The Source - March 14, 2016

Weather Update

A strong high pressure ridge returns off the west coast following days of wet stormy weather. The current storm system will move east today as the ridge builds with warming trend beginning on Tuesday. The Desert growing regions will see strong winds into Tuesday as this system moves east today. The southwestern desert regions along with Northern Baja and Mexico will become unseasonably warm by mid week as the ridge strengthens over the Southwest. Temperatures will trend 8-15 degrees above normal in these regions this week.
Central Mexico will also be under the influence of a high pressure system with gradual cooling through the week and a slight chance of isolated showers.
Mostly dry in Florida into mid week when a frontal system moves into the northern part of the state late Thursday likely providing periods of moderate to heavy rain north of Tampa Bay. This system will then slowly slide south through the weekend.

Freight Update

California and Arizona trucks remain steady again this week. Washington and Idaho potato trucks remain steady as well. Idaho onion trucks remain a little tighter than normal. The National Average for diesel is on the rise again and is currently 2.099 gallon. A difference of $0.818 from this time last year. California prices are up as well and have jumped up to 2.339 per gallon. Crude oil remained steady climb and is now $37.28 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples

Washington - red delicious are steady but firm on all sizes and grades. The lower grade reds remain limited and most suppliers are having to sub up to cover orders. Most shippers are still peaking on 72/80/88 reds. Golden delicious are also steady on all sizes and grades with a firm market. Goldens are still peaking on Wash-Extra 100/113s and most shippers don't have much larger than an 88-size. Granny-smith are steady on all sizes and are still peaking on 88-113s. Most suppliers still don't have much larger than an 88 or smaller than a 125. Galas are steady on all sizes and grades but the market has been slowly rising. Most Gala suppliers still don't have much fruit larger than an 88. Fujis are steady on all sizes but could climb due to lighter eastern volume. Washington Fujis continue to peak on extra-fancy 80-100's. Honeycrisp are mostly steady and the market remains high and strong due to very light supplies. Jonagolds are still available but supplies are limited. The quality for all varieties has been good.
Michigan - Red delicious are steady on all sizes and continue to peak on 80/88s. Most Michigan shippers have less small fruit than large. McIntosh are steady and are still heavier to 125/138s but supplies are light. Galas are steady on all sizes but supplies are light. Golden delicious are steady but strong due to light supplies and they are peaking on 125/138s. Jonathans are steady on all sizes and they are still peaking on 150/138/125s. Fujis are being quoted steady but supplies are light and some shippers are finishing up. Red Romes are steady but most shippers will deal on volume orders.
New York - Red delicious, McIntosh, Red Romes, and Empires are all steady. Gala and Golden delicious supplies are light and both markets are firm. Red Rome volume is good and some shippers will flex for volume on the smaller sizes. Empire volume is hit and miss but thee are deals when they are available. The quality has been good on all varieties.

- John Tole
Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Hudson/Pleasant Valley/Red Hook, NY Steady Good
Coopersville/Belding/Sparta, MI Steady Good
Asparagus

The market is directly reacting to increased pull for Easter ads, coupled with rain in the Salinas Valley. Demand for Easter has started and look for prices to remain active this week, with sporadic supplies on a daily basis. Quality is still excellent with all sizes available.

- Gabe Romero
Growing Region Market Quality
Caborca, Mexico Higher Excellent
San Joaquin Valley, CA Higher Excellent
Salinas Valley, CA Higher Excellent
Avocado (California)

California growers are harvesting some light, but useable volume. Volume will build through March. The overall crop estimated has been reduced based on the fruit not sizing due to the lack of water. It now looks like California may have a higher than normal percentage of smaller fruit.

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

Volume from Mexico held stead last week and supplies remain good crossing into the US. The size curve continues to be an issue with larger fruit being plentiful, and smaller fruit at a relative premium.

- Tim Kelley
Growing Region Market Quality
Michoacan, Mexico Steady/Higher Excellent
Berries (Blackberries) Alert

Rain, wind and thunderstorms affected production in Central Mexico last week. Damaging hail was also reported at some ranches. This is a big concern for un-hooped acreage as it will cause significant setbacks, some estimates have dropped by 50%. Now, cold weather has hit over the weekend and snow has fallen in some of the higher elevations. Supply will be tight for the next 2-3 weeks. As far as quality, watch for broken fruit, red cell and soft berries.



- Tom Smith

Alerts:
Inclement weather in Central Mexico over the previous week has disrupted production and decreased harvest volumes. Supplies will remain short for at least the next 2-3 weeks.

Growing Region Market Quality
Central Mexico Higher Fair
Berries (Blueberries) Alert

Blueberry production is rapidly winding down out of Chile for the season. Central Mexico and Baja are still in steady production and FL and CA are beginning to produce on a small scale. Supplies will be short over the next 2-3 weeks at least and markets will get stronger. Demand is already strengthening as availability has tightened up.





- Tom Smith

Alerts:
Supplies will be tight for the next 2-3 weeks as Chilean production comes to a close for the season and Mexico and domestic product will not cover all demand.

Growing Region Market Quality
Southern Chile Higher Good
Central Mexico Higher Good
Baja California, Mexico Higher Good
Central Florida Higher Good
Berries (Raspberries)

Quality has improved over recent weeks and production forecasts are showing a steady increase in volume through March. Some colder weather in Central Mexico may have slowed this down slightly over the previous weekend.

- Tom Smith

Transitions:
Salinas and Watsonville are expected to begin production in mid-April.


Growing Region Market Quality
Central Mexico Steady Good
Oxnard, CA Steady Good
Berries (Strawberries)

After a weekend of rainy weather, high pressure returns to the coast of CA with dry conditions to follow for the next 5-7 days. A warming trend through mid-week will bring temperatures in the low-mid 70s before cooling off again into the mid-upper 60s by the weekend. Low temperatures will dip into the upper 30s in some valleys. Some quality issues are still being reported after recent rains: light color (salmon,) bronzing, soft and white shoulders, bruising, rain damage, etc. Sizing remains in the mid-upper teens, low twenties. Central Mexico received rain and thunderstorms last week followed by considerable cooling and cold temperatures over the weekend. Production has slowed significantly with fewer transfer scheduled for the US. FL is still producing steadily. Rain showers were predicted for early Monday so many ranches picked fruit ahead of the showers.

- Tom Smith

Transitions:
Watsonville and Salinas began picking some fruit in early March. Recently, rains have delayed production from this area and now looks to start with good numbers around the first week of April.

Growing Region Market Quality
Oxnard, CA Steady Good
Santa Maria, CA Steady Good
Central Florida Steady Good
Central Mexico Steady Fair
Broccoli Alert

Yuma looks to be finishing up within the next couple of weeks. This is causing some shipper to shipper business. The market is reacting and looks to be that way all week. Quality is still good with tight beads and vibrant green color. Prices will vary upon shipping location, so if you have opportunities to load in other growing regions besides Yuma that would give you a price advantage.

- Gabe Romero

Alerts:
As Yuma finishes up over the next couple of weeks, the market will be reacting.

Growing Region Market Quality
Celaya Guanjuato Mexico Higher Good
Oxnard/Santa Maria, CA Higher Good
Yuma, AZ Higher Good
Salinas Valley, CA Higher Good
Phoenix, AZ Higher Good
Brussels Sprouts Alert

There is a major shortage of Brussel Sprouts mainly due to the previous hot weather in Mexico. This brought on early supplies and fields bunched up together. We are now experiencing the supply gap from that time frame. This will last for the next couple of weeks. Quality is still good with minimal black leaves upon arrival.

- Gabe Romero

Alerts:
Extremely Limited Supplies and Active Market

Growing Region Market Quality
Northern Baja California Norte, Mexico Higher Good
Carrots

Size is coming back very slowly on the crop coming out of the Coachella and Imperial Valleys of California. Carrots are still small, and yields are showing some improvement, but not what was hoped for on Jumbo size carrots. Jumbo size still very tight, and still looks like a few weeks for improvement of size to come. Supplies of medium size and baby peeled carrots are is good.

- Tim Kelley
Growing Region Market Quality
Coachella Valley, CA Steady Excellent
Cauliflower Alert

Supplies are the main driver here and prices are reacting. Some suppliers are finished for the season in Yuma. So suppliers are having to buy from other shippers to keep orders in Yuma. This is causing a dramatic increase in the market. Quality is very nice with white curds.

- Gabe Romero

Alerts:
Limited Supplies out of Yuma and increased markets

Growing Region Market Quality
Oxnard/Santa Maria, CA Higher Good
Salinas Valley, CA Higher Good
Yuma, AZ Higher Good
Celery

This market is firm. Oxnard and Yuma as well as Florida are the current loading locations. All sizes are available. Moderate to good supplies are expected for the entire week with this commodity. Heavy rains in the Southern California region has delayed harvesting to start the week. Demand is being met, however. The quality continues to be strong in all the growing regions. With all the rain, pith may become an issue towards the end of the week but that awaits to be seen. The gap in pricing has closed considerably amongst most shippers.

- Mike Pacheco
Growing Region Market Quality
Belle Glade, FL Steady Good
Oxnard/Santa Maria, CA Steady Good
Yuma, AZ Steady Good
Cilantro

The cilantro market is steady with good supplies from all growing regions. Minimal dehydration and yellowing of leaves upon arrival. The market and supplies will remain steady for the week.

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

The central valley and the Ventura crops are going and both are peaking on 140s and smaller size fruit. Larger sized fruit is tight now that the Desert crop has finished their season. Demand remains very strong.

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

The lime market is steady on all sizes. Demand is good on all sizes across the board. The peak sizes are 110's and 150's currently with fewer small sized limes being harvested. This is the time of year where overall supplies are low and will remain at lower levels until the first or second week of May. The overall long term upward market trend will likely continue with the lower supplies through to first part of May. Quality is excellent overall.

- Jim Murphy
Growing Region Market Quality
Veracruz, Mexico Steady Excellent
Citrus (Oranges)

Rains during the weekend has curtailed picking today, but no rains predicted for the balance of the week. Bin inventory is low, but should build back up this week with clear weather. Eating excellent and look beautiful, with peak sizing on 72s/56s/88s. We are seeing fruit size up, and a dropping in percentage of small size fruit 113s/138s. Demand is very good on the 113s/138s and markets are firm but steady on them.

- Tim Kelley
Growing Region Market Quality
Merced to Bakersfield, CA Steady/Higher Excellent
Riverside, CA Lower/Steady Excellent
Grapes (Green)

Green seedless grapes continue to be readily available on both the East and West Coasts. All sizes are in good supply and quality has been consistent. Markets have been fairly flat with a slight decrease this week on the medium and large sizes. We do not expect much change this week in supply and price.

- Sean Azzelio
Growing Region Market Quality
Coquimbo/Valaparaiso/Santiago/Rancagua, Chile Lower/Steady Good
Grapes (Red) Alert

As discussed last week, the Flame variety has finished up. There might be some residual inventory being offered on the West Coast, but this fruit is tired and will have quality issues. All shippers have transitioned into newer red varieties. Crimsons will be the predominant variety being offered on both East and West Coasts. We can expect to see much stronger quality with the Crimsons. However, prices are more expensive and markets have remained firm. Due to weather related issues, there were some vessels held up on the East coast, making supplies in the front part of the week a little more snug. As we approach the middle to end of the week, I expect supplies to open up a little more, but I do not expect prices to change.

- Sean Azzelio

Alerts:
Flame variety has finished and Crimsons are now available. Quality is stronger, but prices are higher.

Growing Region Market Quality
Coquimbo/Valaparaiso/Santiago/Rancagua, Chile Higher Good
Green Onions

Green onions are finally is steady supplies. The market is also back to normal levels. Quality issues still exist with yellowing of the tops and some brown discoloration as well.

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

Kale supplies continue to be plentiful and thus keeping the market steady. Excellent quality with dark green color and little dehydration.

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

Warm temperatures in the high eighties will continue in the Yuma region all week. With this being said, supplies will continue to be strong all week. Mechanical damage, misshapen heads and insect damage will be common defects with this commodity. These defects are directly related to the high temperatures. The season in the desert is nearing the end. The weights on wrap are averaging 39-45 pounds pending on the shipper. Shippers are looking to deal on volume type orders. Production in Huron is expected begin the third to fourth week in March. Production in Salinas will begin with a few suppliers the first week in April.

- Mike Pacheco
Growing Region Market Quality
Yuma, AZ Steady Fair
Lettuce Leaf

Warm weather continues in Yuma and product continues to be plentiful on all leaf items. Aside from slight ribbing and insect damage , the quality is good on romaine as well as all other leaf items. Pricing continues to be competitive with most suppliers. The weights are averaging 32-36 pounds on romaine while red and green leaf are averaging 21-24 pounds. There is production in Oxnard if desired. Production in Huron is expected begin the third to fourth week in March. Salinas will have production the first to second week in April.

- Mike Pacheco
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Good
Yuma, AZ Steady Good
Melon (Cantaloupe)

Cantaloupe supplies are lighter for the first part of this week than in previous weeks. The quality is good overall with some lots being exceptionally nice. The peak size is currently 9ct. The current market is steady to higher on all sizes due to the lighter supplies. There are 15ct lopes being packed now and virtually zero 18ct coming over.

- Jim Murphy
Growing Region Market Quality
Choluteca, Honduras Steady/Higher Good
Mita, Guatemala Steady/Higher Good
Melon (Honeydew)

Demand continues low on honeydews right now. The peak size for the offshore is 6ct and the small amount of Mexican dews are peaking on 6ct. The small sizes are available now. Honduran grown honeydews are really good. Mexican dews continue to ship out of Nogales AZ and the volume is light. The Mexican dews are very nice. The market is slightly lower to steady across the board.

- Jim Murphy
Growing Region Market Quality
Choluteca, Honduras Lower/Steady Excellent
Mita, Guatemala Lower/Steady Good
Caborca, Mexico Lower/Steady Excellent
Onions

Mexico - Very light supplies of yellow onions crossing the front part of this week due to the rain late last week. Quality was not hurt, just need the onions to dry out. Supplies will improve slightly as this week moves on then will become limited as we get into next week due to Easter holiday. Moderate to good supplies of Red and White onions are available at steady pricing. Market has firmed up slightly on the yellows.
Texas - Supplies started in a very light way last week. The rain that hit late last week has supplies waiting to dry out before they start packing again which will happen as this week moves on. Quality is still being reported as good.
Idaho - Moderate demand and supplies has this market steady to slightly weaker on both Yellow and Red onions. Quality is fair to good depending on lot. The main issue being reported is translucency in the outer layers of the onions. Good air circulation in your holding rooms does help some of the translucency disappear. Larger growers will have supplies of Yellow and Red onions till around the middle of April.
Washington - Market is steady with light to moderate demand. Quality is fair to good depending on lot. Most growers will have supplies till the middle to end of April.

- Mike Gorczyca
Growing Region Market Quality
Tampico/Sonara, Mexico Steady/Higher Good
McAllen/Uvalde, TX Steady/Higher Good
Ontario, OR to Nampa, ID Steady Fair
Quincy/Hermiston, WA Steady Fair
Pears

Washington - D'anjou pears are steady on all sizes and continue to peak on US#1 70/80s. US#1 110-count and smaller remain short along with all sizes of the fancy grade. Bosc pears are steady and continue to peak on US#1 90/100/110s and they have better availability of the smaller sizes. All sizes of fancy grade Bosc remain short. Red pears are steady on all sizes and they are peaking on half carton 45/50s and full carton 90/100s, but supplies are light. The quality on domestic D'anjous, Bosc, and red pears has been good.
Chile - Bartlett pears are finished coming in and there are mostly 120s and 135s left on both coasts. Packhams are steady and continue to produce US#1 80/90/100s. Argentinian Bartletts are steady and are peaking US#1 100/110s but we are only being quoted 100-size and larger until the Chilean smaller fruit cleans up. The quality on all of the imported varieties ahs been good.

- John Tole
Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Chile Steady Good
Pineapples

Easter demand begins this week and pineapple supplies remain light, but steady. Expect fruit to tighten up this week and next.

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

Idaho - Market is steady with a few sizes slightly firmer. Quality is still being reported as good. A few lots has started to have an occasional peeper showing up in the cartons. All shippers are spraying sprout nip on their potato to stop the growth of the peeper. Norkotah variety is slowly winding down for the season and should be finished by the end of this Month. Burbank is the main variety being packed currently. Look for the market to slowly firm up slightly by the end of this month.
Washington - Market is steady with moderate demand. Quality is being reported as good.
Colorado and Wisconsin - Demand on russet out of these two growing areas is light at best. Market is steady but supplies are very limited on both cartons and bales. Quality is being reported as good.

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

Bakersfield, California - reds and golds are steady and continue to peak on A-size. Whites are finished until late March/early April and new-crop reds and golds will start approximately one week later. The red quality has ranged from good to fair on the reds with some lots having darker color and some lighter, while the gold's have been good.
Western Washington - The remaining reds and golds are steady for now and both continue to peak on A size, however both are in few hands as we approach the end of the season. The quality has ranged from fair to good on both colors.
Idaho - reds and golds are steady to higher and the supplies remain light. Both colors continue to peak on A-size. The quality has been good. One Idaho supplier will pack through march and the other two will go through April.
Wisconsin - reds and golds are both slightly higher and they continue to peak on A-size. Shippers here are still buying bulk from N.D. and repacking. The quality has been fair to good.
North Dakota - Reds and gold's are higher and the market remains firm on all sizes due to light supplies. Some suppliers have finished with gold's for the season. Both colors are peaking on size A. The quality has been good.
S. Florida - reds and gold's are slightly higher and both markets are firm due to light supplies. Whites are slightly higher as well but most packers are out of A size and B size. Poor yields are keeping the Florida market up on all colors. Both reds and golds are peaking on A-size while the whites are heavier to B's.

- John Tole
Growing Region Market Quality
Bakersfield, CA Steady Good
Rupert to Rexburg, ID Steady/Higher Fair
Mount Vernon, WA Steady Good
Plover, WI Steady/Higher Fair
Red River Valley, ND Higher Fair
Imokollee/Palm City/Punta Gorda, FL Steady/Higher Good
Stone Fruit

Stone fruit availability has been consistent. Fruit is available on both East and West Coasts. Sizing continues to be on the larger size, so prices on tray pack big fruit has dropped slightly. Volume fill and smaller size fruit is still limited in supplies and prices have remained firm. Quality is being reported as good. We do not expect much change in size or pricing on this weeks arrivals.

- Sean Azzelio
Growing Region Market Quality
Coquimbo, Valaparaiso, Santiago and Rancagua, Chile Steady Good
Tomatoes (Eastern)

Rounds - The market is steady / higher. Supplies in Florida continue to be tight. Demand looks to be a bit stronger, with lower supplies. Mexico also looking lighter with supplies. Weather forecast calling for better weather, however, the effects of previous, warmer weather, has created a slight gap. Wide range in quality,from Good / Fair.
Roma - The market is higher. Yields continue to be lower in the east. Supplies continue to be lighter, and should continue until end of March / April. Mexico is also looking to be lighter, due to the warmer weather over the past several weeks. Supplies are lighter in all areas, with demand higher. Quality is Good / Fair.
Cherry - The market is Steady. Supplies looking a little better, however, still lighter than typical, in the east. Out west, Mexico has lightened up, lowering supplies coming across. Demand is consistent in all areas. Quality is Good / Fair.
Grape - The market is higher. Production and yields on the tighter side. Mexico is also tighter, keeping supplies lower coming across. Demand is stronger in all areas, with FOB's increasing. Quality is Good / Fair.


- Rene Juarez
Growing Region Market Quality
Northern Florida Steady/Higher Good
Southern Florida Steady/Higher Good
Tomatoes (Western)

Rounds - The market is steady / higher. Production and yields looking lighter out of Mexico. Weather forecast looking better, however, the heat over the past several weeks has created a slight gap. Back east, supplies continue to be lighter. Demand stronger in all areas, with FOB's higher. Quality is Good / Fair.
Roma - The market is higher. Production and yields in Mexico are lighter this week. Mexico in a slight gap, brought on by the heat it experienced over the past several weeks. Back east, supplies continue to be lighter. Demand higher in all areas, and FOB's are on the rise. Look for supplies to continue to be tight, and demand up. Wide range in quality from Good toFair.
Cherry - The market is Steady. Supplies continue to be lighter than normal. Florida looking to steadily increase production, however, Mexico is experience lighter supplies, with lower crossings. Quality is Good / Fair.
Grape - The market is higher. Supplies looking to be a bit tighter in all areas. Mexico is crossing less volume, due to lower production. Back east, supplies are lighter than normal. Demand is stronger, with FOB's increasing. Quality continues to have a wide range, from Good to Fair.



- Rene Juarez
Growing Region Market Quality
Northern Baja California Norte, Mexico Steady/Higher Good
Northern Sonora, Mexico Steady/Higher Good
Central Sonora, Mexico Steady/Higher Good

Things You Should Know

Berries (Blackberries)
Inclement weather in Central Mexico over the previous week has disrupted production and decreased harvest volumes. Supplies will remain short for at least the next 2-3 weeks.

Berries (Blueberries)
Supplies will be tight for the next 2-3 weeks as Chilean production comes to a close for the season and Mexico and domestic product will not cover all demand.

Broccoli
As Yuma finishes up over the next couple of weeks, the market will be reacting.

Brussels Sprouts
Extremely Limited Supplies and Active Market

Cauliflower
Limited Supplies out of Yuma and increased markets

Grapes (Red)
Flame variety has finished and Crimsons are now available. Quality is stronger, but prices are higher.

Transitions and Temperatures

Berries (Raspberries)
Salinas and Watsonville are expected to begin production in mid-April.


Berries (Strawberries)
Watsonville and Salinas began picking some fruit in early March. Recently, rains have delayed production from this area and now looks to start with good numbers around the first week of April.

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