The Source - June 6, 2018

Weather Update

A fairly typical summertime pattern continues out west as a series of low-pressure troughs move through. Coastal marine layer and breezy afternoons will continue as the low and high-pressure systems battle for control. Warm conditions with isolated showers look to continue across Mexico as we monitor a couple of tropical systems developing in the Eastern Pacific. Forecasts expect further development of these systems later this week and bear watching closely. Scattered showers and thunderstorms look to continue across Florida with seasonal temperatures into next week.

Freight Update

California trucks have been extremely tight and look to remain that way for the balance of the week as we deal with Road Check 2018. The DOT is cracking down on logbooks, equipment violations, and putting trucks out of service. CA freight rates continue to increase. Washington apple truck supply is steady. Idaho potato trucks remain steady as well. The national average on diesel remained steady this week and is currently at 3.285 per gallon. An increase of .721 from this time last year. California prices increased slightly and are now at 4.003 per gallon. Crude oil decreased slightly and are currently at 65.39 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples

Red Delicious demand is very good with pack outs mostly producing Premiums and #1's with few lower grades; Market is firmly weekly. Gold Delicious, Honey Crips, and Pink Ladies are following the red market with very good demand and a firming market. Export demand continues to be very good. Fuji supplies are light with a steady market. Granny Smith supplies are moderate with slightly better demand. Sizing is peaking on 100/113/125. Braeburn and Jonagold will be the first to finish up for the season. Regional shippers continue to slowly finish up putting more demand into Washington. New York has limited supplies of red delicious with a few Romes, Macs and Empires in the mix. Quality on all flavors has been good with few reports of issues.

- Mike Gorczyca
Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Steady/Higher Excellent
Hudson/Pleasant Valley/Red Hook, NY Steady Good
Chile Steady Good
Asparagus

Central Mexico has great growing weather in all regions, rain is expected early next week, but should not affect volume. Gonzales, CA volume remains unchanged with their weather pattern remaining the same. Volume should start to decrease in the next two weeks as their season wraps up during the first week in July. Washington State has started to close fields due to seasonality; they should be finished by next week. Volume in both Ica, and Trujillo, Peru is about the same as last week, weather remains unchanged in both regions. Markets on both coasts are lower due to local supplies, and Central Mexico is having good supplies.

- Tony Pinto
Growing Region Market Quality
Ica, Peru to Trujillo Steady Good
Yakima, WA Lower Good
Gonzales, CA Steady Good
Central Mexico Lower Good
Michigan Steady Good
Avocado (California)

California production good and steady this month with a peak toward the end of June for the 4th of July celebrations. Expecting good production into August. Export demand remains strong. The crop is currently peaking on 48s & 60s. Fruit is ripening well and has good flavor.

- Tim Kelley
Growing Region Market Quality
Oxnard/Ventura, CA Steady Excellent
Temecula/Escondido, CA Steady Excellent
Avocado (Mexican)

Mexico's harvest volumes are beginning to lightly decline weekly through June to its seasonal end of their normal crop toward the end of June. We are still waiting for the Flor Loca crop the gain maturity. Demand remains good, and we are still seeing tighter supply situation on 48s & 60s #1 fruit.

- Tim Kelley
Growing Region Market Quality
Michoacan, Mexico Steady Good
Bell Peppers (Eastern) Alert

Most shippers in Georgia have started production of Bell Pepper with good quality despite the rain. Most of the rain has cleared out of Georgia and now the weather is mostly sunny and hot. So far the quality has been very good with supplies much better and the market has adjusted from the high prices of the last three weeks.

- Steve Sterling

Alerts:
Good Supply with good quality in Georgia

Transitions:
Transitioning to Georgia

Peak Seasons:
Bell Pepper is coming into peak Season.

Growing Region Market Quality
Hillsborough / Western Collier County, FL Lower/Steady Fair
Lee / Grady County, GA Lower/Steady Good
Berries (Blackberries) Alert

No change on Blackberries this week. Supplies remain very limited. Mexico continues to trend down on production while California harvest is very slow to start. Although there is some light harvest in Georgia, that product is being sold out of GA and is not enough to supplement the west coast. As an industry, demand is much greater than supply, and we expect to remain in this shortage for another 2-4 weeks as we wait for Salinas and Watsonville production to increase. Market prices will remain higher.

- Sean Azzelio

Alerts:
Supplies are very limited and markets are higher.

Transitions:
Salinas and Watsonville will start in 2-3 weeks.

Growing Region Market Quality
Santa Maria, CA Higher Good
Central Mexico Higher Fair
Alma, GA Higher Good
Berries (Blueberries)

Blueberry supplies are improving in all areas this week. California production has ramped up in the central valley with good availability on all pack sizes. Quality is being reported as strong, and market prices have adjusted down. On the east coast, North Carolina had an unexpected wave of product come on this week. Mostly Pints being packed in this area, with occasional 6oz availability. Quality is being reported as strong and prices are slightly higher than the west coast. The Pacific Northwest will get started with harvest in the next 2-4 weeks.

- Sean Azzelio
Growing Region Market Quality
Central Valley, CA Lower Excellent
North Carolina Lower/Steady Good
Berries (Raspberries) Alert

Raspberry supplies remain limited this week. Mexico production continues to trend down, and California is slowly ramping up. Although this week's availability is slightly better than last week, demand is still greater than supply. Shippers expect better supplies as we move forward and the Salinas / Watsonville crops become available. The transition will be slow, but we expect improvements week over week for the next 2-3 weeks. Quality is strong, and market prices are higher.

- Sean Azzelio

Alerts:
Supplies remain limited and prices are higher.

Transitions:
We expect Salinas / Watsonville harvest to start in the next 2 weeks and gradually improve as we move forward.

Growing Region Market Quality
Santa Maria, CA Higher Good
Central Mexico Higher Good
Berries (Strawberries)

Strawberry supplies continue to be strong. Salinas and Watsonville production continues with heavy volume and good quality. The weather has been sunny and warm over the last week, promoting growth and pushing crops ahead. We will see a flush of berries become available later this week and push through next week. I expect markets to react accordingly and we will see some aggressive spot buy opportunities for volume orders. Santa Maria production is lighter as the season is slowly winding down. Just a hand full of shippers continue with regular harvest this late in the season. Market prices in Santa Maria have remained steady, and quality is being reported as good.

- Sean Azzelio
Growing Region Market Quality
Salinas Valley, CA Lower/Steady Good
Watsonville, CA Lower/Steady Good
Santa Maria, CA Steady Good
Broccoli

Broccoli supplies are improving with some suppliers. The market is trying to adjust, although it isn't for all suppliers. There are better supplies of broccoli crowns versus bunched broccoli. Quality remains nice from all regions with decent crown size, nice green color, and minimal yellowing. We will see this market trend lower into next week.

- Gabe Romero
Growing Region Market Quality
Salinas Valley, CA Lower/Steady Good
Oxnard/Santa Maria, CA Lower/Steady Good
McAllen, TX Lower Good
Brussels Sprouts

Brussels sprout supplies still remain limited with the market trending higher. We will not see any relief in this market for 4 to 6 weeks until the Salinas Valley starts production. Quality from Mexico is the main reason for the limited supplies. Shippers are having to run the brussels sprouts to check for yellowing, black spotting, and decay.

- Gabe Romero
Growing Region Market Quality
Northern Baja California Norte, Mexico Higher Fair
Carrots

California carrot supplies are good on value-added packs, medium, and jumbo size carrots. Bakersfield's crop has started, and Coachella Valley has finished.

- Tim Kelley
Growing Region Market Quality
Bakersfield/Santa Maria, CA Steady Excellent
Cauliflower

We still are experiencing good supplies of cauliflower due to optimal weather here in Salinas and Satna Maria. The market is holding at current levels, although we have seen some offers to move excess volume. Quality is really nice with white color, minimal yellow to cream cast, and minimal bruising / brown spotting.

- Gabe Romero
Growing Region Market Quality
Salinas Valley, CA Steady Good
Oxnard/Santa Maria, CA Steady Good
Celery

Small sizing is the tightest in availability, thirty-six counts in particular. This market, however, is steady overall. Production in Salinas is expected to begin in two weeks. Large sizing, twenty-four counts, in particular, continues to have the best availability. Shippers are flexing on this size. Orders loading in Salinas will continue to have a surcharge for the transportation of this commodity to the shipping facilities in Salinas. This includes contract orders as well.

- Mike Pacheco

Transitions:
Production in Salinas will begin in approximately two weeks.

Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Good
Cilantro

We continue to see good supplies of cilantro from all growing regions. The market is steady as a result to the abundant supplies. The quality has been nice with minimal yellow to brown leaves, full bunches, and no slimy decay.

- Gabe Romero
Growing Region Market Quality
Salinas, CA Steady Good
Oxnard/Santa Maria, CA Steady Good
Baja, MX Steady Good
Citrus (Lemons)

The Central Valley crop is near its seasonal end toward the end of June. Fruit in this area is peaking on 115s and larger sizes. The Ventura/Oxnard areas are becoming the main growing area and are also peaking on 115s and larger sizes. Demand is improving, especially on the smaller sizes of 162s/200s. These smaller sizes are beginning to sell out daily, and supplies are tight.

- Tim Kelley
Growing Region Market Quality
Merced/Bakersfield, CA Steady/Higher Good
Oxnard/Ventura, CA Steady/Higher Good
Citrus (Limes)

Lime supplies continue to improve across all sizes. Good weather is expected in all growing regions with consistent supplies of limes crossing from Mexico on a daily basis. Market prices have adjusted down with aggressive prices and spot buy opportunities on certain sizes. We expect supplies and market conditions to remain steady over the summer.

- Sean Azzelio

Peak Seasons:
We will be entering peak production and expect harvest to remain steady for the 4-6 weeks.

Growing Region Market Quality
Veracruz, Mexico Lower Excellent
Citrus (Oranges)

Navel crop is nearly finished, with only a few shippers left packing and expected to be completed by next week. California Valencia harvest is increasing, and available is improving. Valencia's are very nice and peaking on 88s/72s/113s. Small size fruit 113s/138s will be limited through to entire Valencia season.

- Tim Kelley
Growing Region Market Quality
Merced to Bakersfield, CA Steady Excellent
Riverside, CA Steady Excellent
Cucumbers (Eastern) Alert

There are very good supplies of cucumbers in south Georgia with growers in South and North Carolina starting this week. All the rain the southeast has received over the last two weeks has taken its toll on cucumbers. Some shippers are having decay and mold issues on arrival while others in the southernmost region of Georgia are not. The first reports from South and North Carolina have been good. Traditionally the Carolina come in with a big supply for a short window and then are done before growers move into bell pepper.

- Steve Sterling

Alerts:
Watch out for quality issues.

Transitions:
Cucumbers are transitioning to North Carolina

Peak Seasons:
Cucumbers are in Peak season

Growing Region Market Quality
Lee / Grady County, GA Lower/Steady Fair
Henderson / Buncomb County, NC Lower/Steady Good
Eggplant (Eastern) Alert

Eggplant is in transition from Florida to Georgia; there is a big gap in the quality, Florida is struggling to arrive, and the quality in Georgia is very good. There is also a big price difference: buyers who want the better quality are paying 4 to 6 dollars more per box. Georgia is just starting the season and has not produced much volume yet, Florida will finish their season this weekend.

- Steve Sterling

Alerts:
Quality in Georgia is very good, Quality in Florida is poor.

Transitions:
Eggplant is in Transition to Georgia.

Growing Region Market Quality
Hillsborough / Western Collier County, FL Steady Fair
Lee / Grady County, GA Steady/Higher Excellent
Grapes (Green)

The green grape market has certainly spiked, as we come to a demand exceeds supply situation. Grapes have been very slow to cross the border from Mexico. This lack of Mexican fruit has put pressure on the domestic product out of Coachella, which is now also in a demand exceeds supply situation. Caborca should be starting soon but may not offer much relief to the situation. Quality is reported as good, but the lack of overall numbers have created a tough grape market that may not see much relief until July.

- Matt Connelly
Growing Region Market Quality
Hermosillo, Mexico Higher Good
Coachella Valley, CA Higher Good
Grapes (Red)

The red grape market has also taken a nose dive, with very little product crossing from Mexico. Supply is very light, with very little relief from Coachella. Contract prices are escalated, and there may not be any major relief until California is in full swing in July. The Caborca region should be starting soon in Mexico, but historically Caborca only produces very small fruit, so larger sizes will be extremely limited.

- Matt Connelly
Growing Region Market Quality
Hermosillo, Mexico Higher Good
Coachella Valley, CA Higher Good
Green Onions

The green onion market is competitive, and supplies are plentiful. The crossings from Mexico have been steady. The quality is really good with white tips, vibrant green bottoms, and minimal brown to yellow discoloration.

- Gabe Romero
Growing Region Market Quality
Mexicali, Baja Steady Good
Kale

The kale market is steady and competitive. Supplies are abundant from all growing regions. Quality is excellent with full bunches, minimal yellowing, and no dehydration.

- Gabe Romero
Growing Region Market Quality
Salinas, CA Steady Excellent
Oxnard/Santa Maria, CA Steady Excellent
Lettuce Iceberg

Business has just leveled off with this commodity. This market is flat. There will be excellent supplies available throughout the week, mainly in Salinas. Santa Maria has decent production. Shippers are listening to offers and encouraging customers to run special ads for the week. The overall quality continues to be strong. Slight insect damage and misshapen heads are reported but minimally. The weights are favorable with palletized averaging 42-45 pounds.

- Mike Pacheco
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Lettuce Leaf

Romaine, as well as all leaf items, are flat in the marketplace. Expect steady supplies throughout the week both north and south. The absence of school business has really put a stoppage of demand in the marketplace. Romaine hearts continue to be plentiful and strong supplies will continue all week with this commodity. Some defects that have been reported include minimal mildew and slight insect damage. The overall quality is good.

- Mike Pacheco
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Lettuce Tender Leaf

The optimal weather has kept an abundance of supplies of tender leaves. We are reaping those benefits not only on the conventional side but also the organic side. Quality is really strong with minimal bruising or any slimy decay. The market remains steady.

- Gabe Romero
Growing Region Market Quality
Salinas Valley, CA Steady Good
Melon (Cantaloupe)

There seems to be a steady supply of larger fruit available. Sizes ranging from 6 count jumbos, 9count jumbos 9count to 12 count. Quality is good overall. Small fruit 15 count and 18 count are very limited.

- Mike Magana
Growing Region Market Quality
Brawley, CA Steady Good
Maricopa, AZ Steady Good
Yuma, AZ Steady Good
Melon (Honeydew)

Due to cooler night time temps in growing regions these past few weeks and the rising demand in retail, honeydews are tight on all sizes. Quality overall is good. Look for the market to trend up as the week progresses.

- Mike Magana
Growing Region Market Quality
Maricopa, AZ Steady/Higher Good
Brawley, CA Steady/Higher Good
Hermosillo, Mexico Steady/Higher Good
Onions

Onion supplies exceed demand making for weak market out of all area. Supplies are coming out of California, Texas, Mexico, Georgia and New Mexico. California supplies are transitioning from Southern California (Brawley area) to Central California (Huron area). Deals are being made on sub-par quality onions out of the south so be careful on what you are buying, but there are still good onions being shipped. New Mexico has just started with building supplies. Quality out of Central California, Uvalde, Texas and New Mexico are being reported as good. Red onion supplies out of Texas and New Mexico are light giving a little life to the market. This will be short lived as supplies will improve by the middle of next week. Demand overall is light but will build as we get closer to the 4th of July holiday.

- Mike Gorczyca

Transitions:
California supplies transitioning to Central California

Growing Region Market Quality
Calipatria/El Centro, CA Lower/Steady Fair
Huron/Metler, CA Steady Good
McAllen/Uvalde, TX Steady Good
Quincy/Hermiston, WA Lower/Steady Fair
Las Cruces, NM Steady Good
Pears

Washington pear supplies are in only a few hands. Sizing is 70/80/90's with only handfuls of smaller sizes. Demand on pears is very good. Quality is good overall with most being US #1. The market is firm.

On the import front, we have a few Packham and Bosc which are mostly in the 100 and larger. Markets are steady. Quality is good.

Expect small pears to be much tighter than they have been. The only relief is California Bartlett pears which will come into production the front part of July. Sizing at this point is in mother natures hands. The weather has finally warmed up which if continues with should help sizing and push up start dates. Stay tuned.

- Mike Gorczyca
Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Higher Good
Chile Steady/Higher Good
Pineapples

Pineapple volume coming from the tropics remains good, but we are soon to see a small seasonal decline during the summer. 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.

- Tim Kelley
Growing Region Market Quality
La Virgen, Costa Rica Steady Good
Heredia, Costa Rica Steady Good
Guapiles, Costa Rica Steady Good
La Cieba, Honduras Steady Good
Retalhuleu, Guatemala Steady Good
San Luis, Guatemala Steady Good
Potatoes

Russet Potato Market is good. Washington, Colorado, and Wisconsin are winding down with only the larger grower/shippers still in the game. This has put more demand on supplies out of Idaho. Sizing is peaking on 90 count and smaller with most shippers. Look for the market to firm on most sizes and packs as we get into the end of this month. Quality overall has been very nice with very few issues upon arrival. The weather has been very nice in all growing areas for the upcoming 20/18/2019 storage crop.

- Mike Gorczyca
Growing Region Market Quality
Quincy/Hermiston, WA Steady/Higher Good
Hamer/Rupert, ID Steady/Higher Good
Eastern Colorado Steady/Higher Good
Plover/Bancroft, WI Steady/Higher Good
Potatoes (colored)

Supplies of Red potatoes still exceeds demand keeping the market steady at lower levels. California, Arizona, Florida and North Dakota are the main shipping points. North Dakota will start to wind down the end of June start of July. Idaho supplies are winding down quickly and will only be in a few hands by the start of next week and will finish up for the season by the end of this Month. Gold potatoes are shipping out of California, Arizona, and Florida. Markets are fairly steady on most packs. California is the main shipping point for White potatoes with very light supplies being harvested out of Florida. The market is firm on most sizes. Quality overall has been very nice out of all growing areas with very little reports of issues upon arrival.

- Mike Gorczyca
Growing Region Market Quality
Bakersfield, CA Steady Excellent
Rupert to Rexburg, ID Steady Good
Phoenix, AZ Steady Excellent
Red River Valley, ND Steady Good
Hastings/Bunnell/East Palatka, FL Steady Good
Squash (Eastern) Alert

Squash supplies are good; fancy is tighter than medium on both colors. Demand is good, and shippers are cleaning inventory much faster this week. There is supply coming from Georgia, North and South Carolina, Virginia and New Jersey. Georgia is the biggest producer, but some growers are starting to quit so they can use their labor on bell pepper and eggplant.

- Steve Sterling

Alerts:
Demand is good for squash.

Transitions:
Squash is Transitioning to the Mid-Atlantic states.

Peak Seasons:
Squash is in peak supply.

Growing Region Market Quality
Lee/Grady/Echols County, GA Steady/Higher Good
Henderson / Bucomb County, NC Steady/Higher Good
Stone Fruit

Stone Fruit has had a slow start this season, but we are finally seeing bigger sizes and more consistent quantities on peaches and nectarines. Plums have also been a slow starter, but are just finally seeing better supply, and we will see prices drop off in the coming weeks. Cherries are about done in California and have started in both Oregon and Washington. Supplies are limited, but the quality is being reported as good.

- Matt Connelly
Growing Region Market Quality
Madera south to Arvin, CA Steady Good
Tomatoes (Eastern) Alert

Tomato harvests are transitioning further north to Quincy Florida and South Carolina where there has been little to no sunshine for the past two weeks. Tropical storm Alberto brought heavy rain to these regions however there have been no reports of crop loss at this time. The primary concern will be for the quality of crown picks coming to market in the next 2 to 3 weeks since Central Florida is nearly done for their season. Although Supply is currently light, there is enough fruit to meet the current demand. Roma tomatoes are available mainly out of Mexico, but good quality lots are few and far between. There is enough overall volume available however the market has not moved up. Buyers can expect to see pricing reflect the quality of what is in the box. Cherry tomatoes are steady however the grape tomato position is growing even shorter this week. Bulk packs have jumped across the $30 threshold while pints are available at half as much. It may be another week or two before markets adjust downward depending on how much is harvested from new operations beginning next week.

- Aaron Aliotti

Alerts:
Grape tomatoes are extremely short with 20lb bulk FOBs exceeding $30 this week. Quincy and South Carolina will have small crops to alleviate upward pressure until Virginia and New Jersey begin in July

Transitions:
Central Florida is transitioning to Quincy on the northern Florida boarder. South Carolina will also break ground in new fields as soon as next week.

Growing Region Market Quality
Southern Florida Steady Fair
Tomatoes (Western)

Mexico’s imports are helping supply while Florida programs begin to transition north. There is a wide spectrum of fruit on the Mexican market with pricing equally representing what is paid for. Normally by late May, Baja has healthy supplies of Romas to help meet demand. However, growers have been set back from weather and disease that has compromised crops. FOBs have remained steady but have the potential to slowly climb each week while supply shrinks until the middle of June when both California and Florida break ground in new fields. Quality is reported as sporadic with size varying widely between shippers. There is also a considerable variance in the quality of grape tomato crops as operations begin transitioning and shippers pick between fields. Grape tomatoes are receiving a lot of demand as Florida struggles to produce. Markets are forecasted to go higher through the begging of June as supply grows limited.

- Aaron Aliotti
Growing Region Market Quality
Southern Nayarit/Sinaloa, Mexico Steady Fair

Things You Should Know

Bell Peppers (Eastern)
Good Supply with good quality in Georgia

Berries (Blackberries)
Supplies are very limited and markets are higher.

Berries (Raspberries)
Supplies remain limited and prices are higher.

Cucumbers (Eastern)
Watch out for quality issues.

Eggplant (Eastern)
Quality in Georgia is very good, Quality in Florida is poor.

Squash (Eastern)
Demand is good for squash.

Tomatoes (Eastern)
Grape tomatoes are extremely short with 20lb bulk FOBs exceeding $30 this week. Quincy and South Carolina will have small crops to alleviate upward pressure until Virginia and New Jersey begin in July

Transitions and Temperatures

Onions
California supplies transitioning to Central California

Celery
Production in Salinas will begin in approximately two weeks.

Squash (Eastern)
Squash is Transitioning to the Mid-Atlantic states.

Eggplant (Eastern)
Eggplant is in Transition to Georgia.

Cucumbers (Eastern)
Cucumbers are transitioning to North Carolina

Bell Peppers (Eastern)
Transitioning to Georgia

Tomatoes (Eastern)
Central Florida is transitioning to Quincy on the northern Florida boarder. South Carolina will also break ground in new fields as soon as next week.

Berries (Raspberries)
We expect Salinas / Watsonville harvest to start in the next 2 weeks and gradually improve as we move forward.

Berries (Blackberries)
Salinas and Watsonville will start in 2-3 weeks.

A Peak at Peak Seasons

Squash (Eastern)
Squash is in peak supply.

Cucumbers (Eastern)
Cucumbers are in Peak season

Bell Peppers (Eastern)
Bell Pepper is coming into peak Season.

Citrus (Limes)
We will be entering peak production and expect harvest to remain steady for the 4-6 weeks.

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