The Source - June 16, 2016

Washington - Red delicious are 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. The remaining reds are peaking 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 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 still steady from Mexico, Peru, Michigan, and New Jersey. We should see heavier Mexican supply beginning this weekend. Quality is good from all regions.

Demand on California's fruit is increasing as Mexican volumes drops off. California's harvest is at it's peak and can not keep up with demand. Markets are rising and shippers short on all sizes and exceptionally so on the 48s and larger sizes.

Mexico's shipments to the US is dropping quickly as their main crop comes to it's end. Volume estimates for this week shows about a 50% drop. Mexico has raised their field price on fruit and most likely will do so again next week also. Demand is exceeding supplies on all sizes. 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 will not we see any real volume increases until we get into August.

Alerts:
Mexico has drop in volume by 50% and demand exceeds supplies.

Due to high temps in California many grower's have been hurt with their crops out of the Coachella Valley. We expect the market of red and green will be challenging for the next few weeks.

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.

North Carolina blueberry production has recovered since Tropical Storm Colin disrupted production last week. Harvest forecasts show a return to good volume and increased quality next week. Georgia production has scaled back significantly following the Tropical Storm and has returned with only minimal production and packing. Many growers have finished their season in GA due to quality concerns, markets, etc. The Pacific Northwest region started production this week with good initial volume but was quickly halted by rain after only a few days of packing, volume looks to recover nicely next week with increased production out of OR, WA and BC so long as weather cooperates. Quality has been very good so far. CA central valley production has wrapped up with minimal production this week following several days of 100+ degrees over the past weeks. New Jersey production should begin next week with decent volumes as well.

Transitions:
As GA and CA finish producing for the season, the Pacific Northwest regions of OR,WA and BC have all begun production. NJ is also beginning to produce and should increase nicely next week.

CA raspberries have reached peak production and will now quickly decrease out of Oxnard and Salinas. The abundance we've had available over the past several weeks has slowed down significantly this week. Crops peaked in June where we do not typically see that high volume until July. The Santa Maria and Watsonville production regions will increase over the coming weeks. Central MX production is much lighter but still getting some good volume from there. Some deals in the market on MX product as some growers blow out their end of season fruit. Quality has remained good out of all regions.

Peak Seasons:
CA raspberries have reached summer peak production and will quickly decline out of Salinas and Oxnard while production ramps up in Santa Maria and Watsonville.

CA strawberry production is steady out of all areas. Demand has remained fairly steady, especially in the retail sector. Quality has been consistently good with only minor bruising and some white shoulders reported. Sizing is down from previous weeks with counts in the high teens - low twenties per 1 pound clamshell.

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 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.

Cauliflower supplies continue to be plentiful for the end of this week. The market has leveled off in the Salinas Valley and the volume deals are out of Santa Maria. Quality has improved with little bruising to brown discoloration.

Production in Salinas is good. Packs are heavier to large sizing. Southern California is winding down with many suppliers. Although growers can stay in the ground until mid-July in southern California, Oxnard production will be done by the end of June. Production simply got ahead this year by 2-4 weeks. 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.

Sweet dark cherry supplies continue to be strong out of the north west growing regions. All sizes of the 18lb packs are available. Quality continues to hold strong and market prices are gradually decreasing . 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 .

Jalapeno - Fresh crop with great quality and condition

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. Although we are seeing some yellowing in the processed 4/1# cilantro upon arrival.

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 but it is coming down. 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.

Valencia volumes are increasing as Navels wind down, Shippers have good supplies of Valencias and peaking on 88s/113s/138s. There will still be Navels available June, but peaking on 88s/72s/56s choice grade fruit. 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.

We continue to have strong availability on green grapes in both growing regions. Mexico has been experiencing extremely hot temperatures, but the weather has not had a big impact on the green grape supply or quality. We have seen some occasional amber color on larger grapes, but overall the quality has been good. Market prices have declined this week in Nogales and I expect to see another small drop in price next week. California green grape have been consistent in supply and quality. Again, we saw a small decrease in prices loading in Coachella this week and the market will more than likely drop off slightly next week. We anticipate good supplies of green grapes through the transition period. San Joaquin Valley will get started the last week of this month and production will increase in July.

Transitions:
San Joaquin Valley will get started the last week of June and increase production as we move into July.

Red grape supplies are changing quickly in both growing regions. In Nogales, red supplies are starting to get tight and prices are climbing. The hot weather in Mexico has forced many growers to walk past acres of fruit due to quality damage. Although we do have availability this week, I expect supplies on Mexican reds to dry up quickly. Also, because of the hot weather the grapes endured, we are starting to see more discoloration and soft berries on the remaining inventory. Market prices have jumped up this week and will continue to remain firm.

In Coachella, the weather has been warmer than usual, but it has not had as big of an impact on the quality thus far. Growers had planned on stretching the remaining fruit to cover demand until San Joaquin starts up at the end of the month. However, warnings of a very hot weekend could change the supply situation quickly. Market prices have firmed up as growers are expecting an increase in demand with Mexico coming to an end and possible shortages due to hot weather in Coachella. Scarlet Royal variety is available if you are looking for a full color red grape, but market prices have been on the high side.

Alerts:
Mexican red grape supplies are becoming limited and market prices are climbing. California red grape supplies are consistent, but could change quickly with a very warm weekend ahead of us. Expect higher market prices and some discoloration as a result of extreme temperatures.

Transitions:
San Joaquin Valley is expected to get started the last week of June with limited supplies, but will increase production in July. Market prices are expected to remain firm until after the July 4th holiday.

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:
Salinas Valley has started harvesting 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 has remained unchanged. Steady supplies are expected for the rest of the week. Quality issues continue to surface. 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. There are a few pricing gaps on this commodity but overall, pricing is competitive.

Light supplies on romaine hearts will continue for the entire week and for some suppliers all next week as well. The market is firm. Quality issues continue. These issues include insect damage, fringe and tip burn as well as internal burn. Supplies are much stronger on green and red leaf , compared to romaine. Weather conditions in the growing regions is the direct cause of these defects. There continues to be pricing gaps in the marketplace on leaf items.

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 several days and quality will be effected in some lots. The market is now steady to a little lower than earlier in the week due to a slight increase in volume and a little lighter demand.

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.

Fresh Onions are shipping out of Central California and New Mexico. Market are steady with light demand out of both areas. The forecast is calling for extremely high temperatures to hit the central California growing regions starting Sunday with estimated temperatures to be in the 102-106 range. New Mexico growing areas are to hit the low 100s starting Friday of this going through most if not all of next week. If the forecast is accurate we could see reduced supplies due to heat induced labor shortages, and we could see an increase in quality issues. This could bring a stronger market next week. IF at all possible I would recommend loading your onion needs this week if possible.

Alerts:
Extremely High temperatures forecasted to hit the onion growing areas.

Washington - D'anjou pears are steady 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. 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. There are some imported C.A. Bosc available now. 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 - Demand is light to moderate which has most of the cartons counts steady with a few slightly weaker. Quality is showing some light internal black spotting and some light air checking. This looks like these quality issues will continue through the balance of the season. The size profile has improved with more 70 count and larger being packed this week.
Washington - Demand is light with good supplies of large cartons. Market is weak on 70 count and larger. With some shippers saying lets make a deal. Quality is good.
Colorado and Wisconsin - Demand is moderate with a steady market. Supplies are peaking on 80 count and smaller with 70 count and larger getting a premium. Quality is being reported as good.

Bakersfield, California - reds, whites, and golds are steady although some suppliers are higher, and the availability remains good for this week. 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 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 decent but whites and golds are essentially finished. The quality is reported as good to fair.
Pearsall, Texas - The red market is steady but they are sold out due to strong demand. The quality has been reported as good.

Alerts:
North Florida is essentially finished with white and gold potatoes due to last weeks tropical storm.

Californias gold and white availability will be less next week so expect a slightly stronger market, reds may be a touch stronger as well.

Transitions:
Virginia and North Carolina are scheduled to start packing new-crop gold and white potatoes next week with reds the following week.

Alabama will have a few new-crop red potatoes later this week with more volume next week.

Hard squash is now coming out Coachella. With the Record heat in California mostly large sizes on Italian and Yellow S/N are being harvested in Santa Maria. Temperature is causing condition issues. Many Coachella Grower's are looking to finish early. Weather is still very hot in this area.

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. Shippers are willing to get very aggressive on market prices in an effort to move through the volume that is being harvested currently.

Peak Seasons:
Excellent supplies and aggressive spot buy 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.