The Source - March 21, 2018

Washington – Red Delicious, Golden Delicious, Granny Smith, Galas, and Fujis are all fairly steady with good volume of 113 size and smaller. Some suppliers are dealing for volume of small fruit. Honeycrisp are steady to higher due to lighter supplies. The rising star varietals are mostly steady with a few volume deals on 125/138s. The quality has been good for all.

Idaho – Golden Delicious, Red Delicious, Granny Smith, and Pink Ladies are steady. Grannys are still peaking on 72/80/88s, Reds are peaking on 113/125s, and the Pinks and Goldens are peaking on 113/125/138s. They have finished packing and are just cleaning up their inventory. The quality has been good.

Michigan – Red Delicious, Golden Delicious, and Galas are steady but strong. McIntosh, Fujis, red Romes, Ida Reds, and Jonagolds are all steady. Supplies are starting to get slim, and some varieties are already finished for the season. We will still see, and early finish and some shippers are managing how much fruit they pack, so they don't finish early. The quality has been good.

Pennsylvania – Red Delicious, Golden Delicious, and Empires are the only varieties left, and the markets are steady. There is still price-flex for volume on small red and golden delicious. Red Delicious are peaking on 88/100s, and the Goldens and Empires are peaking on 100/113s. The quality has been good.

New York – Galas, McIntosh, Red Delicious, Golden Delicious, Red Romes, Empires, and Ruby Frost are all still available. Most varieties are peaking on large fruit although red Delicious, Galas, and Empires have been producing more smaller fruit lately. The quality has been good.

Peak Seasons:
Applies are in peak season out of shipping points (Washington, Michigan, New York, and Pennsylvania)

The weather has improved in Caborca, and the San Luis Mexico regions but volumes remain lower than expected. These 2 regions should be wrapping up the first 2 weeks in April. Rain is expected the next 2 days in Gonzales, CA which will slow production down. Peru has started slowly, but we should see volume increase in the next 2 weeks. Overall markets are steady with all 4 regions in the mix.

Transitions:
Obregon, Mexico should start the first week in April.

California is harvest continues to ramp up. Much need rain this week will disrupt harvest for the 2 to 3 days of forecasted rains. This rain will help size up the fruit. Fruit is ripening well and tasting great. We still see a good portion of fruit being sold to overseas export, but availability for domestic use is improving.

Mexico's harvest and shipments remain steady with good volume. There will be no harvest in Mexico this weekend and next as they will take off for Palm Sunday and Easter, causing a slight dip in the shipments. Expected to see shipments to pick back up once the Holy Holidays are over. Demand is good. Eating quality is very good, and fruit is ripening evenly.

Green bell pepper is in light supplies and poor quality. Growers are working on older fields that are predominately smaller sizes and the fruit is showing a lot of scaring and bruising. Yields are down over last week and that trend will continue until shippers start new fields in about a week. The market has been reasonable but is showing signs of strength.

Alerts:
a lot of poor quality

Peak Seasons:
Green bell pepper is not in peak season.

Mexican production is finally starting to increase into the Spring Peak. Transfers continue to be the challenge with Mexican holidays affecting border crossings, but supplies are improving. Quality is much better than the past several weeks and flavor is really starting to improve with the new varieties. California production will continue to be delayed by the cooler, wet weather. We expect domestic harvest to start mid-April. Georgia is expected to start by May. Market prices have stayed steady.

Transitions:
California harvest is being delayed by the cold and wet weather. We expect domestic production to start mid April.

Peak Seasons:
Mexico production is ramping up for it's Spring Peak over the next 2-3 weeks.

Not much change on blueberries this week. Chilean arrivals are expected to stop by next week. Mexico is over their peak and is gradually declining. Baja, California, and Florida will slowly ramp up over the next several weeks. Availability is expected to become limited for the next two weeks as we transition production areas, then we will recover quickly by mid-April. Pint availability will be minimal during this time. Georgia production is expected to start in the next 4 weeks and we will look to promote in this area. Quality has been okay, with some instances of small and soft fruit from Chile. Market prices have been increasing on the Mexican harvest as the quality is stronger and supplies are more limited. Chilean fruit is being offered as lower costs to move through the last of the arrivals. We expect to see a jump in prices as we transition into domestic harvest over the next couple weeks, then gradually taper off.

Transitions:
Florida is slowly ramping up harvest. California harvest is being delayed by the cold and wet weather. Georgia is expected to start in 4 weeks.

The heavy rain and cold weather in California will further delay new harvest from starting in Oxnard, Santa Maria, and Watsonville. We will continue to rely on Mexican production as the main source for raspberries. We do not expect to see any major disruption in availability, but we will continue to see light supplies. Quality has been consistent and good. Market prices have been high but have remained steady over the last week. This will be the case until domestic harvest begins by mid-April.

Strawberry supplies will be extremely limited. California is expecting the largest rain event of the year to take place this week. Weather forecasts are calling for over 4" of rain in certain areas. It is serious enough that evacuation notices are being implemented on burn areas around the state. If the rain is as severe as expected, it will cause immediate as well as long-term shortages to supply and directly impact quality. Shippers in Oxnard and Santa Maria are expecting to be out of harvest Wednesday, Thursday and possibly Friday. This will obviously have a severe impact on availability through the weekend and into next week. Given the severity of the rain, we can expect the prolong effect to last over the next 2 weeks as shippers slowly recover from the rain damage. Quality will also be affected. We can expect to see soft wet fruit, bruising and possibly occasional decay. Unfortunately, this will be the case until we can move past this weather, strip the fields of bad fruit and allow the new cycle of growth to reach maturity. Additionally, Florida production is nearing the end and Mexico will have very little fruit to help backfill demand. As a whole, we are expecting availability and quality to be a persistent challenge over the next 2-3 weeks. Markets jumped up in the front part of the week and we expect to see higher prices throughout the shortage.

Alerts:
Heavy rains will have an immediate impact on supply and quality. Market prices will be higher.

Transitions:
Florida is coming to an end. Mexico will have limited harvest. Oxnard and Santa Maria are getting hit with heavy rain, bringing all harvest to a halt. Salinas and Watsonville production will be delayed due to the rain.

Although we are experiencing rain in the Salinas and Santa Maria growing regions, the broccoli market is extremely competitive. There are still supplies in Yuma as well as good supplies out of Mexico as well. The quality is really nice with dark green color, minimal yellowing, and little decay or dehydration.

As supplies decrease from Mexico, supplies out of Oxnard are not enough to fill the void. The market is trending higher but at a slow pace. Quality is excellent with vibrant green color, a full range of sizes, and minimal decay.

California carrot supplies are good on value-added packs and medium-size carrot. We are still seeing a lower than normal percentage of jumbo sizes coming out of the fields.

The current rain in the Salinas and Santa Maria growing regions will decrease supplies for the next three days. Crews will be unable to harvest creating a short supply gap. This will firm the market right back up due to no harvesting. But it looks as if the weather will cooperate this Friday and next week. Then supplies should be back to normal levels. The quality is nice with new crop out of Salinas having vibrant white color and minimal bruising. Yuma and Santa Maria have had issues with bruising and off-color cauliflower.

Steady supplies continue to be the story with this commodity. Production in Yuma is moderate but in southern California, supplies are good, overall. Large sizing has the best availability, and the best deals continue out of Oxnard. Demand is moderate. Slight mechanical has been reported, but the overall quality is good. Rain is in the forecast in Oxnard/Santa Maria over the next three days so production may be limited. Expect all orders, however, to be filled to its entirety.

Cilantro supplies have increased causing the market to correct itself. Quality has also improved with minimal yellow to brown leaves or decay. Although once we transition out of Yuma, this could put pressure on Mexico, Oxnard, and Santa Maria causing the market to increase.

The Central Valley crop is in full production and sizing is large, peaking 115s/95s/140s, mostly fancy grade. Rains in this region will disrupt harvest for the next several days. Ventura crop continues with good production, this area is also getting rains, but currently has good setbacks of picked fruit. This region remains peaking on 140s and smaller fruit, heavy to choice grade.

Lime supplies continue to be limited. We will see shippers begin to break new harvest this week. As we transition into new crop, we will see the younger fruit get picked first. This will yield higher volumes of smaller sizes, whereas the large fruit will be more scarce. Although supplies will be light during transition, we can expect to see quality start to improve moving forward. Next week, production will be minimal due to the Easter holiday, but as we begin April we can expect to see supplies really begin to improve, barring any further weather events in Veracruz.

Alerts:
As we transition into new harvest we can expect to see more smaller size limes and less of larger size.

Transitions:
Mexico will be out of production for several days during the Easter holiday.

Rains in growing region mid last week and forecasted this week through Thursday has really disrupted harvest. Navel volume is cleaning up. Next expected harvest is Friday or Saturday. We are moving into the late varieties and size structure will be heavier to the 48s/56s/ 72s. Small fruit supplies will be limited and expect pricing to increase. Overall appearance and eating quality are some of the best of the season.

Domestic Florida cucumbers are starting in light volume, Honduran cucumber will continue shipping through the middle of April in lighter volume. Quality on the first Florida cucumbers has not been great, the fruit is short and stubby with heavy scaring from the excessive wind the region has experienced this winter. Honduran cucumbers are still better in quality, although next week more shippers in Florida will start and the quality should improve.

Alerts:
Honduran quality is still better that Florida grown cucumbers

Transitions:
Florida cucumbers are starting in light volume

Peak Seasons:
cucumbers are not in peak volume

Some new eggplant fields have finally started in South Florida bringing better volume and quality to the market. Warmer temperature and longer days are much better conditions for eggplant, bringing the crop into peak season. More growers will come into production over the next week.

Alerts:
More volume starting

Peak Seasons:
Eggplant is coming into peak season.

Volume is stable with moderate supply, and some grapes in storage are available. Quality is hit or miss depending on the price. There are a lot of "deals" available but you run the risk of getting product that is poor quality upon arrival. There are a wide variety of sizes and varieties available on both coasts.

The red grape market is steady with product still coming in, as well as sitting in storage. There is a wide range of variety and sizes, but quality is spotty, especially any grapes purchased cheaply. Splits and decay are the main issues we are seeing so make sure to check quality upon arrival.

We have seen steady supplies from Mexico. There have been zero delays coming into the US. The quality has improved with minimal yellow to brown tops and white tips with little to no decay.

We have plenty of supplies of kale from all growing regions. Quality is excellent with dark green color, full bunches, minimal yellowing or dehydration. The market remains extremely competitive too.

Supplies are moderate with many suppliers. Demand is steady. Huron, as well as Santa Maria, is in production and better numbers are expected next week. Yuma will continue for another 2-3 weeks, pending on the shipper. Defects include puffiness, discoloration and irregular shaped heads with this commodity. Other defects include light green color and frost damage. The weights continue to range between 40 -45 pounds. Expect active markets next week.

Supplies are moderate to light. This market is firm. Shippers continue to deal with issues like blistering, epidermal peel and discoloration. Romaine continues to have the tightest availability, compared to red and green leaf. Romaine hearts are extremely tight with multiple shippers. Heavy rains and cool temperatures are expected in Salinas and Oxnard/Santa Maria for the next three days. Huron has started with moderate availability. Better production is expected next week. Salinas will begin harvesting near the end of March.

As we finish up the Yuma season, supplies look to transition back to the Salinas Valley without any disruption in supplies. The only trouble we could see in two weeks would be on the organic side of supplies. The current rains in the Salinas Valley will bring mildew on in most of the organic tender leaf items. The overall quality of tender leaf items is good with the occasional bruising or wet decay of a few leaves. The market remains steady.

We continue to see supplies heavier to the bigger sized cantaloupes. Basically, 18 count, 15 count, and now 12 count supplies are extremely tight. Industrywide it seems to be the trend of having the majority of supplies in the 9 count and 6 count size. The market on all sizes is trending higher and looks to be that way into next week. Quality is really nice with decent brix / sugar levels and no decay or soft spots.

The honeydew market is trending higher as supplies are limited on 8 count honeydews. This is putting pressure on the supplies of 6 count and 5 count to fill the void. The market will trend higher into next week as the imports are heavier in supplies of 4 count and 5 count. Quality has been really good with decent brix / sugar levels and little to no decay.

Markets on all colors and sizes out of the Northwest or New Crop Mexico have changed from last week. Quality is good out of all shipping points. Supplies out of Idaho are winding down with some of the smaller growers finishing for the season. This hasn't had any effect on the markets yet but could become a factor as move growers finish as we get into the middle of April. Mexico's sizing is peaking on Jumbo and larger on Yellow onions. Red and White onions are peaking on jumbo's. Southern California is the next growing area, which will start up the second week of April. Transportation availability is good.

Washington – D'anjou pears are steady to lower on 90's and larger, steady on 100/110s, and steady to higher on 120/138/150s. D'anjous remain large and so small fruit is short. Bosc pears are steady to higher on all sizes due to light supplies. Bosc continues to peak on US#1 80/90s. The Bosc pear season should last through April. Red D'anjous are steady on all sizes, and they are still peaking on 40/45/50 half cartons. The red pear season should also last through April. The quality for all has been good.

Offshore – the Chilean Bartlett market is steady to lower, and they continue to peak on 90/100s. Eastern supplies are down while western supplies are steady. Chilean fruit is still the bargain. The Argentinian Bartlett pear market is slightly lower as the availability is better on both sides of the country. The Argentine fruit is higher priced than the Chilean. The fruit is peaking on 100s and larger. The quality has been good.

Volume from the tropics is good. Easter pull has begun and we see fruit starting to tighten a bit. Size continues to peak on 6s/7s.

Markets are stronger on 80 count and larger with 90 count and smaller steady out of all shipping points. Retail bales movement remains steady. Quality in the storages remains very good. Supplies of Russet Norkotah out of Idaho continue to wind down as they transition into 100% Russet Burbank variety by the middle to end of April. The size profile of the Russet Burbanks is slightly smaller peaking on 80 counts and smaller. Transportation is readily available with rates steady. Look for the transportation to tighten back up as we get into April and May. Lead time on placing your orders is recommended.

Peak Seasons:
Potatoes are in peak season

Western/Eastern Washington – red and gold potatoes are steady and are still peaking on A-size. The availability is moderate for both colors. The quality has been good.

Bakersfield, California – reds, whites, and golds are steady to lower on A and B sizes with C and bales steady. All colors are still peaking on A-size. They will transition to desert product in about a week.. The quality has been good.

Idaho – reds, and golds are steady. Both colors are peaking on A-size. Some shippers are flexing on volume orders of A-size reds. The quality has been good.

Wisconsin – red and gold potatoes are steady. Both colors are peaking on A-size. The quality has been good.

North Dakota – red and gold potatoes are steady to lower on As and Bs. They have a large storage crop and will be packing into June or longer. The quality has been good.

South Florida – red potatoes are steady on all sizes. White and gold potatoes are slightly lower on A and B size. The quality has been good.

Peak Seasons:
Idaho, North Dakota, and Florida Red and Gold potatoes are in peak availability.

Squash is still shipping from South Florida is steady supply and will continue through mid-April. Central Florida has started squash in light volume, growers have been slowed due to recent cold weather, volume will pick up by next week. Quality has been good from all producing regions.

Alerts:
Good volume

Transitions:
Squash is starting in Central Florida

Peak Seasons:
Squash is not in peak season.

Availability of Chilean peaches, nectarines, and plums continues to be light. We are coming to the end of the Chilean season and all fruit is arriving bigger, which means less volume fills and more tray packs. The market remains steady with good quality. Ship arrivals have been sporadic depending on the weather.

Diminishing supply out of Immokalee is helping to keep prices firm until the seasonal transition begins further North over the next 7 to 10 days. As southern crops come to the end of their harvest, extra large fruit is harder to source with most tomatoes available trending large to medium in size. Roma tomatoes have jumped in price with Mexico entering a gap and the market is expected to remain firm until April when new fields break ground south of the border helping to ease the demand that has been shifted mostly to Florida. Similarly, grape and cherry tomato crops are at the end of their season and shippers are pushing to break ground in new fields to help fill orders. Markets will remain variable through the last week of March until Palmetto and Ruskin programs bring a fresh injection of fruit into the supply chain and Mexico restores crossing helping to pull prices downward.

Production in Mexico began to taper off more than 2 weeks ago with supply shrinking even further as some farmers walked away from fields after weeks of dumping surplus product. As result markets gradually took off from their mandated minimums causing eastern markets to strengthen further as they approach transition as well. Roma tomatoes remain the most coveted item from Mexico causing dollar increases at the end of last week. Grape and cherry tomato supplies similarly are also light for the end of the winter season and have also increased by dollars. Mexico’s weather conditions are perfect for growing currently, but like Florida, Mexico is waiting to break ground in spring crops. In turn, prices are not expected to get back to minimums until after Easter.