies. Growers in the San Joaquin Valley are gearing up to have production in the first week of July. Quality has been very good, sizing has been a wide range which we prefer and prices have been very affordable. The market is steady right now.

Transitions:
The San Joaquin Valley is coming in July.

Peak Seasons:
Mexico is past it's peak production.

We will see a serious heat wave in the growing region of Mexico. Temperatures in the 105 to 110 degree level. This will slow growth rates down significantly. We are currently seeing a supply gap on Jumbo sized green onions due to these conditions. Quality will also take a turn for the worse with increased brown to yellow discoloration of the tops. We will see this market trend higher into next week.

Alerts:
Extreme heat in the growing region of Mexico will cause a spike in the market and quality will suffer as we move into the end of this week and into next.

Kale supplies continue to be abundant. The markets although vary from supplier to supplier. The quality has been excellent with full cartons dark green color, minimal yellowing or dehydration. We will continue to see this trend into next week.

This market is steady with most suppliers. The availability is light in Santa Maria but Salinas has good production. The overall quality is good with only slight mechanical and pink ribbing being reported. The Salinas valley has had strong winds this past week so fringe burn may surface later in the week. Multiple shippers are flexing. The weights are good, averaging 42-47 pounds on palletized. Demand is off, as summer vacation has kicked in and most schools are out.

The market is flat on romaine and all leaf items. Good supplies are expected all week and flexing is common with these commodities. Romaine in particular has multiple suppliers flexing. Good volume is expected all week, much the same as last week. Green and red leaf as well as butter are expected to have plenty of availability. Defects continue to be reported, however. These defects issues include light fringe burn, pink ribbing and slight insect damage. With the heavy winds in the Salinas valley this past week, expect fringe and tip burn to be seen more than the previous few weeks.

Cantaloupes are peaking on 9's currently and that looks to continue for the next 2-3 weeks. Growing conditions have been conducive to producing large sized cantaloupes. Some of our desert growers are finishing up next week which will impact the overall supply. The West Side is set to start in July. Quality is currently good with a few lots arriving with softness due to hot weather over the course of their growth cycle. The market is steady to higher.

Transitions:
The West Side/San Joaquin growing region will start in July

Honeydews out of the desert are feeling the pressure of lighter supplies. Growers are past their peak volumes and are declining with some growers finishing up next week. Mexican supplies are very light and look to finish within 2 weeks. Supplies will remain under pressure until the West Side/San Joaquin growing region starts in July. Expect the market to do a slow and steady climb for the next 3-4 weeks with the normal ups and downs. Quality is very nice and we have 5's through 8's at this time. The market is up.

Transitions:
The West Side/San Joaquin growing region is set to start in July.

Peak Seasons:
The desert and Mexican supplies are past their peak.

Supply on conventional seedless in Nogales has come to an early finish. production from the California desert is also very limited. Very short supply with poor yield and quality.

Little change in the onion market out of all growing areas due to light demand and good supplies of all colors and sizes. Main shipping points are Central California and New Mexico. Quality is being reported as good. Look for the market to stay steady at lower levels into the end of this month. We could see a slight increase in market the start of July as they switch into mid day varieties.

Peak Seasons:
California and New Mexico are moving into peak availability on all colors and sizes

Washington – D'anjou pears are steady on all sizes and they are peaking on US#1 80/90s. Smaller size fruit is more limited. The quality has been good.

Chile – Chilean Packhams are steady on all sizes and they still have a fairly even size spread from 70-120s. Argentinian Packhams are also steady and still heavier to 100s and larger. The quality for both has been good. Both Argentinian and Chilean Bosc pears are steady and heavy to 100 size and larger although the Chilean fruit has more of the smaller sizes. The quality for both has been good.

Transitions:
California will start packing Bartlett pears the week of July 10th.

Tropical supplies are currently good but expect lighter supplies as we approach the end of June. July and August will bring limited supplies.

Market is still very active with limited supplies of 70 count and larger out of all shipping points (Idaho, Washington, Colorado and Wisconsin). Most lots are packing only 30-40% number 1's. The 80/90 count market have seen some upward movement as people switch down in sizes. Quality is still being reported as good. Next year crop is about 10-12 days behind due to the wet cool spring. Nice weather could close this gap quickly. Idaho has been getting moderate rain and cool weather for the last couple of days. Forecast is calling for the weather to get back to normal conditions as we get into the weekend. We will keep you posted.

Alerts:
40-70 count in a demand exceeds supply situation out of all shipping points

Bakersfield, California – golds, whites, and reds are steady with good availability especially on A size. Premium/Bakers, number-twos, and C-size of all colors remain relatively short. The quality is good.
Phoenix, Arizona – red and gold potatoes are steady on all cartons and both are peaking on A size. Gold supplies remain limited. The quality is good.
North Florida – they finished early on reds & golds last Friday.
North Carolina – they have started packing whites and are peaking on A size. They will pack reds tomorrow and golds Friday.

Transitions:
Stockton is scheduled to start packing all colors of

Peak Seasons:
Bakersfield, California is in the peak of its red, white, and gold potato seasons.

The green squash market is lower and yellow squash is higher in the east. The squash supply is spread out from Georgia to New Jersey. Georgia is winding down and yellow squash is just about finished, North Carolina has stopped harvesting for the most part because of hail damage to their crop. New Jersey is starting to get some volume of good squash after a slow start due to cool weather. The squash market, green in particular has been high priced for a month mainly due to the fact that there was very little squash in the western part of the country. now that California has started, it has taken pressure off the market. With all the weather in the south east, yellow squash has been effected with quality issues more than the green. Ohio and Michigan will start with very light volume this weekend.

Transitions:
Squash is in Transition up the coast, winding down in Georgia and moving to the Carolinas, Virginia and New Jersey.

Peak Seasons:
Green squash is moving into very good availability but we will have to wait a week on yellow squash.

Yellow Squash and Italian Squash are finished from Sonora(Crossing in Nogales) Yellow squash has been in very short supply and Italian has also been limited but supply on both is improving this week. Cool weather has slowed the new crop in California. sizing is mostly medium followed by fancy and xfancy with very few W/B being offered. Hard Squash is still being offered in very limited supply out of Southern California.

Supplies of smaller size fruit remain very tight with most shippers struggling to fill even small orders and many shippers aren't quoting the smaller sizes at all. Over the next few weeks supplies of smaller sizes in not expected to increase. Supplies of peaches, nectarines and plums look to be good on the larger sizes over the next couple of weeks. Rain over this past weekend and cooler temps has impacted harvest and pack-outs but look to improve over the coming week with much warmer temps predicted. The market is steady to higher.

Alerts:
Smaller fruit sizes will be a challenge over the next few weeks with many shippers saying it could be a season long issue.

Summer programs have rounds coming from multiple growing regions. Northern Florida and part of the Carolinas sustained heavy rain over the weekend and continuing to harvest as weather permits. All eastern growing regions continue to experience rain in the way of heavy afternoon thunderstorms which can lead to potential quality and shelf life trouble. Sizing is trending large to medium with not a lot of Jumbo fruit available. The Roma market spiked suddenly with eastern operations challenged by heavy rain and volume shortages occurring out of Mexico sending prices up overnight. Grape supplies have began to flourish and the market has dipped further this week with cherry tomatoes following suit as new areas begin harvest. The market is steady with supplies improving in the west and California operations getting underway, however quality out of Northern Florida will be a concern as fields are worked through in coming days after the past several days high heat, humidity and heavy rain.

Northern California has began harvesting mature greens and gaining momentum going into next week. Roma crops are expected to start next week bringing relief to the sudden shortage out of Mexico experienced over the past several days. Most of the fruit crossing in McAllen, Texas from growing areas in mainland Mexico has been through a lot of weather and is in poor quality. Complicating supply further, the Mexican National market is getting good prices elevating demand in Mexico reducing the supply being sent to the United States. Baja is the only viable growing area left for import and for the last week they have had unseasonably cool weather and overcast skies which has slowed the fruit from maturing and production has slowed way down over the past 5 to 7 days. As a result, the Roma tomatoes that are being picked are green or very light color. Next week, we should see a sharp increase in volume for romas with weather improving and maturity bringing color up on inventory in house. Lastly, Central California will begin at the end of next week bringing a huge injection of fruit into the marketplace during the first part of July. Grape tomatoes have improved drastically in the South West where new fields have started and Mexico continues to produce in regions of higher elevation. Prices have dropped sharply below mandated minimums this week for domestic grown grapes and cherries alike.