The Source - June 29, 2015

Michigan is packing Red Delicious and will pack through July they think. They are peaking on 100s and larger and supplies of small fruit are relatively short. The quality has been fair due to lighter pressures.
Washington Red Delicious are still being quoted steady but the price-flex for 88s and larger is still there. Most packers are still peaking on 88s and larger in the premium and Washington extra #1 grades with only limited supplies of 100s and smaller. Golden Delicious are still mostly steady on all sizes. 125 & 138 and Goldens are still more limited than the other sizes and are priced at a premium. Granny-Smith are also mostly steady and are still peaking on 72s and larger. Supplies of Granny 100s and smaller remain short. Fujis are steady and continue to peak on the larger sizes. Fuji volume is lower as the end of the season approaches and small Fujis are especially short. Galas are steady and are still peaking on 88/100s. The Gala volume is also down as the end of the season is getting close.
Imported Cripps-Pink (Pink Ladys) are still available on both coasts and the markets are steady to slightly lower. They are still peaking on 70s and 80s.

This market is steady. Supplies out of Peru have kept the pricing of Mexican product down. This region has been producing heavy to standard and large sizing. The pack sizes out of Mexico has produced good quantities of jumbo packs to begin the week. All sizing is readily available and demand has picked up. Salinas' production is finished. Overall, the quality has reported to be strong in all of the growing areas. Pricing looks to be stronger by the end of the week.

We are past peak volume for the season and lower volumes are beginning to come out of the fields. California harvest volume should increase a little again this week to help fill the demand leading into Independence Day, then dip down next week hold fairly steady through July before gently declining thereafter. Peak sizing on 60s / 48's. Very good demand is keeping supplies on all sizes tight. Quality and flavor are both excellent.

Mexican production dipped down last week due to rains in growing areas. Old crop is winding down and look for supplies to dip by 25 percent after the first week of July. Smaller fruit is limited coming out of Mexico and we are see some upward market pressure on 60's and 70's.

Georgia is showing signs of quitting pepper this week. Volume is light and quality is poor. Additionally, the temperatures continue to heat up down south, causing further quality issues. The Carolinas have started in a light way and quality has been excellent from that region. However, strong demand and limited volume have caused this market to spike. We most likely will not see relief in this market until after July 4, when Michigan kicks in.

We have seen some temporary interruptions in California supply over the past few weeks and again to start this week. Supply should be increasing week over week all the way through August however some shippers are seeing a supply gap that could last later into the summer, with really good volume coming on by August. Availability has been day to day, shipper to shipper in CA. Georgia has had good availability and Oregon has also had some coming on slowly. We will have limited availability for at least the next few weeks.

Alerts:
Very limited availability. California crop is gapping in supply, coming on slowly but may not see large increases in volume until August.

Supply continues to be abundant with good volume and quality coming from several growing regions. Demand and markets remain steady with promotional opportunities available. This is an excellent time to promote fresh blueberries!

Transitions:
MI begins picking this week. IN started with minimal volume but rains have delayed harvesting today.

Raspberries are very limited out of CA. Many factors have led to this shortage. The crop started early out of CA due to the unseasonable warm winter and lack of rainfall. The growth then slowed down due to cooler temps in May and June. Additionally, the current harvest to pruning cycles are keeping us in a demand exceeds supply situation. While the volumes should typically increase as we move through the summer, the current supply gap looks to be an issue all the way through July and severely limiting availability into August.

Alerts:
Demand exceeds supply. Supply remains extremely limited and this supply gap looks to remain through the month of July and possibly into August.

Strawberry demand remains strong this week as we continue through the holiday pull. Retail ads are taking a large portion of the available fruit and are keeping the market prices firm. Supply is steady with orders being covered but there is not a lot of volume “spot buy” opportunities. Salinas and Watsonville are the main growing/shipping regions with minimal volume of quality fruit remaining in Santa Maria. The weather has been warm over the last several weeks and continues to bring on ripe, red fruit that is not reaching full size maturity. Sizing continues to be on the smaller side with occasional soft spots, bruising.

Peak Seasons:
Production volume estimates are beginning to decrease as we move past the Salinas / Watsonville peak production season we've experienced over the past several weeks.

Supplies are expected to be lighter throughout this week with most shippers. Pricing currently is up and expected to rise daily. There is a pricing gap on crowns for now but expect the gap to close by the middle of the week. Shippers have caught up on their planting cycle that has been so out of whack these past weeks. The main production continues to be out of the Salinas Valley. The Southern California region will have moderate to light production throughout the week. Production out of Mexico has eased up. Texas is light in production. Good quality continues to be reported for now in all the growing regions.

Bakersfield crop is now in full swing on production. Weather has been warm and size is coming on and we're seeing much better production of Jumbo carrots.

This market is steady to start the week. Demand is moderate at best. The quality on this commodity, overall is being reported as good, with only slight discoloration sporadically being reported. Insect damage is minimal. If the demand picks up at all, the pricing will spike up quickly. For now however shippers are looking to keep coolers clean daily with their inventories. Expect moderate supplies for the rest of the week. There will be price gaps of two-three dollars amongst the different shippers.

Very light supplies on this commodity exists in Oxnard. This region is just about finished in production. Santa Maria still has product available. The Salinas Valley is producing plenty of celery. Large sizing is the most readily available. . Small sizing is commanding a higher price. Good, strong quality exists with all shippers.

The cherry market is steady with only 3 weeks at most left in the Washington deal. The big unknown is how badly the current heat will affect the remaining harvest. Growers are currently curtailing harvest as temperatures are reaching the 100 - 105 degree range. The harvesting crews are pulled out of the fields when temps reach 95 degrees. With limited harvest the quality of the cherries left on trees suffers.

Alerts:
Excessive heat affecting the quality and volume of cherries harvested.

Crop is peaking on 140s and smaller. Demand is exceeding supplies on all sizes and grades of fruit. Very good demand and drought conditions in growing areas means production of less fruit and no size growth are the major factors for the demand exceed conditions.

Alerts:
Demand exceeds supply. Summertime demand and lighter production caused by the California drought. Expect lighter supplies throughout the summer and into the fall.

The lime market continues to perk up from last weeks levels on all sizes. The prices are the same on all sizes whereas in the past the spread has been several dollars. Growers continue harvesting less due to low market conditions. Lower prices have helped spur demand on all sizes. The overall quality is very good on the crop that is being harvested. Growers are starting to get into old crop limes now. We should start seeing thinner skin with lighter color in some lots coming up. Scattered rain showers are in the forecast over the next few weeks in the growing area of Veracruz Mexico.

California Navel crop is coming to it's end. Still a few left and peaking on 72s/56s. California Valencia oranges are going with good volume on 72s, 88s, 113s, 138's. Quality on Valencias is very good.

The cucumber market is showing signs of weakness with Georgia, North Carolina and New Jersey still plugging along. As the weather grows warmer, many Georgia growers will quit their fields any day now. Michigan will start this weekend.

The eggplant market remains steady and demand is light this week. Georgia will continue for another 7-10 days with eggplant, unless the high temperatures cause growers to pull the plug sooner. Michigan is still a few weeks away but volume is decent out of North Carolina and New Jersey.

With Mexico done harvesting and Coachella also finished or finishing; the green grape market is firming up. We are starting out of the Arvin district this week in a very small way. Quality is still good out of Coachella and looks to be excellent out of Arvin. The current heat in the central valley may delay or curtail harvest as temperatures spike as high as 110 degrees.

Alerts:
Extreme heat in the Southern San Joaquin Valley curtailing harvest.

Transitions:
Just beginning the Arvin district this week.

The red grape market is about steady as Shippers push to clean up inventories out of Mexico and the Arvin district comes into full production this week. The Coachella harvest continues on Scarlets and should continue for another couple of weeks.

Alerts:
Excessive heat curtailing harvest in the Coachella and Arvin districts.

A steady market best describes this commodity. Demand is minimal. Expect supplies to be plentiful throughout the week out of Mexico. Supplies continue to exceed demand. All sizing is available. Light supplies are being harvested in Salinas. The heavier abundance of product is coming in small and medium size packs.

This market is steady, overall. There is a pricing gap of two- three dollars pending which supplier is used. Some defects continue to be reported upon arrivals. These defects include puffiness, insect damage and ribbing. The weights on palletized lettuce are ranging from 38-44 pounds. Salinas and Santa Maria are the two main growing regions at this time. Production in Santa Maria is minimal, but some is available. Salinas will have moderate supplies. Demand is expected to be moderate to light as we head into the 4th of July holiday. Demand traditionally is slow. Labor will be an issue for multiple shippers as workers tend to flee for a few weeks during this period of the year.

The market is steady on all leaf items. Defects on romaine include tip and wind burn, dehydration and mildew. Yields are down, but demand overall is off. The weights on cartons are averaging 31-37 pounds. Chopped romaine continues to show pinking upon arrivals. Romaine hearts continue to be on escalated pricing. Fringe burn and insect damage is occurring on red and green leaf. Butter supplies are light to moderate.

The desert has good demand for melons right now. Overall supplies are not as heavy as they were during their peak production a few weeks ago and currently 9's are very hard to come by. The peak size is 15ct right now. Overall quality is good with some growers in the Brawley, Holtville and El Centro areas experiencing lesser quality. Growers in these areas are also experiencing 50% lower yields than normal due to a crop disease called Fuserium which was brought on by the past rains followed by excessive heat and humidity. The condition was aggravated further by the lack of wind which would have dried out the fields. The Maricopa area is not reporting this issue. The "west side" is set to mainly start the week of July 6th with but a few growers have started this week with small volumes. The market is steady on 9's, sideways on 12's and holding steady on 15's.

The desert supplies look to be steady to slightly lower this week with very light supplies of 5's. The domestic dews have excellent quality and are commanding a premium compared to the product from Mexico. The quality on Mexican and domestic dews is very nice. The peak size is 8ct on the domestic dews coming in right now. Supplies out of Mexico remain at low levels with 6s and 8s being the main sizes coming in.

Supplies of Yellow onions out of California are peaking on Colossal and larger with very few medium yellow being packed. Market is steady on Jumbo's and larger with a firm market on mediums. The red onion market is active as supplies out of New Mexico are light putting more pressure on supplies out of California. This should last into the middle of next week when supplies will improve out of New Mexico. Some shippers out of New Mexico are starting to gap on Yellow onions as they transition from over winter onions in to direct seeded onions. This could again put more pressure on California for supplies for yellow onions. The market has not reacted yet, but could as this week moves on. Quality out both areas are being reported as good. Walla Walla and Vidalia Sweets are available. Market is active with the 4th of July pull going in full swing.

Washington continues to ship D'anjou pears and they are peaking on US#1 80-100s. Most packers are limited on Us#1 110s and smaller and all sizes in the fancy grade. The D'anjou market is steady. Washington will have D'anjou pears through July.
For imports we have Chilean Packhams and Bosc being imported on both coasts. Both the Packhams and the Bosc are steady to lower. The Packhams are peaking on 100s while the Bosc are peaking on 100/110s.

Transitions:
California will start packing Bartlett pears the week of July 6.

Idaho: Market on large cartons (40-60) has come off slightly last week but looks to have stabilized the start of this week. Demand is light. All other sizes are holding steady. Trucks have good availability with reasonable rates. Roughly six weeks left before new crop. New crop has potential to be a week to 10 days ahead of last year. Quality is good to fair.
Washington: Market on the large cartons has make a slight down-ward correction due to the Idaho market coming off. All other sizes are steady. Quality is good.
Colorado/Wisconsin: Market is steady on all sizes and packs. Some of the smaller sheds have finish for the season which has tighten supplies slightly. New crop looks to ahead of schedule by a few days earlier than normal. This should creating a seamless supply transition between storage and new crop. Large cartons are limited in supply. Quality is being reported as good.

Bakersfield, California is packing red, white, and gold potatoes. All colors continue to peak on A-size and the markets are steady for all sizes. All colors have better availability of premium and baker size. The quality has been good.
Texas is just getting started with reds and golds and both colors are steady. The Texas reds are peaking on A-size and the golds are heavier to B-size.
Alabama is steady on reds and they are peaking on A-size. The quality and maturity are being reported as good. They do not have whites but will have golds in approximately three weeks.
North Carolina continues to pack whites and reds and they are both heavy to A-size. The quality is being reported as good. They will have golds and more volume of reds later in the week.

Transitions:
Stockton, California will start packing red and gold potatoes the week of July 13.

Virginia will start packing white potatoes the week of July 6 and they will pack red & gold potatoes the week of July 13.

Georgia is finishing up on squash this week as summer's hot temperatures move in. North Carolina, New Jersey and Michigan are all into squash now and the volume is decent. With Georgia finishing and growers in the north wanting to start out on a strong market, we will see the squash market up a few dollars for the weekend.

The apricot harvest in California has entered it's final weeks. Quality on the late season varieties is good. Demand is steady with limited availability on all sizes. Peaches and nectarines are steady to lower pricing on the large sizes with steady demand. Quality continues to be very good. The plum market is settling down with excellent availability on both red and black plums. Sizing on both is trending towards the larger sizes with availability good on all sizes.

ROUNDS/ROMAS – Northern Florida and South Carolina are finishing up with their crops this week with South Carolina possibly going through the weekend. North Carolina is seeing some volume and Alabama is right around the corner. Georgia volume and quality is looking good. Tennessee and Virginia still on target for the 4th of July start.

CHERRY/GRAPE – Quality on Cherry toms is still a concern with all the hot weather. With the current crop winding down this adds to the quality issues. Should see some improvement in quality and volume this week. Demand for grape toms is rising and supplies are still on the low side which may cause an increase in pricing.

ROUNDS - Product in Eastern Mexico has good supply and quality. In the San Joaquin Valley, has good quality and decent volume. Product should be in full swing by the beginning of July. Production in Northern Baja continues to increase in supply and quality is good. Smaller sized fruit still limited.

ROMA - The Northern and Central Mexico growing areas are still seeing a decline in volume. We are also seeing some quality issues in the area. California’s Central Valley has started with light production this week. May see a rise in the market.

CHERRY/GRAPE - Southern California from Baja Mexico remains steady. Central Mexico is still seeing good volume and quality. This region is carry the load for the Midwest and some eastern volume. Production in California is in good quality and supply.