The Source - March 24, 2016

Weather Update

High pressure keeps the west warm and dry into the weekend with strong gusty winds over the next couple of days. Above average temperatures will continue through the week.
Scattered showers along with seasonal temperatures will continue in Central Mexico through the week
A cold front moves into Northern Florida on Thursday and slowly moves into the Southeast states over the weekend. Heaviest rainfall will remain to the north of Tampa Bay with this slow moving system.

Freight Update

California and Arizona trucks have tightened up due to the Easter pull. Washington and Idaho potato trucks have also tightened up. Idaho onion trucks remain tighter than normal. The National Average for diesel is on the rise again and is currently at 2.119 gallon. A difference of $0.745 from this time last year. California prices are up as well and have jumped up to 2.418 per gallon. Crude oil remained steady and is now $39.74 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples

Washington - red delicious are steady on all sizes and grades and they are peaking on 72/80/88 reds. The lower grade reds remain limited and most suppliers are having to sub up to cover orders. Golden delicious are steady on all sizes and grades. Goldens continue to peak on Wash-Extra 100/113s and most suppliers 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 is firm due to the eastern areas finishing. Most Gala suppliers still don't have much fruit larger than an 88. Fujis are steady on all sizes but the market is firm due to the eastern areas finishing. Washington Fujis continue to peak on extra-fancy 80-100's. Honeycrisp supplies are in few hands. A few Jonagolds are savailable but supplies are limited. The quality for all varieties has been good.
Michigan - Red delicious are steady on all sizes but there is some volume flex on 100s and larger. Reds continue to peak on 80/88s. McIntosh are steady on all sizes but supplies are light. Galas are steady to higher on all sizes and supplies are extremely light. Golden delicious to higher and the market is strong due to light supplies. The Goldens are still peaking on 125/138s. Jonathans are steady to higher on all sizes due to lighter supplies. Jonathans are still peaking on 150/138/125s. Fujis are steady to higher due to light supplies. Red Romes are steady on all sizes but supplies are low on them as well.
New York - Red delicious, Red Romes, and Empires are all steady. Gala supplies are light and the market is firm. Empire volume is hit and miss but there are occasional deals. The quality has been good on all varieties.

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

Asparagus is in season with plenty of supplies from Mexico to California. All sizes are available and shippers are packing 11/1# as well as 28/1# packs. Quality is excellent out of all growing regions with little spreading.

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

California growers are harvesting some light, but useable volume. Volume is building, but at a slower pace than expected due to market conditions. 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 this week will be lighter crossing into the US as volumes dip down with the limited Easter holiday work week schedules in Mexico. This dip in volume this week will tighten supplies next week. 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 in recent weeks. 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%. Along with this, cold weather hit soon after and even brought snow 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. Holy Week in Mexico is also presenting challenges with labor for harvests and hours of service at the border crossings.

- 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. Holy Week in Mexico is also presenting challenges with labor for harvests and hours of service at the border crossings.

Growing Region Market Quality
Central Mexico Steady/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. We are expecting a gap in supply between the end of Chilean production and the increase of domestic production.



- 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. We are expecting a gap in supply between the end of Chilean production and the increase of domestic production.

Transitions:
FL and CA are producing on a small scale.

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

Central Mexico is still the largest production region, followed by CA. We should begin to see more CA production coming from Santa Maria, Watsonville and Salinas shortly after Easter. Supplies have been consistent over the past several weeks but we are seeing some setbacks from recent weather and now lower production and labor shortages due to Holy Week in Mexico. Hours are more limited at the borders and laborers are fewer to harvest and transport the fruit.



- Tom Smith

Alerts:
We are seeing shorter supplies this week as recent weather affected quality and is limiting harvests and Holy Week in Mexico is limiting labor and hours of service at the border.

Growing Region Market Quality
Central Mexico Higher Fair
Oxnard, CA Higher Fair
Berries (Strawberries)

Demand has increased for fresh strawberries as the Easter strawberry promotions are underway. We've had good availability from Oxnard and Santa Maria this week. Some quality issues still remain in the packs after recent rains - white shoulders, soft, occasional bruising, white tips, etc., but is improving with the favorable weather and temperatures this week. Sizing is mostly in the mid-upper teens. Central Mexico is struggling with availability after weather over the previous weeks. Many shippers have already ended their Mexican import program for the season. FL production is beginning to fall rapidly and many shippers will end for the season after Easter pull is over, others are already done. Demand for CA strawberries will continue to increase as MX and FL programs wind down for the season.




- Tom Smith

Transitions:
Salinas and Watsonville regions will be increasing in production in April and should be in full swing by May.

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

Some suppliers are finishing up in the Yuma growing region. This has caused the market to spike. But as we moved into the middle of the week prices where elevated to high for demand. Quality varies from growing region as well. Iced product would be the choice to take when it comes to loading in Yuma, Phoenix, or Mexico.

- Gabe Romero
Growing Region Market Quality
Celaya Guanjuato Mexico Lower/Steady Good
Oxnard/Santa Maria, CA Lower/Steady Good
Phoenix, AZ Lower/Steady Good
Salinas Valley, CA Lower/Steady Good
Yuma, AZ Lower/Steady 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. And the existing hot weather is effecting growth as well. This will last for the next couple of weeks. Quality is still good with minimal black leaves upon arrival.

- Gabe Romero

Alerts:
We continue to have extremely light supplies and active markets due to the weather in Mexico.

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 it will be awhile before any real improvement of size is seen. Supplies of medium size and baby peeled carrots are is good.

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

The cauliflower market had a false market and is now on a downward trend. Yuma is finishing up and Salinas/Santa Maria growing regions have better supplies. Quality is really good despite the current market activity. Prices will vary depending on loading location.

- Gabe Romero
Growing Region Market Quality
Oxnard/Santa Maria, CA Lower/Steady Good
Salinas Valley, CA Lower/Steady Good
Yuma, AZ Lower/Steady Good
Celery

This market is steady. Oxnard and Yuma as well as Florida are the current loading locations. Overall demand is flat. All sizing is available. Rain as expected hit the Oxnard region earlier in the week, but there are no production issues to report. There is plenty of product to meet demand. The quality continues to be strong in all the growing regions. Suppliers are competitive in pricing, and this looks to continue throughout the week. Yuma will have production for approximately two more weeks.

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

Cilantro supplies continue to be plentiful even with the hot weather in Mexico. Oxnard has decent supplies as well. This is keeping the market at current aggressive levels. Santa Maria has supplies as well. Quality is good with minimal arrivals with yellow leaves and dehydration on iced product.

- 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 and strong demand for 165s has them cleaning up daily. 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 higher on all sizes. Demand is good on all sizes across the board. The peak sizes are shifting towards smaller sizes now. 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. Rains came down in the growing region and this week is Holy week so labor is in short supply. Supplies are going to lighten up a lot from Wednesday until mid next week.

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

Good picking last week, and looks good for this week. Shippers have good in inventory. Eating excellent and look beautiful, with peak sizing on 72s/56s/88s/113s. We have seen fruit size up with the rains, but some growers have hit some groves with a higher percentage of smaller fruit. Demand has back off on 113s/138s with schools going into spring and Easter breaks.

- Tim Kelley
Growing Region Market Quality
Merced to Bakersfield, CA Steady Excellent
Riverside, CA Steady Excellent
Cucumbers (Western)

Cumbers are transitioning from central to northern Mexico, limited supply and fair quality on most of the product being offered.Sizes are running mostly small with limited availability on the better grades. More product should become available as we move into the northern district. Color is very good.

- Ki Thompson
Growing Region Market Quality
Northern Sinaloa, Mexico Steady/Higher Fair
Grapes (Green)

Green grape supplies will continue to be consistent, but we do expect to see a split market depending on quality. Some of the fruit is experiencing conditional defects and soft berries. This weaker fruit will be prices accordingly. Over the next 2 weeks, stronger fruit will be held onto in preparation for the upcoming storage period and we may see the green grape market start to edge up by next week.

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

Red grapes this week have been consistent in supply and market prices have remained steady. We expect next week to see an increase in arrivals and availability. Market prices will start to decrease slightly mid week as we move through some additional volume. As we get closer to the April 10th cut off, shippers will start to prepare for storage crop and markets will firm up quickly.

- Sean Azzelio
Growing Region Market Quality
Coquimbo/Valaparaiso/Santiago/Rancagua, Chile Lower/Steady Good
Green Onions

The green onion market remains steady. Supplies do on the other hand vary from supplier to supplier. Iceless green onions are still commanding a premium. Iced green onions are plentiful and there are aggressive prices available. Quality varies with some lots arriving with yellow to brown tops.

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

Plenty of supplies from all growing regions. The market remains steady with aggressive prices. Quality is excellent with big bunches and dark green color.

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

This market is steady. Suppliers are looking to keep inventories clean throughout the week. Warm temperatures in Yuma continue. Production is occurring in Yuma and Huron. Santa Maria and Salinas is a few weeks away. Defects include mechanical damage, misshapen heads and insect damage in Yuma. Huron lettuce has some similar defects as well. The season in the desert is nearing the end. Expect another two-three weeks at most. The weights on wrap are averaging 39-45 pounds pending on the shipper.

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

Production on leaf items are coming out of Yuma, Salinas and Santa Maria/Oxnard. Huron production continues on the light side. This market is unchanged. There have been warm temperatures in all the growing regions. Some defects are associated with these commodities. These defects include Slight ribbing, dehydration, discoloration, tip burn and insect damage. Pricing continues to be competitive. The weights are averaging 32-36 pounds on romaine while red and green leaf are averaging 21-24 pounds.

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

Cantaloupe supplies are returning to more normal levels while demand is slightly above normal. A port strike two weeks ago in the growing areas created a temporary supply gap which is filling in this week. The quality is good overall with some lots being exceptionally nice. The peak size is currently 9ct. The current market is steady to slightly 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 Excellent
Zacapa, Guatemala Steady/Higher Excellent
Melon (Honeydew)

Demand continues to be low on honeydews but supplies have lightened up. 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 and Guatemalan grown honeydews are really good. Mexican dews continue to ship out of Nogales AZ and the volume is light. The Mexican dews are also very nice. The market is higher across the board. Prices on small sizes have gotten low enough that the offshore growers are not sending them to our market.

- Jim Murphy
Growing Region Market Quality
Choluteca, Honduras Higher Excellent
Zacapa, Guatemala Higher Excellent
Caborca, Mexico Higher Excellent
Melon (Watermelon)

The spring crop has started harvesting in Southern Sonora Mx.Early offerings are good Quality and good internal color and texture. Sugar is good with peak sizing on 60s with some 45 and very few 36s. Some personal seedless still being shipped from
southern districts with mostly small sizes.

- Ki Thompson
Growing Region Market Quality
Southern Sonora, Mexico Steady Good
Onions

Storage onion supplies out of the Northwest are staring to slowly wind down for the season (Idaho and Washington. The larger growers will have supplies till the middle to end of April out of the Northwest. Market remains steady. Quality is still being reported as good. Sporadic quality issues have arisen in onions from Mexico, due to rain they received two weeks ago. Market is steady. Supplies will tighten up as workers will enjoy a long Easter holiday. Texas and California will begin shipping onion within the next couple of weeks.

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

Washington - D'anjou pears are steady on all sizes and they are still peaking on US#1 70/80s. 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. Bosc still have better availability of the smaller sizes in the US#1 grade but all sizes of fancy grade are short. Bosc will finish up in mid-April. 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 - Chilean Bartlett pears are finished coming in but there are a few 120s and 135s left. Packhams are steady and continue to produce US#1 80/90/100s. Argentinian Bartletts are steady and are peaking on US#1 100/110s but only 100-size and larger are being quoted. The quality on all of the imported varieties has been good.

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

Easter demand has supplies tight this week. Demand should drop back off next week and we should get back to a more normal demand for the lighter, but steady supplies that we have had of late. Look for supplies start to come back as we move into April.

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

Demand and pricing remains steady on all packs and sizes throughout the Northwest. Larger size potatoes 40-60 count are continuing to see good demand with lighter availability. Quality is still being reported as good. The main variety out of Idaho is Burbank's as the Norkotah's is only in a few hands and will vanish at the end of April .

- Mike Gorczyca
Growing Region Market Quality
Hamer/Rupert, ID Steady Good
Quincy/Hermiston, WA Steady Good
Plover/Bancroft, WI Steady Good
Eastern Colorado Steady Good
Potatoes (colored)

Bakersfield, California - reds and golds are steady to higher and they continue to peak on A-size. Supplies are still limited on all sizes. The red quality has ranged from good to fair while the gold quality has been good.
Western Washington - The remaining reds and golds are steady to higher and both continue to peak on A size, but supplies are limited. Their season will finish at the end of next week if not before. The quality has ranged from fair to good on both colors.
Idaho - reds and golds are steady and the supplies remain light. Both colors continue to peak on A-size. One Idaho supplier will pack through march and the other two will go through April. The quality has been good.
Wisconsin - reds and golds are both steady and they continue to peak on A-size but supplies are limited. Suppliers here continue to buy bulk from N.D. and repack it. The quality has ranged from fair to good.
North Dakota - Reds and gold's are steady to higher and the market remains firm due to light supplies. Some suppliers are already booked out for the week and some have finished with golds. Both colors are peaking on A-size. The quality has been good.
S. Florida - reds and gold's are steady but the market remains firm due to light supplies. Whites are not available this week. Poor yields are keeping the Florida market up on all colors. Both reds and golds are peaking on A-size.

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

Chilean tree fruit will continue to remain steady for the next several weeks with most of the late season fruit being on the larger side. Domestic tree fruit is expected to begin mid April with early variety peaches, nectarines and apricots. Cherries will follow shortly after. Markets are expected to remain steady through the weekend and into next week with some aggressive prices being offered on larger sized tray pack fruit.

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

Rounds - The market is steady. Florida continues to struggle with supplies. Look for volume to continue to be lighter for a few more weeks. Mexico is also looking a bit lighter. Although the holiday pull is over, production will be lighter in Mexico due to labor over the next few days. Quality is Good / Fair.
Roma - The market is higher. Supplies looking short this week. Florida continues to struggle due to yields. And Mexico is still in a slight gap. However, look for Mexico to pick up volume over the next week or so. Demand is steady in all areas. Quality is Good / Fair.
Cherry - The market is Steady. Volume in Florida continues to look better. More and more supplies coming to the market. Supplies in Mexico look a bit lighter due to production over the holiday. Quality is Good / Fair.
Grape - The market is higher. Supplies continue to be tight in all areas. Demand still strong. Mexico is also very light and should continue for a bit longer. 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. Supplies continue to be light in all areas. Sizing continue to be more consistent. Although the holiday pull is over, look for supplies to continue to be lighter due to lower production. Back east, supplies continue to be lighter, and sould continue for a few more weeks. Quality is Good / Fair.
Roma - The market is steady. Supplies continue to be lighter. Mexico continue to be in a slight gap. Look for supplies to continue to be lighter for the next week or so. Florida continues to be lighter. Range in Quality from Good to Fair.
Cherry - The market is Steady. Supplies in Mexico continues to be a bit lighter. Look for supplies to continue to be light for a bit longer. However, Florida looks to be increasing volume. Quality is Good / Fair.
Grape - The market is higher. Supplies continue to struggle. Production and yields continue to come up short. Back east, supplies are also very tight. Demand is very strong in all areas. Quality is Good / 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. Holy Week in Mexico is also presenting challenges with labor for harvests and hours of service at the border crossings.

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. We are expecting a gap in supply between the end of Chilean production and the increase of domestic production.

Berries (Raspberries)
We are seeing shorter supplies this week as recent weather affected quality and is limiting harvests and Holy Week in Mexico is limiting labor and hours of service at the border.

Brussels Sprouts
We continue to have extremely light supplies and active markets due to the weather in Mexico.

Transitions and Temperatures

Berries (Blueberries)
FL and CA are producing on a small scale.

Berries (Strawberries)
Salinas and Watsonville regions will be increasing in production in April and should be in full swing by May.

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