The Source - May 1, 2019

Eastern Region:
Even though a few areas continue to provide product to customers (mainly contract business), volumes continue to decrease for shippers in the Midwestern and Eastern regions. Availability on sizes, grades and varieties continue to be extremely limited.

Washington:
Prices continue to slowly climb as more Midwestern/Eastern demand moves to the Northwest. Shippers are feeling the pressure to fill orders that call for smaller sized fruit (125ct/138ct). Further impacting the availability of foodservice sizes is the retail demand for bagged apples, which creates a type of ‘tug-o-war’ for the smaller fruit.

Please continue to send Apple/Pear orders earlier rather than later. The more time shippers have to pack product (before load dates), the better chance we have of receiving the requested product. It is essential that some size substitutions be allowed until demand eases. In about 4-6 weeks, we should start seeing schools close for the summer.

Production out of Mexico is down this week due to the transition in growing regions. Volume out of San Luis is down which is typical for this time of the year as they start to wrap up for the season. We are expecting Central Mexico to start up production in the next couple of weeks. Domestic volume out of California is starting to increase as we get further into their season. Prices remain on the higher side compared to Mexican product.
Peru is in with a fair volume and is expected to increase it's volume in the next couple of weeks as more fields open up.
Overall markets out East and West have firmed up on price as there is more demand as we head into the Mothers Day push.

Production has gotten stronger and there is good demand for California fruit. Good volume on 48s and 60s going into next week. The market will remain strong as we are expecting a short season.

Mexican avocado market is holding steady this week. With minimal retail pull for Cinco, there is good volume on larger fruit for the next few weeks, 48s and larger. Small fruit will remain snug, 60s and smaller. Also, seeing good supplies on #2 fruit. First arrivals of Peruvian fruit has made its way to the US and could see fruit on the market as early as next week.

Bell pepper is in good supply with weak demand in south and central Florida. Quality is getting better after storms passed through south Florida last weekend and caused some short term damage. Pepper quality in central Florida is much better than south Florida but the supply is not near as heavy. Overall supply is not as heavy as it seems because of light demand if business picks up the market will jump quickly. Most south Florida shippers will harvest until late May with lighter volume, central Florida will continue into the first week of June and Georgia will start mid to late May.

Green Bell Pepper- Moderate volume of green bell pepper arriving in Nogales. Mostly choice grade being harvested from both Mexican growing districts. The quality from the Sonora district is fair to good. The bell pepper supply from the Sinaloa is coming to an end. Supply from Sonora is steady. Green bell pepper supply meets demand in Nogales. Market on green bells is steady on both fancy and choice grade and on all sizes. Green bell harvest has also started and continues out of the Coachella Valley.

Red Bell Pepper- Better supplies of Red bell pepper arriving in Nogales. The market/price on red bell pepper continues to hold steady. Steady volume on Hot House variety and all hothouse pack styles. Elongated variety coming to an end. Better volume on Hot House variety expected through the week. Quality on hothouse bell pepper is good.

Yellow Bell Pepper- Better volume of Yellow Bell pepper arriving in Nogales. Elongated variety coming to an end. Hot House variety is expected to be pack in 11lb 1 1/9-bushel carton. Quality on Hot House variety is fair to good. Yellow bell pepper demand currently meets supply. Market on yellow bell is still steady/High.

Blackberries are in good supplies coming out of Mexico. Central California is also producing light numbers which are expected to increase over the next few weeks as the weather warms up. Quality has been good and markets are steady to lower.

Blueberries are in good supplies coming out of several areas including Mexico, Florida, Georgia and soon to begin in California. As you can imagine the market is lower with all the options available for loading. Look for the markets to continue to be weak through the next several days if not weeks. Quality is reported to be best out of Mexico and Georgia with the fruit in Florida going into their last phases of production.

Raspberries will still be coming primarily out of Mexico. The new crop West Coast product is becoming available but in extremely light supplies until we move further into May. As spring weather begins to heat up the berry numbers will increase. Quality is good out of Mexico and the new crop fruit reports have been good as well. Look for the market to remain firm and for the supplies to be light but steady into next week.

The strawberry market will firm up as we move into the weekend and experience the Mothers day pull. The increase in demand should last through next week and then subside after that. The transition from Oxnard to the Salinas / Watsonville area is now complete. Several mixed berry shippers are offering the full lineup of fruit out of Salinas, Watsonville and Santa Maria as well. The Market should remain fairly firm with good availability through the weekend. The quality out of all regions has been good with the new crop fruit getting the higher marks.

Transitions:
The transition from Oxnard to the Salinas and Watsonville areas has been completed. There are now mixed berries available in these areas .

The broccoli market continues to be extremely tight with the rain we've had during the growth process in Salinas. This wet weather has caused rain gaps in Salinas. Look for supplies to be a very snug going into next week. Quality is good with slight purpling, some mechanical damage, and occasional yellow cast.

The Brussels Sprout market is in a demand exceeds supply situation. Brussels Sprouts remain extremely tight with supply being affected by the recent rains in Salinas and Oxnard during the growing process. The quality has been affected by the rain and cold weather and sizing tend to run smaller due to this recent colder weather. Look for the Brussels Sprout market to remain tight going into next week.

The carrot market continues to remain steady. The quality is good, and supplies are adequate to meet current demand. We see no change in the carrot market going into next week.

The cauliflower market continues to be in a demand exceeds supply situation. Yields are extremely down due to the wet weather we experienced in the Salinas Valley over the last few months. Overall, the quality is good with minor bruising and yellow cast with weights in the 25 to 28-pound level. Look for the market to stay steady going into next week.

Overall this market is steady. A few suppliers have dropped pricing slightly, but minimal in comparison to daily market pricing. Supplies will be light thru the middle of May according to multiple shippers. The quality has been fair, thus far. Common defects being reported to include bowing, mechanical, pith, leafy tops and slight insect damage. Supplies continue to fall short in comparison to demand. Escalated pricing continues to exist with all suppliers of this commodity. Supplies in Mexico are light. Oxnard and Santa Maria will be the main region for production.

Jalapenos- Moderate supply of Jalapeno continue to be available to load in Nogales, AZ from Mexico. Growers continue to harvest jalapeno out of the Sonora and in Northern Sinaloa. Quality out of Sinaloa is fair to good. Jalapeno from the state of Sinaloa is expected to finish over the next few weeks. New crop quality from the Mexican state of Sonora is good. Mostly medium to large size are available from
both growing regions. Market on jalapeno remains steady in the high-teens.

Pasilla- Good supply of Pasilla peppers available to load in Nogales, AZ from Mexico. Better volume is expected to continue through the week. Quality on Pasilla is good. Size on the pepper is mostly medium to Large. Market on Pasilla is steady. Pasilla crossing through Nogales is being harvested in Sinaloa.
Anaheim- Moderate supply of Anaheim available to load in Nogales, AZ from Mexico. Moderate Anaheim production expected to continue through the week. Anaheim crossing through Nogales is being harvested in the Mexican states of Sinaloa. Quality of peppers from Sinaloa is fair to good with mostly medium size. Anaheim also being harvested in Sonora, Mexico.

Serrano – Moderate supplies of Serrano peppers available to load in Nogales, from Mexico. Supplies are expected to remain steady throughout the week. Supplies currently meet demand. Price on Serrano pepper is currently in the teens and should remain the same through the week. also crossing through McAllen, Texas.

Tomatillo – Husk tomatillos are available to load in Nogales, from Mexico. Quality
of husk variety is good. Good supplies on husk tomatillos are expected to continue
through the week. The tomatillo market is expected to increase. Both Husked and
Peeled tomatillos are increasing in the teens.

The Cilantro market remains steady in Mexico with the recent warm weather and now production has started in Salinas. The cilantro quality is good with an occasional yellow leaf. Look for the cilantro market to continue to stay steady going into next week.

The foodservice sizes 165’s and smaller are tight, continue to expect limited availability moving forward. Prices continue to climb in the high $20’s low $30’s on choice and fancy fruit. Lemons supplies continue to peak on the large sizes 75ct/95ct/115ct. The rain and cold weather brought on the larger fruit and smaller fruit is staying limited on sizing and green on the trees.

Limes supplies are peaking on 200’s and 235’s markets in the high $20’s/low $30’s. Supplies are expected to remain limited on 110’s – 175’s. The market is still expected to stay strong in the low $40’s until supplies improve. Suppliers are still holding off on taking on open market orders. They’re doing their best to cover normal weekly volume as best they can. Cinco De Mayo pull is this week and demand is looking strong.

Shippers are harvesting late season Navels. The foodservice sizes 113’s and smaller are limited and will stay limited heading into May. It’s advised to place orders in advance to help fulfill orders in full. Most shippers are looking to get through the navels before transitioning to Valencia’s, which looking to start in a few weeks. Quality is looking good and markets are slowing climbing. On Specialty Citrus, we’re still steady on the Delite Mandarins that are peaking on 15’s - 40’s. Cara Caras & Blood are moving along, steady supplies are available. Golden Nugget Mandarins are looking to conclude by mid-May and Ojai Pixie Tangerines are coming along nicely, quality is looking great and the taste is excellent. Please reach out for pricing.

Cucumber supplies are steady with super selects on the tight side and the market is moving up. Selects are starting to move better at slightly higher pricing. Mexico crossings are starting to wind down for the season and buyers are moving east for their supply. There is a wide range of quality, south Florida product is showing some issues with yellowing and scarring while product coming from central Florida has good color and quality, but volume is lighter and demand for that product is higher. Georgia is going to start very light volume with a few shippers this weekend, the transition should begin next week.

Alerts:
Number 1 product is getting much tighter.

Good supplies of cucumber’s continuing to cross through Nogales, AZ this week Sonora, MX. Quality out of Sonora growing district is good. Currently, all cucumber sizes are being packed in 1 1/9-bushel pack and carton cucumber. The cucumber market is currently steady and is expected to remain steady. The quality out of Sonora is good. Mexican cucumbers are also available in San Diego from the Baja growing district.

Eggplant supplies are very light in south Florida. Central Florida has not started yet, shippers expect to start in the next week and it will not be too soon with quality going down fast in the southern part of the state. The market on fancy eggplant has risen over the past week with choice eggplant staying fairly steady. With the season winding down in the southern part of the state growers are packing a higher percentage of choice product. We expect supplies to stay tight until Plant City, Fl. starts, and even at that point volume will not be heavy for at least the first week.

Alerts:
light supplies of fair product.

Light supplies of eggplant arriving from the Mexican State of Sinaloa. Eggplant supplies will continue to decrease as we enter the month of May. Light supplies of eggplant are being harvested from this growing district. Mostly choice quality being packed. Market on eggplant is slightly increasing this week. Eggplant from California is expected to be harvested as soon as next week. Quality from Sinaloa on fancy and choice pack is mostly fair.

Green grapes are still limited in availability as only import storage fruit is available. Because we are running a little behind on the Mexican start date, the industry is forced to fill the demand with what is available. Unfortunately, that means utilizing older storage crop. This fruit is showing high amber and the occasional soft and wet berries. We can expect this to continue to be the case until we transition into New Mexican / Coachella harvest by the second week of May. Due to the delayed harvest in Mexico, it looks like both areas will be starting up at the same time this year.

Alerts:
Quality is a challenge on the remaining import fruit.

Transitions:
New harvest is expect to start late next week in Mexico.

Import red grape supplies continue to be steady. All sizes are available. The quality has been holding strong and market prices remain fairly flat. We do not expect any disruptions or major changes between now and transition. The Mexican and Coachella harvest are expected to get started the week of May 6th. Transition should be smooth, but we may see an increase in price on the new harvest at first. As the summer continues, we expect to have good availability and great quality.

Transitions:
New harvest is expected to start next week in Mexico.

Green Onions supply continues to be plentiful with the recent nice weather in Mexico and Salinas underway. The cooler weather in March is causing occasional leaf minor and mechanical damage. The green onion market will continue to stay steady going into next week.

The kale market continues to stay steady as supplies look steady with the recent nice weather in Santa Maria and now in Salinas. Quality is good with full bunches, and only an occasional yellow leaf being reported.

Very good weather in the growing region of northern and southern California has made this commodity readily available with multiple suppliers. Supplies are expected to be steady through much of next week. Some common defects being reported to include mechanical, occasional growth crack, slight insect damage, and puffiness. Shippers in the growing regions of Santa Maria/Oxnard, and Salinas expect better quality next week. Supplies exceed demand. The weights on wrap lettuce range from 40-44 pounds.

Very good weather in the growing regions has romaine as well all leaf items in plentiful supplies. The market is steady. Shippers anticipated stronger activity in the marketplace last week, but this did not happen. Demand is flat, overall. There have been defects being reported upon arrivals. These defects include slight insect damage, mechanical, wind damage, and some pinking/discoloration. These are defects reported on romaine as well as green and red leaf and butter. Shippers are forecasting good supplies for production next week.

The Tender Leaf market continues to stay steady on spring mix, arugula, baby spinach, and cello spinach. Quality is good with minimal yellowing and bruising of the tender leaves. Look for these items to be steady going into next week.

Cantaloupe market remains red hot as we are winding down the offshore season. Very light offerings on both east and west coast. Open market fruit is going for a premium if you can get your hands on it. Offshore fruit, as far as quality goes, it will finish strong as it cuts well and eats great. Domestic fruit is about 2 weeks away from hitting the market. The next few weeks will be a challenge as suppliers struggle to cover contracts. We will have to welcome the option of subbing sizes and also have some flex as far as loading, there will be delays.

Alerts:
Cantaloupe market remains red hot as we are winding down on the offshore season. Domestic fruit is about 2 weeks out form hitting the market.

The honeydew market is climbing. As cantaloupes are limited, the honeydew market has reacted and gotten stronger. Very light offerings on smaller fruit 6s,7s,8s,9s. Mostly large fruit in the pipeline 4s and 5s. This market will only get stronger as the offshore season is tapering off. Domestic fruit will be available in about 2-3 weeks.

Better supplies of watermelon available to load in Nogales, AZ. Mostly 2/3 bins continue to be packed. Few seedless melons continue to be packed cartons. Watermelon crop from Sonora, MX is being harvested with better volume. Better supply of seedless watermelon is expected to arrive in Nogales, AZ next week. The seedless watermelon market is currently decreasing and is expected to remain steady with better
supplies from Sonora, MX.

Yellow onion markets are lower as the Northwest looks to finish up the storage season. Load volume deals are out there with some lots showing translucency and sprouting, especially in the super colossal and colossal sizes. Red onions are limited but also slowly coming down as shippers work to clean up inventory. White onions remain scarce. Texas is in full swing with all three colors and looks to have supplies through May. California desert has started up with all three colors as well. Texas and California will exhibit a thin, flaky skin and shorter shelf life. New Mexico and the California Valley are expected to begin early June.

Alerts:
Expect some translucency and light sprouting in Northwest onions

The pear market is getting active with smaller sizes seeing increased demand/prices on D’Anjou, Red D’Anjou, and Bosc pears. Chilean and Argentinean pears are still available for loading in Los Angeles (Arg. available for another 2-2 ½ more weeks).

California Bartlett pears expected to start sometime after July 4 (estimating the week of July 8).

Pineapples supplies are expected to be snug for another two weeks. The overall pineapple industry seems to be slightly tighter than estimated. Pineapples from all sources have not matured at their typical pace due to weather-related issues. Our suppliers will be doing their best to help fulfill normal business orders. Markets remain steady $12-$14 depending on the size.

Norkotah supplies in Idaho are quickly finishing up for the storage season. Burbanks will become the main variety out of Idaho until new crop harvesting begins in August. Sizing on Burbanks is mixed with a good supply of all sizes available at this time. Consumer business is good and will increase as we approach the Mother's Day holiday pull. Pricing is holding steady to slightly lower on all sizes. Quality on Idaho Burbanks is good with some lots showing some hollow heart and isolated cases of shoulder bruise. The remaining late storage Norkotahs will exhibit some internal/external bruising, light hollow heart, light peepers, and occasional soft rot. Washington, Colorado, and Wisconsin continue to produce Norkotahs; Wisconsin quality is fair.

Colored potato markets are holding steady as supplies meet demand. North Dakota is, for the most part, finished for the season. California has started up with some white potatoes with limited supply but looks to improve over the coming weeks. Florida will transition to northern crops at the end of this month/early May. Florida quality remains excellent. Arizona will start up mid-May with some red and yellow and run into July.

Squash supply is very good from south Florida to Georgia. Yellow squash has been tight for the past two weeks but better supplies are starting to show up. Storms that went through the southeast last weekend caused some short term issues with yellow squash and cut down on supply significantly. Supply in Central Florida and Georgia is picking up and should continue with good production going into the weekend. Temperatures are rising in both regions which will keep plants producing at a steady rate. There is some rain and thunderstorms in the forecast for the weekend that could slow harvest a little.

Transitions:
squash is transitioning to Georgia.

Peak Seasons:
squash is in peak season.

Good supplies on both Italian and Yellow S/N squash crossing through Nogales, AZ from Sonora, Mexico. Harvest on Italian squash and Yellow S/N from the Mexican state of Sinaloa has now ended. Crop from Sonora is currently producing sizes from extra fancy to medium. Very few large sizes. Market on soft squash is steady and is expected to remain steady through the week. Quality on squash from Sonora is good on both
varieties.

Domestic stone fruit harvest is slowly ramping up. There is increasing volumes of White Peaches and Yellow Nectarines. Sizes are limited (mostly large fruit). As we get into May, we expect to see overall volumes, quality, varieties, and sizes to improve drastically. As harvest increases, we will see markets start to decline into normal ranges. We continue to have the availability of import Plums and markets have been flat. We expect domestic plums to get started mid-May.

Spring crops in the Palmetto/Ruskin growing region are producing good volume while Immokalee farms finish for the season. The volume from the small overlap last week, in conjunction with the amount of crown picks in the central part of the state, provided for a brief dip in the market which has rebounded by a couple of dollars already, however FOBs remain below double digits the first half of the week. Sizing remains on the larger side evening out FOBs across XL, Lg, and Med size mature greens. A steady flow of Roma tomato imports across the southern US border influences Florida Roma offerings which remain unchanged this week. Roma tomatoes are light in production with more growers starting this week. Grape and cherry tomato harvest have slowed a bit as some of the hot weather in the region has subsided. Markets are unchanged with plenty of availability.

Alerts:
An effective date of May 7, 2019 has been set to terminate the current U.S.-Mexico-Canada (USMCA) Tomato Suspension Agreement from 2013 unless the United States and Mexico can come to a new agreement where both parties agree to renew operating terms and enforcement procedure, strengthening anti-dumping measures for tomato imports into the United States. As of this week, no new agreement has been made, resulting in the proposal of duties and tariffs being imposed on imports ranging between 17%- 40% by July, however it is unclear what that means for the costs of imports as soon as next week.

Although Mexico grown tomatoes are in seasonal decline, there is still enough supply to meet the needs of the market stabilizing FOBs at the mandated minimums on all varieties. Mainland Mexico will be wrapping up production in Sinaloa by mid-May. During that time, Northern Baja is expected to break ground in San Quintin, Mexico. Roma tomatoes are in good supply out of mainland Mexico with more programs beginning in Baja in the next couple of weeks. Grape tomato offerings are steady and expected to contract a bit this week with supply lessening amidst transition in the short term.

Alerts:
An effective date of May 7, 2019 has been set to terminate the current U.S.-Mexico-Canada (USMCA) Tomato Suspension Agreement from 2013 unless the United States and Mexico can come to a new agreement where both parties agree to renew operating terms and enforcement procedure, strengthening anti-dumping measures for tomato imports into the United States. As of this week, no new agreement has been made, resulting in the proposal of duties and tariffs being imposed on imports ranging between 17%- 40% by July, however it is unclear what that means for the costs of imports as soon as next week.