The Source - March 1, 2017

Washington - red delicious are mostly on all sizes and they continue to peak on extra-fancy 64-88s. red availability of 113s and smaller is limited. Golden delicious are steady on all sizes and continue to peak on 72/80/88s. Small Goldens remain very short. Granny-smith are steady to higher on 80s and smaller with only limited supplies. The fruit is still peaking on 72/80/88's so the 100s supplies are still extremely short. Most shippers are still subbing up in size and grade on anything smaller than an 88. The Gala market is steady on all sizes. Galas are still peaking on 80/88/100/72s and they have good volume in the larger sizes. Gala 125/138s remain very short currently. Fuji's are steady on all sizes and are still peaking on 72/80/88s. Fuji volume is generally light right now especially in 113s and smaller. Honeycrisp are steady to higher due to light supplies and they are still peaking on 80/88/100s. The quality for all varieties has been good. There are some small lots of Braeburns and Jonagolds currently out there.
Idaho---red delicious, Red Romes, and Pink Lady's are still the bulk of the current production and they are all steady. Most of the Idaho varieties are peaking on 64-100s. The quality has been good.
Michigan--McIntosh and Empires remain steady but strong due to light supplies and strong demand. Golden delicious, Jonathans, red Romes, Galas, red delicious, and Fujis are all fairly steady. The Galas, Red Romes, and Jonathans are still peaking on smaller fruit while the Golden delicious, Red delicious, Fujis, and McIntosh are heavier to the medium sizes. The quality has been good.
New York---Empires and McIntosh are steady but remain strong due to light supplies and strong demand. Red delicious, Galas, Fujis, and Red Romes are fairly steady but the markets are showing strength in the smaller sizes. All varieties are peaking on larger fruit. The quality has been good.
Pennsylvania---red delicious, golden delicious, Red Romes, Pink Ladys, and Fujis, are all steady and are all peaking on 80/88/100s. They are producing more US#1 and US fancy grade but the quality has been good. Granny-smith have finished for the season.

Alerts:
Washington remains very short of Granny-smith 100s and smaller and the upward size and grade subbing continues just to get orders covered.

Pennsylvania has finished packing Granny-smith for the season.

Peak Seasons:
Washington is in the peak of its seasons for red delicious, gold delicious, granny-smith, Galas, and Fujis.

Idaho is in the peak of its season for red delicious, Golden delicious, Red Romes, and Pink Ladys.

Michigan, New York, and Pennsylvania are in the peak of their seasons for most varietys.

The weather in Caborca, Mexico has improved. Production remains heavy and the market remains sluggish with the season in full swing. Production should be heavy for the next 2-3 weeks, then it should taper off. All growers are now mostly packing 28 lb asparagus, and the 11 lbs are being packed to order. California has started better production quantities.

Mexico's volume bumped up a little last week to 40 million pounds. This week it looks to go back down to 30 million pounds. Still far less fruit than the industry needs for demand. The field prices from Mexico is less active than it was the past few weeks when they were pushing prices up every other day, but field prices remain high. They are still telling us that we are to expect only 25 to 30 million per week through the end of this crop ending in June. The size cure has adjusted slightly, with fewer 40s and larger and a few more 60s and 70s coming in to the states.

Green bell Pepper has increased in supply especially on off grade large sizes. prices have dropped and will continue for the near future with larger sizes on number one grade being more limited.

Colored Bells ( Red, Yellow and Orange) continue with much improved supply on both blocky and elongated varieties. Good quality and condition will continue, supply will remain heavy. market and demand are still very flat. Packing 25# 15# and 11# units.

Blackberry supplies are starting to improve. We are seeing a steady supply of fruit from Mexico and expect better production numbers moving forward. Demand is still very strong. The biggest challenge with Mexican product, at this point, is transfer time and truck arrivals. Shippers expect a significant increase in 2-3 weeks. California production has been slow due to the weather. However, as the weather improves, we can anticipate better volume of California fruit over the next several weeks. Market have remained steady and firm.

Transitions:
As the weather warms up in California; production is expected to improve moving forward.

Blueberry supplies have started to improve with several new growing regions coming on. The last of the Chilean blueberries will filter out by the end of this week. Mexico production is increasing weekly and is expected to peak late March. Good quality is being reported on the Mexican fruit. California harvest is getting started with light numbers, but is expected to increase over the next several weeks. Florida production is just starting with light numbers. Again, numbers will increase as we move into next month. Florida will reach peak season late March to Early April. Georgia is expected to start production in 4-6 weeks.

Transitions:
Chilean blueberries are coming to an end. Mexico production will continue to improve. California and Florida production is expected to ramp up over the next several weeks. Georgia is expected to start in 4-6 weeks.

Raspberry supplies were snug at the beginning of the week due to some weather challenges in California. However, shippers are reporting better availability later this week and into next week. Mexico harvest is expected to continue to improve as we move forward. Quality is being reported as strong on Mexican product. California, barring any further weather delays, should be increasing production quickly. We can expect a slow but steady improvement over the next 2 weeks.

Transitions:
Mexico and California production is gradually improving. Slow but steady improvements are expected moving forward.

Strawberries continue to be a challenge this week. In California, we are slowly recovering from the severe rain that hit a week ago. Growers have stripped the fields of all the water damaged fruit and are left with a lot of young berries that still need some warm dry weather to develop. California supplies will remain limited this week, but availability and quality are expected to gradually improve as we move into next week. Markets are firm. Mexico production continues to decline as they slowly wrap up their season. Supplies are limited loading in Texas. Shippers expect Mexican product to be around for another 2 weeks, depending on how California progresses. Florida has been dealing with unfavorable weather. A splash of rain followed by very warm days, has led to over ripe fruit. Quality has been a struggle in Florida over the past week. Supplies remain limited and markets have firmed up. Shippers expect Florida season to last another 4-6 weeks.

Transitions:
Mexico season is coming to an end. Florida is expected to last another 4-6 weeks. California is slowly ramping up, better supplies expected next week.

Broccoli supplies continue to be extremely short. The previous weather in growing regions of Mexico, Yuma, and Santa Maria has really put a strain on supplies. Salinas has started packing broccoli but not enough to help. Also the rain that we have experienced in Salinas will cause quality issues to start this season. Processors are also struggling to cover orders as their raw product supplies have diminished. This will continue for the next 2 weeks.

Alerts:
Extremely limited supplies from all growing regions as we run into a 2 to 3 week supply gap. The market is also extremely active.

Transitions:
Salinas has started harvesting in a light way and will increase in the weeks to come. Quality is fair at best due to the previous rains in this growing region.

The brussel sprout market is trending slightly higher. Supplies has decreased slightly creating higher prices. Rain in the growing region of Mexico and previous rains in Oxnard. The quality has also been effected with some inconsistency in color and some black spotting. Look for the market to trend higher into next week.

Carrot supplies remain good and look continue so, with jumbo, cello and value added product.

The cauliflower market remains active with extremely limited supplies. Santa Maria is still having quality issues due to previous rains. Yuma does not have enough acreage as we finish this season. Salinas will start within 7 to 10 days. Although quality from Salinas will be a problem due to the rain we have experienced here as well. Bruising and brown to black discoloration is showing upon arrivals, so quality will be fair at best.

Alerts:
The cauliflower market remains active with limited supplies as Yuma finishes up their season. Santa Maria continues to struggle as well with supplies and poor quality.

Transitions:
We will be transitioning to Salinas in 7 to 10 days. But overall quality will be a problem due to the previous rains.

There are no rains expected in Southern California or Yuma for the rest of the week. With this being said, the market is steady, overall. A few shippers have attempted to raise pricing, but in a futile attempt. Some processors have been having to bypass certain acreage due to quality issues. Things like translucency and waterlogged raw material has simply made it difficult to process for value added items. No rain is expected for the week , but damage has occurred from past weather conditions. Yuma production is expected to be moderate at best for the rest of the week.

Pablano - Excellent size and Quality will continue with slightly lighter supply.

Tomatillo-Much lighter supply and just fair quality, both peeled and husked. Sizing is good. Color and condition will continue to be only fair.

Jalapeno- good quality on new crop pepper, Excellent Size color and condition with huge supplies. Many number 2s are being shipped.

Anaheim- good quality, condition and size are expected to continue as supply have improved.

The cilantro market remains firm with growing regions struggling to tap into acreage. Quality remains the biggest problem out of Oxnard. Better quality is coming from Baja and Yuma. Yuma and Mexico's acreage isn't enough to cover the void of quality issues from Oxnard. Supplies are doing their best to pack a quality product but continue to struggle with yellowing, rain damage, and black leaves. This will remain the trend into next week.

Alerts:
The Oxnard growing region has had a difficult time with supplies and quality. Rains have hampered this region really taking its toll on this commodity.

Good dry weather is now and growers are able to start picking more volume. Bin inventory is low, but will build through the week and into next as growers begin to catch up. With the rains we have had comes size growth, with more 95s/115s/140s and less 165s/200s. The 165/200 inventory was the lowest and will take the longest the build an inventory on and will be very tight into next week.

Alerts:
Small size lemons, 165s/ 200s are very tight through next week as growers play catch up on picking.

The lime market is steady to higher on larger sizes and lower to steady on smaller sizes. The higher market is due to an overall increase in demand and shorter supplies especially on 110's through 175's. The lower market on smaller sizes is due to increased supplies. The old crop harvest is in the larger size profile 110/150's while the new crop is 200/250's. The supply of old crop limes is dropping off faster than the new crop is producing. The quality is good with very few problems being reported other than an occasional stylar end breakdown. Any increase in demand and the market will increase.

Dry weather and growers are picking good volume. Good export demand is driving the shipments and this leaves less volume for domestic business. Fruit is available , but still remain tight.

Good supply on cucumber coming out Mexico, Excellent color, quality and condition on all grades sizes and pack styles. Supply will continue to be very good for the next week.Euro cucumber is also available in very limited supply, both #1and #2 both single layer and bushel boxes.

Good Quality and condition with good size are currently being shipped from Nogales, mostly 24 size are available as volume drops slightly. Many number 2s being shipped.

Supplies of green grapes are adequate on both coasts. Quality is being reported as excellent however some lots are coming in with brown stems and occasional amber color. Large and extra large packs are where the main volume is. The near future looks to have steady supplies and excellent quality with normal small market adjustments happening. Lower quality grapes continue to sell at a discount. The market is steady.

Red grapes supplies are tightening up. Quality is excellent overall but low quality grapes are being sold for discounts. The lower quality grapes have a variety of defects with the worst being decay. Growing conditions continue to bee good so we shouldn't see many disruptions to the current environment for red grapes. Promotional opportunities are available on grapes. The market is steady to higher now as the lower quality supplies disappear.

The green onion market is trending higher due to the rain experienced this past weekend. This is halting harvesting in Mexico and effecting quality as well. Some arrivals have been showing yellow to brown tops. Supplies should increase next week and prices should settle to normal levels as well.

Alerts:
Rains in Mexico have slowed production down tremendously creating a small supply gap. The market is reacting and trending higher.

The kale market is steady at current price levels. Quality remains consistent from Yuma and Mexico. Although Santa Maria and Oxnard have had issues with rain damage and yellowing from previous rains. We look good on supplies for the next 2 weeks.

Some suppliers have remained steady while others flex on volume type orders for this commodity. This market is flat. Supplies clearly exceed demand and this will continue for the rest of the week. Processors for this commodity are not having any issues for this week and all weekly averages. The quality issues have not gone away however. The defects created by rain and fluctuating cold temperatures in past weeks has hurt the quality of this commodity. These defects are such things as discoloration, pink ribbing, misshapen heads, and mildew. These defects are being reported from many shippers. No rain in the desert is in the forecast for the entire week.

Romaine as well as all leaf items are active.. Demand has picked up. Weather issues in past weeks continues to create havoc on quality. Complaints continue to surface from customers upon arrival. These complaints include blister and peel, twisting, discoloration as well as light fringe burn being reported on romaine, as well as all leaf items. These defects continue to be industry wide. Production in Huron is expected to begin by the last week in March. This market looks to be moderate at best for the rest of the week in terms of availability.

Demand continues to match supplies. Supplies are steady from Honduras and Guatemala. The peak size is 12ct and we are receiving decent amounts of 15's now. 18's are still really short supplied but demand for them is light so it's not an issue. The quality is excellent right now and for the long term outlook too. Weather has been ideal in the growing regions. The market is lower to steady across the board

Honeydew supplies have leveled out and are continuing to increase slowly. Offshore dews have excellent quality and are peaking on 6's. Offshore dew volume is at slightly above normal levels for this time of year. Demand is beginning to increase. The market is currently lower to steady.

Production from Southern Mexico ( Jalisco/Colima) is improving. Quality and condition are good with high sugar all sizes are available in both bins and cartons . Personal seedless is available in limited supply peaking on smaller sizes.

Demand is steady across the board on all sizes, packs and colors. Storage supplies are still coming out of Idaho and Washington. Quality is being reported as good. There has been an occasional lot showing some light transparency on the out layers. Storing onions in a well air circulated room with these late storage onions is key. Mexico and Texas Yellow onions are mainly being packed into the 40 lb sweets due to the weak market condition on 50lb sacks. Look for this to continue for the next 10 days. Good supplies of Red and White onions are crossing into McAllen, Texas. Quality is good. Market is steady.

Washington -- Bartlett have finished for the season. D'anjou 90s and larger are steady with good supplies while the 110 and smaller D'anjou's remain very short and the market remains firm. D'anjou's continue to peak on US#1 80/90/100s. Many packers have switched their consumer bag business to D'anjou's and that is taking up much of the smaller fruit. The quality has been good. Bosc pears are steady and continue to peak on US#1 80/90/100s. The quality has been good. Red pears are steady and they are still peaking on US#1 45/50 half cartons. The red pear availability is still very light and the quality has been good.

Chile - Chilean Bartlett pears are steady on both coasts and they are still peaking on larger fruit with mostly 80/90/100s. The quality has been good.

Alerts:
Small Danjous remain limited.

Transitions:
Argentinian Bartletts will be available on both coasts next week.

Chilean Packhams and Forelles will be available on approximately March 15.

Peak Seasons:
Washington is in the peak of its Danjou and Bosc seasons.

Chile is in the peak of its Bartlett season.

Supplies are light and look to be very tight through March due to a period of heavy rains at the end of November of last year.

Market is steady on small cartons (80 count and smaller) with the larger cartons (70 count and larger) firming slightly. Quality is still be reported as good. There has been a few lots being packed that have started to show some light peepers. This is just a sign of a healthy potato. This will be controlled with sprout nip being applied during packing. Look for sizing to start peaking on 80 count. The main variety in Idaho is now Burbanks.

Bakersfield California - red and gold potatoes are steady on all sizes and are still peaking on A size. Whites are steady but firm due to light supplies. The California suppliers are sourcing from Washington currently and then will have to buy from Florida when they run out, so expect a stronger market over the next few weeks. The quality has been good.
Idaho - red and gold potatoes are steady. The red potato sizing is still split between A and Bs while the golds are heavier to A-size. The quality is good.
Western Washington - reds and golds are steady and they are both peaking on A size. The quality has been good.
North Dakota - red and gold potatoes are mostly steady on all sizes and they are also still peaking on A size. Some suppliers are flexing on reds and golds to compete with the new-crop Florida potatoes. The quality has been good.
Florida - they continue to pack all colors and all are fairly steady on most sizes and colors with a high percentage of #1 product. Reds are still the bulk of the volume and they are still peaking on A-size. The whites and golds are heavier to B size but supplies are more limited. The quality has been good.
Canada - reds, golds, and whites are mostly steady. The quality has been good.

Alerts:
Bakersfield whites are finished and the suppliers there are sourcing from Washington and then will move to FLorida, so expect a stronger market over the next few weeks.

Peak Seasons:
Southern Florida is in the peak of its season for all colors.

Western Washington, Idaho, and North Dakota are all in the peak of their red and gold potato seasons.

Yellow Squash and Italian Squash are winding down in Sinaloa and just getting started in Sonora. The Quality has only been fair and will not improve for the next 7-10 days, sizing is mostly fancy followed by medium with some W/B being offered. Hard Squash is still being offered in good supply on Butternut followed by Spaghetti and Acorn. Very limited supply of Kabocha.

Transitions:
Squash is Transitioning from Central Mexico ( Culiacan Sinaloa) to Northern Mexico ( Hermasillo,Sanora)

Stone fruit supplies are a little shorter this week but the market has once again held steady. Demand is the normal amount for this time of the year which is light. Peaches and nectarines sizes are coming in on the larger side of the scale. Plums have most sizes available. Kiwi's are plentiful and very nice also. We don't foresee much happening with any of the markets here for a number of weeks.

Supply is shorter than in recent weeks as Southern Florida works past their peak production. Cool temperatures and wind in January will slow the yields of plants over the next 1-2 weeks. As supply begins to shrink, the market may start to move upward the rest of the month. New crops in Palmetto are expected to be in full production by the end of March, however there are reduced planting and less acreage over all amongst growers. Steady volumes out of Mexico are expected well into April helping to offset the deficit of fruit regionally, however it is unknown how quickly markets will strengthen in the east.

Mexico continues to supply heavy volumes of rounds and roma tomatoes trending towards larger sizes. Recent rain has caused supply to shrink but there is still plenty of good quality tomatoes crossing at USDA price mandated minimums. Adequate volumes of grape tomatoes are crossing from western and central Mexico with mixed color and quality. The overall market is low forcing growers to pick fruit early in the hopes that it buys them time to sell the product, so there is also a lot of mixed colored or light colored fruit.