The Source - May 15, 2019

Eastern Region:
Availability on sizes, grades and varieties continue to be extremely limited out East. Prices are up, especially on smaller, foodservice sizes, with ‘pocket’ deals available with shippers who are attempting to clean out their inventory.

Washington:
Eastern demand has shifted to the Northwest and shippers continue the difficult task of filling orders that call for smaller fruit (125ct and smaller). Making the situation worse, retail bag packs are commanding a significant percentage of the already minimal inventory on small apples.

Continue to send Apple and Pear orders early. 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. In a few weeks, we will see schools close for the summer and should ease demand.

Offshore (FOB-L.A.):
Chilean Granny S. – 80ct (available now)
Chilean Braeburn – 70-90ct (available May 21)
Chilean Pink Lady – 70-90ct (available June 13)

Mexican production continues to be down with more transition happening this week. We should see more regions opening up in the next couple of weeks. Volumes from California/Washington have increased with better weather in both regions. New Jersey/Michigan/Canada is still delayed in production due to colder than normal weather. Peru is starting to increase volumes from both regions, and we should see this trend as long as the weather holds up. Markets on both coasts are steadier this week with less demand after Mother's Day.

Weather in the growing region of Oxnard, California calls for lows in the 50s and highs in the upper 60s, low 70s. California is peaking on 48s followed by 60s. Organic fruit remains in high demand and at a premium. Avocados trees are an alternate bearing crop (On year, off year in production). This year we are seeing less volume and expecting a better crop in 2020. The market remains active and steady increases on all sizes.

The weather this week in the growing region of Michoacan, Mexico calls for lows in the 50s and highs in the 80s. Prices continue to increase and have hit the $50 range. This late season fruit ripens faster and has a shorter shelf life. Storing the fruit at the proper temperature is key to helping the fruit hold at customers desired stage of ripeness. #2 grade fruit is in high demand this week. Also, smaller fruit (70s) will be snug for the next few weeks. New crop fruit will hit the market in early July.
A good amount of early season Peruvian fruit is on the market. Peruvian fruit has thick, bumpy skin externally that may turn amber/red when ripe. The skin may not darken when ripe. Thick skin may feel firm even when ripe.

Bell Peppers supply is very tight, Florida is winding down for the season and sporadic rains have hurt quality and lowered yields. Georgia is going to start harvesting bell peppers this week but it will be very light volume. Only a few shippers will start this week, most will not start until the last week of May. Quality in Florida has been varied from location to location, even the best newer product is showing some bruising and discoloration from rain and wind. The quality looks good in Georgia so far this spring, total acreage is down slightly, peak availability should be in the first week of June.

Alerts:
supplies are very tight.

Green Bell Pepper- Light production of green bell pepper arriving in Nogales from Mexico. Mostly choice grade being harvested from the Mexican crop. The quality from the Sonora district is fair to good. Green bell pepper demand exceeds supply in Nogales. The bell pepper supply from Sonora is decreasing rapidly and is expected to end within two weeks. Increasing demand on green bells from the east coast has driven the market up on the west coast. Green bell peppers are also being harvested in California from the Coachella Valley. The quality from California is good. Both fancy and choice grade being packed in California. Green bell pepper from Mexico is also available to load in McAllen, TX.
Red Bell Pepper- Light supplies of Red bell pepper arriving in Nogales. The market/price on red bell pepper continues to hold steady. Light/steady volume continue on Hot House variety and all hot house pack styles. Very light production on elongated variety. Steady production expected through Nogales for the week. Quality on red bell pepper in Nogales is good. Red bell pepper supplies from Mexico continue to cross through Nogales, AZ and McAllen, TX. Red bell pepper Harvest in California is expected to start the back part of this week.
Yellow Bell Pepper- Light volume of Yellow Bell pepper arriving in Nogales. Hot House variety continues to be pack in 11lb 1 1/9-bushel carton with light volume. Quality on Hot House variety is fair to good. Yellow bell pepper demand has decreased and currently meets supply. Market on yellow bell is lower/steady. Yellow Hot House bells are also available to load in McAllen, TX

Mexico is still moving right along with adequate production. More domestic production in the West will begin to slowly increase supplies. The market should still remain firm with higher undertones as the Mexican supplies lighten up a bit this week. We are still waiting for the heat to come to California and bring on the local crops. Quality is good out of all areas.

Transitions:
Production on the West Coast is going in light numbers but is set to ramp up in mid June.

Georgia and Mexico are beginning to decline in production. This will be causing a supply gap for some shippers over the next two weeks. New crop California blues have not ramped up as quickly as anticipated putting further pressure on supplies. Quality is good out of Mexico but Georgia fruit is definitely on its last legs with most shippers pulling out of that area this week due to issues. The market should rise slightly through the week as some but not all shippers experience lighter numbers.

Transitions:
Blueberries are transitioning into new West Coast crop out of Central Valley and Santa Maria these numbers will be low initially

Raspberries continue to be in good supplies coming out of Mexico as we move into mid-May. Production is expected to pick up out of the West Coast growing regions the first week of June to help bolster supplies. Pricing remains steady as some shippers are already picking small amounts of the new crop raspberries in California. The quality is still reported to be good.

Transitions:
Central California harvests are expected to increase as we approach mid June

The post Mothers day strawberry market is predictably steady with lower undertones as we move into the end of the week. The quality is good out of all areas and availability continues to be plentiful. We are expecting rain Wednesday evening which is predicted to bring a significant amount of rain totals over the next several days. Friday calls for clearing, however, another front is approaching Sunday with definite chances for additional rain. Be prepared for the possibility of harvest disruptions and rain delays through the weekend. The market looks to firm up as we move closer to these rain events and shippers gear up for the Memorial day pull at the end of next week.

Peak Seasons:
Salinas and Watsonville are moving into peak season towards the beginning of June

The broccoli market continues to remain 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 snug going into next week. Quality is good with slight purpling, some mechanical damage, and occasional yellow cast.

The Brussels Sprout market continues to be 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 remain 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.

This market continues to gain strength with some suppliers while others remain firm. We continue to be in a demand exceeds supply situation and this will continue throughout the month of May, at a minimum. The growing regions of Oxnard/Santa Maria will continue to be the main region for growing. Mexico will have light supplies as well. Although juicing has many people believing that this has caused such a shortage in the industry for this commodity, it is a partial reason only. Juicing is a factor, but understand acreage was lost in January-February due to rains and cold weather in the southern California region as well as Mexico. Less acreage was planted as well due to flat markets the previous three years. Overall, the industry is down 25-30% of normal capacity. Some defects being reported upon arrival to include leafy tops, mechanical and insect damage. Escalated pricing will continue throughout the month with this commodity.

California cherry production is steady. Larger sizes seem a little more snug this week. Quality is being reported as excellent. Market prices have been slowly decreasing as more volume becomes available.

Jalapenos- Good supply of Jalapeno available to load in Nogales, AZ from Mexico. Growers continue to harvest jalapeno out of the Sinaloa. New crop of jalapeno is being harvested from the Mexican state of Sonora where the quality is good. Mostly medium to large size are available from both growing regions. Market on jalapeno has decreased to the mid-teens. Jalapenos from Mexico are also available to load in McAllen, Texas.
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. Pasilla from Mexico also available to load in McAllen, Texas
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. Anaheim from Mexico also available to load in McAllen, Texas.
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. Serrano supplies also crossing through McAllen, Texas.

The Cilantro market continues to remain 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 remain tight, continue to expect limited availability moving forward. Market prices continue to climb weekly, looking at the 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 continue to peak on the 200’s and smaller markets in the mid to high teens. Supplies continue to remain limited on large sizes 110’s – 175’s, markets in the high $30’s. The lack of rain in the growing regions has brought on a volume of the small sizes. The market is still expected to stay strong until supplies improve. Suppliers are gradually getting better supplies as crossings remain steady and are starting to quote open market supplies. They’re still doing their best to cover normal weekly volume as best they can.

Late season navels are winding down. The Foodservice sizes 113’s and smaller remain very limited and will stay limited the rest of May. It’s advised to place orders in advance to help fulfill orders in full. Some shippers are having to utilize Valencia’s to offset the balance to fulfill orders in full. The navels and Valencia market is looking to be in the $12-$14 range depending on grade and size. Quality is looking fair on the navels and markets are climbing weekly. On Specialty Citrus, we’re looking steady on the Delite Mandarins that are peaking on 15’s - 40’s. Cara Caras & Blood are moving along nicely, steady supplies are available. Ojai Pixie Tangerines quality is looking great and taste is excellent. Please reach out for pricing.

Cucumber supply is very good in Central Florida and South Georgia. South Florida is winding down for the season and quality is starting to slip as well. Central Florida and South Georgia both have good supply and good quality. Some bigger shippers in South Georgia have not started for the season yet, so volume should increase over the next few weeks. Pricing has been steady, growers are packing a higher percentage of select cucumbers so the pricing spread between supers and selects is higher than normal. Super select movement is good and carton 24 movement is slow.

Transitions:
Cucumbers are in Transition from Florida to Georgia

Peak Seasons:
Cucumbers are in peak season.

Moderate supplies of cucumber are continuing to cross through Nogales, AZ from Sonora, MX. Cucumber volume continues to be low from Sonora due to the cucumber market. Quality out of Sonora growing district is good. Currently, all cucumber sizes 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 where the quality is also good.

Eggplant supply is very tight. The supply situation has not changed in the last few weeks. South Florida is about through for the season. Plant City, Florida is over their peak on light acreage and will continue through the end of the month. Quality is better in Plant City and shippers are getting higher pricing on fancy eggplant. Quality in South Florida is only fair and most shippers are finishing the season this week. Georgia will start very light volume late next week but will not have any volume until the first week of June.

Lighter supplies of eggplant arriving from the Mexican State of Sinaloa. Eggplant supplies have decreased in the month of May. Eggplant supplies are expected to decrease from Sinaloa. More choice quality being packed. Market on eggplant has increased on both Fancy and choice grade. 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 grape supplies remain extremely limited this week. Import fruit is no longer available and Mexico's volume is not enough to fill the demand. This is an industry-wide issue. Small quantities of Mexican fruit are crossing in Nogales with a majority of that volume being sold directly from there. Very little fruit is making its way out to California. The weather in Mexico has delayed harvest, but we are expecting this weekend to warm up. If that is the case, we should see better availability starting next week. Coachella is scheduled to start later this month. By June, we anticipate steady supplies. Currently, the market prices are very high due to the limited availability, but as soon as production ramps up, we will see a quick decline.

Alerts:
Supplies are very limited and market prices are higher.

Transitions:
Coachella is expected to start later this month.

Red grape supplies remain steady as we look to transition into new harvest areas. Currently, shippers are still utilizing import fruit, but Mexican harvest is expected to start next week. Coachella will follow soon after. The import fruit being shipped now is decent quality, but we are seeing some reports of soft and wet berries. Market prices are flat. As we look to transition into new fruit, we expect quality to improve. Mexican fruit will be priced higher in the beginning, but volume is expected to ramp up quickly and we will see markets react. Long term, we are anticipating a excellent domestic season with good availability and promotional opportunities.

Transitions:
Mexico is expected to start next week.

Green Onions supply continues to be plentiful with the recent nice weather in Mexico and Salinas. 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 remains 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.

Santa Maria as well as Salinas continues to have warm weather and minimal precipitation and thus is making this commodity plentiful. Demand is off and suppliers are flexing on large volume type orders, so promote as much as possible. Forecasts indicate supplies will be strong throughout the week in all growing areas. Oxnard has had some volume as well. The quality continues to be up and down on a daily basis. Misshapen heads, puffiness, ribbiness, insect damage as well as mechanical are common issues associated with this commodity. The weights on liner lettuce is averaging 40-45 pounds.

Demand is minimal and supplies far exceed demand. This will likely continue for the entire week. Romaine, as well as all leaf items, are expected to have good availability for the entire week. Some shippers are flexing while others have remained steady. Some common defects being reported to include fringe burn, mechanical, brittle, and some insect damage. This is occurring on romaine as well as all leaf items. The weights on romaine are averaging 30-34 pounds while green and red leaf has been 19-24 pounds. With warm temperatures and minimal precipitation in the forecast, supplies will be steady all 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.

Offshore-
We are seeing rain this week in the growing regions of Guatemala, Costa Rica, and Honduras. This will most likely force growers to end the season sooner than planned. The last crossings will hit the US by the week of the 20th. Solid fruit and good internal and external quality.
Mexico-
Good supply on cantaloupe and honeydew. Solid internal and external quality on fruit out of the growing region of Hermosillo, Mexico. Cantaloupe will be short-lived and will finish up at the end of the month.
Domestic-
Light offerings out of Brawley, California. Mostly cantaloupes and mixed variety melons as well. Honeydew is off to a slow start with light offerings.
Arizona will ramp up the week of the 20th with light offerings. Due to extreme weather conditions in the winter, growers are getting a late start in the desert.

Offshore-
A good amount of rain in the forecast in the growing regions of Guatemala, Costa Rica, and Honduras. This rain could force growers to end the season sooner than planned. Last arrivals expected to hit the week of the 20th. Quality has been good internally and externally.
Mexico-
The market is flat on Mexican honeydews. Mexico has been pumping plenty of fruit into the pipeline and caused the offshore market to come down in price. Quality is good internally and externally.
Domestic-
Brawley, California will have some honeydews starting this week. Very light offerings as production are just getting started. Arizona will ramp up next week around the 20th. A late start in the desert due to extreme weather conditions in the winter. Some growers lost their crops and had to replant. The desert crop and the Westside crop will overlap come July.

Good supplies of watermelon available to load in Nogales, AZ. Mostly 2/3 bins being packed. Few seedless melons continue to be packed in carton. Watermelon crop from Sonora, MX is being harvested with good volume. Good supplies of seedless watermelon are expected to continue to arrive in Nogales, AZ. The seedless watermelon market is low/steady and is expected to remain the same through the week.

Northwest storage onions are finishing up this week with some low priced yellow onions and very few reds. White onions have finished. Late seed varieties on the yellow are clean with occasional sprouting and shorter shelf life. As the storage season comes to a close this week, look for new crop harvests again in August. Texas continues to produce all three colors and has reached its seasonal peak. Supplies will wind down over the next several weeks and finish up by the end of May. California desert is also producing all three colors and will continue through May. Both new crop fresh run areas will exhibit a thin flaky skin and shorter shelf life than the storage onions in the Northwest. New Mexico production could start as early as the last week of May; California valley is expected to star the first week of June.

Foodservice sizes (120ct and smaller), on Anjou and Bosc, are seeing increased demand, minimal availability, and are in few hands. Half carton Red Anjou pears are the prevalent pack, for most shippers, this time of year (30s through 55s) and are available.

Chilean and Argentinean Bartlett pears are still available and loading in Los Angeles. Also, Chilean Packems (70-100ct) will be available to load with 110/120ct available 5/18.

California Bartlett pears expected to start the week of July 8.

Pineapples supplies are looking steady. Quality has been looking solid with a nice brix to add. There are some delays at the ports depending on release time from the USDA but those issues are communicated. Markets remain steady $12-$14 depending on the size.

Idaho russet potato markets are steady on larger sizes with some slightly lower markets on smaller sizes. Larger size 40 count -70 count are seeing an increase in demand with expectations of a stronger market. Burbanks continue to be the main variety and with the smaller size profile, any increase in demand for the larger sizes will push market upwards. Consumer business remains active which will keep the carton flow moving. Quality on Burbanks is good with a few lots showing some shoulder bruise and occasional hollow heart. 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 product Norkotahs. Wisconsin quality remains fair.

Colored potato markets are steady to slightly lower as the season winds down in Idaho. North Dakota is also winding down with minimal volume and rising markets. Supplies will continue to decline over the course of May as vendors clean up storage. Arizona reds and yellows have started this week and will continue producing through June. Transition on the East Coast from the southern part of the state to northern regions; quality remains excellent in Florida. California continues to run all three colors.

Squash supply is very good from central Florida to Georgia and South Carolina is starting light supplies. Markets are weak with shippers struggling to move all the supply they are harvesting. Quality with most shippers is good, a few issues with yellow squash has developed after recent rains. Weather for the rest of the week appears to be mostly sunny and dry with lower temperatures and humidity which will produce a better quality product. Expect supplies to continue to be heavy for the rest of the week and through the weekend.

Peak Seasons:
Squash is in peak season.

Moderate supplies on both Italian and Yellow S/N squash still continues to cross through Nogales, AZ from Sonora, Mexico. Italian and Yellow S/N crop from Sonora is currently producing fancy and medium size and very few large sizes. More #2 quality being packed than #1 on both varieties. Market on soft squash is steady/lower and is expected to remain steady/lower through the week. Quality on squash from Sonora is good on both varieties. Both Italian and yellow s/n squash harvest from the Baja growing district has started in a light way.

Domestic production of nectarines and peaches is quickly increasing. Both tray pack and volume fill packs are available with a good range of size. Quality is being reported as very good. Several early varieties are being harvested. Market prices have started to come down slowly as volume increases. We expect to see heavy volumes with plenty of promotional opportunities as we move further into the season. Plums have yet to get started domestically and shippers are still utilizing import fruit. However, California production is expected to start later this month.

Transitions:
Domestic plum production is scheduled to start later this month.

Spring crops in the Palmetto/Ruskin growing region are producing good volume while Immokalee farms finish for the season. Most shippers are in second and third picks where XL fruit has become more difficult to source and selling at a premium. Value buys are in smaller sized fruit that is plentiful and will begin to taper towards the end of the month. A steady flow of Roma tomato imports across the southern US border influences Florida Roma offerings which remain unchanged this week despite the withdrawal of the suspension agreement. Grape and cherry tomato harvest is also steady and will have some upward pressure towards the end of the month with the central part of the state transition north to Quincy.

Alerts:
The Department of Commerce has officially terminated the 2013 Suspension Agreement for Fresh tomatoes from Mexico, setting a 17.56% duty on Mexico tomatoes arriving in the United States. According to the Department of Commerce, Customs and Boarder Protection will begin the collection of cash deposits or bonds in the amount of 17.56% of the value of product entering the U.S. unless or until a new deal can be made between the U.S. and Mexico.

Mexico grown tomatoes are in seasonal decline with enough supply to meet the needs of the market stabilizing FOBs at the mandated minimums on all varieties for the first part of this week. Duties are set at 17.56% of the value of tomatoes crossing into the US directly affecting the cost of goods. It is too soon to determine how supply will be affected but it is expected that imports will be reduced. Nogales is cleaning up for the season in a push to move out product on hand. XL sizes are extremely limited and selling out daily. Mainland Mexico will be wrapping up production in Sinaloa by mid-May creating upward pressure if Baja has a slow start. Currently, Northern Baja has begun harvesting in San Quentin with volume increasing into next week helping the overall market by the end of the month. Roma tomatoes are currently 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:
The Department of Commerce has officially terminated the 2013 Suspension Agreement for Fresh tomatoes from Mexico, setting a 17.56% duty on Mexico tomatoes arriving in the United States. According to the Department of Commerce, Customs and Boarder Protection will begin the collection of cash deposits or bonds in the amount of 17.56% of the value of product entering the U.S. unless or until a new deal can be made between the U.S. and Mexico.