The Source - June 27, 2018

As we finish the storage crop for all varieties of apples, there will be several factors that come into play. The red varietals (Fuji's, Rome, Crimson Delight's, Jazz) should last until we see new crop in mid August. The initial reports of the new crop for this season are running heavier to the larger sizes. The bloom set and thinning of the trees this past trimming season have produced less bloom which will result in larger sized fruit. We will see decreased volume in the 113, 125, and 138 size fruit that is typically our wheelhouse in the foodservice arena. The current market is steady on reds and red varietals. Quality is still very good with the storage crop. We continue to have an abundance of granny smith apples. The market is definitely aggressive to move volume from most suppliers. As the anticipation for the new crop gets closer we will definitely keep everyone posted.

The rain has not let up in Central Mexico, production has slowed down due to the weather. Some shippers are stating that some of their fields are flooded, and they have not been able harvest for the last 7 days. We should see a break in the weather starting early next week. Volumes in Gonzales, CA continues to decrease due to seasonality, production in this region should be wrapped up in the next 7 days. Michigan is done for the season. Weather in both regions in Peru (Trujillo/ICA) remain cooler than usual which is slowing production. Sizing from Peru is off due to the cooler weather in both regions. Markets are higher this week on both coasts due to the weather in Central Mexico, Peru, and California production winding down.

Alerts:
Rain continues in Central Mexico, and cooler temps in Peru.

California continues to harvest at a good rate. Fruit is ripening well and tasting great. Expecting good supplies into August. Size peaking on 48s/60s/70s. Market pricing has been very stable, but with Mexico's volume declining, prices are beginning to strengthen on the 60s and 70s. Demand remains strong on 48s/60s/70s keeping supplies tight.

Rains last week limited Mexico's harvest volumes, leading to a short supply situation for this week and into next week. Mexico's weekly volume will continue to decline to the seasonal end of their normal crop sometime in July. We are still waiting for the Flor Loca crop the gain maturity. This summer crop is difficult to predict, but light volumes are expected. Demand remains good, and we are still seeing tighter supply situation on 48s and very limited supplies on 60s and 70s number one fruit.

Georgia is still harvesting good supplies of bell pepper but shippers are on the decline with supplies, most shippers will wind up next week. North Carolina is starting to harvest good volume but most of the volume is very few hands, Ohio and Michigan is still two weeks away from harvest. The heat in the southeast is taking it toll on quality, there is still good pepper but a lot of suntan and mixed red are showing up.

Alerts:
Supplies are getting tighter

Transitions:
Bell Pepper is in Transitioning to North Carolina

Peak Seasons:
Bell Pepper is not in peak season

On the west coast, supplies remain limited this week, but we are seeing gradual improvements. This transition between Mexico and Domestic harvest has been rough and supplies have been much lighter than expected. California production is improving and we expect to see better order fulfillment moving forward, but very little open market fruit available this week. We expect Salinas and Watsonville areas to continue to increase production and reach the first peak by middle of July. Quality is good with big size berries. On the east coast, Georgia and North Carolina have fruit available. Georgia is expected to reach peak production over the next week. Quality is strong and markets are steady.

Peak Seasons:
Georgia will be in peak production over the next week. Salinas and Watsonville are expected to reach peak by the middle of July.

Central California is now finishing up quickly and we will be transitioning to the pacific northwest. Light harvest will start this week in Oregon and Washington and improve moving forward. Organic production is better than conventional currently, so some substitutions will be necessary for coverage. Supplies are expected to be limited on the west coast this week as we wait for the northwest to ramp up production. On the east coast, we have Georgia in their final week of production and North Carolina is coming to an end quickly. New Jersey has started with good production this week and we will see Michigan begin over the next week. Markets are higher this week. Quality of fruit in the new regions is being reported as very good.

Transitions:
West coast is transitioning from California to the Pacific Northwest. On the east coast, New Jersey is ramping up and Michigan will start in another week.

Peak Seasons:
We expect peak production out of the pacific northwest over the next 3-4 weeks. New Jersey will hit peak in the next week and Michigan is still 2-3 weeks out.

Supplies are light but consistent. We will continue to see improvements moving forward. Markets have been steady with gradual declines expected as volumes increase. Salinas and Watsonville are expected to ramp up over the next 2 weeks with first peak by middle to late July. Quality has been good.

Peak Seasons:
Salinas and Watsonville will reach peak production by middle to late July.

After what seemed like a never ending supply of strawberries, the industry was turned around rather unexpectedly on Friday. Last week, we had heard some shippers muttering about possible price increases and lighter supplies, but the general consensus across the industry was continued supplies and fairly steady markets. However, last Friday, the entire Salinas / Watsonville growing region lowered their harvest estimates by 30-40%. This has left strawberries in an unexpected supply gap. It is a combination of several factors that led to the sudden shift in supply. The holiday pull, decreased volumes, labor shortages and smaller size fruit due to varieties, have all contributed to this short term shortage. Market prices did jump up and we expect supplies to be limited for the remainder of the week. I believe the current varieties have moved past their peaks and we will see lighter supplies until mid July. Although I do not expect any major disruption in order fulfillment, I do not expect to see the abundance of fruit that has been available.

Alerts:
Supplies have become limited and markets are higher.

Broccoli supplies remain abundant from all growing regions. The market is also competitive with volume deals offered from select shippers. The overall quality has been really nice with minimal dehydration or yellowing, little purple cast, and crown size in the 4 to 6 inch level.

Brussel Sprout supplies are still extremely limited for all suppliers. Mexico is just about finished with their remaining acreage and Oxnard is trying to cover the balance. But this growing region is falling short. Quality has been fair at best. We have seen decay, black spotting, insects, and insect damage. We are still 3 weeks away from the Salinas Valley starting up acreage.

Alerts:
Extremely limited supplies has caused the market to increase significantly.

Transitions:
We will transition to the Salinas Valley in 3 weeks.

California carrot supplies are good on value-added packs, medium, and jumbo size carrots.

The cauliflower market is steady at current levels. Supplies are steady to finish the week. Although there are signs of decreased supplies for next week. Quality has been really nice with weights in the 25 to 29 pound level, minimal bruising / brown spotting, and heavier into 9 count and 12 count sizes.

This market is active throughout all the growing areas of California. Large sizing has been plentiful for a few months but supplies have become tighter. Small sizing, thirty- counts in particular are the tightest in availability, overall. Growers are expecting moderate supplies at best throughout the week. Oxnard is still scheduled to be finished in harvesting product by mid-July. Value added product is being transferred from Oxnard for a fee, so please keep in mind. Production is Salinas ia also moderate at best.

Cilantro supplies remain abundant. The market is competitive from all growing regions. We have seen good arrivals with full bunches, minimal yellow to brown leaves, and little slimy decay.

The Central Valley crop has finished. The Ventura/Oxnard is now the growing area to get through the summer and early fall and is 80% completed on harvest and peaking on larger sizes choice and standard grade. Demand is strong, especially on the medium and smaller sizes of 140s/162s/200s and we are now seeing the demand exceed the supplies for these sizes. Some small relief will come as we see Chilean lemons enter the market over the next few weeks.

Alerts:
Demand exceeds supplies on 140s and smaller size fruit.

This week lime supplies remain steady. Although the heavy rains last week in Mexico slowed trucks and delayed harvest, no major interruptions in fulfillment occurred. Sizes still remain heavy on the smaller fruit and larger sizes are limited. Quality is fair with some light discoloration. Markets have been steady to lower on small fruit. Looking forward over the next 3 weeks, we expect supplies to start slowing down. We will see larger fruit, but the quality is expected to decrease, with smooth skin and pale color. We can expect some challenges as we navigate through August.

Alerts:
We expect supplies to start slowing down by middle of July and we will see challenges with availability and quality through August.

California Valencia harvest is moving at a steady pace. Fruit quality and color are good, with size currently peaking 88s/72s/113s. Demand remains strong. Small size fruit 113s/138s will be limited through to entire Valencia season.

Cucumber supplies are coming from Georgia to Michigan and east to New Jersey. There are many locations shipping cucumbers at this time, the mountains of North Carolina and Tennessee, Virginia, Maryland and Delaware are all harvesting. Most of these locations are not large volume operations but cater to local markets, Michigan, Ohio and New Jersey are the main big volume shipping points this time of year. The market has been split with super cucumbers being tight and higher priced and selects being very plentiful and lower priced. Georgia should finish next week and quality has really gone down, so look for the supply of select cucumbers to get tighter next week.

Alerts:
There are pockets of cucumber supplies all over the east.

Transitions:
The cucumber supplies are really Transitioning to Michigan but also to New Jersey and Ohio.

Peak Seasons:
Cucumbers are coming into peak season.

Georgia is really the only location harvesting eggplant at the moment. North Carolina will start this weekend or next week followed New Jersey in the middle of July. Georgia has had more than enough supply to take care of all the business, with yields being very high. Markets are very cheap with most growers only packing fancy eggplant and throwing choice on the ground. Many shippers in Georgia will finish next week or have reduced volume and North Carolina will not have big volume next week, so look for prices to start rising.

Alerts:
Supplies are plentiful and prices are cheap, this will change next week.

Transitions:
Eggplant are not in Transition.

Peak Seasons:
Eggplant are in peak season.

There are still green grapes available out of both Mexico and Coachella. Mexico is beginning to wind down and are lowering prices to move as much product as possible until the San Juaquin Valley gets started approximately July 14th. Quality and color is being reported as excellent. Coachella green grapes saw some extremely high temperatures, and are showing lighter supplies. Some shippers are reporting occasional amber, but the taste is excellent. We are very close to being at 100% domestic fruit which will run us through the remainder of the year.

Mexican growers are lowering prices in order to clear out as much product as possible before Arvin starts up this weekend, and the rest of the California starts up approximately July 9th. Extreme heat in Mexico has caused some lighter colored fruit, and product has remained relatively smaller in size across the board. Coachella prices still remain fairly high, but this will alleviate this weekend as the Arvin area will start loading its first fruit of the season.

There continues to be a steady flow of supplies from Mexico. This has kept the market competitive. Quality has been hit and miss with some lots showing thrip damage to the green tops which show whit spotting. We have also seen yellow to brown tops from the current heat in the growing region of Mexico.

Kale supplies are abundant from all shippers. The market remains competitive as well. The quality has been excellent with full bunches, little yellowing, dark green color, and minimal dehydration.

This market has become softer with most suppliers. Although a few shippers are expecting lighter supplies compared to past weeks, the majority of growers are expecting better inventories. We are in the summer swing and overall business is down. The gaps we were seeing in production last week has closed up considerably. The weights on wrap product has ranged from 36-42 pounds and palletized has been 42-46 pounds. Overall the quality is nice in both northern and southern California.

This market remains steady with most shippers. There are a few suppliers that are gapping in production, and these suppliers have taken pricing up. There is a gap of 3-4 dollars in the marketplace on leaf items. Romaine continues to be abundant, and good deals continue to be available. Red and green leaf as well as butter have ample availability to fill all orders. The summer months of good weather and loss of school business has really hurt this commodity in terms of useage.

Even with the fluctuations in the weather here in the Salinas Valley, we continue to see good supplies of all tender leaf items. Although we have had a certain days where regular arugula had to be subbed into wild arugula. The overall quality has been really nice with minimal bruising, excessive moisture, or slimy decay.

Going into the weekend shippers are already seeing a pretty big holiday pull on melons. California harvest hast started earlier than planned for some shippers. We have California fruit available as well as Arizona. We are seeing good quality fruit in California with good Brix (sugar) levels. Shippers in California are reporting larger sized fruit 6 count, 9 count and 12 count available. Smaller sized fruit 15 count and 18 count are pretty tight for the next week. By next week we should see most shippers focusing on the California crops versus Arizona crops. There is still fruit available out of Arizona with great quality and also good brix (sugar) levels. Smaller fruit is also hard to find in Arizona.

Transitions:
This week and next week shippers are transitioning out west to the San Joaquin Valley,Mendota and Firebaugh area. There will still be some options to load in Arizona area next week.

Honeydew market remains active this week, Shippers are reporting a pretty big holiday pull going into the weekend. Due to the warm weather, we have a few shippers that have started harvesting this week in Firebaugh, Ca. Quality and brix/sugar levels are good with a few 5 count and 6 count available. Smaller fruit 8 count and 9 count are hard to come by. There is still fruit available in Yuma and Maricopa, Az. Quality and Brix levels are good here as well. The Arizona crops will begin to taper off these next few weeks with California being the main focus for shippers.

Transitions:
The transition from Arizona to California has begun. We are seeing a few shippers starting to harvest this week in Firebaugh, Ca. We experienced some warm weather this last week and it helped bring on the fruit a week earlier than planned. By next week we will see more shippers transition from Arizona to California. Firebaugh, Mendota and the San Joaquin Valley will be our primary source as of next week.

Red onion supplies are limited out of both California and New Mexico. Market is in a demand exceed supply situation. Supplies will slowly improve as the growers transition from transplants to direct seeded varieties over the next two weeks. White onions supplies are limited out of both growing areas with good to moderate demand, producing a firm market. Quality is fair. Yellow onion market is unchanged in both growing areas. I don't see this changing anytime soon. Quality is good. Washington has started with Yellow onions. Quality is good. Volumes are building.

Alerts:
Limited supplies of Red onions out of both Growing areas. Market on the rise

We continue to wait for new crop California Bartlett pears to start in 3 weeks. In the meantime, D'Anjou pears in Washington are extremely limited with the market at high levels. Also we have imported pears from Chile or Argentina that are available as well. The quality is still good with storage crop and the off shore fruit.

Transitions:
We will be transitioning to California Bartlett Pears in three weeks.

Pineapple volume coming from the tropics remains good, but we are beginning to see a small seasonal decline for the summer and fall. This is planed production drop as summer time a period of good availability of other fruit types which compete with pineapples. Size peaking on 6s/7s.

Idaho potato market is steady on most size cartons with good demand on retail bags for the 4th of July holiday. Sizing for most shippers is peaking on 80ct and smaller. This has helped shippers keep up with the extra demand on the retail bags. Quality is still good with very few issues being reported upon receiving. Washington, Colorado and Wisconsin supplies are slowly winding down with more smaller grower/shippers finishing each week. Sizing out of these areas range from good size to other only producing 80 count and smaller. Quality out of these areas are still good. This will continue to put more demand on Idaho till new crop starts up the end of July beginning of August.

Color potato supplies have started is a light way in Missouri and North Carolina as Florida finishes for the season. Wet weather on the East Coast has slowed the harvest of the new crop potatoes putting more demand on to the west coast, mainly for White and Gold potatoes. Red market is still steady with moderate demand and good supplies. White and Gold markets are good with little to no supplies coming off the west coast. Supplies off the East Coast will slowly improve as we get past the 4th of July holiday. California has good supplies of Reds with moderate supplies of Golds, and Whites. Supplies will transition north to Stockton the first or second week of July.

Transitions:
East Coast supplies are Transitioning from Florida to Missouri and North Carolina

Squash is coming from all over the east coast, There are some late fields in Georgia that will finish this week, North Carolina, Tennessee, New Jersey, Ohio and Michigan are all shipping at this time. Demand has been good and prices vary widely depending on location and what other products are available to go with it.

Alerts:
Good supplies but spread out across the east coast.

Transitions:
Squash is Transitioning north to Ohio, Michigan and New Jersey.

Peak Seasons:
Squash is in peak season

Stone fruit quality, size, and quantity has improved greatly. Plums are finally starting to be harvested on a consistent basis and prices are beginning to fall slowly. Peaches and nectarines are starting to see much better size overall. Most growers/shippers are peaking at 48/50ct sizes on 2 layers on both items. Cherries are still available in the Northwest out of both Washington and Oregon, with most shippers peaking on larger sizes, available in several different pack sizes.

Many local programs are coming into play this week helping to better supply across the eastern US. Local tomato programs are getting started in multiple regions including Alabama, Arkansas, Louisiana, and Georgia to name a few. Since California doesn’t have anything to send to the East coast quite yet, prices are up to capture the current demand before the West is capable of saturating the market. South Carolina is in full production as harvesting resumes normal picking schedules this week. As a result, round tomatoes have began to slide in price but will more than likely come down a couple more dollars since Northern California has began harvesting green tomatoes for ripening. Similarly, romas are steady with limited availability, however Alabama and Arkansas are starting small operations to help fill local markets. Cherry tomatoes are steady and prices are just about even between the East and West. Grape tomatoes have shown improvement again this week with more availability from South Carolina helping to ease pricing further. With all the growing regions that will be in production next week, grape tomatoes are expected to continue a downward trend to finish the month of June. All things to consider, there is a possibility of a spike in price the first week of July as fields gap between South Carolina and Virginia that will probably not last more than a week or so.

Supply from Mexico remains steady while operations transition south of our boarder, and California begins shipping this week. It is still early for California operations with the expectation for heavy supply to enter the market the first half of July, however quotes have already began at typical summer pricing below the Suspension agreement minimums set for imports. On Mexico’s mainland, Sinaloa is finishing up for their season while Baja undergoes a slow start helping to keep the market firm this week. Mexico markets are expected to ease off as California has more to offer as soon as next week. Roma tomatoes are steady with excellent quality from all regions with the cheapest quotes of the year this week coming out of California. Supplies of Grape tomatoes continue to increase out of Baja in tandem with new operations in the eastern U.S. helping to restore minimal markets. Similarly cherry tomatoes are steady out of Baja as mainland Mexico finishes up where quality has been par at best recently. Circulating quotes this week are the first indication of the lower markets to come in the weeks ahead as the summer season gets underway in July.