The Source - June 9, 2016

Washington - Red delicious are relatively steady but the market remains firm. Most shippers are still peaking 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. One shipper has finished for the season. The remaining reds continue to peak on 80/88s. Galas are still available in limited quantities. The quality for red delicious and Galas has been good.
New York - Red delicious, McIntosh, and red Romes are steady but supplies are still very short. Small fruit remains limited for all varietys. The remaining McIntosh are very large. The fruit quality has been good.
Chile - Chilean Galas are steady to slightly lower 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.

Peru and New Jersey has good volume, markets steady.

California's harvest is at it's peak with good volume. Size is still skewed to the smaller size fruit and creating a supply issue for the mid-sized and large fruit. Demand and supply is steady.

Mexico's shipments to the US has stabilized, but is still down nearly 40% from what it was at the end of May. Demand has stabilized to match current supplies. Key sizes of 40s/48s remain tight. We are still looking at late June to the beginning of July when Mexico starts their Flor Loca crop, before any real volume increase is expected.

Due to record heat in California many grower's have been hurt with their crops out of the Coachella Valley. We expect the market of red bells will be challenging for the next few weeks. It will be important to monitor the quality in Bell's out of Coachella.

Mexican production continues to decline and could be finished by the end of this week. Some smaller growers have already ended production for the season. California production has begun in a light way out of Oxnard, Santa Maria and the Salinas/Watsonville regions. Quality has been good on CA product overall. There are a few reports of red cell and leaking berries on the Mexican product. Oregon is also just beginning with production this season. Fruit quality is excellent out of Oregon.

Supply remains very tight out of the Southeast and CA. Tropical Storm Colin brought heavy rain and winds from the gulf into the Southeastern regions of the United States earlier this week. Production was severely affected in North Carolina, Georgia, etc. on Monday and Tuesday and growers are evaluating condition of the crop since the storm has passed. Production has been at a standstill this week. Quality will remain in question out of the Southeast until growers can get in to evaluate their crops. California's Central Valley experienced extreme temperatures reaching around 110 degrees this past week and weekend. Growers went in to harvest Monday to find very soft berries that would not make the pack for fresh market. Current forecasts show temperatures above 100 degrees through Wednesday of this week and highs only cooling just below 100 degrees thereafter. California quality will be suspect this week as berries will be very soft from the excessive heat. Oregon will begin with light volume by end of the week and this area will begin to help supplement current supply. Oregon quality is excellent on the initial pack out and reports. British Columbia production will also begin in the next few weeks. There is still some MX product in circulation from Baja as well.

Alerts:
Demand is exceeding supply due to tropical storms in the Southeast and excessive heat in California's Central Valley.

Transitions:
Oregon production beginning this week and British Columbia production will begin very soon.

Mexican production continues to decline. California production continues in Oxnard and is increasing out of Santa Maria and the Salinas/Watsonville regions. Quality has been good overall.

California strawberry production has slowed down some this week out of Santa Maria, Salinas, Watsonville and Castroville. Cool, foggy days and a lack of sunshine are affecting the ripening process and harvest estimates have fallen some. There are a lot of flowers on the plants and a lot of green fruit so better volume is coming but very good demand is also keeping the deal tight overall. Sizing has fallen off as well. Strawberries have been running in the 12-18 count range and are now more along the 18-24 count range per 1 pound clamshell. Quality is good with only minor bruising and some white shoulders reported.

Alerts:
Supplies are tight for the end of this week. Many shippers are already sold out through the beginning of next week due to lighter supplies of ripe berries.

Better supplies from all growing regions has caused a downward trend in the market. Quality is very nice from California, an Mexico is still quoting hallow core. There have been offers to move volume from shippers out of Salinas.

The Brussel Sprout market has stabilized at current levels. Oxnard has started harvesting volume. Mexico is still going strong as well. Quality has improved out of Mexico and the domestic crop is really nice.

The Bakersfield crop has begun and 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.

The cauliflower market is on the downward trend. Supplies are better as we enter the cycle of better acreage. The market hasn't found a level yet. Quality is good with little yellowing. Weights in the 27 to 33 pound level.

Production in Salinas has begun, with more suppliers expected next week as well. The best sizing continues to be in twenty-four counts. Flexing continues on large sizes so promote as much as possible. This market has remained unchanged for the most part. Oxnard and Santa Maria continues to be the main growing region for this commodity. Good quality is being reported from all shippers. Michigan production is steady as well.

Dark sweet cherry supplies have increased with the recent warm weather. Production numbers jumped up over the last couple days and market prices have started to come off. Initially, we thought the volume was going to drop during this time frame but the heat has moved cherries forward a good week causing no gap and good supplies. So far quality is very good with very good flavor. The next peak will run from the 22nd through the first week of July.

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 - Limited supplies on tomatillo due to transitioning from fields. Should see more availability mid-week.

A consistent flow of supplies from all growing regions has kept this market flat. Quality is really good with minimal yellowing and dehydration.

The central valley crop is 96% harvested and winding down their season and 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 they are slowly trending down a bit. 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.

Shippers have good supplies of large sizes with crop peaking on 72s/56s. Smaller sizes (88s/113s/138s) are in better availability as demand drops with school demand fails away. Shippers are packing new crop Valencia oranges for export and domestic use, but availability is limited as they are working on finishing up the Navel crop. Labor to harvest fruit is an issue for some growers.

Good quality and condition on cucumbers coming out of California, Supply has lightened since last week. Mostly select, super select's, and large being packed. Cucumber's are done in Nogales. 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. Will see better quality on egg plant in about a week when Fresno begins to harvest. There is a lot of cosmetic issue with egg plant out of Coachella

Green grape supplies have increased in both regions. The warmer weather has helped move product along and sizes are peaking in the L to XL range. Quality is being reported as excellent with high sugar levels. Market prices have been very comparable between Nogales and Coachella. They have started to decline slightly this week and I expect to see another drop in price next week.

Arvin will start scratching at some harvest the last week of June with light volume, then increase production beginning July. Fresno and Dinuba guys will get started around July 15th.

Domestic and Mexican red grape supplies continue to be excellent. There has been a split market between Nogales and Coachella. This week we saw some aggressive prices being offered on Mexican fruit, where as the California fruit has retained a steady price point. Looking at the weekend and front part of next week, we can expect to see the Mexican market to remain fairly steady, but California shippers are trying to go up a couple dollars. Quality has been strong in both areas.

Arvin is expected to get started with very light numbers at the end of the month and increase as we move into July. Fresno and Dinuba regions are estimating a start date of July 15th.

The green onion market is steady with plenty of supplies from Mexico. There are also domestic available out of Salinas as well. Quality is good with minimal yellow or brown discoloration of the tops.

Kale supplies remain abundant with excellent quality out of all growing regions. The market varies depending on the shipper and loading location.

Warm and cold temperatures daily is a major problem for growers of this commodity. The major defects include insect and mechanical damage,discoloration as well as puffiness . All suppliers are having these issues. These issue will continue for a few weeks minimum. With this being said, the market is softer. Demand is off as schools start to finish. The weights are averaging 41-45 pounds.

This market is firm on romaine. Demand exceeds supplies on romaine hearts. The hearts will be light in availability for the rest of the week, minimum. Fringe and tip burn is seen on all leaf items and this will continue for two weeks minimum. Weather conditions are not ideal at this time for all leaf items. Yields are down by 20% and other suppliers have taken bigger hits. Gapping in production is also an issue. There will be wide pricing gaps in the marketplace on leaf items so please be aware. Insect damage and internal burn are issues as well. Supplies will be light on butter, romaine and romaine hearts for the entire week, while all other leaf items will be moderate.

The desert supplies are holding steady to slightly less than earlier in the 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 higher due to lighter supplies.

Alerts:
The desert growing regions have been extremely hot over the last week so expect softer than normal melons for the short term.

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 week and quality will be effected in some lots. The market has picked up somewhat and is now a little higher than the first part of the week due to lighter supplies and the heat.

Alerts:
Extremely hot temperatures over the last week in the desert growing regions will effect the quality of some lots.

Watermelon is still crossing from Sonora. With the bad weather condition's in Florida the demand for Western Watermelon has risen.

California - Jumbo yellows are available in good numbers but all other sizes are limited especially Supers and colossals. The larger yellow market is strong while Jumbos have a little flex. Med reds and white onions are also fairly short but Jumbo reds are available in good numbers. The white and red market are steady.

New Mexico - Jumbo and larger yellows are available in good numbers while medium yellows are limited. The yellow market is steady on all sizes although there is a little flex on the big yellows. Reds and whites are both steady although medium reds are limited. Supplies of jumbo reds and whites are good.

Washington - D'anjou pears are steady on all sizes but 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 so expect the smaller sizes to remain limited until the season ends. 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. 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 - the count market is fairly steady although 80s are a gaining value now as the larger counts slowly gain strength and pull them along. The smaller counts are steady and relatively available while 70-count and larger quantities might take a few days to build. Number-twos are steady. The quality has been good.
Washington/Colorado/Wisconsin - all non-Idaho potatoes are steady. Colorado and Wisconsin remain heavier to the smaller counts while Washington is slightly larger. The quality for all three has been good.

Bakersfield, California - reds, whites, and golds are all steady and the availability is good for all colors. Reds, whites, and Golds are still peaking on A-size. The new-crop quality has been good.
Phoenix, Arizona - red and gold potatoes are steady and both colors 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. The availability of reds is still fairly good for now but the tropical storm that hit Florida on Monday finished the white and gold potato season for some suppliers. That being said, white and gold availability is generally low. The quality has been good but that could be changing if the weather turns hot.
Pearsall, Texas - The red market is steady for all reds and the shippers remain bullish. The quality has been reported as good.

Hard squash is now coming out of Coachella Valley. With the Record heat in the Coachella Valley mostly large sizes on Italian and Yellow S/N are being harvested. Temperature is causing quality to break down sooner . Many Coachella Squash Grower's are requiring repacking before shipping.

We continue to have excellent supplies of all stone fruit. Quality is excellent and sugar levels are high. The warm weather has helped produce some really good eating peaches, nectarines, apricots and plums. Plenty of all sizes available. Market prices have been coming down as more fruit becomes available. We have seen some very aggressive prices on small fruit, but I expect to see prices on larger fruit begin to drop as well. We have ample opportunity for promotional ads for the July 4th holiday.

Rounds - The market is higher. Rain in Florida and South Carolina has damaged some crops. Tropical storm Colin has dumped anywhere from 3 to 8 inches of rain. Supplies limited due to weather, with crop assessment still continuing. In the west, California and new areas in Mexico have begun, however, with limited numbers. Look for the market to continue to increase. Quality is Good.
Roma - The market is higher. Supplies have tighten up due to the weather in the east. Tropical storm has also taken effect on the roma's. In the west, Mexico is experiencing warmer weather, with the heat staggering plantings. Look for the market to continue to tick upwards. Range in quality.
Cherry - The market is higher. Rains in the east has hampered production in new growing areas in North Florida and South Carolina. Central Florida has experienced the rains as well, however, this area was due to finish production. Out west, cherry's are coming up from Baja, Mexico and the market is steady. Most west coast product is staying in the west. Quality is Good.
Grape - The market is higher. Supplies are also shorter in the southeast. Some areas have finished, with other areas are in between crops. Out west, Baja has grapes. Market is lower out west, but, with the limited supplies in the east, look for the market to jump a bit. Quality is Good.

Rounds - The market is higher. California has begun production, however, supplies are lighter. New areas in Mexico have also started, but same situation as California, with lighter numbers. Back east, the tropical storm has hampered production and damaged some crops. Look for the market to continue to tighten up. Quality is Good.
Roma - The market is higher. Mexico continue to see higher temps out west, with the heat staggering plantings. In the east, the rains have also hampered production, and are seeing very light numbers. Look for the market to tick up, with lighter supplies. Range in quality from Good to Fair.
Cherry - The market is higher. Supplies are coming up from Baja, Mexico in the west. However, supplies are a bit on te lighter side. Back east, the tropical storm continues to hamper production in the new growing regions. With lighter supplies in the west, and limited numbers in the east, look for the market to rise. Quality is Good to Fair.
Grape - The market is higher. Out west, Baja area has grapes, however, demand out east has picked up and west coast prices are on the rise. Supplies back east are shorter due to the weather conditions. Look for the market to rise as well, with demand on the rise. Quality is Good.