The Source - March 18, 2020

The COVID-19 pandemic has undoubtedly impacted apple markets; retail is surging while foodservice has slowed to a snail’s pace. Advisories have many—across the nation— staying indoors, while restaurants, bars, hotels, schools, etc. close their doors to deter possible transmission of the virus.

Retail stores can’t keep enough fruit on their shelves. Many have begun to reduce the amount of SKU’s (no pears or organics) due to a lack of labor (employees staying home). Shippers continue to ship apples at a rapid pace; taking smaller, foodservice sizes (113-138ct) and packing them into 12/3# bags for retail orders and/or to export.

Surprisingly, except for retail bagged products, markets remain stable. With the expectation that this unfortunate situation will come to pass, shippers do not anticipate supply issues once things get back to a level of normalcy.

Production remains heavy from both regions in Mexico (San Luis/Caborca), this trend should continue for the remainder of the month. Quality also remains good and should remain this way. Markets on both coasts are not very active with the heavy production, and less demand.

Ventura County was hit with steady rainfall over the weekend. We are expecting showers to continue throughout the week and into the weekend. Growers have confirmed that with the significant amount of recent rain, production has come to a halt. Avocados can withstand rain, and there is no damage to the fruit internally or externally, The issue is waiting for the soil to firm/dry up so harvest crews can safely return to harvest. Suppliers were leaning heavily on this California crop to help aid the shortage of Mexican fruit but, with rain disrupting the harvest, availability will be limited and possibly a $10 increase by the end of the week. Current weather conditions in California will only help keep this market strong. The overall quality has been good and will only get better as the season progresses.

Alerts:
Due to rain in Ventura County, growers are seeing major setbacks this week in production. Market will react with gradual price increases.

Demand has strengthened, and the market remains active. Foodservice seems to have tapered off, but retail is capitalizing on the growing demand. Open market fruit is limited, and retailers are taking what they can get their hands on. Ripe fruit may be limited for the coming weeks. We anticipate gradual increases this week on all sizes. With Mexico pacing the harvest and California facing rain delays on production, the market will remain tight. We are just weeks away from Holy Week (No harvest in Mexico), and shippers will attempt to reload and replenish inventories for Cinco De Mayo pull.

Alerts:
With Mexico pacing the harvest and a strong retail pull, market to remain HOT!

Green Bell Pepper- Lighter supplies of Green bell pepper are crossing through Nogales this week. Mostly choice grade is being packed. Green bell quality is fair at best. The market on green bell ranges depending on quality. Green bell pepper supplies are expected to remain light.

Red Bell Pepper- Supplies crossing through Nogales continue steady on both Hot House and LA rouge varieties. Red bell supplies are expected to remain steady throughout the week. Quality on Mexican red bell pepper on both varieties and in all sizes and pack styles are currently fair. The red bell pepper market is steady this week and expected to remain steady. Light supplies of red bell pepper are also available to load in McAllen, TX.

Yellow Bell Pepper- Better supplies of yellow bell pepper are currently being harvested from Mexico this week. The Market on yellow bell pepper has decreased slightly this week. Quality on yellow bell pepper crossing through Nogales is fair to good. Light supplies of Yellow bell pepper are also crossing through McAllen, Texas.

Blackberries are in light in supplies as it is with the raspberries. Quality has been good out of Central Mexico and Santa Maria. Look for markets to remain firm into next week while this item enjoys heavy retail demand.

Blueberries continue to be on the lighter side in numbers coming out of Central Mexico, Georgia, and Florida. Production is expected to increase but is being offset by heavy demand. Chilean imports are still arriving sporadically on both east and west coast ports. Quality on fresh product has been good. Look for markets to remain elevated through next week.

With the extra demand for fruit raspberries remain tight. Oxnard has some fresh arrivals all week from Mexico. We will be in our peak volumes over the next couple of weeks which should help quench increased demand. Quality has been good out of Central Mexico. Markets will remain firm through next week.

Strawberries continue to be in very light supplies out of all areas. The Santa Maria and Oxnard areas are experiencing intermittent rain events and much cooler than normal weather, which is lowering yields and affecting quality. We expect to remain light through the end of this week and into the next as shippers work through rain issues. Look for the market to remain firm. Mexico is also experiencing cooler weather accompanied by rain. Foodservice business sector is down as a result of several corona virus-related closures to schools, hospitals, airlines, and other related markets. This is more than being offset with the recent retail surge phenomena also related to the national virus pandemic. Florida is still producing decent numbers of berries, although we expect this season to end any day now due to increasing heat in the area. Expect berry quality to be just fair out of all regions.

Alerts:
A surge in retail business related to the corona virus is expected to keep markets firm

Transitions:
Florida strawberries are very near the end of their season. Watsonville and Salinas California should be beginning in the first or second week in April.

The broccoli market continues to pick as we move through transition from Yuma to the Salinas Valley. Quality continues to have slight purpling caused by the recent cold weather, some mechanical damage, and occasional yellow cast. Look for Broccoli to stay active going into next week with supplies decreasing in Yuma and slowly coming on in Salinas.

The brussels sprouts market as picked up a bit because of the wet and cold weather we've had recently. Currently, quality is good with occasional internal decay. Look for the Brussels sprouts market to continue to adjust going into next week.

Carrots are a steady go although there has been a surge in the retail packs due to the recent surge in orders as people are stocking up response to the virus, Product is coming from Coachella and Mexico at this point in time. Quality has been good in both areas.

Alerts:
this item is considered a good storable staple and is moving well at the retail levels along with the other tubers.

The cauliflower market continues to be very active in Yuma and Salinas. Yields continue to be low with most shippers given the changes in weather the last couple weeks and with coming to an end in Yuma. Cauliflower harvest has started slowly in the Salinas Valley. Lower supplies are not keeping up with demand. The quality is good with slight bruising and yellow cast with weights in the 25 to 28-pound level. Look for the market to continue to adjust going into next week as we make our way through transition.

Alerts:
Cauliflower continues to be extremely tight. Lower yields and transition have spurred on a lack of supply. Retail demand has also played a major factor.

Transitions:
Cauliflower is winding down in Yuma. Starting slowly in Salinas.

This market continues to gain strength. Foodservice business is moderate to light, but retail business has created lighter supplies throughout the industry. Heavy rains this past week slowed production down in Yuma. This commodity can take on heavier rains compared to other field items. With this being said, the quality continues to be good. Slight leafiness and mildew has been the only defects being reported, but only in a light way. Yuma and Oxnard/Santa Maria continue to produce good quality product. The southern California region has the best quality. Mexico has been limited to the rainfall, but the overall quality is above average as well. Weights are expected to average 56-60 pounds in all the growing areas.

Jalapeno- Good supplies of Jalapeno continue to cross through Nogales, AZ this week. Good supplies are expected throughout the week. Jalapeno quality from Mexico is mostly fair. The Jalapeno market is steady this week. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Good supplies of Pasilla continue to cross through Nogales, AZ. Good supplies are expected to continue this week. Pasilla quality from Mexico crossing through Nogales is mostly good. The Pasilla market remains continues this week. Pasilla from Mexico is also available to load in McAllen, Texas.

Anaheim- Light supplies of Anaheim crossing through Nogales this week. Quality on Anaheim crossing through Nogales is good. Size on the pepper is mostly medium. The Anaheim market remains high due to light supplies. Anaheim from Mexico also available to load in McAllen, Texas.

Serrano – Moderate supplies of Serrano peppers continue to be available to load in Nogales, from Mexico. Serrano supplies are expected to remain steady throughout the week. Moderate serrano supplies are also crossing through McAllen, Texas.

Tomatillo – Light Supplies on both husk and peeled tomatillo. Both Husk and Peeled are being harvested in Sonora. Quality is good on both varieties. The market on both varieties are high this week.

The cilantro market continues to be leveled off as there have been plenty of supplies. The cilantro quality is good with an occasional yellow leaf. Look for the cilantro market to adjust going into next week with the rainy weather we are having this week.

Lemon supplies out of the Central Valley are looking nice on the quality. However, like the oranges and specialty citrus, we are seeing a high demand plus a shortage on labor, and limited harvest due to rain. The small sizes are starting to get snug on 200/230’s and markets are holding firm across the board. The Coastal Region supplies are packing out heavier numbers and peaking on 115/140/165’s. Out of the CA Desert/AZ Desert Region, Yuma has concluded for the season. Supplies are winding down out of the Mecca/Thermal area until the end of the month. We'll take it week to week on supplies and provide any market alerts.

Alerts:
Due to high demand, along with labor shortage and rain. Expect supplies to be snug. Please send orders in advance for better coverage.

Limes supplies are getting tight as we are at the tail end of the harvest season, growers expect new harvest in about 14 days. Currently, we see the majority in large sizes, 110’s and 150’s. This is expected to shift towards the end of the month when we expect a majority of volume to be in 230’s and 250’s. The growing regions have also had consistent rain, which is limiting harvesting and supply. Markets are active, and we can expect prices to increase weekly gradually. We can expect firm markets until mid-April, then we should see the market to start coming off. In a tight market, let us know what we can do to help service your lime needs. We have opportunities to load FOB Texas and California as well as delivered options. Please reach out if you have any interest.

With vitamin C being the top trending consumption vitamin, the coronavirus has helped the domestic market increase for navels. With the coronavirus having a dramatic impact on the export business, we thought we would see a lot of supplies staying here in the US. But, the market has taken a dramatic turn. Suppliers are trying to keep up with the high retail demand as much as they while dealing with a few issues such labor shortage and weather. The Central Valley and Southern California regions have had consistent rain putting crews out of harvest. We strongly advise sending orders in advance for better coverage. On Specialty, citrus keep pushing Mandarins, Cara’s, Bloods, Gold Nuggets, and Minneola’s we’re in the peak season on most varieties but find ourselves in the same situation as the oranges. We expect demand to pick up during this time. We'll continue to take it week by week and advise any market alerts.

Alerts:
Due to high demand on retail, plus weather and labor shortage. Citrus supplies with be tight until things settle. We'll take it week to week on supplies.

Light supplies of cucumber continue to cross through Nogales, AZ. Supplies from both the Sinaloa and Sonora districts remain steady. Mostly Selects, plains, 36ct continue to be packed. The cucumber market is remaining steady this week. Quality on cucumbers from both districts is mostly fair to good. Cucumber demand continues to exceed supplies. Supplies are expected to increase from the Sonoran district within two weeks.

Eggplant supplies remain steady this week. Eggplant crossing through Nogales, AZ continues to be harvested in Sinaloa. Supplies from Sinaloa continue to be packed in all pack styles and in all sizes. Quality on eggplant crossing through Nogales varies from fair to good. The eggplant market is steady this week.

Green grape supplies are quickly becoming limited. All import production has ended. Shippers are now selecting the best fruit available and putting it in controlled storage to help bridge the upcoming gap. With the recent increased retail demand, we expect supplies to become even lighter as we look toward Mexican transition in mid-April. Not only will supplies be a challenge, but the market quality may become an issue as we move forward. Granted, the best quality is being put into storage, but with increased age comes additional quality concerns.
Furthermore, we can expect market prices to climb as supplies decrease. Mexico is likely to start with light harvest by mid-April and gradually increase through the month. Domestic harvest should begin by late May.

Alerts:
Supplies are becoming limited and will become an even greater challenge as we finish the import season. Market prices are climbing.

Transitions:
Mexico is expected to star mid April and Domestic harvest is looking to begin late May.

As we approach the end of the import season, the industry is well-positioned on red grape supplies (east and west coasts). All sizes are still available, and we expect to have a good inventory of storage fruit to last through transition into Mexican harvest by mid-April. Quality overall has been solid, but there are varying date ranges of fruit, and I have heard of a few soft berries and early signs of decay. Market prices have remained steady. The cheaper “hot buy” prices we have had over the last two weeks have passed, and shippers will continue to firm up costs as we move forward. We do not expect any major disruption in supply as we move forward and anticipate a seamless transition into Mexico. Mexican reports indicate lighter supplies in the beginning, but they will improve quickly, and quality should be strong for the duration of the season. Domestic harvest will look to get started late May.

Alerts:
Markets are climbing as we wind down the import season. Quality may become an issue depending on how storage crops hold up.

Transitions:
Mexico is expected to start mid April. Domestic harvest is looking to begin in late May.

The green onion market continues to stay steady with good supplies brought on by the warmer weather we've had in Mexico. Quality is good with occasional leaf minor caused by the recent cold and wet weather. The market will continue to stay steady going into next week.

The kale market continues to stay steady. Quality continues to improve with full bunches and some yellow leaves being reported. We're hoping this week's warmer weather after these rains, continue to help the quality, supplies, and spur growth.

This market has turned dramatically in a demand exceeds supply situation for lettuce. The coronavirus has created a stir-crazy retail market but has crushed the foodservice industry. Schools across the nation are shut down, and restaurants are at best half-full to being closed across the country as well. Consumers are in a retail panic and buying everything in sight. Meantime foodservice is losing multiple orders from regular business. Rain in Yuma last week and rain in Huron this week has not helped the situation. Expect light supplies all week with this commodity. Mechanical, mildew, misshapen heads, and pink ribbing are issues customers are seeing upon arrivals. Huron production with the rain has been limited. Salinas hopes to harvest in early April.

Transitions:
Huron has begun production. Salinas will begin in early April.

The marketplace is stronger on romaine as well as all leaf items. Retail is very active, which has hurt the pricing for foodservice business. Many schools and restaurants are shut down to the Corona issue, and distributors continue to lose weekly, normal business. Rain in all the growing regions has also been a factor for low availbility. Yields across the board are less. Defects being reported to include mechanical, mildew, tip burn, and blister. These defects are on romaine as well as all leaf items. The weights are being reported between 28-33 pounds on romaine while the green and red leaf has been 18-21 pounds. Huron has begun production but has been limited due to the rainfall. Salinas will begin production in early April.

Transitions:
Huron has begun production . Salinas will begin in early April.

The Tender Leaf supplies recently have stayed steady these past couples of weeks. With the rain coming, we anticipate supplies, quality, and growth to be affected. Quality recently has been good with occasional yellowing and bruising of the tender leaves.

Demand on the foodservice side has completely come to a halt. As for retail, the demand has strengthened and caused this market to react. Large fruit has tightened up as suppliers are struggling to keep up with the demand. Inventories are looking a lot leaner on both east and west coasts, and we anticipate price increases on all sizes. We are also experiencing delays at the ports with congestion at the docks. With limited fruit in the pipeline, expect the market to remain active.

Alerts:
Demand has outpaced supply. Retail demand has strengthened triggering an active market.

The honeydew market had been flat for a while now. Demand for fruit on the retail side has skyrocketed, and suppliers are struggling to keep up with the growing demand. We see active markets for both east and west coasts with price increases in all sizes. Even with foodservice business coming to a halt, suppliers cannot keep up with the retail demand. Open market fruit will be limited and going at a premium. There are reports of delays at the ports as well as a shortage of labor. A strong and active market will be the trend for the next few weeks. Overall quality has been great with excellent shelf life.

Alerts:
Market has strengthened and US inventories are leaner due to strong retail demand.

Watermelon supplies crossing through Nogales, AZ continue to be harvested in Nayarit, MX. Watermelon supplies from Nayarit are steady. Moderate supplies on both bins and cartons are being packed due to demand. Quality from this district is currently fair. Few supplies of seedless watermelon are also being harvested in Los Mochis, Sinaloa. Quality from Sinaloa is also fair to good. The watermelon market is currently steady.

Onion markets showed strength this week, in particular on yellow, as retail demand increased in all regions. Northwest storage supplies will continue into April, along with Utah and Colorado. Crossings from Mexico continue into South Texas with rising markets and high demand as well. As the demand continues at the store level, expect to see markets continuing to tick up into next week. California desert and Texas domestic supplies will begin producing fresh run onions mid-to-late April.

Alerts:
Markets rising on yellow onions. Northwest storage supply winding down for the season.

Washington:

The COVID-19 pandemic has significantly reduced D’Anjou, and Bosc pear movement due to the lack of foodservice volume and retailers reducing the amount of SKU’s brought in because of labor shortages. Because the state of Washington has experienced a 30% reduction in overall yields this season (vs. last season), the current, depressed demand is not as impactful as one may think. Inventories are maintained in CA rooms and will be available once this unfortunate period in time comes to pass.
Markets remain stable, along with quality.

Pineapple supplies so far look to be steady this week out of all loading locations. Demand continues to remain strong with everything going on with steady markets. Quality remains excellent, with minimal arrival issues. So far, we haven't received many reports about ports experiencing any delays due to congestion at the docks. As soon as we get word, we'll send an email alert.

Markets on large size potatoes continue to rise on 40 count through 70 count and 10oz #2 grade. Consumer demand is extremely active, with poly bags selling out quickly. With the limited volume available on consumer bags, retailers have also started pulling cartons as well. Suppliers have switched over to Burbanks to take advantage of the retail demand and use the smaller sizes to pack up as many poly bags as possible in daily runs. As foodservice outlets continue to be temporarily shut down, grower-shippers will continue to adjust into smaller size cellars and utilize the Burbank variety to meet the current demand. All other regions such as Washington, Colorado, and Wisconsin are following suit. We will continue to see a rise in consumer bag pricing as well as smaller size cartons through the balance of March. Some lots will continue to show peepers, soft rot, shoulder/internal bruising.

Alerts:
Consumer demand very active. Markets rising.

Color potato markets are rising as supplies become limited in most regions. Retail demand is very active on consumer bags as well as cartons across all areas. Mt Vernon, Washington is finishing up for the season with several growers done and more to come over the next 3-4 weeks. Idaho is also seeing a very high demand for retail and limiting supplies of red and yellow potatoes. Reds look to finish up mid-April while the yellow will clean up by late-April in Idaho. North Dakota has limited availability on yellow, adequate volume on red, and looks to finish up late-April. Florida markets are elevated and rising with increased demand. California supplies are limited as sourcing continues from Mt Vernon, Washington, in particular, B size and # 2-grade reds. Local supplies in Bakersfield will start with white early-to-mid April, while red and yellow will begin late April.

Alerts:
Markets are active in all regions. Prices rising. #2 grade reds limited.

Transitions:
April will transition from Northwest to California and Northern Florida.

Lighter supplies of Italian squash continue to cross through Nogales. The Italian squash market has increased due to lighter supplies. All pack styles continue to be packed with quality remaining fair to good. Italian squash continues to be harvested from both the Sinaloa and Sonoran growing district. Supplies on Yellow S/N continue to be light. The Yellow S/N market continues high as light supplies continue. Quality on yellow squash remains fair. Supplies on both Italian and Yellow S/N are expected to increase with the Sonoran district expected to start within 10 days.

The import stone fruit season is winding down quickly. Supplies on white flesh fruit are finished. Yellow peaches and nectarines are becoming increasingly limited in size. At this point, we will see mostly larger tray packs being offered with very little volume fill sizes available. Red and black plums continue to be light, with only a limited size profile available. All prices have remained steady. We expect yellow nectarines and peaches to finish by the week of the 30th. Plums will roll into April and finish up shortly after. Domestic harvest is scheduled to start by late April.

Alerts:
Import season is coming to an end. Supplies and size options are limited.

Transitions:
We expect domestic harvest to start late April.

Florida’s round tomato production continues to improve as farms rotate and transition to new crops. New operations are harvesting crown picks, boosting the size profile and quality. Volume is forecasted to be steady through March with a boost in production near April when the transition to Palmetto/Ruskin district is complete. Similarly, Florida’s Roma volume remains light and steady with the expectation for better volume from new acreage in Spring. Demand for FL’s fruit has been strong, as quality has been very nice. FL growers are experiencing good yields of grape tomatoes as well, and quality has been excellent from new crops. Cherry tomatoes continue to improve, but supply is light, and quality is fair.

Warmer weather is helping to boost production in Mexico as farms work to harvest through scattered rains. Western volume and quality will continue to improve as we move further past the prior weather events. Similarly, Roma tomato crops continue to improve with better supplies and quality the further away farms move past previous weather affected fruit sets. Mexico’s grape tomato production has been up and down but improving with better weather. The immediate future looks good for grape tomatoes, but prices continue to adjust, rising several dollars to meet strong retail demand.