The Source - May 16, 2016

Washington - Red delicious are mostly steady on the larger sizes and they are steady to higher on 113s and smaller. Most shippers are still peaking on extra-fancy 72/80/88s and most are subbing up to the extra-fancy grades to cover volume orders of the fancy grade. Golden Delicious are 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 continue to slowly rise until the end of the season. Most Gala suppliers still don't have much fruit larger than an 88. Fujis are steady on all sizes but the market remains firm due to light supplies. The Fuji market will also continue to slowly climb until 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 113s and smaller. Reds continue to peak on 80/88s. McIntosh are steady to higher and supplies remain very short as most packers are close to finishing. Galas are steady to higher on all sizes due to light supplies, but most suppliers are close to finishing. Jonathan supplies are light, but the market is steady. Red Rome supplies are very light as they are almost finished. 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.
Chile - Chilean Galas are steady on both sides of the country and they are still peaking on 100-size and larger.

It is that time of year when asparagus is plentiful. Several growing regions are harvesting and local deals have started in the East. Michigan has started their local production. And even with all this supply you would think the market would be extremely competitive, but quite the opposite. The market is holding steady at current price levels. Quality is also excellent from all growing regions.

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. Demand is exceeding supplies.

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 a few 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 a few weeks ago. Supplies very short and demand is far exceeding supplies. 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, volume is improving.

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 and quality is improving everyday.

Yellow bell pepper- volume is lightening with some growers finishing. California will be starting this week.

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, few reports of red cell and soft berries.

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. Quality has been good and fairly consistent with the fruit that makes the pack.

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.

The information that is being given to us by the shippers for this week is that supplies look to lighten up as the week progresses. The current market hasn't reacted yet but some suppliers were sold out today. The market feels stronger even with all growing regions harvesting. Quality is very nice out of Santa Maria and Salinas but Mexico is still quoting hallow stem.

There are better supplies this week coming from Mexico. This has caused a downward trend to the market. Oxnard looks to start the week of May 30th. As we get into the domestic season we should see improved quality. And for now quality is still fair with some decay and yellow to brown discoloration.

We are in the final weeks of the Coachella and Imperial Valley crop production. Expect to start the Bakersfield crop the 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 market continues to be active as we enter this week. Extremely short supplies from all suppliers and we are experiencing fill rates. This trend will continue through the week. Supplies look to be better by mid next week. Quality remains good despite the current market conditions. Although there have been sporadic arrivals with bruising/brown discoloration.

Alerts:
Extremely Limited Supplies and increased markets.

Good availability is associated with this commodity. There are much better supplies on small sizing, unlike past weeks. Shippers are listening to offers so promote this commodity as much as possible. Salinas will begin production next week, so supplies are expected to be good for awhile. This market is steady, overall. Good quality and minimal seeder is reported. Production in Michigan has started, with good quality being reported as well.

The last of the California red cherry varieties are being harvested this week. As mentioned last week, a large portion of available fruit was damaged during the recent rains. This leaves only a limited amount of fruit to choose from and most shippers are admitting to fair quality with the presence of splits and discoloration. Sizes are peaking between 11.5 row and 12 row. Market prices on the reaming supplies will continue to be firm. California Rainier variety cherries are getting started this week, but again, this fruit was hit with rain. Quality is fair and prices are expensive. Shippers are advising to stay on the West Coast with short transportation times. Washington cherries are expected to start with very light numbers by the end of the month and increase in volume by June.

Alerts:
California cherries are limited in availability. The remaining fruit quality is fair with some splits.

Transitions:
Washington cherries are expected to start at the end of the month with light volume.

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 condition are available with excellent size.

The current supply scenario of cilantro looks good for this week. The market does vary from Oxnard to Salinas. As we have seen with some arrivals, there has been reports of yellowing and some dehydration. Also some black leaves intermixed in the bunches.

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 by mid week.

The lime market remains high on the 110 - 175ct. 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 but are now increasing. The market is currently steady on the large sizes and lower on the smaller ones such as 200 - 250ct limes.

California orange demand is very strong with the Texas done 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 condition.

Mexican green grape supplies remain consistent. Both Early Sweet and Perlette varieties are available to load in Nogales. Quality has been strong and sizes range between M/L to XL. As expected, prices have started to decline gradually this week, across all sizes. Production is expected to remain steady moving forward as the weather looks to be clear and warm. Coachella green grape supplies have started to improve this week. Perlette and Sugarone varieties are available to load in Coachella. Quality has been reported as very good and market prices have started to drop slowly. As supplies continue to increase, shippers are expecting to transfer Coachella greens to other loading areas.

Supplies of Chilean red grapes loading on the East Coast have become very limited. Quality on the remaining fruit is fair at best. The last of these grapes will be gone by the end of this week. Mexican red grapes have increased in production. Supply will be consistent loading in Nogales. Quality has been good with very little problems being reported. Market prices are decreasing as supplies go up. Californian red grapes are in good supply loading in Coachella. Quality has been strong. Market prices have been steady and not have dropped as quickly as Mexico, but are expected to decline as volumes increase.

There are decent supplies of iced and iceless green onions. The market remains flat on both packs. Quality is good with little arrival issues of the past, like yellow to brown discoloration of the tops.

So we have a two tiered market depending no the growing region. Here is Salinas supplies are short this week causing the market to increase. But in Oxnard there have been good supplies and the market hasn't reacted yet. Quality is still good with nice green color with minimal yellowing and dehydrations.

This market is steady with most shippers. Issue on this commodity include irregular size heads, puffy, ribby and slight insect damage. The weights are averaging 38- 44 pounds on wrap. The market is much more price competitive, but gaps are out there so please be aware. All indications show good availability on this commodity at least through the middle of the week, minimum.

Light supplies continue on all leaf items to begin the week. This market is firm, for now. Issues of fringe burn, insect damage, and mildew are defects suppliers are dealing with. Salinas and Santa Maria have very similar issues with one another . The romaine heart production is having issues with cupping. Supplies on this commodity will be light all week. Low yields and production gapping are the two main reasons for this market. Suppliers are still ahead of production schedules. Expect moderate to light supplies all week on all leaf products.

The quality is good overall with some lots being overripe. The peak size is currently 12ct. 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 to the third week of this month. The desert has been packing cantaloupes and volumes are increasing. The current market is lower on all sizes.

Transitions:
The desert has started and the offshore supplies are nearly done.

Demand is steady on honeydews and supplies have increased. 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. The desert is producing honeydews now. The market is lower.

Transitions:
The desert is producing honeydews and the offshore supplies are winding down.

Product is now being shipped from northern Sonora, Mexico. The supply has increased along with the demand. Warm weather has increased 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.

Texas received widespread rain accumulation of 3 to 6 inches over the weekend. Sporadic showers are forecasted for the balance of this week. This could put the Texas season rest. We will update later this week. A few New Mexico packing facilities will start to run Arizona onions this week. New Mexico onions are about two weeks away. Southern California is hitting its peak volume this week in both Yellow and Reds. Central California onions growers will start packing yellows by the middle of next week with reds and white to follow. Quality is still being reported as good out of all growing areas. Markets are steady but firm.

Alerts:
Widespread rain in the Texas growing areas could put this growing area to bed for the season

Transitions:
Southern California is peaking with supplies. Central California supplies will start next week followed by New Mexico

Washington - D'anjou pears are steady to higher on most sizes esp. 110s and smaller. The remaining C.A. fruit is peaking on US#1 70/80/90's so expect small pears to remain limited until the C.A. fruit cleans up. 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 but there is also some smaller fruit on the west coast. The quality on all of the imported varieties has been good.

Supplies are good for most shippers, but still tight for others that are still hoping to see better volume in a couple of weeks.

Supplies of large cartons ( 80-40 count) continue to be limited out of growing areas. Market is firming each week on these sizes and has started to trickle into 90 - 100 count. Quality is still being reported as good. All growing areas have finished planting next years storage crop weather so far has been good.

Bakersfield, California - all colors are steady but the availability is good and there is some volume flex on certain sizes and colors. Golds, reds, and whites are all still peaking on A-size. 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. 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 and 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.

Apricots, Peaches, Nectarines and Plums are all in excellent supplies. A wide range of sizes are available in both Volume Fill and Tray Packs. Quality is being reported as excellent. Foodservice and Retail promotional opportunities are available. Pluot varieties are now available in limited amounts, but harvest is excepted to increase as more varieties mature.

Alerts:
Excellent availability on stone fruit with promotional opportunities available.

As in recent weeks, the market remains depressed, with price as an indicator across all varieties that tomatoes are widely available out of Florida's Palmetto/Ruskin growing districts. The pipeline is full of tomatoes supplying the market with quality fruit while demand struggles to increase. Quality remains excellent providing a strong buyers market across the spectrum. Rounds are being harvested steadily trending toward larger sizes. Romas remain abundant as well with a little more variance to quality. There has been a small uptick in demand for cherry and grape tomatoes, however with plenty of supply to be had, the market is still below the seasonal norm.

The west is also enjoying heavy supplies of tomatoes while Baja gets underway and California begins harvests. Much like round tomatoes, roma tomatoes struggle to overcome little demand this week and are widely available at cheap prices. Suspension agreement minimums are less attractive to western buyers allowing Florida grape and cherry tomato sales to set the market in the west below the price floor. Crossings overall may slow down in an effort for Mexico growers to maximize their profits as their fields continue to grow in abundance through the first week of June.