The Source - March 4, 2020

MIDWESTERN / EASTERN REGION:
As we make our way into spring, we will continue to see smaller, regional shippers close their doors and demand shift to the Northwest. There will be a few larger shippers in the Midwest and parts of the East Coast loading apples into the summer months (June/July). Quality remains good with great shelf-life.
Winter storm systems continue to delay deliveries in the Midwest and Northeast. When placing apple/pear orders, please account for possible delays and apply proper lead times.

WESTERN REGION:
Washington
Movement has picked up this week for shippers. We are definitely seeing the impact of poor export movement to Asia (tariffs, Coronavirus) and shippers are reacting with aggressive offers on most red varieties. Golds and Grannies are steady; but small, low-grade fruit is hit-and-miss and not as plentiful.

PROCESSED APPLES (SLICED, DICED, ETC.) - ASK YOUR PRO*ACT SOURCING SPECIALIST ABOUT LOADING OPPORTUNITIES.

Production and quality remain unchanged from both Mexican regions (San Luis/Caborca). This should continue for the next 2-3 weeks. The market is very sluggish with good production and little demand.

There is definitely fruit trickling into the pipeline. California growers are reacting to this strong Mexican market and ramping up harvest. Demand is strong and the market is active. The size curve is leaning heavily towards 60's and smaller. There may be some checkerboarding as early season fruit will not ripen up uniform. Current pricing on California fruit remains elevated while Mexican fruit has come off just slightly. Early season fruit will take longer to ripen due to very low dry matter. As the season progresses, dry matter will increase and days of shelf life will decrease.

Alerts:
Production has ramped up. Good availability on the west coast.

Demand seems to have tapered off a bit this week. We are also seeing a small decrease in market pricing this week, but the market is expected to remain active. Larger fruit continues to be a challenge and remains limited while holding at a premium. Trees continue to provide an excess of small (60 and smaller) fruit as well as #2 grade fruit. We do not expect to see the market come off significantly as 48's and larger will remain tight despite strong harvest numbers. Quality has been consistent.

Alerts:
Supplies on 48's and larger continue to be a challenge. Avocado market remains active.

Green Bell Pepper is in tight supplies in South Florida. Growers on both the East and West coast of Florida are harvesting bell pepper, most have started new fields that have not reached full production yet. Production has been slow for the past few days due to cold temperatures in the morning throughout most of South Florida. Growers hold back from harvesting when temperatures are cold in the mornings for fear of damaging plants. Most growers are harvesting new fields and quality is good with a high percentage of big pepper. With temperatures rising considerably as the week goes on we expect production to pick up for weekend shipping. Pricing rose considerably over the past 4 days but expect that to level off the rest of the week with better supplies coming.

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- Red bell pepper supplies crossing through Nogales continue steadily 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 constant. 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 passing through McAllen, Texas.

Blackberries are in better supplies coming out of Mexico and markets are weaker on this item. Quality has been fair coming out of Mexico and to a lighter extent Oxnard and Santa Maria. Look for this market to remain steady with lower trends moving into the weekend.

Blueberries are still in tight supplies. Mexico should begin to increase volume moving into next week. Growers are still anticipating lighter supplies this month up until the week of the 22nd. Imports are also very light as both Chilean and Peruvian production arrivals are sporadic and on the decline. Look for this market to remain firm through the end of next week.

Raspberries are still fairly light in supply although numbers are improving out of Mexico throughout this week. Product is available on both coasts and FOB McAllen, TX. Look for the market to decline slightly as numbers begin to build out of Mexico. Quality has been generally good with the occasional age issues occurring upon arrival.

The market is definitely firming up in the California areas of Santa Maria and Oxnard, Texas, and Florida. Oxnard and Santa Maria have the higher quality fruit right now with Mexico and Florida dealing with sporadic rain and plants nearing the end of their growth cycles. Look for the market to remain firm through the end of the week. Quality issues related to wet weather have been reported primarily out of the Mexico, Baja, and Florida regions. California's quality has been good.

Alerts:
The market has firmed back up after a brief lack of demand last week. Look for supplies to tighten as Mexico and Florida begin to decline in yields

The broccoli market continues to stay steady with the help of better yields and more supply in the pipeline. Quality continues to have slight purpling caused by the recent cold weather, some mechanical damage, and occasional yellow cast. Look for Broccoli to stay steady going into next week with the warmer weather this week in Yuma.

The brussels sprouts market continues to be aggressive as more supply is in the pipeline. Currently, quality is good with occasional internal decay. Look for the Brussels sprouts market to continue to stay steady going into next week.

The carrot market remains steady out of the West Coast regions as well as the Mexican jumbo markets out of McAllen Texas. Quality and sizing have been good across all regions. Volume deals are being taken out of Mexico.

The cauliflower market continues to be strong. Yields continue to be low with most shippers given the changes in weather the last couple weeks in Yuma. The quality is good with slight bruising and yellow cast with weights in the 25 to 28-pound level. We are hoping the warmer weather we are experiencing today and the next few days in Yuma will start to help supplies this week. Look for the market to adjust going into next week with the warmer weather.

Supplies continue to exceed demand for this commodity. Warm weather and lack of rain in the growing regions will only make this item more readily available. Southern California continues to be the best area to purchase celery in terms of pricing and quality for all of next week. The quality in Yuma is strong as well. This market continues to be flat, as demand is minimal. All sizing will be available. All field reports continue to show that defects are minimal. Mechanical, insect damage and leafiness are seen, but minimally. The overall quality will be strong. Mexico production will continue as well. Weights are expected to average 54-60 pounds in all the growing regions.

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 passing through Nogales is mostly good. Pasilla from Mexico is also available to load in McAllen, Texas.

Anaheim- Light supplies of Anaheim crossing through Nogales this week. Quality on Anaheim passing 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 for both varieties. The market on both varieties is high this week.

The cilantro market continues to be leveled off as there is plenty of supplies with the warmer weather in Yuma, Mexico, and Southern California. The cilantro quality is good with an occasional yellow leaf. Look for the cilantro market to adjust going into next week with the warmer weather we are having this week.

Lemon supplies out of the Central Valley are looking really nice on supplies and quality. This is a perfect time to quote any promotional lids for the month of March with supplies peaking on 115/140’s. The small sizes are starting to get snug on 200/230’s and markets are holding firm. The Coastal Region supplies are packing out heavier numbers and peaking on 115/140’s. Out of the CA, Desert/AZ Desert Region supplies are winding down with another month to go depending on quality and availability. We continue to have optimal growing weather and the fruit will continue to be exceptional as long as we have this weather. Please reach out for any advance pricing.

Limes are at the tail end of the harvest season, we can expect new harvest in about 2-3 weeks. Currently, we are seeing the majority in large sizes, 110/ 150’s. This is expected to shift when the new harvest starts and we expect the majority of volume in 230/250’s. The growing regions have had rain and it is expected this to continue this week that will limit harvesting and supply. We can expect markets to climb weekly and firm up for the month of March. 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.

Alerts:
Lime harvest is a the tail end of the season and with rain in the growing regions is limiting harvest & supplies. Please send orders in advance for better coverage.

As we move into March, we still have plenty of supplies and time to focus on California Navels. Fruit quality remains great and supplies continue to peak on 56/72/88’s. The 113’s seem to be in better shape but the 138’s continue to be a struggle with light pack-outs, please continue to place orders for small sizes in advance to allow suppliers to strategize inventories for coverage. Current markets are steady on the large sizes and the small size market is staying firm. Brix levels have been consistent between 12-14%. On Specialty citrus keep pushing Mandarins, Cara’s, Bloods, and Minneola’s we’re in peak season and have plenty of lids to promote for the month of March. Gold Nuggets have started and supplies are light to start but will gradually increase weekly. Please keep in mind we have grapefruit opportunities out of Texas and California, please reach out if you have any interest.

Alerts:
138's continue to remain light in supply, please keep sending orders in advance for better coverage.

Super cucumbers are in tight supplies and select cucumbers supplies are steady coming from Honduras. Growers in Honduras are packing a high percentage of select cucumbers due to a lot of wind throughout Central America. This is causing fruit to scar and curve more than is allowed in a super select. A few cucumber growers in Honduras will harvest through the month of March but most growers are starting to wind down for the season. Some Florida cucumbers may start by the end of the week but it will be very light volume and reports from growers indicate the quality will not be the best. With the wind and the constant temperature changes South Florida has endured for the past two months the first domestic cucumbers will not have the best appearance. Most of the Honduran cucumbers have good quality, color is very good, there are the occasional scar and misshape but shelf-life has been good. Pricing is escalated on all sizes, there is a wider than normal gap between supers and selects, expect pricing to stay steady through the week.

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 mainly fair to good. Cucumber demand continues to exceed supplies. Supplies are expected to increase from the Sonoran district within two weeks.

Eggplant is in light supply in South Florida. Growers on both the East and West coast of Florida are harvesting eggplant in light volume by design, it is hard to grow eggplant with the high winds South Florida gets this time of year. Demand has been traditionally slow over the past couple of weeks so this is totally a supply-driven market, pricing has risen over the past 5 days. Quality has been fairly good with most shippers, which may be a little surprised with all the wind south Florida has been receiving. Very light supplies have been crossing into the U.S. from Mexico which is another reason for higher-priced markets. Expect this trend to continue until the middle of March when some new plantings start in Florida and Mexico starts shipping more product to the U.S.

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 have been plentiful on both coasts. However, the industry is expecting volumes to decline rapidly as we move forward. We will see shippers start to pull out of any promotions and avoid future lid prices. The expectation is for supplies to drop off steep and fast. Vendors will begin to separate the late varieties and strong fruit to put into controlled storage in an effort to bridge the anticipated gap between import to Mexican production. It may not seem likely now, due to the large inventories currently, but we do expect a sudden halt. To our best estimation, that will occur in the next 2 weeks and we will see prices shoot up on green grapes. Looking out even further, we expect supplies to become a real challenge as we approach the end of March / beginning of April. If storing grapes is an option, please plan ahead now and take advantage of cheaper markets this next week. You will be ahead of the curve as we move toward the middle of the month.

Alerts:
Supplies are good and prices are cheap now, but this will change quickly. Expect a sudden shift by mid March. Plan ahead if possible and take advantage of the current situation.

Transitions:
Mexico is expected to start production mid to late April. South American production will drop off quickly and we may see a gap between regions.

Peak Seasons:
We are at the end of the peak production period. Supplies will fall off over the next 2 weeks.

Red grape supplies are currently very strong on both coasts. We expect another wave of arrivals later this week and early next week. Overall, we expect supplies to remain strong for the next 2 weeks, then taper off as we approach the end of the month. Although supplies will taper off, we expect to have lighter but consistent supplies through the transitional period in April. Markets have been tiered depending on loading location, size, and quality. On the west coast, supplies have been consistent and prices have been steady. Although there have been some weaker quality varieties over the last week, we have moved through the rough patch and expect stronger quality moving forward. On the east coast, there have been more variances in quality and price. Some shippers have had a surplus of inventory that began to age. Over the last week, I have heard of several price points being offered on weaker grapes, but stronger quality (new fruit) has been staying firm. I expect this to be the case for the next 2 weeks as shippers move through their respective inventories. We will continue to see good quality and prices before markets start to climb back up by the end of the month.

Alerts:
We are seeing some tiered pricing depending on quality. Cheaper fruit tends to be weaker.

Transitions:
We will transition between South American and Mexican production in mid April.

Peak Seasons:
We are currently in peak production. We expect supplies to remain strong for another 2 weeks.

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 colder weather. The market will continue to stay steady going into next week.

The kale market continues to stay steady. Quality has started to improve with full bunches and some yellow leaves being reported. We're hoping this week's warmer weather going into the weekend continues to help the quality, supplies, and spur growth.

Overall, this market is flat. No rain is in the forecast in Yuma or southern California for all of next week. Multiple shippers will be flexing while a few others are less abundant in supplies. Upon arrivals, there have been some reports of mechanical, misshapen heads, and slight mildew. These defects are fairly common industry-wide. The Yuma region, according to reports are expected to have steady production all week while southern California will be moderate. Weights are ranging from 40-43 pounds on liner lettuce. Huron production is expected to begin the second to third week in March.

Transitions:
Huron will begin production in the second to third week in March.

Demand continues to be flat on romaine as well as all leaf items. No rain is in the forecast in the growing regions of Yuma and Southern California next week, so supplies are expected to be steady for the entire week. Shippers will be flexing for volume type orders. Some common defects being reported on romaine and leaf items have been mechanical, tip burn, blister, and slight mildew. These defects are common, industry-wide. Supplies are expected to exceed demand for the entire week. The weights are being reported between 34-38 pounds on romaine while green and red leaf has been 19 -24 pounds. Huron is expected to begin harvesting the second to third week in March.

Transitions:
Huron is expected to harvest the second to third week in March for leaf items.

The Tender Leaf supplies continue to stay steady this week. We anticipate warmer weather in the next couple of days to help supplies, quality, and growth. Quality is good with occasional yellowing and bruising of the tender leaves.

Supplies have been plentiful on both east and west coast. Currently, year over year arrival in to the US are up 39%. Demand has been good and we are seeing good movement on all sizes. The market has flattened as we are seeing steady arrivals from Central America. Overall quality has been great out of Guatemala, Costa Rica and Honduras.

The honeydew market has been pretty flat and demand is not as strong as in previous weeks. With supplies overlapping from Honduras, Costa Rica, Guatemala and, Mexico we are seeing good availability on both the east and west coast. Currently, year over year arrivals into the US are up just shy of 10%. Quality and brix levels have been consistent.

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 id also fair to good. The watermelon market is currently steady.

Onion markets remain steady to slightly lower as supplies are good in all regions. Northwest storage supplies are ample on yellow and red onions while white onions are finishing up in Washington. Mexico continues to cross all three colors into South Texas keeping markets depressed. Utah and Colorado continue to produce adequate supplies as well. Expect markets to remain low as we hit the downward slide on Northwest storage supplies and look ahead to the transition to the California desert and domestic Texas supplies mid-April.

Washington:
Shippers expect a good month of packing on D’Anjous, but availability on 120-150ct Anjou WA FANCY remains limited and it is not expected to get better. The Yakima Valley experienced a 30% reduction in overall production versus growing areas like Hood River, OR. Many shippers will be heading into their pre-packed CA fruit where low-grade fruit will continue to be minimal. Overall, prices have reacted to short supplies and shippers are slowly firming up prices.

Bosc pears continue to command higher prices and shippers will look to clean up their inventories for the season this month.

Red Anjous remain steady with good availability and strong quality.

Alerts:
110-135ct, low grade (WA Fancy) D'Anjou pears continue to be short in supply and prices are slowly increasing in reaction to minimal supplies.

Pineapple supplies are looking good out of all loading locations. Demand continues to remain strong with steady markets. Quality remains excellent with minimal arrival issues. Keep the orders coming, we’ll make sure to get you covered.

As more growers finish up Norkotah storage supplies in Idaho and move into Burbanks, the size profile continues to shrink with fewer supplies of large potatoes available. 40 count through 70 count and 10oz #2 grade markets continue to rise as demand exceeds supply. Burbank storage crop in Idaho is peaking on small size 90 count and 100 count. Washington, Colorado, and Wisconsin are following suit as demand shifts to these other regions depleting supplies of large size potatoes and adding pressure to the overall market. Expect this trend to continue as we navigate through the remainder of the storage supply. Overall quality is good with some lots exhibiting occasional peepers, light mold, and soft rot. It is highly recommended to provide at least 7 business day lead time on all russet potato orders to provide full coverage and on-time shipments. Some shipments may require 2+ picks to cover all of your potato needs.

Alerts:
Supplies limited on large 40 count through 70 count and 10oz #2 grade. Markets rising.

Color potato markets continue to rise as supplies are limited. In particular, B size and #2 grade red as well as A size gold and white. Creamer or C size potatoes are also limited with markets in the $30-$40 range pending on area. Mt Vernon, Washington continues to produce excellent quality red potatoes that are also utilized in California to supplement orders out of the Bakersfield region. Northwest continues to produce red and yellow in Washington and Idaho along with North Dakota as they wind down for the season. Southern Florida is now producing all three colors with limited supply and elevated markets. Expect pricing to remain volatile as demand exceeds supply.

Alerts:
Market rising; in particular B size and #2 grade red as well as A size gold and white.

Squash supplies are very tight and yellow squash is extremely tight. Squash is mainly being harvested in Homestead and Immokalee, Florida but cool temperatures and wind have kept plants from producing very much volume. Yellow squash has been hard hit with most shippers struggling to fill orders. Most shippers are at loss for words when they try to explain the squash supply over the past two months, no one seems to be able to explain the mostly short supply all winter. With much warmer temperatures forecast for the rest of the week shippers are hoping for increased supplies in time for weekend shipping. Quality has been surprisingly good considering the wind and inconsistent temperatures south Florida has been receiving during the growing season. Expect pricing to stay escalated for the rest of the week.

Alerts:
Yellow Squash supplies are extremely tight.

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 ten days.

Stone fruit supplies are consistent this week with good volumes on larger sized yellow peaches and nectarines. Tray Pack (50ct or bigger) are the heaviest volumes with limited supplies of Volume Fill (60ct and 50ct). White peaches and nectarines are becoming lighter in volume. Red and black plums have been light, but we did get an arrival last week with some availability of larger size Volume Fill packs. Quality has been strong on all varieties and prices have been flat. We expect supplies to remain consistent for the next 2-3 weeks before tapering off by late March.

Transitions:
We will see supplies taper off as we approach the end of March. New domestic harvest will start up in mid to late April.

Peak Seasons:
We are currently in peak import production.

Several days of cold weather leading into the weekend may have slowed tomato production in the short term. Still, the market is mainly being driven by the supply of tomatoes coming from Mexico. Overnight, FOBs have adjusted downward to meet the new supply being imported at a fraction of markets just a week ago. Round tomatoes have dipped below the $20 mark and mostly even between sizes. New fields scheduled for spring are beginning harvests, and first picks of the season are entering the market, moving the size profile up going into next week. Overnight, Roma tomato FOBs have been halved to meet new imports from Mexico where the market has suddenly fallen off. Grape and cherry tomatoes are improving as operations begin to transition to the Palmetto/Ruskin District. Short of a significant weather event, markets will continue adjusting downward as supplies improve further through the middle of the month.

Warm and dry weather conditions continue in Mexico, helping to speed recovery from farming operations that suffered extreme losses following days of rain just several weeks ago. Predictions for improved supply by mid-March have been moved up with supplies improving earlier than expected, which have nearly cut the market in half. Volume is expected to continue improving as more farms begin harvesting for the Spring season. Weather-related challenges still exist, but the quality is improving the further farms get away from weather affected crops. New harvests are helping move the size profile up across the board. Potential delays occurring from both the newly appointed Suspension Agreement’s inspection provisions set to be enforced at 100% by April 1, and the USDA’s phytosanitary controls to prevent the spread of the Tomato Brown Rugose Fruit Virus, may affect markets for some time to come. Traditional market indicators must now consider these trade agreements and preventative measures against disease that may cause an influx in the market for months ahead or more.