The Source - June 20, 2016

Washington - Red delicious are steady on all sizes. Most shippers continue to peak on extra-fancy 72-88s so small fruit is limited. Golden Delicious are steady on all sizes and are still peaking on Wash-Extra 100/113s but storage supplies are very short. Most suppliers still don't have much larger than an 88-size Golden. Granny Smith are steady on all sizes and 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 and very strong demand. 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 and remain firm due to light supplies. Red delicious 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 very short. Small fruit remains limited for in both. The fruit quality has been good.
Chile - Chilean Gala supplies are very limited now. Imported Braeburns are peaking on 90s and larger and are steady on all sizes.

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 quickly 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 has drop quicker than expected. Many shippers are not receiving any fruit this week from Mexico and others are only receiving a small fraction of what they had ordered. It now looks like Mexico's main crop is coming to it's end or very near to it. Demand is exceeding supplies on all sizes. Mexico's next crop, the Flor Loca crop, isn't going to be ready until the end of July and will be mostly small size fruit. Shortage could go well into August.

Alerts:
Mexico has drop drastically the end of last week and this week. Their old main crop looks to be coming to it's end and gapping between their summer crop.

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. Extreme heat still expected this week for Southern California.

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 and NC have also begun production and will be increasing weekly.

The Pacific Northwest (OR, WA, BC) is producing steadily now along with North Carolina and New Jersey. Quality ranging from good to excellent. Michigan will get started in early-mid July. Supplies are good and demand will remain steady throughout the Independence Day promotions.

CA raspberries have now passed 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 has pretty well finished for the season. Quality has remained good out of all regions.

High temperatures across California's strawberry growing regions will reach into the mid-upper 80s this week. We could begin to see heat related quality issues. Berries are smaller, with counts ranging 18-24 per 1 pound clamshell. Demand will remain fairly steady as retailers continue to promote for Independence Day ads.

Broccoli supplies remain steady with more broccoli crowns than bunched broccoli. Quality is really nice out of all growing regions with good crown size and minimal yellowing. The market is competitive with offers for volume on broccoli crowns.

We have steady supplies going into the front side of this week. The market is competitive with all suppliers. Oxnard and Mexico are the current growing regions with the Salinas area about to start in the next couple of weeks. Quality is nice with minimal issues upon arrivals.

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.

As we continue the Salinas / Santa Maria growing season we will continue to see the roller coaster ride of supplies. We are currently in an abundance of supplies with steady markets. Quality is really nice with minimal arrival issues.

Production in Salinas as well as southern California continues. Oxnard is starting to finish up and by the end of June, production may be finished entirely. Packs continue to be abundant on large sizing in all the growing regions. Production due to weather conditions in past months simply got ahead of schedule in Oxnard. Good quality is being reported from all shippers. Supplies will be strong for the entire week on large sizing. Production of this commodity in Michigan will start approximately the second week in July.

Dark sweet cherry production out of the North West remains consistent. Quality has been strong and market prices have been steady. This past weekend brought cooler temps, but the weather is expected to warm up again as the week moves on. These optimum growing conditions mean more production, with peak harvest expected Thursday, just in time for the holiday. Rainier cherries have been consistent, but production is expected to drop in half by Wednesday. Market prices will begin to climb by the end of the week.

Alerts:
Rainier variety cherries will be limited in supplies and market prices will climb by the end of the week.

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- good quality on new crop pepper, mostly large sizing with good color.

Cilantro supplies are plentiful in all growing regions. But this heat could be a problem. Dehydration could be a problem moving forward, but right now quality is nice with little arrival issues. The minimal arrival problems have been yellowing of the leaves. The market is steady for the front side of the week.

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.

Rains in growing area has halted harvest and crossing are very light to begin the week, Expect crossing to pick up the back half of the week. Demand remains good on all sizes and crop is still peaking on smaller sizes.

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. Better production has picked up from multiple grower's this week. All sizes are being packed in 1 1/9 bushel boxes. Also 24's-36's-42's being packed.

Extreme heat in Coachella Valley making it difficult for eggplant to be harvested there. First cuts out of Fresno showing good quality but limited volume. There is a lot of cosmetic issue with egg plant out of Coachella.

Green grape supplies continue to be strong in both growing regions. As expected, we have seen another small drop in market price this week. The weather have been extremely warm in Mexico and Coachella. This has been beneficial in the size and sugar levels of the grapes, but we have started to see some amber coloring on the larger size fruit. If the weather continues to remain as hot as it has been, we can expect to see more quality issues in both areas as the fruit is exposed to unfavorable temperatures. New California crop is expected to start out of the San Joaquin Valley the first week of July. Although we do not anticipate any gaps in supply between transition, quality may become an issue barring weather.

Alerts:
The weather in Mexico and Coachella has been extremely warm. Temperatures are expected to remain well over 100 degrees all week. This could lead to reduced production and quality issues by late week.

Transitions:
New California harvest is expected to start in San Joaquin Valley the first week of July.

Red grape supplies are becoming limited. Both Mexico and Coachella have been enduring very hot weather. Temperatures in both areas have been well over 100 degrees and are expected to remain there for the week. This has had a big impact on the fruit in both areas. Initially Mexico experienced the affects of the weather forcing several growers to walk past acres of fruit because of quality issues. This has dropped Mexico's production numbers thus limiting the amount of good fruit available in Nogales. Now, Coachella is facing the same problems. Although fruit is available to load in both areas and no supply gaps are being reported for the transition period, shippers are warning us of possible soft berries, smaller sizes and discoloration. Market prices have increased again this week and will continue to remain firm until we begin new California harvest the first week of July.

Alerts:
The recent hot weather has had an impact on red grapes in both Mexico and Coachella. Supplies are becoming limited and quality is being affected. Market prices are climbing.

Transitions:
New California harvest is expected to start in San Joaquin Valley the first week of July.

Iced and Iceless green onion supplies are really abundant. The market is steady with aggressive prices. Minimal quality issues have been reported. And domestic green onions are available as well.

The kale market is steady with a range of pricing depending on the loading location. Quality is excellent with little yellowing and dehydration. Supplies will be steady for the week.

The market is steady. Warm Temperatures are expected this week. Expect to see common defects with this commodity. Defects will include insect and mechanical damage, discoloration, lightweights as well as puffiness . All suppliers continue to have these issues when harvesting. There have been major fluctuations in weights ranging from 35-45 pounds depending on the shipper. Expect pricing gaps as well as weight discrepancies in the marketplace for the entire week.

All leaf items are steady in the marketplace. Romaine hearts will be light in availability for all of this week. Supplies are expected to be better next week, weather permitting. Extreme high temperatures this past week could curtail production if high temperatures continue this week. Quality issues continue on all leaf items. These issues include insect damage, fringe and tip burn as well as internal burn. Supplies are moderate to good on green and red leaf. Demand is off. Romaine supplies are light to moderate, pending on the shipper. There are pricing fluctuations in the marketplace.

The story here is directly related to the extremely hot temperatures in the growing regions. Sizing has switched to mostly 6 count and 9 count. The weather has created limited harvesting hours for all suppliers. This will cause the market to trend higher as the week progresses. There are limited supplies of 12 count and 15 count as well. Quality remains really nice with good sugar levels.

There is good supplies out of Arizona and California. But this heat wave will take its toll as we move into this week. Good supplies from Mexico as well with aggressive pricing. The market is steady with aggressive prices out of Arizona & Califirnia. Quality is really good with the current supplies.

Watermelon is still crossing from Sonora. 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.

Hot temperatures in both growing areas has supplies and market in check. These warm temperatures could affect the quality of the onions but so far the quality is still being reported as good. Central California will hit temperatures at or around 106 degrees today and cool down to the low 100's for the balance of the week. New Mexico will hover in the low 100's all week. Look for the market to stay steady as this week moves on.

Alerts:
Hot Temperatures in both growing areas could affect quality and pricing.

Washington - D'anjou pears are steady and the market remains very strong due to light supplies. The remaining C.A. fruit is peaking on US#1 70-90s so expect small D'anjous to remain extremely short! The quality has been good.
Chile - Chilean Packhams are steady and they are peaking on US#1 70-100s, the small fruit is gone. Chilean Argentinian Bosc are both steady and continue to peak on 70-100s but there is some smaller fruit available. C.A. Bosc are also steady. The quality for all the imported varieties has been good.

Transitions:
California is scheduled to start Bartletts and red pears between July 5th and July 8th.

It's rainy season in the tropics. We are starting to see some water translucency show up in the pineapples and a greener shell color. Shippers will picking the fruit a little earlier to help prevent the water translucency, this leads to the greener shell color. Shell color is not an indication of ripeness. Supplies are tight and are expected to be so through July.

Growers in Idaho are trying to get through the storage crop before the New Crop starts up sometime beginning of August. Supplies are peaking on 50 count through 70 count currently. Market is slightly weaker on 80 count and larger with the smaller cartons staying steady. Quality is still being reported as good. Washington supplies are peaking on 50 count through 70 count which is not helping the market. Quality is being reported as good. Colorado and Wisconsin still have moderate demand and steady supplies which has their market steady. This could change if Idaho get aggressive to move its storage potatoes.

Bakersfield, California - reds, whites, and golds are steady to slightly higher. The availability will be good for this week and will start dropping thereafter. 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. They will ship through this week and most of next week. The quality has been good.
Alabama - they have started packing red potatoes and are peaking on A-size.
North Florida - The red potato market is sloppy with some higher and some lower, however most suppliers are close to the end of the season. Most shippers are finished with whites and golds. The quality is reported as good to fair.
North Carolina - they have started packing white potatoes and they have a good range of size available from Chefs to creamers.
Pearsall, Texas - They have finished for the season..

Transitions:
The panhandle of Texas (Muleshoe) will start packing red potatoes at the end of this week or the beginning of next.

North Carolina was supposed to start packing golds this week but have been pushed back until the end of next week. They should have reds at the end of this week/beginning of next.

Virginia will start all colors the week of July 4th.

Hard squash is now coming out Coachella. Extreme heat causing condition and quality issue for squash being harvested in Southern California .Italian and Yellow S/N are being harvested in Santa Maria and Fresno with good quality. Many Coachella Grower's are looking to finish early. Weather is still very hot in this area.

We continue to have excellent supplies of all stone fruit. Peaches, Nectarines, Apricots, Plums and Pluots are all available in promotable volumes with very strong quality. Market prices continue to adjust down as production increases and we approach the 4th of July holiday. Aggressive prices are available for volume buys. Fruit is on the large size and sugar levels are high.

Alerts:
Excellent availability and aggressive price offers.

There is not much change in the market from last week. Prices are holding steady and potential quality challenges last week may surface as we will start to see fruit coming out of sheds ship into regional packing facilities that have weathered wind, rain, and sun in the past week. Weather has slowed picking schedules but volumes are expected to increase as more picks are made this week. Sizing has been a little small but expected to even out with several regions coming into play including South Carolina, Arkansas, and Kentucky next week. The roma market is steady with quality varying by growing area. The Southeast has recovered from the rain and grape tomatoes production is pumping back up to seasonal norms with markets adjusting downward. The cherry market is also steady with a bulk of fruit being harvested in North Florida and south Carolina.

Similar to the East, little to no change is seen in the market this week out West. California production is underway with crown picks and helping the overall supply of round tomatoes. Volumes are increasing from last week trending towards larger sizes. Mexico is also into the first fruit of harvest and has good production out of Baja; the primary place for vine-ripe rounds. They, too, are heavier to larger sizes as they are also in crown picks this week. Grape tomato production remains steady in Baja and will pick up over the next 10-14 days as more growers enter the mix. Baja is also seeing roma production increase and is heavier to large sizes. Overall market conditions are steady and quality has been good but quality is subject to challenges caused by extreme heat wave over the past couple of days.