The Source - May 13, 2015

Summary

PRO*ACT's procurement team is excited to unveil a new way to view and interact with The Source! In addition to the PDF version, the online version allows you to interact with weather maps specific to each growing region, see updated information, view alerts, and go directly to the commodities that are of most interest to you.

Weather Update

The cool weather pattern along the West Coast continues through the week as a cold front moves into California tonight. This system will bring rain and isolated thunderstorms to the state into Friday. This weather pattern will continue to bring in a deep marine layer and drizzle along the coast. Temperatures will remain below average with low 60s along the coast and 70s inland. South of the boarder temperatures remain below average under the influence of these low pressure systems. The Southeast will see scattered showers and isolated thunderstorms as a weak cold front moves through the region with temperatures in the 80s to low 90s expected.

Freight Update

Trucks in the Northwest and Idaho remain steady. CA trucks remain steady as well. Crude oil is currently at 60.26 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples

New York is still packing a few Red Delicious and Red Romes. They have finished with Empires and McIntosh. Both varieties are peaking larger fruit. The quality has been good. They expect top pack until approximately June 6th.
Michigan is still packing Ida-reds, Jonagolds, Jonathans, McIntosh, Red Delicious, and Red Romes. The Red Romes, Red Delicious, and Jonagolds continue to peak on 88's and larger. The Jonathans and Ida-reds have better availability on 100's and smaller. The Empires are finished for the season. Availability is light for all varieties as the end of the season approaches. The quality has been good.
Washington Red Delicious are steady but most suppliers will flex on volume orders of the larger sizes. Most shippers are still peaking on 88's and larger in the premium and Washington extra #1 grades. Small reds remain relatively short. Golden Delicious are steady on all sizes. The Goldens remain evenly sized but 125's and 138's are relatively short. Granny-Smith are steady and are peaking on 64/72's. 100 and smaller size Granny-smith are very limited. Fujis are steady to higher and are peaking on the larger sizes. Small Fujis remain extremely short. Galas are also steady to higher and are still peaking on 88/100's. The Galas have better availability in the smaller sizes than most other varieties. Honeycrisp are still available but supplies are extremely short and the market is high and strong. Opals, Jazz, Jonagolds, Pink Lady's, and a few other varietals are still available as well but the varietal supplies are very limited.

- pa_admin
Growing Region Market Quality
Hudson/Pleasant Valley/Red Hook, NY Steady Good
Coopersville/Belding/Sparta, MI Steady Good
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Asparagus

Peruvian production is strong and good deals can be had if loading out of Miami. All sizing is available, with the majority coming in standard and large size packs. Loading in Southern California is an option as well. Mexican production is moderate. Standard and large sizing are the main packs available on eleven pound cases for Mexican as well as California product. Currently, twenty-eight pound cases are not being packed out of the regions already mentioned.

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Growing Region Market Quality
Caborca, Mexico Steady Good
Ica, Peru to Trujillo Lower Good
Salinas Valley, CA Steady Good
Avocado (California)

California growers are harvesting good volume. They are peaking on 60's and smaller, with 48's and larger still limited in harvest. We'll see crop fill in with a broader range of sizing as we move through the month. Overall volume of this year's California crop looks to be lighter than first projected due to the drought. Quality and flavor are both very good.

- pa_admin
Growing Region Market Quality
Oxnard/Ventura, CA Steady Excellent
Temecula/Escondido, CA Steady Excellent
Avocado (Mexican)

Mexico is over 75% harvested for their season. Good supplies continue to come in, and still heavy to 60's and smaller. 48's and larger remain tight, but are showing some slight improvement. Quality and flavor are at their peak.

- pa_admin
Growing Region Market Quality
Michoacan, Mexico Steady Excellent
Berries (Blackberries)

Demand is steady, market is steady. California blackberries began out of Santa Maria with light availability last week and will increase weekly. This product is being sold at a premium over Mexican. Overall production has declined out of Central Mexico. California will continue to come on as the MX volume decreases. Some red cell is showing up in the Mexican product. Minimal availability out of Salinas/Watsonville, some disruption with transfers/arrivals out of Mexico.

- pa_admin
Growing Region Market Quality
Central Mexico Steady Good
Salinas, CA Steady Good
Watsonville, CA Steady Good
Santa Maria, CA Steady Good
Berries (Blueberries)

Demand and market are both steady to higher. FL and GA production is declining and NC will begin to increase over the next weeks. Availability has lightened as the SE regions decrease and more east coast business is pulling CA fruit. CA central valley should be peaking this week. Although, cooler weather has lessened volume overall. Central Mexico and Baja continue on the decline as well. Fruit quality has been good across all regions, sizing has varied. Pack sizes limited by loading area, very few 4.4oz clams being packed, mostly larger packs.

- pa_admin
Growing Region Market Quality
Central Mexico Steady/Higher Good
Baja California, Mexico Steady/Higher Good
Central Florida Steady/Higher Good
Santa Maria, CA Steady/Higher Good
Watsonville, CA Steady/Higher Good
Berries (Raspberries)

Demand and market remain steady. Central MX and Oxnard have peaked. Salinas / Watsonville and Santa Maria will continue to increase as we head through May although these area's availability will be light until end of May. Quality has been good.

- pa_admin
Growing Region Market Quality
Central Mexico Steady Good
Salinas, CA Steady Good
Watsonville, CA Steady Good
Santa Maria, CA Steady Good
Berries (Strawberries) Alert

Demand is very good and market is trending up with rain forecasted for Thursday/Friday in Salinas/Watsonville and Santa Maria. This may turn into another demand exceeds supply period going into this weekend and next week. Growers will be harvesting fruit ahead of the rain so expect to see more white shoulders, some green/lighter colored fruit. With the rain that came at the end of last week, we expect to see some water related quality issues showing up in the packs by middle/end of this week. Availability will be limited all the way through the Memorial Day pull. Continued cool weather in the growing regions has slowed the fruit from coming on and coloring up. Daily forecasts for below average temperatures, low clouds, rain, thunderstorms and fog with drizzle.

- pa_admin

Alerts:
Forecasted rain for Thursday and Friday is likely to disrupt production of berries in all growing regions, availability will be limited.

Growing Region Market Quality
Salinas Valley, CA Higher Good
Watsonville, CA Higher Good
Santa Maria, CA Higher Good
Oxnard, CA Higher Fair
Broccoli

This market is stronger on crowns as well as bunched product. There will be a gap in production on all broccoli items for two weeks and pricing will be active, count on it. The main production continues out of the Salinas Valley. The problems with knuckling and branching continue with bunched product. Santa Maria has light supplies. Production in Mexico is moderate to light and crowns have tightened up severely.

- pa_admin
Growing Region Market Quality
Celaya Guanjuato Mexico Higher Fair
Oxnard/Santa Maria, CA Higher Fair
Salinas Valley, CA Higher Fair
Carrots

California desert crop is going well. Size is only fair coming out of the fields. Jumbo size remains snug.

- pa_admin
Growing Region Market Quality
Coachella Valley, CA Steady Good
Cauliflower

Demand exceeds supply on this commodity. Escalated pricing is in effect. Supplies will be tight all week at a minimum. This gap in production will likely continue next week as well. Quality issues continue to be reported with irregular size heads and slight discoloration seen upon arrival. Santa Maria and Salinas are the main growing regions currently.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Higher Fair
Salinas Valley, CA Higher Fair
Celery

This market has remained steady. Production has not begun in Salinas as of yet. Production is expected in mid-June. Smaller sizing overall is tighter in availability. Loading in Oxnard/Santa Maria continues to give the best fob price. Florida has finished production. The quality overall is being reported to be good in terms of sizing and texture. Loading in Salinas for this commodity will cost extra money due to the transportation fee from the Oxnard region tacked onto the fob price.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Good
Cherries

The cherry market has settled with excellent quality and peak volume now through the end of May. Sizing is still heavy to the 10 - 10.5 row but all sizes are available. California will overlap with the Washington deal; which is poised to start around the third week of May.

- pa_admin
Growing Region Market Quality
Fresno / Visalia, CA Steady Excellent
Citrus (Lemons)

Size curve is switching, crop is peaking on 140's and smaller. Lack of size growth, is lightening the supplies on 115's and larger fruit. Demand is exceeding supplies on 165's and larger fruit. Very good springtime demand and drought conditions in growing areas are a major factor for the demand exceed conditions.

- pa_admin
Growing Region Market Quality
Merced/Bakersfield, CA Higher Good
Oxnard/Ventura, CA Higher Good
Citrus (Limes)

The lime market has come down on the smaller sizes a little bit more from last week's levels while the larger sizes are holding pretty steady. Supplies continue increasing on smaller sizes and decreasing slightly on larger sizes which will continue for several days. The previous forecast of lower overall supplies from April through mid May has held true to date on larger sizes but smaller sizes have increased in volume. Lower prices have helped spur demand especially on smaller sizes. The overall quality is good on the new crop that is being harvested.

- pa_admin
Growing Region Market Quality
Veracruz, Mexico Lower/Steady Good
Citrus (Oranges)

California Navel crop is dropping off and peaking on 72's/56's. California Valencia oranges are going. Labor to pick the fruit has become an issue now with the labor force being spilt with the stone fruit harvest going as well. Demand is exceeding supplies on smaller fruit 113's and 138's. Quality on Valencias is very good, color is nice and brix are 10.5-12.00 average.

- pa_admin
Growing Region Market Quality
Merced to Bakersfield, CA Steady/Higher Good
Riverside, CA Steady/Higher Good
Grapes (Green)

The market on green seedless grapes is steady with excellent quality and good sizing. The Mexican fruit is primarily a Perlette with sizing running heavily to the medium large to large range. The Coachella region is primarily shipping a Sugarone with excellent quality and size running mostly large. The Coachella fruit is commanding a premium over the Mexican greens due to a better sugar content and limited volume.

- pa_admin
Growing Region Market Quality
Sonora, Mexico Steady Excellent
Coachella Valley, CA Steady Excellent
Grapes (Red)

Red seedless grapes out of Mexico are adjusting down as volume increases in the face of lackluster demand. Quality is reported as generally good with sizing heavy to the medium large fruit. The Coachella market on red grapes is showing more strength due to limited volume and a better size profile.

- pa_admin
Growing Region Market Quality
Sonora, Mexico Lower/Steady Excellent
Coachella Valley, CA Steady Excellent
Green Onions

This market has remained unchanged. Demand is light. Most of the production for this commodity continues to be produced out of the Baja region of Mexico. Good supplies are expected out of this region all week. All sizing is available. Light supplies are being harvested in Salinas. The heavier abundance of product is coming in small and medium size packs.

- pa_admin
Growing Region Market Quality
Mexicali, Baja Steady Good
Salinas Valley, CA Steady Good
Lettuce Iceberg

This market is steady, overall. The gaps in pricing have a range of two-four dollars pending which shipper is used. The Salinas Valley continues to produce the bulk of the lettuce supplies with Southern California also in moderate production. Local production has been occurring throughout the U.S. The weights are ranging from 41-47 pounds for California product. Issues include ribbing, insect damage, rusting and puffiness from California.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Fair
Salinas Valley, CA Steady Fair
Melon (Cantaloupe)

Cantaloupe supplies are continuing to decrease regarding offshore melons and are expected to finish by the end of next week. The desert crop has good supplies which are increasing each week. Nogales supplies are almost finished for the season. Cantaloupe sizing overall from all areas is lighter on small sizes and more plentiful on larger sizes. Arrivals of offshore melons on the west coast are virtually finished. Demand is good but increasing domestic supplies have brought the market down. Quality is excellent on the domestic lopes. The offshore lope quality is still acceptable with some shipments coming in soft.

- pa_admin
Growing Region Market Quality
Zacapa, Guatemala Lower/Steady Fair
Maricopa, AZ Lower Excellent
Brawley, CA Lower Excellent
Yuma, AZ Lower Excellent
Melon (Honeydew)

Offshore honeydew supplies continue to remain lighter than previous weeks and will be finished before the end of this month. Some offshore shippers have already finished for the season. Demand is not very good on offshore dews because of lower quality. Supplies out of Mexico are tapering off now from their peak production levels. The desert has started with volume picking up nicely and the dews are excellent quality. The quality on Mexican dews is very nice and they have high sugar contents too. The peak size is 6's on all dews coming in. The dew market is steady to slightly lower right now with deals being made on domestic.

- pa_admin
Growing Region Market Quality
Brawley, CA Lower Excellent
Hermosillo, Mexico Lower/Steady Good
Zacapa, Guatemala Lower/Steady Fair
Onions

Onion market is steady the middle of this week on all color and sizes out of Southern California, Texas and this will be the last week out of Idaho and Washington. Quality is excellent out of California and good out Texas and Idaho. Washington quality is fair. New Mexico and Huron,California onion shippers will start harvesting in a light way next week with Yellow and Whites followed by red onions the following week. New Mexico will start harvesting the last week of this month.

- pa_admin
Growing Region Market Quality
Calipatria/El Centro, CA Steady Excellent
McAllen/Uvalde, TX Steady Good
Huron/Metler, CA Steady Good
Pears

Washington is packing D'anjou pears and red pears and the markets for both are steady. The D'anjous are peaking on US#1 80-100's and the supplies of fancy grade fruit are light. The red pears are peaking on 50/55 half-cartons and they will be available through May. Red pear supplies are light.
On the import side we have Chilean Packhams and Bosc. The Packhams are steady on all sizes and are peaking on 100's. Chilean Bosc are steady as well and are heavier to 100/110's.

- pa_admin
Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Chile Steady Good
Potatoes

Idaho - Demand exceeds on 40-60 count potatoes with a firm market. Supplies of 70-80 count are moderate with good demand. Light demand and good supplies of 90 count and smaller with a slightly weaker market. Quality is still being reported as good on the final product. Sheds are having to run a lot of potatoes to get enough cartons due to the high shrink. New crop Idaho's are in the ground and so far look to be ahead of schedule.
Washington - is the only major potato producing state with large cartons (40-60 count). Markets are steady. Quality is good.
Colorado/Wisconsin - has hit some slightly larger storage potatoes this week. I feel this will be short term and we will see the larger cartons tighten up as they get through these storages by next week. Market is steady. Quality is good.

- pa_admin
Growing Region Market Quality
Hamer/Rupert, ID Steady/Higher Good
Quincy/Hermiston, WA Steady Good
Eastern Colorado Steady Good
Plover/Bancroft, WI Steady Good
Potatoes (colored)

Bakersfield, California continues to pack all colors. Reds, golds, and whites are peaking on A-size. The quality has been good.
South Florida is still packing all colors but the availability is light as they are approaching the end of the season: they expect to pack until the middle of next week. All colors are peaking on A-size. The quality has been very good.
Northern Florida (Hastings) is also packing all colors. The markets for all ate steady. The size-profile is heavy to A-size for all colors.
Phoenix, Arizona continues to pack reds. They have A, B, and C cartons available with very few #2's and they are peaking on A-size as well. They are scheduled to pack golds at the end of this week but it could be next Monday. The quality has been good.

- pa_admin
Growing Region Market Quality
Bakersfield, CA Steady Good
Hastings/Bunnell/East Palatka, FL Steady Good
Phoenix, AZ Steady Good
Imokollee/Palm City/Punta Gorda, FL Steady Good
Stone Fruit

Supplies continue to improve on the peaches and nectarines. Sizing will be our biggest issue as the next varieties to come off are showing a larger size profile than the current harvest. Good news for retail but this will create challenges for the foodservice buyers looking for the smaller fruit that institutional receivers prefer. Black and red plums have started in California in a small way. Volumes are still light with sizing ranging from the 40/45 count to the 60/65 count. Apricots are available with quality reported as excellent.

- pa_admin
Growing Region Market Quality
Madera south to Arvin, CA Steady Excellent
Tomatoes (Eastern)

In Florida growers continue with great supply and quality. Growers have finished with crown picks for now, so the size spectrum is changing where more smaller fruit entering the marketplace. In past weeks there has been a premium for smaller fruit that’s been harder to come by, however we are seeing prices even out across all sizes today with price pretty flat across the board. We’ve had a supply heavy market for several weeks with large volumes crossing in the West. Florida has Romas in good volume for the region but in much lesser supply. With the round market changing over the next couple of days, we can expect to see demand pick up going into next week. Florida grape and Cherry tomatoes have slowed down in production allowing for a small increasing in pricing with no major shifts in demand.

- pa_admin
Growing Region Market Quality
Southern Florida Steady/Higher Excellent
Tomatoes (Western)

There are good supplies of round tomatoes coming out of the west right now. Western Mexico is Finishing up the season but Baja and Eastern Mexico is in good supply and expected to see good yields through June. Production has began in the California desert and the Central Valley is expected to begin as we head into next month also. Mexico has been the driving force behind the roma market for weeks and continue to harvest in strong volumes. With more growers starting production in baja the outlook is good for supply and availably. Grape production is increasing in baja with good supply crossing into southern California where supplies should be ample through the rest of the year.

- pa_admin
Growing Region Market Quality
Coachella Valley, CA Steady Good
Northern Baja California Norte, Mexico Steady Good
Jalisco, Mexico Steady Fair

Things You Should Know

Berries (Strawberries)
Forecasted rain for Thursday and Friday is likely to disrupt production of berries in all growing regions, availability will be limited.

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