The Source - March 7, 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. Honeycrisp are steady and firm due to light 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. The availability is very light as the end of their season is approaching. The quality has been good.

Michigan – Red Delicious, Golden Delicious, and Galas are slightly higher. McIntosh, Jonathans, Jonamacs, Empires, Fujis, red Romes, Ida Reds, and Jonagolds are all steady. Supplies are still fairly good, but they are still anticipating an early finish to their season. Some shippers are managing how many red delicious they pack so they won't run out early. The quality has been good.

Pennsylvania – Fujis, Red Delicious, Golden Delicious, Cameos, Empires, Red Romes, and Pink Ladies are mostly steady. There has been some flex for volume on red and golden delicious. Red Delicious and Pink Ladies are peaking on 88/100s while the Fujis, Golds, Cameos, Empires, and Romes are peaking on 100/113s. The quality has been good.

New York – Cortlands, Galas, McIntosh, Red Delicious, Fujis, Golden Delicious, Red Romes, Crispins, Pink Ladies, Empires, and Ruby Frost are all still available. Most of their fruit is large. The extra-fancy grade and the #1 grade are steady. Red Delicious, Galas, and Empires have been producing more smaller fruit than the other varieties. The quality has been good.

Transitions:
Chilean Galas are due to arrive early next week.

Peak Seasons:
Washington, Pennsylvania, Michigan, and New York are still in the peak of their seasons.

Volumes continue to decrease due to the colder weather the past week in both Caborca and San Luis, Mexico. Warmer weather is scheduled for the next ten days, and we will have to wait to see the effect it has on production. Rain is expected in Gonzales, CA which should slow production down. Overall markets are higher due to the colder weather over the past ten days.

California is harvesting limited volume, with much of it being sold to overseas export. Greater harvest is expected to begin this month and increase weekly.

Mexico's is harvesting good volume, which is skewed heavily toward smaller fruit and grade 2 fruit. We are expecting this trend to continue through March. 48s and larger sizes remain on the tighter side of supply. Eating quality is very good, and fruit is ripening evenly.

Shippers are working on older fields of bell pepper, because of that the sizing is trending to smaller fruit. The weather has been unseasonably warm throughout the month of February in south Florida and the "winter" crop is ahead of schedule, while the "spring" crop is still a couple of weeks from starting, causing a slight gap in bigger fruit. Quality is only fair with some fruit showing scaring and a dull appearance.

Alerts:
Older field pepper with smaller sizing and fair quality.

Peak Seasons:
Bell pepper is not in peak season

Green Bell Pepper available out of Nogales. Quality is mostly good. The market is stronger; volume is down slightly due to cold weather in Southern Sonora. Supply should get back to normal within a week, as the Sinaloa crop is unharmed by weather. This harvest should get us through late April - early May

Red and Yellow Bell Pepper supplies are still available to load in Nogales, from Mexico. Field grown colored peppers are also being harvested. The market is very strong. Cold weather in Southern Sonora has affected supplies and pricing has increased sharply. Volume is expected to be back to normal in about a week.

Blackberry supplies have improved slightly this week, but are still limited. Due to varietal shifts and cooler weather in both Mexico and California, production volumes continue to be light. The cold and wet weather in California has delayed domestic production but is expected to gradually improve over the next 2-3 weeks. Mexico production has been light, but we will see improvements and overlap with California over the next two weeks. Market prices have been higher. Quality has been fair but is improving.

Transitions:
California will gradually ramp up harvest over the next 2-4 weeks.

We will start to see reduced inbound arrivals of import fruit over the next several weeks as the Chilean season winds down. We have had reports of some soft berries on the last arrivals for fruit, and we expect quality to slowly diminish as we finish the season. Market prices have been steady to lower. Mexico will continue with consistent production for the next 3-5 weeks. Quality in this area has been good. Prices are slightly higher. Domestic production has started on the west coast with light volumes of organic blueberries. Conventional crops in Santa Maria and Oxnard have been slowed down due to the cold weather and are expected to come on slowly late March to early April. Florida is expected to start by the end of the month, followed by Georgia mid to late April.

Transitions:
California production is expected to slowly ramp up toward the end of March to the beginning of April. Florida will start by the end of the month and Georgia will get going in April. Chilean production will start to slow down moving forward.

Raspberry supplies remain limited this week. This is mostly due to cooler temps delaying domestic production. Mexico has been in its lowest production period, but we will see slight increases over the next two weeks. We expect domestic production to gradually improve over the next 2-3 weeks and we will see an overlap in supplies between Mexico and California. Quality has been good. Market prices have been slightly higher and will remain firm until supplies improve.

Transitions:
California production will gradually increase over the next 2-3 weeks.

We do not expect any major changes in supplies or markets this week, but we do expect to see some shifts as we start next week. The weather forecasts for the California growing regions call for more rain starting later this week. This could possibly delay harvest and affect yields for next week. Oxnard and Santa Maria are expecting some moderate rainfall on Saturday (approximately half an inch) then may see some occasional light showers throughout next week. We do not expect any major disruptions in order fulfillment from California, but we may see lighter supplies and higher prices at the front part of next week.

Florida has had a bit of a heat wave recently. The weather is gradually cooling off this week, but forecasts call for rain by the weekend. Unfortunately, these weather patterns can create major issues with quality. This may cause the Florida season to come to an end sooner than expected. Depending on how the weather plays out, we may shippers finish in Florida by the end of next week. Market prices will remain low as growers try to push through as much fruit as they can. We can expect quality in this area to be fair with soft fruit and occasional bruising.

Mexico strawberry production has started to wind down with some shippers already done for the season. We can expect supplies to continue to become more limited as shippers wrap up their Mexican season. Market prices have remained steady and are expected to be flat as we finish.

As we prepare for the transition back to the west coast, we will keep a close eye on weather patterns and possible challenges. At this times, we do not expect any major issues outside of minor weather delays

Transitions:
Mexico and Florida seasons are winding down. Santa Maria will ramp up. Salinas and Watsonville will look to start by April.

The broccoli market is a two-tiered market depending on the growing region. We are experiencing much cheaper pricing out of Mexico through McAllen Texas. Santa Maria is also more competitive as well. Yuma is commanding a premium due to the transportation traffic of the majority of customers. The quality has been good despite market conditions. We have seen minimal yellowing, or dehydration, as well as minimal decay. Processors are struggling to gather supplies and have been holding customers to 12-week averages. We should see some relief in 2 weeks.

The brussel sprout market has an upward trend. Supplies out of Mexico have decreased due to colder temperatures in the growing region. Oxnard is producing but not at a level to help the decreased supplies from Mexico. The quality is still consistently good with vibrant green color, all sizes, and minimal decay.

Supplies are steady, still not much size coming from fields, so jumbo size are still short. Organic fresh carrot production is improving.

The cauliflower market remains active with limited supplies from all growing regions. Salinas has started in a light way, but this will not be enough to affect the market. Quality is still fair with arrivals showing brown spotting/bruising, as well as off-color. Although the quality reports out of Salinas are looking good, but sizing is small. It is trending in the 16 count size. We are still looking at two weeks from better supplies.

Transitions:
We will slowly transition to Salinas over the next couple of weeks. This should help the supply gap.

This market is steady, overall. A few shippers have attempted to increase pricing slightly. Good supplies, however, are expected throughout the week. Smaller sizing is a little lighter in availability. Moderate availability continues in Yuma. The best pricing continues to be shipping out of southern California, so please be aware. Slight mechanical has been reported, but the overall quality is good. The cool weather throughout this week will not affect production.

Most chili varieties are available to load in Nogales, from Mexico. Good supplies are available on most varieties. Quality is mostly good on all hot peppers. Growing conditions have been favorable with very few areas experiencing light rain and cooler temps.

Jalapeño - the market is steady, supplies have increased, demand is fair. Quality is mostly good.

Poblano - supplies are down. Demand is high. Mexico has a strong National market for poblano. Quality is good; the market should stay strong through Lent.

Anaheim - Anaheim pepper supplies from Mexico are steady. Demand is higher. The market is stronger; quality is mostly good.

Serrano - good supply now available, quality is mostly good. Market steady.

Tomatillo - supplies are much lower, especially on peeled tomatillo. The market is steady. Quality ranges, but is mostly good on both peeled and husked varieties.

Cilantro supplies have decreased significantly. The cold weather in Mexico and Yuma have decreased supplies. Oxnard is unable to fill the void. As a result, the market is active. Supplies are also diminishing in Yuma as the season finishes up. Quality is fair at best due to recent freezing temperatures in Mexico and Yuma. We are seeing yellow to brown discoloration of the leaves and some decay.

Alerts:
Supplies have decreased significantly from previous freezing temperatures in Mexico and Yuma. The market is trending much higher.

The lemon market is steady with some fruit still available in out of the San Joaquin Valley; although the majority of supplies are now concentrated in the Oxnard Ventura region. Quality is generally good out of all areas with sizing in the SJ Valley heavier to the 140's and larger. Sizing and grade out of the Oxnard / Ventura region has improved for the foodservice industry with more of the choice grade and smaller sizes available.

Supplies of good quality limes continue to be a challenge this week. Mexico's production has gradually increased, but the quality has decreased as a result of the recent rain and cold temperatures. Shippers who demand high-quality fruit will ultimately pay a premium price and are limited on availability. We may see some disparities in price as sub-quality fruit was introduced into the market this past weekend, but with more rain expected to hit this week, prices are expected to jump right back up. Overall, there isn't any immediate relief in price or supplies for the next two weeks.

Alerts:
Supplies remain limited and markets are active.

The Navel Orange market is unchanged with steady demand and limited supplies. Sizing is still heavy on 40's through 113's; peaking on 72/88/56 fancy. The availability of some limited volume out of Mexico combined with the extreme weather in the Northeast has eased the stress a little bit. However, long-term we still see a very short supply situation on the smaller fruit through the end of the season (May or early June).

At the moment there are steady supplies coming from Honduras, but about half the shippers will finish next week which will cut supplies significantly. Florida will start very light volume next week, but most growers will not start until the 3rd week on March. Markets have been high on cucumbers and will continue rising into next week. Quality has been good, and we expect that to continue through the weekend.

Alerts:
Some of the importers will finish for the season next week.

Transitions:
Cucumbers will Start to Transition next week.

Cucumbers loading in Nogales are mostly from Sinaloa, Mexico. Volume is way down, some growers have abandoned older fields due to market oversupply. This, combined with cold weather in Sonora, has really affected supply. The cucumber market is very active and should continue until spring crop begins in about ten days in Northern Sonora.

There are light eggplant supplies in South Florida, and that will be the case for the next three weeks. Traditionally Florida is very windy with short days and cool spells during the winter months, which makes it difficult to grow good, high yielding eggplant. For this reason, over the past few years, Florida has cut back acreage. Growers grow just enough plants that they can manage closely for mixer volume to go along with other items being produced on the farm. There is a wide range in quality from shipper to shipper, expect the spring crop to start around the 3rd week of March.

Alerts:
Light supplies and fair quality.

Eggplant volume is down due to cold weather in the Southern Sonoran growing area in Mexico. Sinaloa is still producing at normal volume, but demand is up, and the market feels strong. There has been a spike in demand for eggplant during Lent. We should be back to normal supplies out of Mexico by the end of this week.

The green grape market is stable with moderate supply. Volume is stable with product available in storage. There are a wide variety of sizes and varieties available. Quality will be constantly good for the remainder of the Chilean season.

The red grape market is stable with plenty of product. Volume is stable with product available in storage. There are a wide variety of sizes and varieties available. Quality is slowly getting better and more consistent, as low-quality red grapes have finally moved out of the marketplace. Quality should remain good for the remainder of the Chilean season.

The green onion market is trending higher at a sluggish pace. The previous freezing temperatures in Mexico have decreased supplies. We are seeing quality issues such as yellow to brown tops, and some decay of the tips. We will continue to see this trend for the next two weeks.

The kale market is steady with ample supplies. The quality in all growing regions is excellent with little yellowing, dark green color, and full bunches.

Bad weather conditions in the desert, coupled with lighter availability with multiple shippers, has made this market stronger compared to past weeks. Southern California has been out of production the whole week. The availability in the desert is moderate to light. The situation is not as drastic as romaine, just to be clear. The cold weather has caused multiple defects to occur with this commodity. Misshapen head sizing, decay and frost damage has been reported upon arrivals. The quality is fair with many shippers. Expect production to be up and down for the next few weeks, minimum. The weights on liner are averaging approximately 40-44 pounds.

With the romaine market, demand exceeds supplies, and this will continue throughout this week. Escalated pricing is in effect on contracts as well as value added items. Green leaf is active. Butter and red leaf are steady. Defects that have been reported include mechanical, blister and peel, twisting and a bit of ribbiness. Light supplies are expected for the next two weeks minimum on romaine followed up by inconsistent production for the rest of March. The weather in California has been rainy and cold while Yuma has had cool temperatures as well. Production in all growing regions has been altered due to weather conditions.

We are currently experiencing a supply shortage on both conventional & organic wild and regular arugula. Also, we have seen supply shortages on organic baby kale as well. Suppliers are struggling with yellowing and mildew that has caused major decreases in raw product. Baby spinach and spring mix supplies remain steady, but quality is fair. There are reports of bruising of the leaves, some decay, and excessive wetness upon arrivals. This is mainly due to the colder weather in the growing region. Now it looks to heat up in Yuma which will further add to less shelf life of all tender leaf packs.

Cantaloupes are steady lower on 15s and larger. Supplies of 18s are limited. Most shippers are still peaking on 9s and jumbo 9s. South Florida still has the best availability for all sizes, but there are good supplies of 12s and larger in all ports on both coasts. We expect sizing to remain steady. The quality has been good.

Peak Seasons:
Honduras is still in the peak of its Cantaloupe season.

Honeydews are steady to lower with good supplies. Florida still has the most volume and largest mix of sizes while east coast, Houston, and Los Angeles are more limited. Most packers are peaking on 5s and 6s with less volume of 8s. The quality has been good.

Peak Seasons:
Honduras is still in the peak of its Honeydew season.

Seedless watermelon production from Mexico is lower from the Southern growing regions. The market remains fairly strong; demand is high. Quality is good. Lighter supplies expected until the start of the spring crop in late March.

The market is slightly weaker on most sizes and packs of onions out of all shipping points. Demand is moderate to light. Idaho, Washington, and Colorado will continue shipping out of storages into the end of April with a few going into May. Quality is still being reported as good. Only an occasional report of light translucent layers showing up. A few of the smaller grower-shippers have started to finish up for the season. New Crop Mexico onions continue to increase volumes crossing into the U.S. Volumes will peak into the front part of next week and then slowly start to wind down just in time for Texas and Northern Mexico startup. Look for the markets to stay fairly steady at current levels for the next couple of weeks.

Transitions:
Storages supplies are starting to wind down and will transition into Mexico, Texas, and Southern California as we get into April.

Peak Seasons:
New Crop Mexico Yellow, Red and White onions hard in the heart of their season.

Washington – D'anjou pears are mostly steady on all sizes. 80 and 90 size are still the peak sizes, and small fruit remains limited. Bosc pears are steady on the larger fruit and steady but strong on the smaller sizes. Bosc continues to peak on US#1 80/90s. Red D'anjous are steady on all sizes. Reds are still peaking on 40/45/50 half cartons. The quality for all has been good.

Offshore – the Chilean Bartlett market is steady to lower. Eastern supplies are down while western supplies are up. The fruit continues to peak on 90/100s. The Argentinian market is slightly lower as the availability is up on both sides of the country. The Argentinian fruit is peaking on 100s and larger. The quality has been good.

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

Chile is still in the peak of its season.

The market is steady in all ports but the availability is slightly lower. Size 6 and 7 are most prevalent with less 5s and 8s. The quality has been good.

Idaho - Market is slightly weaker on all sizes cartons with the retail bags steady. Quality is still being reported as good. An occasional report of internal bruising and soft rot showing up has been reported. Supplies of Norkotah variety is slowly finishing up for the season. Burbank sizing is slightly smaller and is peaking on 70 count and smaller. Look for the pricing to slowly firm up on the larger counts as supplies start to peak on the smaller sizes. Storage supplies look to be adequate to overlap with new crop at this time.
Washington, Colorado, and Wisconsin - Markets are steady on most sizes and packs. Quality is still holding up nicely. Growers are slowing down supplies to extend their storage crop, so they don't have a gap in supplies out of these areas.

Western Washington – red and gold potatoes are steady. A-size is still the peak size for both colors. They expect to pack until the end of March or the middle of April. The quality has been good.

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

Bakersfield, California – reds, whites, and golds are steady on all sizes. All colors are peaking on A-size. The quality has been good.

Idaho – reds, and golds are steady. Both colors are peaking on A-size. Some shippers will flex on volume order for red As. 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. The quality has been good.

South Florida – red potatoes are steady. White and gold potatoes are steady to lower. The quality has been good.

Peak Seasons:
Eastern Washington, Idaho, North Dakota, and south Florida are all in the peak of their respective seasons.

Squash Alert; squash has been in very light supplies especially zucchini; now yellow is going to tighten even more than it has been. The reasons vary from windy, cloudy weather to bees leaving squash plants because sweeter tropical plants are in bloom. Growers are seeing much less yield than they were two weeks ago. The forecast for the rest of the week is cooler temperatures, so we do not expect any relief this week. There are reports of growers in Plant City starting next week with light volume.

Alerts:
Very light supplies

Squash is still available to load in Nogales, from Sinaloa, Mexico. Yellow squash supplies are still much lower than zucchini supplies. The market is very strong on the west coast, demand is very high, and pricing has gone up rapidly. Quality of yellow squash varies, quality of zucchini is still mostly good. Spring crop for summer squash from Mexico is due to begin harvest in 14-21 days.

Availability of Chilean peaches, nectarines, and plums continues to be light. Ship arrivals have been hit or miss. Sizing on peaches and nectarines are mostly in tray pack 48/50's and 54/56's with very few volume fill 60's and 70's. The market remains steady with good quality. Peaches will be wrapping up in the next 1-2 weeks, nectarines in the next 3-4 weeks, with plums for another 6-7 weeks. Quality will remain good for the remainder of the Chilean season.

Florida is experiencing a bit of a slow down as a result of bloom drop six weeks ago. With slightly less coming out of the fields, markets have increased by $1 to $2 against steady winter demand. XL rounds are at a premium with smaller fruit selling slightly cheaper. Roma tomatoes have strengthened as a result of less coming from Mexico this week. Grape tomatoes have also increased this week while cherry tomatoes struggle to find any strength. Overall the market is higher this week but with crews getting back into fields this week prices should begin to ease off again by mid-month. Pending a detrimental weather event, supply is expected to remain steady through Spring.

For most of this year, there have been heavy volumes of tomatoes crossing Nogales, AZ daily over saturating the market with supply. As a result, farmers are skipping over fields to clear out inventory. Prices are stagnant, but markets may begin to strengthen with less fruit coming into the pipeline.