The Source - March 15, 2017

Washington - reds are steady on most sizes and they continue to peak on extra-fancy 64-88s. 113 and smaller reds are still in shorter supply than the larger sizes. Golden delicious are steady on most sizes and grades and they continue to peak on 72/80/88s. Small Goldens remain very short. Granny-smith are steady on all sizes for the moment. The fruit is still peaking on 72/80/88's so small fruit supplies remain very 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 125/138 supplies are still limited. Fuji's are steady on all sizes and they are 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. Expect the Honeycrisp market to continue to slowly climb until the season ends in May. The quality has been good. There are some small lots of Braeburns and Jonagolds currently available.
Idaho---red delicious, Red Romes, Galas, and Pink Lady's are the bulk of the current packing and they are all steady. Most of the Idaho varieties continue to peak on 64-100s and the quality has been good. Idaho will continue packing through March and will finish in April sometime.
Michigan--McIntosh and Empires remain steady but strong due to light supplies and strong demand. Golden delicious, Jonathans, Galas, red delicious, and Fujis are all fairly steady. The Galas and Jonathans are still peaking on smaller fruit while the Golden delicious, Red delicious, Fujis, and McIntosh are heavier to the medium sizes. Red Romes have finished for the season. The quality has been good.
New York---Empires and McIntosh are steady to higher but remain very strong due to light supplies and strong demand. Red delicious, Galas, Fujis, and Red Romes are also steady to higher due to light supplies. All varieties are peaking on larger fruit. The quality has been good.
Pennsylvania---red delicious, golden delicious, Red Romes, Pink Ladys, Fujis, and Cameos 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. Pennsylvania will continue packing most varietys through March and they will finish packing in April.

Alerts:
Small Granny-smith remain in a demand exceeds supply situation in Washington. Size and grade subbing will continue on 100s and smaller.

Empire and McIntosh supplies remain limited in both New York and Michigan.

Transitions:
Michigan has finished packing Red Romes for the season and they will finish with Fujis in a 5-10 days.

Peak Seasons:
Washington is in the peak of its season for red and gold delicious, Granny-smith, Fuji, and Galas.

Michigan is in the peak of its season red and gold delicious, Galas, Empires, and Jonagolds.

Weather in Caborca, Mexico is extremely warm this week which will create some spreading and seeding. A cool down is expected in this region the middle of next week which will slow down production. Most growers are still mostly packing 28 lb asparagus and the 11 lbs are being packed to order. California will see some rain at the beginning of next week which should slow production for the beginning of the week.

Transitions:
We should start to see Peruvian imports in about 2 weeks with Mexican asparagus volumes decreasing.

This week's shipments looks steady around 30 to 35 million pounds. Still far less fruit than the industry needs for demand. Field prices remain high. Industry is expecting 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.

Transitions:
California will start shipping limited, but usable volume of fruit the week of March 20th.

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. Both number one and number two grade.

Blackberry supplies have started to improve. The crops had endured the recent rains in Mexico and California, but have seemed to recovered quickly and production is increasing. Mexico has been consistent this week in harvest and expects to have increased volumes moving forward as we reach peak production next month. California harvest has been lighter, but Oxnard and Santa Maria are expected to ramp up over the next week. Quality is being reported as good and market prices are starting to gradually drop. We expect much improved supplies moving forward with promotional opportunities available.

Peak Seasons:
Mexico is expected to hit peak production in next 3-4 weeks.

Blueberry supplies remain consistent this week. Most shippers continue to have Chilean inventory to sell while Domestic and Mexican production is slowly improving. Quality on the Mexican, Californian and Florida fruit is much better than the remaining Chilean inventory. This is creating a split market. Prices on Chilean fruit, depending on shipper and quality, are much cheaper than the limited amounts of Mexican and Domestic fruit available. Both California and Florida will continue to increase harvest over the next 2 weeks and really ramp up come April. As production increases, we will see prices level out. Georgia harvest is expected to start by the end of March.

Transitions:
Production is expected to increase in all new growing regions over the next 2-3 weeks. (CA, FL and MX)

Raspberry supplies continue to be very limited. Supplies have been greatly affected by the recent weather trends in California and Mexico. Although California has seen warmer temps over the last week, the recovery from the expediential rainfall and cold temperatures just a few weeks ago has been and will continue to be a slow process. Shippers are anticipating better supplies as we move forward, but we do not have a set date as to when supplies will turn on. Mexico has experienced recent rains and wind. Again, affecting the quality and resulting in lower yields. When quality is compromised, it does 2 things. First, it lowers the overall volume of usable fruit, but it also drastically slows down production as the harvesters have to take extra time in the picking and packing of the berry in an effort to avoid any potentially poor quality product getting into the final pack. Overall, if weather continues to cooperate in CA and MX, all indicators point to better supplies week over week as we move into April.

Alerts:
Raspberry availability continues to be very limited as demand far exceeds supply.

Transitions:
Mexico has been steady but light. Oxnard and Santa Maria are harvesting very light volume. Shippers expect production to increase as we move forward.

Supplies continue to gradually improve on California strawberries as the industry transitions out west. Florida production continues to decline as their season comes to an end (2-4 weeks) and Mexico's harvest is quickly depleting. Quality on California fruit is much superior than that of Florida or Mexico. As Oxnard and Santa Maria production numbers increase, we expect to see some flex in market prices; as early as this weekend. The weather forecast for the Southern California growing regions calls for warm dry days for the remainder of the week. This will boost harvest numbers and shippers are anticipating better volume and availability by the weekend. Next week, we may see some light rain in CA, but it is too early to predict the effects (if any) on production. Salinas and Watsonville is expected to ramp up production in the next 2-4 weeks.

Transitions:
Oxnard and Santa Maria are ramping up. Florida is expected to last another 2-4 weeks. Mexico is coming to an end. Salinas and Watsonville will start in 2-3 weeks.

Peak Seasons:
Oxnard and Santa Maria are expected to hit peak production in the next 2-4 weeks.

The broccoli market is definitely a mixed bag. There are much cheaper prices coming out of Mexico through McAllen. While domestically we continue to struggle with supplies, the market is reflecting this shortage. Although on a good note, quality out of Santa Maria has improved dramatically. Salinas Valley is still experiencing purple cast and extremely small bunch and crown size. All other growing regions have had good quality with a sporadic arrival issue due to the heat. The domestic market is still commanding much higher than normal prices. This will continue to last for the next few weeks.

Alerts:
Supplies remain extremely short on the domestic front which is keeping the market at extremely higher than normal prices.

Transitions:
We are still in the process of transitioning to the Salinas Valley

As we continue to see the weather changes in the growing regions for brussel sprouts, supplies are a direct reflection of that weather. We are currently seeing much warmer temperatures in Mexico. This may cause decreased supplies next week by slowing down growth rates. Oxnard is seeing steady supplies with good quality. Mexico has had improved quality as well. The market has a steady slow trend higher but varies from shipper to shipper.

Carrot supplies of jumbo, cello and value added product are very good and look continue to be so for a while.

As the Yuma season finishes at a rapid pace, the Salinas valley is not ready for the demand. The previous weather in Salinas is preventing normal supplies and a smooth transition north. Extremely limited supplies will continue for the next 2 to 3 weeks. But until that point we will see extremely limited supplies and extremely high markets. Quality has been fair from all growing regions with yellow to cream cast and some bruising showing up upon arrivals.

Alerts:
We continue to see extremely high markets and limited availability due to the transition back to Salinas. The long term supply gaps looks to be for the next 2 to 3 weeks.

Transitions:
We are slowly transitioning to the Salinas Valley and should be fully transition in 3 weeks.

Multiple acreage has been lost on long stock celery. This was caused by the heavy rains in past weeks in Oxnard and Santa Maria. Celery bins will be scarce to purchase until Salinas begins production in June. The celery market is active, and pricing will continue to rise this next week. There are no rains expected in Southern California or Yuma for the rest of the week. To the contrary, temperatures will be sweltering in the desert, up to mid 90s and mid 80s in Southern California. Defects include translucency and waterlogged raw material. Production in Yuma is moderate to light. This crop should finish up by mid April at the latest.

Alerts:
Long stock celery is waterlogged in Southern California.

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.

We have experienced extremely hot temperatures in the Mexican growing region causing supply issues. Quality is fair at best with the high heat in Mexico, coupled with the previous rains in Santa Maria & Oxnard. The market is trending higher and looks to continue that trend into next week. Supplies do vary form loading region as well.

Alerts:
We have experienced much hotter temperatures in the Mexican growing region causing supply shortages.

Shippers continue to work on replenishing bin inventories that were used up during past rains and no picking. Fruit size growth that came with the rains is producing good volume of large fruit 115s/95s/140s and limit supplies small fruit 165s/200s. The 165s are nearing a demand exceed situation that may last through the summer.

Alerts:
165ct lemons nearing a demand exceed supply situation.

Limes are peaking on smaller sizes such as 230's and 250's. New crops limes have taken over production and are smaller in size. We should see a slow but steady evening out of the size profile as time progresses. Quality has been very nice on the limes over the past few weeks and looks to keep this trend. Weather has been very cooperative recently which will promote good growth and quality in time. Rain hit over the past weekend and is in the forecast for today. The rain has halted production which is adding upward pressure to the existing supplies. March and April are traditionally associated with high prices and volatility but so far it's not out too terribly out of control this month. April is right around the corner so we shall see. The market higher.

Alerts:
Rain hit this past weekend and is in the forecast for today. Production has been delayed and the market is up so far this week.

Growers are picking good volume. Good export demand is driving the shipments and this leaves less volume for domestic business. Fruit is available is good on 88s/72s and better on smaller 113s/138s.

Good supply on cucumber coming out of 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 with very heavy supply, #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.

Green grapes bottomed out last week and have jumped higher. Supplies are lower and demand has ramped up. Growing conditions are good and look to remain so for the near future. Problems are surfacing on a majority of the newly arriving grapes ranging from decay to nesting. Promotable volumes are not available right now on green grapes. The market is higher.

Alerts:
Quality is very mixed on the grapes that are currentlyarriving.

Red grapes are in an upward market. Lesser quality varieties such as flames are arriving in poor condition and thankfully they are almost finished shipping for the season. Crimsons and some of the other red varieties are commanding a higher price and are definitely worth it. Growing conditions are good for producing high quality grapes. The market is higher and demand keeps increasing.

Alerts:
Older varieties are not arriving in good condition and should be avoided.

Supplies from the crossings in Mexico have been steady. Although the current heat wave in Mexico will definitely affect quality and supplies. Coupled with some leaf minor, and as we move into the end of this week into next, we will see an increase in the market. Although this week prices should remain fairly steady. Quality has been sporadic with some arrival issues with brown to yellow tops.

The kale market remains steady at current price levels. There are plenty of supplies from all shipping locations. Quality has been really good with full cartons, minimal dehydration, and yellowing. We will see this trend to continue into next week.

Lighter supplies continue to surface on this commodity. The desert is very hot, in the mid 90s and it looks as though the season in the desert on lettuce will be finishing up by the second week in April if not sooner. This market is getting to be very active. Huron will begin production the last week in March. As far as quality, So far reports have not been bad in terms of lettuce quality. The heat however will likely bring on insect issues so we will have to wait and see. Currently issue in Yuma and Santa Maria include pink ribbing, discoloration, misshapen heads and mildew. These defects are industry wide. Insects will likely become an issue as the heats are strong in the desert.

Transitions:
Huron will begin production in 2 weeks.

The leaf market is extremely active. Demand exceeds supplies on romaine and romaine hearts. Green leaf and romaine fillets will continue to be light in availability thru the month of March. Romaine as well as green and red leaf carton supplies will be tight thru the month of March and into April. The hopes of some Huron production is a positive. The desert however is so hot, that production on all romaine and leaf items are going to be cut down. Common defects include blister and peel, twisting, discoloration as well as fringe and tip burn that is seen on romaine, as well as all leaf items. These defects continue to be industry wide. Light production in Salinas will begin March 27th.

Transitions:
Huron will have production the last week in March. Salinas will have light production approximately starting the 27th of March.

Cantaloupes continue to be in a nice place for buyers. Supplies are good and their quality is probably 90% excellent with a few problems such as softness. All sizes are available and promotable volumes are available on the peak size 12 and 15 count melons. The weather has been ideal for growing in all regions and this trend looks to continue. The market is lower to steady for now.

Honeydews continue to cruise right along. The supplies are good and look to remain so for the rest of the offshore season. Quality has been very nice with almost 99% of them arriving in excellent condition. Weather is idea for growing honeydews and looks to be ideal for the remainder of the season. Promotable volumes are available on 6's and 8's. The market is again lower to steady at this time and looks to keep this trend through the week.

Production from Southern Mexico ( Jalisco/Colima) is finishing. Quality and condition are only fair. available in both bins and cartons are limited. Personal seedless is available in limited supply peaking on smaller sizes. Sonora spring crop will start this month.

Transitions:
production is transitioning to the spring crop in Sonora Mexico

The Northwest (Idaho/Washington) shippers are still in control of the volume and are driving the market on Yellows and Red Onions. Market is steady at low levels. Quality is being reported as good with an occasional lot showing up with light translucency in the outer layers. Mexico is in control of the volume of the White onions and are driving this market. Rain last week in Mexico and Texas did cause a slight interruption in supplies of Yellow, Red and White onions coming out of these areas shipping out of Texas. This did cause the market shipping out of Texas to firm slightly as only limited supplies made it to the packing sheds. Supplies will improve this later this week as the weather is clear and dry. Most supplies coming out of Texas are still mainly being packed into the 40lb sweet cartons for the retailers due to a decent market.
The larger Idaho/Oregon packer predict they will pack until the middle to end of April with a couple going into May. California desert onion supplies are projected to start between the middle of April depending on the weather. As the northwest onion deal comes to an end in in about a month and half we should see a smooth transition, barring any unforeseen issues of course.

Transitions:
Southern California to start of the middle of April

Washington -- D'anjou 90s and larger are steady with good supplies while the 110s and smaller are steady to higher with light availability. D'anjous continue to peak on US#1 80/90/100s. The quality has been good. Bosc pears are mostly steady and are now peaking on US#1 90/100/110s. The quality has been good. Red pears are steady and they are still peaking on US#1 50-size half cartons but the availability remains very light. The quality has been good.

Chile - Chilean Bartlett pears are steady to lower on both coasts and they are still peaking on larger fruit with mostly 80/90/100s. The quality has been good. Argentinian Bartletts are steady and they are heavier to larger fruit but still only available on the west coast. The quality has been good. Chilean Forelles are starting and they are producing more smaller sized fruit.

Peak Seasons:
Washington is still in the peak of its D'anjou and Bosc seasons.

Supplies remain light and look to stay so into mid April when we expect to see them start to return back to some normality.

Market is firming on large counts (70 though 40 count) as the size profile of the burbanks switches from large to small. The market should start to stabilize at these levels over the next week or so as there are a lot of supplies still in the storages to be packed. Idaho is the leader with supplies followed by Washington. Colorado and Wisconsin have manageable supplies of storage potatoes and will follow the market that Idaho makes. Quality is good with a few fair lots being packed currently. The main issue showing up is internal/external bruising.

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 continue to source from Washington but will have new-crop desert product in 10 to 17 days. The storage quality has been good.
Idaho - red and gold potatoes are steady but some shippers will flex to match other areas. The reds are still split between A and B size while the golds are heavier to As. The quality has been good.
Western Washington - reds and golds are steady and both are peaking on A size however supplies are very light for both colors. Washington will finish early this year at the end of this week or beginning of next.
North Dakota - red and gold potatoes are mostly steady and both are still peaking on A size. Some suppliers will flex on pricing to compete with other areas. The quality has been good.
Florida - they continue to pack all colors and all are steady to lower on most sizes. The reds are still producing a high percentage of #1 product with a peak on A-sizes, so #2s aren't overly prevalent. The whites and golds are steady and are heavier to A-size now. The quality has been good.
Canada - reds, golds, and whites are mostly steady. The quality has been good.

Alerts:
Expect a strong market for western white potatoes until Bakersfield starts packing new-crop desert potatoes in 10-17 days.

Transitions:
Bakersfield, California will start packing new-crop desert potatoes of all colors in 10-17 days. They expect larger size than normal.

Peak Seasons:
South Florida is in the peak of its season for red, gold, and white potatoes.

Idaho is in the peak of its red and gold season.

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 5-7 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:
Yellow and green squash are transition to Sonora for the spring crop, supply should improve by the first of next week.

The import stone fruit season is coming to a close or has closed. Peaches are done for the season from Chile now and will begin locally towards the end of April into May. Nectarines have another two weeks or so before they are finished from Chile and will begin locally in the beginning of May. Import plums will arrive through April and begin locally mid May. Local weather up to now has been positive for good production so we shall see how things go from here. The market on stone fruit is steady to higher as volumes dry up and disappear.

Transitions:
The offshore season is basically finished. Domestic production is scheduled to begin at the end of April.

The tomato market is steady with fairly light demand. Both Mexico and Florida have major supply this week as Palmetto and Immokalee move into spring production. Roma, grape, and cherry tomato fob’s have dropped, while rounds have increased slightly. Florida has less acreage than normal this time of year, however they should have steady supplies through May.

Mexico supplies remain steady with fob's at mandated minimums. Round tomato production will continue forth through April 15th and romas will continue through May. Operations are expected to transition to Baja beginning with roma tomato crops in June and round tomatoes two weeks thereafter. There are heavy volumes being dumped into Mexico's domestic market place and have the ability to send more to the US at any hint of a stronger market. Supply looks to be good for the foreseeable future and markets remain steady.