The Source - March 8, 2017

Washington - reds are steady to slightly lower on most sizes and they continue to peak on extra-fancy 64-88s. 113 and smaller reds are still in shorter supply than the larger sizes. Golden delicious are steady to slightly higher on all sizes and continue to peak on 72/80/88s. Small Goldens remain very short. Granny-smith are slightly higher on 88s and larger while the 100s and smaller are higher. The fruit is still peaking on 72/80/88's so the small fruit supplies remain very short. Most shippers are still subbing up in size and grade on anything smaller than an 88. The Gala market is steady on all sizes. Galas are still peaking on 80/88/100/72s and they have good volume in the larger sizes. Gala 125/138s remain very short currently. Fuji's are steady to slightly higher on all sizes and are still peaking on 72/80/88s. Fuji volume is generally light right now especially in 113s and smaller. Honeycrisp are steady to higher due to light supplies and they are still peaking on 80/88/100s. Expect the Honeycrisp market to continue to climb until the season ends in May. The quality has been good. There are some small lots of Braeburns and Jonagolds currently available.
Idaho---red delicious, Red Romes, Galas, and Pink Lady's are the bulk of the current production and they are all steady. Most of the Idaho varieties continue to peak on 64-100s. The quality has been good.
Michigan--McIntosh and Empires remain steady but strong due to light supplies and strong demand. Golden delicious, Jonathans, red Romes, Galas, red delicious, and Fujis are all fairly steady. The Galas, Red Romes, and Jonathans are still peaking on smaller fruit while the Golden delicious, Red delicious, Fujis, and McIntosh are heavier to the medium sizes. The quality has been good.
New York---Empires and McIntosh are steady but remain very strong due to light supplies and strong demand. Red delicious, Galas, Fujis, and Red Romes are fairly steady but the markets are showing strength in the smaller sizes. All varieties are peaking on larger fruit. The quality has been good.
Pennsylvania---red delicious, golden delicious, Red Romes, Pink Ladys, and Fujis, are all steady and are all peaking on 80/88/100s. They are producing more US#1 and US fancy grade but the quality has been good. Granny-smith have finished for the season.

Alerts:
The small Granny-smith market continues to rise in Washington esp. now that the few eastern Grannys are finished or finishing up. Expect supplies of 100-size and smaller to remain tight and for the market to continue to slowly climb.

Transitions:
Pennsylvania will start to finish up towards the end of this month with some

Michigan will finish Fujis in late March and Jonathans in late April.

Peak Seasons:
Washington is in the peak of its season with reds, golds, Grannys, Fujis, and Galas.

Michigan is in the peak of its season with all varieties except Fujis.

Idaho is in the peak of its season with reds, Galas, Pink Ladys, and Red Romes.

Weather in Caborca, Mexico is good right now, but we will see warmer weather this coming weekend. Production will remain heavy for another 2 weeks, then it should taper off. All growers are now mostly packing 28 lb asparagus, and the 11 lbs are being packed to order. California has started better production quantities, but still are only packing 11 lbs and the 28 lbs are packed to order.

Transitions:
West Coast: There will be warmer weather in Caborca, Mexico this weekend which will cause asparagus tips to seed and spread.

East Coast: We should start to see Peruvian imports in about 3 weeks with Mexican asparagus volumes decreasing.

This week's volume from Mexico looks to be the same as last week of 30 million pounds. Still far less fruit than the industry needs for demand. The field prices from Mexico are less active than it was the past few weeks when they were pushing prices up every other day, but field prices remain high. They are still telling us that we are to expect only 25 to 30 million per week through the end of this crop ending in June. The size cure has adjusted slightly, with fewer 40s and larger and a few more 60s and 70s coming in to the states.

Transitions:
Mexico will continue to be the majority of the volume. Also California will start shipping fruit the week of March 20th.

Green bell Pepper has increased in supply especially on off grade large sizes. prices have dropped and will continue for the near future with larger sizes on number one grade being more limited.

Colored Bells ( Red, Yellow and Orange) continue with much improved supply on both blocky and elongated varieties. Good quality and condition will continue, supply will remain heavy. market and demand are still very flat. Packing 25# 15# and 11# units. Both number one and number two grade.

Blackberry supplies are very limited this week. Transfer trucks from Mexico to California are being held up, leading to delayed arrivals. Due to the already limited supplies of fruit, a delayed arrival can make a big impact on day to day availability. California production has been very slow and volumes have not been substantial enough to offset any unexpected late arrivals. We will continue to see daily fluctuations in availability until harvest improves. Shippers continue to be optimistic about supplies improving over the next 1-2 weeks.

Alerts:
Blackberry supplies continue to be a challenge this week due to delayed arrivals.

Transitions:
Mexico and California production is expected to gradually improve over the next 2 weeks.

Blueberry supplies continue to improve. Good quality and consistent supplies are expected moving forward. As the Chilean fruit fades out of the market, Mexico and California are ramping up on the west coast. Florida is now harvesting light volumes of blueberries and is expected to increase production next week. Georgia is expected to start in 3-4 weeks. Quality is expected to be strong in all areas. Mexican fruit prices have been steady as supplies improve. Domestic fruit is priced higher, but will come down as more volumes becomes available. Look for promotional opportunities in the next 2 weeks.

Transitions:
Mexico production is improving. Florida has started with light volume. California will ramp up next week. Good volumes in the coming 2 weeks.

Raspberries continue to be a challenge this week. Mexico and California production is slowly improving, but the progress has not been as swift as expected. Yields continue to be low and delayed arrivals at the border continue to be the biggest factors in the shortages. Although supply is expected to trend up, the increased volumes will be gradual. Better availability is on the horizon; 2-3 weeks out.

Alerts:
Low yields and delayed arrivals are contributing to the continued shortages this week.

Transitions:
California and Mexico harvest numbers continue to be a slow improvement. Better supplies 2-3 weeks out.

We are on the cusp of a supply shift in California. After recovering from the heavy rains, we started this week in a slightly improved position. Moving forward, the weather forecast for Oxnard and Santa Maria calls for cool nights and warm daytime temperatures. These are idea growing conditions for strawberries. We anticipate better quality and availability by the weekend with a big increase in volume over the next 2 weeks. Market prices have remained firm, but we do expect to see some flex by next week. As we transition into California, the other growing regions are starting to wind down. Several growers have decided to end their Mexico season this week. We will continue to have limited availability with select shippers for the next 2-4 weeks. Market prices on Mexican fruit has been steady and quality is fair. Florida production has slowed down recently due to weather. Quality is being reported as fair. Shippers hope to have better supplies and quality next week, then gradually fade out of harvest by the end of the month to early April.

Transitions:
Oxnard and Santa Maria strawberry production is improving. We will see better availability and quality moving forward. Mexico is coming to an end. Florida is expected to last 3-5 more weeks.

We are experiencing a volatile market due to the Yuma growing region finishing up over the next few weeks. Some suppliers have already transitioned to Salinas. Quality is still a serious problem with purple cast in Salinas, yellowing to misshapen crowns in Yuma, to pin rot in Santa Maria. Even with so many growing regions we still have serious supply issues. This will last for the next 3 to 4 weeks. Processors are also having serious raw product shortages as well.

Alerts:
There is an extreme supply gap as we transition to Salinas over the next 3 to 4 weeks. This is causing the market to reach higher levels.

Transitions:
Salinas has started in a small way and shipper will be slowly transitioning over he next 4 weeks.

The brussel sprout market is trending higher. This is mainly due to some quality issues in Mexico and Oxnard. We are seeing some black spotting, as well as yellowing. We are currently experiencing some heat in Mexico and we hope this will help with quality. But it does look to improve by next week. In the meantime the markets have reacted to decreased supplies.

Alerts:
Due to quality in the growing regions, we have experienced decreased supplies causing a much higher market.

The carrot market remains steady. Excellent supplies continue from the desert and imperial valley. Quality is excellent with minimal arrival issues.

Cauliflower is extremely limited. Yuma is finishing early and Santa Maria is still experiencing quality issues. Salinas will start this week but is nowhere near the amount of acreage needed for the demand. Quality is fair at best with bruising, brown to black discoloration, as well as yellow to cream color in all areas. We will continue to struggle for the next 3 to 4 weeks. The market is trending to much higher levels.

Alerts:
We are experiencing major supply gaps with Yuma finishing their acreage early and Salinas is no where near ready. The market is extremely active.

Transitions:
We will slowly begin transition over the next 3 weeks to Salinas.

Processed celery has been the main issue with this commodity this week. Lack of quality to the raw material has left shippers pro rating orders daily. The carton business is stronger in the market, but the availability is there between the desert and southern California. On the processing end, shippers are optimistic that next week will produce stronger production numbers.There are no rains expected in Southern California or Yuma for the rest of the week. Defects include translucency and waterlogged raw material. Yuma production as well as southern California look to be moderate in production at best for the rest of this week.

Pablano - Excellent size and Quality will continue with slightly lighter supply.

Tomatillo-Much lighter supply and just fair quality, both peeled and husked. Sizing is good. Color and condition will continue to be only fair.

Jalapeno- good quality on new crop pepper, Excellent Size color and condition with huge supplies. Many number 2s are being shipped.

Anaheim- good quality, condition and size are expected to continue as supply have improved.

Quality remains the serious problem out of Oxnard and Santa Maria. We are experiencing black leaves, yellow discoloration, and spotting from the rain. Quality out of Mexico and Yuma is far superior. The market remains active but overall supplies have been meeting demand.

Alerts:
Quality is a serious problem in Oxnard & Santa Maria casing the markets to remains at higher levels.

The rains have passed and shippers continue to try and build bin inventories. Sizing remains the ongoing issue with adequate to good supplies of the larger fruit (95 & larger) and limited supplies of the smaller sizes (140's - 200's). Many suppliers are still experiencing a one to two day delay in filling orders for the small sizes. The issue of sizing promises to stick with us throughout the year as the heavy rains generally mean larger fruit at harvest.

Limes are peaking on smaller sizes such as 230's and 250's. New crops limes have taken over production and are smaller in size. We should see a slow but steady evening out of the size profile as time progresses. Quality has been very nice on the limes over the past few weeks and looks to keep this trend. Weather has been very cooperative recently which will promote good growth and quality in time. March and April are traditionally associated with high prices and volatility but so far it's not out of control in March. April is right around the corner so we shall see. The market right now is lower to steady.

The improved weather has allowed shippers to build bin inventories. Supplies of all sizes have improved with better availability on the smaller 113's and 138's. Despite this the market is steady as good demand on both the domestic and export fronts continues. Quality is generally good with few issues reported.

Good supply on cucumber coming out Mexico, Excellent color, quality and condition on all grades, sizes and pack styles. Supply will continue to be very good for the next week.Euro cucumber is also available with very heavy supply, #1and #2 both single layer and bushel boxes.

Good Quality and condition with good size are currently being shipped from Nogales, mostly 24 size are available as volume drops slightly. Many number 2s being shipped.

Green grapes are in a "close to the bottom if not the bottom" market. Supplies are good and demand seems to be ramping up now which should support current market prices and maybe cause an uptick. Growing conditions are good and look to remain so for the near future. Quality on the newer varieties such as Sugraone are very nice. Promotable volumes are available on Large and Extra Large sizes on both coasts. The market is currently steady.

Red grapes are experiencing an upward market. Lesser quality varieties such as flames are arriving in poor condition and thankfully they are almost finished shipping for the season. Crimsons and some of the other red varieties are commanding a higher price and are definitely worth it. Growing conditions are good for producing high quality grapes. The market is higher for now and as long as demand keeps increasing higher prices will happen.

The green onion market is trending higher due to an issue with labor and quality issues from the heat. There are also experiencing issues with leaf minor in the tops. This has delayed crossing creating a much higher market. We will also see issues with yellow to brown tops upon arrival as well. We will also see supply shortages in the iceless packs as well.

Alerts:
We have delayed crossings causing a much higher market due to lack of supplies. Quality issues have also caused a lack of supplies.

The kale market is all over the board. Some suppliers have better supplies than others. This you can see in the market prices we are currently seeing. Some quality issues of mildew have been showing up in some acreage in Mexico. Oxnard and Santa Maria have had their share of rain which is also affecting quality. Yuma seems to be the best spot for quality.

This market is getting to be very active. Expect supplies in the desert to tighten up severely as temperatures begin to soar in this region. The quality issues continue. These issues include pink ribbing, discoloration, misshapen heads and mildew. Most shippers are proclaiming these defects. These defects are created from rain and past fluctuating cold temperatures and now very high temperatures. Huron is expected to begin approximately March 20th. Salinas will also have light production at this time as well. The quality is unknown at this time in Huron as insects and warm temperatures can play havoc with the crop. This crop is expected to go 3-5 weeks.

Transitions:
Lettuce will begin in Salinas and Huron approximately March 20th.

The leaf market is active with all suppliers. Green leaf and romaine fillets will be tight for the next three weeks. Expect orders to be fill rated. Romaine hearts are in a demand exceeds supply situation. This will continue for two-three weeks minimum. Romaine as well as green and red leaf carton supplies are tightening up fast. Warm weather is expected throughout the week in Yuma with temperatures reaching over 90 degrees. Non rain is expected in Southern California for the week. Common defects include blister and peel, twisting, discoloration as well as light fringe that is seen on romaine, as well as all leaf items. These defects continue to be industry wide. Production in Huron is expected to begin by the last week in March. Light production in Salinas will begin March 20th.

Transitions:
Salinas will begin leaf production March 20th, Huron expected the 21st to 23rd of March.

Cantaloupes are in a nice place right now for buyers. Supplies are good and their quality is probably 95% excellent with very few problems. All sizes are available and promotable volumes are available on the peak size 12 and 15 count melons. The weather has been ideal for growing in all regions and this trend looks to continue. The market is lower to steady for now.

Honeydews are cruising right along. The supplies are good and look to remain so for the rest of the offshore season. Quality has been very nice with almost 99% of them arriving in excellent condition. Weather is idea for growing honeydews and looks to be ideal for the remainder of the season. Promotable volumes are available on 6's and 8's. The market is lower to steady at this time and looks to keep this trend through the week.

Production from Southern Mexico ( Jalisco/Colima) is improving. Quality and condition are good with high sugar all sizes are available in both bins and cartons . Personal seedless is available in limited supply peaking on smaller sizes.

The last few week the yellow, red and white market has a steady feel with a slight downward trend. Demand is stable. Quality is good. The northwest shippers still control most of the volume in the country and are still driving the market. Mexico has hit peak production crossing their yellow, red and white onions into McAllen, Texas. Shipper in this area are watching what the northwest and keeping most of their onions in the Texas to Florida areas due to the freight advantage. Quality is being reported as good. The few shippers that have started in Texas are mainly packing their onions into the 40lb sweet cartons for the retailers due to a decent market. The larger Idaho/Oregon packer predict they will pack until the middle to end of April with a couple going into May. California desert onion supplies are projected to start between the middle of April depending on the weather. As the northwest onion deal comes to an end in in about a month and half we should see a smooth transition, barring any unforeseen issues of course.

Transitions:
Mexico and Texas are packing new crop onions. California is about a month and half away before they start with new crop. Look for a smooth transition.

Peak Seasons:
Mexico has hit the peak of their season

Washington -- D'anjou 90s and larger are steady with good supplies while the 110 and smaller D'anjous are steady to higher with only light supplies. D'anjou's continue to peak on US#1 80/90/100s. The quality has been good. Bosc pears are steady and continue to peak on US#1 80/90/100s. The quality has been good. Red pears are steady and they are still peaking on US#1 45/50 half cartons but red pear availability is still very light. The quality has been good.

Chile - Chilean Bartlett pears are steady to lower on both coasts and they are still peaking on larger fruit with mostly 80/90/100s. The quality has been good. Argentinian Bartletts are also available now and they are also large. We only have them in the west this week but have them on both coast next week. The quality is good.

Alerts:
Small D'anjous are very short in Washington.

Transitions:
Chilean Forelles will be available the week of march 14/15 and Bosc will be available on approximately April 1.

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

Supplies are still light and will remain very tight through March due to the period of heavy rain that hit central America back November of 2016.

Alerts:
Supplies are limited on all sizes of Pineapples for the balance of the month.

We are almost finished with the Idaho Norkotahs for the season. The last shippers will finish up by the middle of April. This is both good and bad, we won't have to worry about who wants what variety anymore but the size profile for the Burbanks is smaller and the pack-out percentage will be lower. Pack-out percentage can be defined as the number of potatoes that make the #1 grade as a percentage of the total. When it drops our suppliers will have to run more bulk product over the line to get the same number of cartons, so it will take longer to cover orders. Larger counts have been getting tighter and if the size-profiles stay the same then 70-count and larger will remain short. So please allow as much lead-time as you can for russet potato orders going forward. Also, expect a stronger market on 80 - count and larger. Quality is good out of shipping points Idaho, Washington, Colorado and Wisconsin.

Bakersfield California - red and gold potatoes are steady on all sizes and are still peaking on A size. Whites are steady but firm due to light supplies. The California suppliers are still sourcing from Washington. The quality has been good.
Idaho - red and gold potatoes are steady but some shippers will flex to match other areas.. The red potato sizing is still split between A and B size while the golds are heavier to As. The quality is good.
Western Washington - reds and golds are steady and both are peaking on A size. The quality has been good.
North Dakota - red and gold potatoes are mostly steady and both are still peaking on A size. Some suppliers will flex on pricing to compete with the new-crop Florida product. The quality has been good.
Florida - they continue to pack all colors and all are fairly steady on most sizes and colors with a high percentage of #1 product, although some suppliers are slightly lower on reds. Reds are still peaking on A-size. The whites and golds are steady and remain heavier to B size. Supplies for both are limited. The quality has been good.
Canada - reds, golds, and whites are mostly steady. The quality has been good.

Transitions:
Bakersfield, California will start packing new-crop desert potatoes between March 23 and April 1, and they will go for 4-6 weeks.

Bakersfield, California will start packing new-crop Bakersfield potatoes between April 23rd and May 1st.

The south Florida season will finish for most packers at the end of April and then the north Florida season will begin. There is a little overlap between the two areas so we should see a smooth transition.

Peak Seasons:
Idaho, North Dakota, Western Washington reds/golds, and south Florida are all in the peak of their seasons.

Yellow Squash and Italian Squash are winding down in Sinaloa and just getting started in Sonora. The Quality has only been fair and will not improve for the next 7-10 days, sizing is mostly fancy followed by medium with some W/B being offered. Hard Squash is still being offered in good supply on Butternut followed by Spaghetti and Acorn. Very limited supply of Kabocha

The import stone fruit season is coming to a close or has closed. Peaches are done for the season from Chile now and will begin locally towards the end of April into May. Nectarines have another two weeks or so before they are finished from Chile and will begin locally in the beginning of May. Import plums will arrive through April and begin locally mid May. Local weather up to now has been positive for good production so we shall see how things go from here. The market on stone fruit is steady to higher as volumes dry up and disappear.

Alerts:
Import peaches are finished, Nectarines have about 2 weeks and plums look to be available through April. Local production is slated to start around the end of April.

Transitions:
Local production is slated to start around the end of April.

The tomato market is steady with fairly light demand. Florida is getting through the wind damaged fruit and from late January and quality is good overall. Grape and cherry tomato fob’s have dropped, while romas have increased. Florida should have steady supplies through May.

Mexico supplies remain steady, with fob's at mandated minimums. Round tomato production will continue forth through April 15th and romas will continue through May. Operations are expected to transition to Baja beginning with roma tomato crops in June and round tomatoes two weeks thereafter.