The Source - May 12, 2016

Washington - Most red suppliers are still peaking on 72/80/88s. Red delicious are mostly steady on the larger sizes and they are steady to higher on 113s and smaller. Most shippers are still subbing up to the extra-fancy grades to cover volume orders of the fancy grade, especially in the smaller sizes. Golden Delicious are also steady on all sizes and grades and are still peaking on Wash-Extra 100/113s. Most suppliers don't have much larger than an 88-size Golden. Granny Smith are steady on all sizes and continue to peak on 88-113s. Most suppliers still don't have much larger than an 88 or smaller than a 125. Galas are steady to slightly higher on all sizes and grades. The market remains firm and will slowly rise until we get to the end of the season. Most Gala suppliers still don't have much fruit larger than an 88. Fujis are steady for now on all sizes, but the market is firm due to light supplies. The Fuji market will also continue to slowly climb until we reach the end of the season. Washington Fujis continue to peak on extra-fancy 80-100's. Pink Lady's are steady but firm due to very strong demand. The quality for all varieties has been good.
Michigan - Red delicious are steady on all sizes, but supplies are limited especially on smaller fruit. Reds continue to peak on 80/88s. McIntosh are steady to higher and supplies remain very short with most packers being close to finishing. Galas are steady to higher on all sizes due to light supplies, but most suppliers are close to finishing and only have the larger sizes left. Jonathan supplies are light, but the market is steady. Red Rome supplies are very light and they are almost finished as well. The quality for all varieties has been good.
New York - Red delicious, Empires, and McIntosh are steady to higher and small fruit remains very short. The remaining McIntosh are large and Empires are nearly finished for the season. The fruit quality has been good for all.
Chile - There are a few Chilean Galas on both coasts and the markets are steady on both sides of the country. Both coasts have 100-size and larger.

Alerts:
Small reddish apples are tight everywhere: New York and Michigan are essentially done and the Washington markets for red delicious, Fujis, Galas, and Pink Ladys are rising as they get hit with most of the nations demand.

The asparagus market remains steady for the end of this week. Supplies are plentiful from all growing regions. Quality remains excellent with little dehydration or spreading of the tips. Sizes still are predominantly to Standard and Large. But there are good supplies of Jumbo Asparagus in Salinas.

California will be peaking over the next few weeks with good volume. Size is skewed to small fruit, creating a supply hole for the mid-sized and large fruit. Some growers are holding off on harvest as they watch prices climb with the short fall is supplies that is being created by the lack of fruit Mexico now has to bring to the US.

Alerts:
Demand is great and markets very active with Mexico's short fall in supplies.

Mexico's shipments to the US is down nearly 50% from what it was just 3 weeks ago. At the same time, they have raised their field prices by 100%. The avocado industry has a big hole in the supply line right now, and will take awhile to come back. Supplies look to be very tight and markets active until late June, with no significant volume increase expected until sometime in July.

Alerts:
Mexico's shipments to the US is down nearly 50% from what it was just 3 weeks ago. Supplies very short and markets very active.

Green bell pepper- Most growers in Mexico are finishing with quality and sizing being only fair. Southern California is shipping good size and quality.

Red bell peppers are becoming less and less available every week. Quality with mostly number one product being offered in both the blocky and elongated variety. Many shippers winding down on volume. Mixed color issues are due to cool weather.California has started with mixed color on Reds.

Yellow bell pepper- volume is lightening with some growers finishing. Quality and condition are only fair on both number one and number two product.

Mexican production has already passed peak for this season and will begin to decrease in volume over the next several weeks. California production will not begin until later May or early June. We will begin to see lighter availability over the next few weeks as we transition from Mexico to California. Quality has improved and we're seeing less red cell and soft berries.

Transitions:
California production will begin late May into early June.

Domestic production is increasing with good availability out of California, Florida, Georgia, Carolinas and many of the smaller (regional) areas as well. Good volumes are reported again this week. Mexico continues to produce steadily. Availability and quality remain good in all areas. Promotional opportunity is available.

Central Mexico continues to be the largest production area. California is increasing production as we move into May. We have had some issues with availability as forecasted volume estimates have decreased. Some issues with mold have also decreased pack outs. Quality has been good and fairly consistent with the fruit that makes the pack.

Transitions:
California production is getting underway as we move into May. Watsonville region has begun packing light volumes.

California strawberry production is ramping up and the weather forecast is favorable for the next 7-10 days. Quality has been good in all areas and sizing in the mid to upper teens per 1 pound clamshell. Promotional opportunities are available.

Peak Seasons:
Santa Maria production is peaking.

Broccoli supplies remain steady. Mexico, Santa Maria, and Salinas are the current main growing areas. There are fewer supplies of bunched broccoli but that hasn't affected the market. Plenty of supplies of broccoli crowns. Quality remains good with nice green color and crown size. They are still quoting hallow heart out of the Mexico growing region from the past weeks of warm temperatures.

There have been better supplies out of Mexico, but the only problem is that quality hasn't improved. Black decay, scattered holes in the leaves, insect presence, to brown discoloration. The market is still declining to lower levels. Also we look to start harvesting Domestic Brussel sprouts out of Oxnard the last week of May.

We are in the final weeks of the Coachella and Imperial Valley crop production. Expect to start the Bakersfield crop has moved back to first of June, due to unseasonably cool weather slowing growth. Jumbo size are still very tight, but we expect this to start to change as we get into late June. Supply of baby peeled carrots are good.

The cauliflower market in the Salinas Valley and Santa Maria is still active with limited supplies. Acreage is limited due to the previous weeks of increased supplies and no demand. There have been quality issues seen upon arrival with brown discoloration and bruising.

Alerts:
Limited supplies in all growing regions and the market is active.

Large celery, twenty-four counts in particular are heavy in production. Shippers are looking to deal. This market is steady. Small sizing continues to command a higher price in the marketplace. Seeder is no longer an issue and quality is very good in the Southern California region. Demand is light. Oxnard and Santa Maria are the main growing areas for this commodity at this time.

The rain last week has had a much greater impact on the quality of the remaining California fruit than initially expected. Availability will be day to day depending on the shipper and their exact growing location. After assessing the damage, we have had several growers opt out of any further harvest. The growers who will have fruit available to harvest, will be struggling to meet demand. There is no definite end date of the CA cherry season as of today, but the general opinion is supplies will come to a sudden stop; perhaps as early as 5/23. Market prices are expected to climb and remain firm for the remainder of the season. Washington harvest is not expected to start until the beginning of June, which will create a supply gap for a possible 2-3 weeks.

Alerts:
Due to last week's rain, cherry supplies have been greatly impacted. California fruit will be limited moving forward and may come to an early end. Possibly causing a supply gap until Washington starts at the beginning of June.

Transitions:
Washing cherries are expected to get started at the beginning of June.

Serrano - Some growers are finishing and others are starting new fields. Quality remains good with better demand.

Anaheim - Sizing and quality remain good. More product being offered. Excellent size and color.

Pablano - Slightly lighter supply with some growers finishing. Good quality and condition expected to continue.

Tomatillo - Very good supply and quality. Extra large sizes available.

Jalapeno - good quality and size are available with excellent size

The market varies depending on the growing area. In Salinas supplies are lighter and are commanding higher prices. The better value is out of Oxnard. Also transfers from Mexico are keeping the market at current levels. There have been quality issues such as yellowing of the leaves and dehydration upon arrival.

The central valley crop is winding down their season and the Ventura crop is our main supplier. Demand is very strong and continues to build. We are seeing 140s/165s/200s supplies clean up daily and many shippers sold out for the week.

The lime market remains high on all sizes. Demand is good on all sizes across the board. The peak size has remained in the smaller sizes such as 250ct and 230ct. This is the time of year where overall supplies are low and will remain at lower levels until the third or fourth week of May. The overall long term upward market trend will likely continue with the lower supplies through the middle to the end of May. Quality is good overall. The overall supplies have decreased a lot and remain low. Demand exceeds supply still. The market is currently steady on limes.

California orange demand is very strong with the Texas and Florida crops winding down. Shippers have good supplies of large sizes with crop peaking on 72s/56s. Smaller sizes (88s/113s/138s) have reached demand exceed supply. Some shippers have been packing new crop Valencia oranges for export and have began packing some small sizes for domestic use, but availability is very limited until more shippers come on line.

Supply on cucumbers has decreased as the season comes to an end. There are less supply from the northern district. Quality is good on all sizes and pack styles, peaking on Super Select and Select. The color is good. Euro cucumbers are available with limited supply in number one and number two pack styles.

Eggplant will continue with lighter supply from Northern Mexico. Excellent color and condition will continue with many number two product being offered. Many growers in the south are finishing and supply will lighten. New crop has started in Southern California with good quality and limited availability.

Mexican green grape supplies continue to be steady. Product is crossing over and being shipped out of Nogales on a fairly consistent basis. Quality has been strong and markets have remained firm. California (Coachella) growers have started green grape harvest with light numbers this week. Volume is expected to gradually increase next week as the berries size up and sugar levels increase. California quality is being reported as very good and market prices continue to be escalated and firm. If the weather cooperates, we should see better availability and more loading options for green grapes next week.

Transitions:
Coachella harvest is expected to increase next week as the grapes size up and sugar levels climb.

Chilean (Crimson) red grape supplies are limited. We will see orders on the East coast be filled without issues for the remainder of this week, but may run across some hurdles next week with availability and quality. Some shippers are claiming to have enough fruit to cover orders next week, while others will be done by the weekend. We will need to address each order individually based on that day's inventory and quality. California (Coachella) red grapes continue to be in good supply. Quality has been strong and markets have started to decline slightly this week. Mexican red grape production has been slow. There is limited amounts of fruit crossing into Nogales, but volume is expected to increase next week. We expect market prices to start coming down next week as harvest numbers go up.

Transitions:
Mexico is expected to increase production on red grapes next week.

Good yields and quality out of Mexico have been keeping this market at a steady pace. Iced and Iceless green onion are available and look to be steady for the week. Quality has been nice with little arrival issues.

As we this week has progressed, there seems to be better kale supplies. The cold weather in the Salinas Valley has pushed back acreage. But other growing regions seem to be ok with their supplies. Quality remains excellent with minimal yellowing or dehydration.

This market has softened. There continues to be issues with this commodity. Defects on this commodity include pale color, misshapen heads, lightweights, and insect damage. These defects are occurring in Santa Maria and Salinas. The weights are averaging 38- 42 pounds on palletized. Demand has fallen off after the Mother's day pull. There are still a few shippers holding the pricing up. In essence, there is a pricing gap in the industry. Supplies should be moderate for the rest of the week.

Low yields in the field caused by adverse weather conditions these past weeks has caused supplies on leaf to be limited in availability. Fringe burn continues to be is industry wide. Other defects include tip burn, insect damage, mildew, and lightweights on all leaf items. Salinas and Santa Maria have very similar issues with one another . All leaf items will be light in availability for the rest of this week including romaine hearts. Please keep in mind the shippers are ahead of schedule in the fields. Although the holiday pull is over, supplies will be limited in the industry amongst the different shippers.

The quality is good overall with some lots being overripe. The peak size is currently 9ct. Demand has leveled and supplies are increasing, so the market is trending down. Mexico has started shipping cantaloupes. The offshore supplies will be finished by the middle of this month. The desert has started to pack a few cantaloupes and volumes are increasing. The current market is lower on all sizes.

Transitions:
The desert has started shipping lopes

Demand is steady on honeydews and supplies have increased causing the market to come down a little. The peak size for the offshore is 5ct and 8ct are now available. The Mexican honeydews are peaking on 8ct. Honduran and Guatemalan grown honeydews are good. Mexican honeydews shipping out of Nogales, Arizona continue to slowly pick up in volume and are now effecting the market. The Mexican honeydews are also very nice. The offshore honeydews are going to finish by the end of this month and supplies are drying up, especially on the West Coast.

Transitions:
The desert has started shipping dews in a small way with volume increasing steadily.

Product is now being shipped from both southern and northern Sonora, Mexico. The supply has increased along with the demand. Cool weather has slowed production. Shippers are promoting to increase the movement. Quality condition and brix are all very good. All sizes being offered in both bins and cartons, peaking on larger fruit (36s, 45s, and some 60s). Personal watermelons are being offered in all sizes with good quality and condition being reported.

Onions are coming out of Southern California and South Texas currently. Yellow and Red onions have been heavy to Jumbo and larger with very few medium being packed. Markets have been steady but firm. The quality of the new crop onions has been very good. Supplies out of South Texas are slowly winding down with the Uvalde, Texas area slowly building. It is likely we will see the market soften as Central California and New Mexico add supplies late this month. The northwest growing areas have been planted for next years crop.

Washington - D'anjou pears are higher on most sizes esp. 110s and smaller. The remaining C.A. fruit is peaking on US#1 70/80/90's. Controlled atmosphere (C.A.) rooms have what they have, so expect small pears to remain limited. Bosc pears are essentially finished for the season. The quality on domestic D'anjous has been good.
Chile - Argentinian Bartletts are steady and continue to peak on US#1 70-100s. Chilean Packhams are also steady and continue to peak on US#1 80/90/100s, but there are some 110s on the West Coast. Chilean Bosc are steady as well and they are peaking on 70-100s. The quality on all of the imported varieties has been good.

Alerts:
Small domestic pears are beyond tight so plan ahead!

Some shippers have good supplies, while others are still tight and hoping to see better volume in a couple of weeks.

All growing areas are showing strength in large count cartons (80-40 count) due to availability (Idaho, Washington, Colorado and Wisconsin). Most grower/shippers are already sold out through the week-end on their large counts. I feel this market trend will continue well into June. Please try to give us 3-4 business day on all orders to make sure we get product out on the requested ship date. If large cartons continue to firm up we could see the smaller cartons 80-120 follow this trend. Quality is still being reported as good.

Bakersfield, California - all colors of potatoes are steady but the availability is good and there some flex. Golds, reds, and whites are all peaking on A-size. Supplies of red premiums, red bakers, gold bakers, and white bakers are all improving. The new-crop quality has been good.
Phoenix, Arizona - Both red and gold potatoes are steady and both are peaking on A-size. The quality has been good.
Idaho - Reds and golds are steady but supplies remain very short. Both colors continue to peak on A-size. The quality has ranged from fair to good.
North Florida - the availability of red, white, and gold potatoes is better as more shippers get into full production. The market is steady to lower for most sizes in all colors. The quality has been good.
Pearsall, Texas - The red market is steady and firm on all sizes due to good demand. The quality is reported as good.

Hard Squash is finishing in Mexico and is transitioning to southern California. Yellow and Italian squash are being harvested with limited supply as they are also winding down to a finish in Mexico. Some lots of yellow squash are showing condition issues wit Italian squash being mostly larger sizes. Mexico will finish shipping very soon. California is just getting started.

We have excellent supplies of all varieties. Apricots, Peaches, Nectarines and Plums are all available in multiple sizes. As the weather continues to warm up, production is climbing. Quality has been reported as excellent across the platform and market prices continue to adjust downward. Opportunities are readily available on smaller size fruit and shippers are asking for business. Supplies and quality are expected to remain strong as we move forward toward the peak of the season.

Rounds - The market is steady. Supplies continue to be available in the east. Plenty of supplies in all sizes. Mexico also continues to harvest, and cross plenty of product. Look for supplies to contine the trend in the coming weeks. Quality is Good.
Roma - The market is steady. Florida and Mexico continue to have plenty of supplies, in all sizes. Market continues to be a bit flat. Look for supplies, like the rounds, to continue the trend over the next couple weeks. Range in quality from Good / fair.
Cherry - The market is steady. Florida looks to have plenty of supplies. There is a bit of an uptick in demand with cherry's. Mexico is crossing few supplies, with FOB's a little higher than east coast product. Quality is Good.
Grape - The market is steady. Florida continues to see supplies, with east coast harvesting the majority of product. Mexico has fewer supplies, with higher FOB's. Quality is Good.

Rounds - The market is steady. Mexico continues to see good supplies with multiple areas in production. Back east, Florida continues to see good supplies, as well. Look for supplies to continue the trend over the next few weeks. Quality is Good.
Roma - The market is steady. Plenty of volume continues in the west and east, with all sizes. Mexico is crossing in San Diego, Nogales, and McAllen. Like the rounds, look for supplies to continue the trend. Wide range in quality from Good / Fair.
Cherry - The market is steady. Mexico product is looking to be a bit ligher, with higher FOB's, than east coast. However, Florida has plenty of supplies, with east coast the driver on production. Slight tick up in demand, however, supplies still plentyful. Quality is Good.
Grape - The market is steady. West coast looks to be a bit lighter on the grapes, with the majority of production in Florida. FOB's follow the supplies with higher prices on the west. Quality is Good