The Source - May 10, 2017

Washington - reds are steady on the smaller fruit and slightly higher on the 80's and larger. Smaller reds have been more available lately. Golden delicious are steady but strong due to light supplies esp. on the smaller sizes. Goldens are peaking on 72/80/88s and supplies of 100s and smaller are very light. Granny-smith are steady to higher on all sizes do to light supplies and strong demand. The fruit is still peaking on 72/80/88's. The availability of 88s and smaller is extremely light, most suppliers are still subbing up in size and grade on anything smaller than a 72/80 and this will continue for the balance of the season. The Gala market is steady on all sizes. Galas are still peaking on 80/88/100/72s and they have better volume in the larger sizes. Fuji's are steady to higher on all sizes and are still peaking on 72/80/88s. Fuji supplies are light. Most Honeycrisp suppliers are finished although a couple still have fruit. The market is high and strong.
Michigan--Red Delicious are steady on the larger fruit and steady to higher on the smaller sizes. Reds will continue into mid to late June but most other variety's have finished for the season. The quality has been good.
New York---the Empire, McIntosh, Gala, and Red Rome markets are high and strong due to extremely light supplies. Red delicious are steady on the larger fruit and steady to higher on the larger due to light supplies. New York should continue packing into June. Most of the remaining fruit is large. The quality has been good.

Alerts:
Washington is still very short on 88 and smaller size golden delicious and Granny-smith apples. This is a season long issue so plan ahead!

Peak Seasons:
Washington is still in the peak of its red and golden delicious, Gala, and Granny-smith seasons.

Michigan is still in the peak of its red delicious season.

Central Mexico is in production, but quality is fair due to the warm weather in the region. California is having good growing weather and is in full production. The market is lower with more regions in production, and less demand. Washington state is also having good growing weather and the production is picking up. Peruvian production is picking up with better weather in both growing regions. Both growing regions are still seeing spreading and seeding in the tips due to warm weather over the last month.

California production post Cinco de Mayo has dropped back a little and looks to stabilize at around 8 to 10 million pounds through May. Demand is very strong. Size now peaking on 48s/60s, but demand still out pacing supply on the 48s and expecting to see better size come toward the end of May to the first part of June.

Last week we saw Mexico shipments fall off 28% to 26 million pounds. This week Mexico shipments are expected to be roughly the same as last week. Industry projections show volume continuing to drop weekly through June. There still remains concern that Mexico may have over harvested in February and March and leaving us with some kind of gap for June.

Green bell Pepper are steady in supply with good quality shipping from Nogales Az. and Coachella Ca. Mostly choice grade in Nogales and mostly number one larger sizes on New crop in California.

Colored Bells ( Red, Yellow and Orange) are finishing in Nogales this week. Good quality and condition have started in Coachella Ca, . Market and demand are much better Packing 25# 15# units. Both number one and number two grade.

Transitions:
Bell pepper are transitioning from Nogales Az to Coachella Ca. Quality is very good on bot green and red with limited supply of yellow.

Blackberries continue to be the problem child of the berry patch. We have been relying heavily on the Mexico harvest to fulfill our needs, but supplies have been limited. This looks to be the case for the next 2 weeks as we patiently wait for the Salinas / Watsonville production to begin. If the weather cooperates, we expect to have new harvest by the end of the month with much improved availability come June. Market prices have been steady with all the major grower / shippers; some occasional spot buy opportunities in the Los Angeles area.

Georgia and North Carolina should get started with light harvest by the beginning of June.

Alerts:
Supplies are still limited.

Transitions:
Salinas / Watsonville areas expected to start with light volume in 2 weeks.

Blueberry supplies have been consistent in all regions. Some east coast growing regions and Mexico are coming to an end. California new crop is ramping up. Supplies are expected to be excellent moving forward. Quality as a whole has been strong. Markets have been steady.

Mexico - The Mexico season has past it's peak and production is slowing down. Fruit is still available, but quality is being reported as fair. We have seen some soft fruit with light shrivel. Market prices have declined on the remaining MX fruit with some opportunity buys available.

Florida - This season is also wrapping up. Most of Central FL is done. Some northern growing regions are still producing, but availability is expected to last just a couple more weeks. Quality on this fruit has been solid. Market prices have been steady.

Georgia - Availability is expected to last through Memorial Day in this region then start tapering off quickly. Again, quality has been consistent and markets have been steady.

California - New harvest has started in the central valley. Volume is still light this week, but is expected to really ramp up next week. Quality will be excellent with plenty of fruit to promote. Market prices have been firm thus far, but as volume increases, we expect to see some aggressive offers.

North Carolina and New Jersey expected to start in the upcoming weeks.

Transitions:
Central California will ramp up next week. Mexico, Georgia and Florida are winding down.

Peak Seasons:
Central California season will be in peak production in the next 2-4 weeks.

Raspberries are limited this week, but we are on the cusp of better supplies. Santa Maria, Salinas and Watsonville production is expected to increase by next week. Mexico had a slow start at the beginning of this week, but supplies are expected to improve by the weekend. Between all regions, we expect availability to improve week over week as we move toward late May. Quality in all areas has been excellent. Market prices have been firm and demand has been strong.

Transitions:
Salinas and Watsonville areas expected to increase harvest as early as next week.

Strawberries continue to be in excellent supplies. We are seeing increased production in Salinas / Watsonville with plenty of fruit left in Santa Maria. Oxnard has approached the end of its season and quality is fair on the little remaining fruit.

Salinas / Watsonville - The weather has been cool and mostly dry in this area. We have seen early morning patchy fog followed by clear days with highs in the 60's. No rain is forecasted in the immediate future. Production continues to improve and quality is being report as very good. Berry sizes have been ranging in the 12-14 count. We expect supplies to continue to improve as we approach summer and peak season. Market prices have been slightly firmer in this area, but we expect to see some spot buy opportunities as we enter next week.

Santa Maria - This area did see some very light rain over the weekend. Production was slow at the front part of the week, but all of that fruit has been cleaned out of the fields. We expect production of high quality strawberries to increase through the weekend and into next week. Color has been a little lighter and sizes range between 16-18 count. Markets have been a little softer on Santa Maria fruit with some opportunity buys available later this week. Supplies are expected to last through June in Santa Maria.

Transitions:
Oxnard is finishing. Salinas / Watsonville is improving. Santa Maria will continue to have fruit through June.

The broccoli market is extremely active again. We are in another supply gap created by the rain and planting gaps from January and February of this year. Supplies are limited in all growing regions. The long term outlook is well into next week. We are also experiencing decreased crown size. Demand has definitely picked up pace. The quality has been nice despite this supply gap. There has been minimal dehydration or yellowing and vibrant green color.

Alerts:
Broccoli supplies are decreasing rapidly with another supply gap due to the rain from January and February. The market is extremely active.

The brussel sprout market is trending higher. Supplies from Mexico have been delayed as rain hit the growing region this past weekend and into Monday. Quality has already been affected with previous weather and the rain will not help. Supplies look to improve by late next week.

Alerts:
Rain in the growing region of Mexico this past weekend has put a damper on supplies. The market is trending higher.

Carrot supplies of jumbo, cello and value added product are very good and look continue to be so for a while.

The cauliflower market is once again extremely active. We are hitting another planting gap from previous weather in bot the Salinas and Santa Maria growing regions. Supplies will remain limited well into next week. There have been reports of off white to light yellow color and bruising upon arrivals.

Alerts:
We re experiencing extremely limited supplies. The market is trending much higher due to planting gaps caused by previous weather.

The celery market continues to gain strength in the marketplace. Demand exceeds supplies and escalators are in effect. Warm fluctuating temperatures has accelerated the growth pattern of this commodity. Common defects include pith and seeder, slight bowing as well as some insect damage. Harvesting is occurring out of the Santa Maria and Oxnard. Salinas production will not begin until June. Michigan production is expected at the end of June to early July.l June. Large sizing continues to be the least available of all the packs. Expect pricing to continue to rise throughout the week.

Transitions:
Salinas will begin production in June. Michigan will start in late June to early July.

Pablano - Excellent size and Quality will continue with improved supply.

Tomatillo-Much lighter supply and just fair quality, both peeled and husked. Sizing is only fair. 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

Cilantro supplies have increased out of the Oxnard growing region. Supplies out of Mexico are steady but not enough to make the market react. We have seen sporadic arrivals of yellow to brown leaves and some slight black decay. The market varies depending on the loading location.

Size growth to the lemon groves in California have left good volume of large size fruit 115s/95s/75s, but very limit supplies small fruit 140s/165s/200s. All shippers have reached demand demand exceed situation on small fruit 140s/165s/200s that will last through the summer. Look for very active and strong markets to continue through the summer.

Alerts:
Demand exceed supplies on 140s/165s/200s/235s all grades.

Limes continue to peak on smaller sizes such as 230's and 250's while the larger sizes remain snug to unavailable. 110's through 175's are extremely tight with 110's being virtually unavailable. New crops limes are smaller in size and due to the lack of rain and hot temperatures they look to remain peaking on the small sizes for several weeks. Quality has been excellent on the limes over the past several weeks and looks to keep this trend. The market is currently steady on the larger sizes and lower on the smaller sizes.

Export and domestic demand is remains very strong. The California Navel season is rapidly coming to an end. Many shippers have finished and others will be done by the end of next week. There more shippers beginning to harvest Valencia oranges and supplies are starting to show improvements. Note, this seasons Valencia crop is 30 percent lighter than last years crop, with higher pricing expected and peaking on the larger sizes of 88s/72s/56.

Limited supply on cucumber coming out of Nogales Mexico, product has also started crossing in Baja California. Excellent color, quality and condition on all grades, sizes and pack styles. Supply has dropped on Euro cucumber as well, #1and #2 both single layer and bushel boxes.

Good quality and condition with good size are currently being shipped from Nogales, mostly 18 count followed by 24 count are available as volume drops slightly. Many number 2s being shipped showing some scarring and occasional internal discoloration. Supply from Mexico will wind down and Coachella Valley has started shipping. Cool weather has limited current supply.

Green grapes are still high priced. Supplies are lighter due to Chile ending their harvest. Problems continue to surface on a majority of the grapes ranging from decay to nesting which has created a short and high market. Shippers are having to re-pack nearly 100% of all green grapes. The Mexican and domestic grown desert grapes are available in light volume with the desert starting in the next week. The market is steady.

Transitions:
Mexico has started with light volume and the desert should start in the next week.

Red grapes are in a steady to higher market. Offshore supplies are nearly depleted and thankfully there are still good grapes left. Grapes from Mexico are barely going and the desert is starting in a small way this week. Quality is being reported as very nice.

Transitions:
Mexico has started and the desert is starting this week. Offshore grapes are still available but the supply is not being replenished so it will be gone soon enough.

We continue to have good supplies from Mexico. This has kept prices relatively competitive. Overall quality has been good with only a few arrival issues with yellow to brown tops.

There have been ample supplies of kale. Thus keeping the market competitive from all loading locations. Quality has been excellent with little dehydration or yellowing.

Demand has fallen off. Good supplies of this commodity exists with multiple suppliers. There have been issues directly related to weather conditions in the growing regions. These issues include puffiness, mildew, insect damage as well as mechanical damage. Weights are averaging 40-44 pounds on liner product. Santa Maria has light to moderate production, but Salinas has good supplies. Expect plenty of supplies for this Mother's day week.

Demand has fallen off on all leaf items. Romaine has the best availability and multiple shippers are listening to offers. The weights on romaine are averaging 31-35 pounds with 10-13 inches in length. The big issue has been fringe burn that many shippers are dealing with. The burn was caused from previous weeks high temperatures. Romaine hearts have strong availability. Green and red leaf will be in good supplies throughout this week with competitive pricing. Defects on leaf that have been seen upon arrivals include seeders, discoloration, and mechanical damage. Santa Maria will have moderate production with fair quality.

Cantaloupes are increasing in volume over the next week or two. Demand has been pretty good for a while now and looks to possibly increase then taper off after schools get out towards the end of May and the beginning of June. Quality continues to be 95% excellent with a few problems such as softness showing up. We have good volume on 9's, 12's and 15's. The weather has been ideal for growing in all regions and this trend looks to continue. Mexico has started packing lopes and the desert has started with small volume. Domestic lopes are being packed in the desert now with volumes that will continue to increase. Offshore supplies are past their peak now. The market is currently lower.

Transitions:
Mexican and domestic lopes are being packed.

Honeydews are going down now. The overall supply situation has bumped up. Mexico has started with their honeydews and they are very nice too. Mexican dews are peaking on 5's and 6's which has brought down the market to promotable levels. The desert has started in a small way. Quality has been very nice for offshore dews with almost 99% of them arriving in excellent condition. Weather is ideal for growing honeydews in all areas. The market is lower.

Quality and condition are much improved on conventional seedless. Personal seedless are available in limited supply peaking on smaller sizes. Sonora spring crop has started and volume has improved. Sugar has improved as weather continues to warm. Good demand on larger fruit. mostly bins available and cartons being packed to order.

Onion market has been fairly steady out of all shipping points with little change in sight. New crop is coming out of California, Texas and Georgia. Quality is being reported as good. Yellow and red onion sizing out of Texas is peaking on Jumbo and smaller only producing few Super and Colossal. California has good mix of sizing on all colors and sizes. Few growers in Southern California did get hit with some thunderstorms that drop up to inch or more of rain Sunday/Monday that will keep them out of their fields till Thursday. Other only got a few drops. Storage crop is still available out of Washington which will slowly wind down by the end of May. Idaho is still shipping storage supplies into next week. We are down to just a couple shipper left. Quality is still good as long as you keep the storage onions cool 40 degrees. Once they warm up they start to come to life. Central California crop is on schedule to start the end of this month. New Mexico looks to be ahead of schedule and could start the middle of this month.

Transitions:
Idaho finishing up just as Southern California is getting up to speed

Washington -- D'anjou pears are slightly higher and they are still peaking on US#1 80/90/100s. Small sizes remain very short. The quality has been good. Red pears are steady and they are still peaking on US#1 50-size half cartons but supplies are very light. The quality has been good.

Chile - Argentinian Bartletts are steady and remain large with 100-size and larger fruit only. Chilean Packhams are steady and they are heavier to larger fruit but all sizes are available on the west coast. Chilean Forelles are steady and they are still peaking on smaller fruit. The quality for all has been good.

Alerts:
Small Washington D'anjou pears supplies are very short and will continue to be for the balance of the season.

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

We are seeing better supplies coming from the tropics and expect to see good supplies through May and into June.

Large cartons potatoes (40- 70 count) out of Idaho, Washington, Colorado and Wisconsin are in shorter supply and this trend could continue as we progress through the end of this year storage crop. Small potatoes (90 count and smaller) should be in ample supply as should 6oz #2's. Market's have settled in for a gradual upward trend. Quality is good with a few lots still showing some light internal bruising, hollow heart and occasional soft rot. Growers are in the process of planting next years crop.

Bakersfield California -- golds, whites, and reds are steady on all sizes and all are peaking on A size. Premium/Bakers and C-size remain short for all colors. The quality is good with minimal skinning and the #1 availability is good.
Phoenix, Arizona -- Red and gold potatoes are steady on all cartons and all are peaking on A size. The quality is good.
Idaho -- most packers have finished for the season.
North Dakota - most packers have finished for the season.
South Florida -- most shippers are finished with all colors but a couple suppliers are still packing and the market is steady to lower. Carton #1 product is still the bulk of the current production. The quality has been good.
North, Florida -- red, white, and gold potatoes are steady and supplies have improved in all colors. Number two product is fairly limited in all colors. All colors are peaking on A-size and the quality is good.

Peak Seasons:
Bakersfield, California is in the peak of its season.

Yellow Squash and Italian Squash are winding down shipping from Sonora. Yellow squash is in very short supply and Italian supply is good. Cool weather has slowed the new crop in California. sizing is mostly medium followed by fancy and xfancy 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 finished. Weather in California's San Joaquin Valley has been positive for good production. The wet winter and plenty of cold nights has growers expecting a great CA stone fruit season. Stone Fruit harvesting has started slowly in the San Joaquin Valley. Some nectarines, peaches and apricots are being packed. Plums are coming later next week and through May.

Transitions:
Peaches, nectarines and apricots are being packed and volumes are steadily increasing. Plums are coming next week and the last week of May.

The FOB market has certainly reacted to a much higher demand, as supplies begin to diminish. Florida has a short week this week, as the heat has flushed this crop. Although there will be more tomatoes next week, out of Ruskin/Palmetto,
this growing area has begun to taper off. Freight rates in the west are also providing for a stronger market in the East further increasing demand regionally. Prices remain reasonable for the quality, which continues to remain excellent. Roma production good but pricing is stronger compared to their Mexican grown counterpart. The grape tomato market like rounds is stronger this week. Demand is good and markets are steady. The cherry market continues to be stable out of Florida and quality has been very good. Quincy, Florida and Beaufort, South Carolina, will begin production around the first week of June and market will be steady until transition occurs. That being Said, California is not set to begin until the end of June and Markets have potential to trend higher than we have seen in months.

Rounds tomatoes are finishing up out of the Culiacan crop and demand seems to be fair with Mexico tomatoes supplying the west. Roma tomatoes from Culiacan are still trickling in but quality seems to be suspect. Central Mexico is also in production of roma tomatoes and we will start seeing this fruit in the next week or so. Quality should be better as these are newer fields where size will trend larger initially. Baja's roma production is also coming along, but most of that fruit is staying on the West Coast due to higher freight rates. Grape tomatoes out of newer fields in Mexico are helping improve quality from recent weeks, but Florida has the best quality overall. Mexico has cherry tomatoes for less, but the quality is not as good. Baja is also sending cherries across the boarder, however similar to the romas, most of them are staying on the West Coast. With Mexico finishing up, supply will tapper as Baja isn't expected to hit their stride until the first week of June, helping overall supply until California gets started a week or so before July.