The Source - May 19, 2016

Weather Update

Cooler temperatures and an increased marine layer are on tap for the west coast as a cold low moves over California Friday into early next week. A chance of light rain may impact the Central Valley into the weekend. Temperatures remain in the 60s along the coast to mid 70s inland with breezy conditions into early next week.
Baja and Northern Mexico will see a slight cool down as the system passes to the north with Central Mexico expecting dry conditions and seasonal temperatures through the weekend.
The southeast will see a series of cold fronts moving into the region down through Florida over the weekend. High pressure returns early next week with dry conditions and seasonal temperatures.

Freight Update

California trucks are steady but will start to tighten up at the end of this week as we start the Memorial Day pull. Washington and Idaho potato trucks remain steady. The National Average for diesel remained steady and is now at 2.291 per gallon. A difference of .607 from this time last year. California prices are up slightly and are currently at 2.615 per gallon. Crude oil rose is up slightly and is now at 47.80 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples

Washington - Red delicious are mostly steady on all sizes. The smaller sizes remain short and the prices firm. 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 but firm due to light supplies. The market 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 to slightly higher 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 remain steady but firm due to very strong demand. The quality for all varieties has been good.
Michigan - Red delicious are steady but supplies remain limited 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 all steady to higher. Small fruit remains very short in all varietys. 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 are still peaking on 100-size and larger.

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

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 it has remained at current levels. Quality is also excellent from all growing regions.

- pa_admin
Growing Region Market Quality
Ica, Peru to Trujillo Steady Excellent
Salinas Valley, CA Steady Excellent
San Joaquin Valley, CA Steady Excellent
Yakima, WA Steady Excellent
Avocado (California) Alert

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.

- pa_admin

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

Growing Region Market Quality
Oxnard/Ventura, CA Higher Excellent
Temecula/Escondido, CA Higher Excellent
Avocado (Mexican) Alert

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.

- pa_admin

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.

Growing Region Market Quality
Michoacan, Mexico Higher Good
Bell Peppers (Western)

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 has started this week.

- pa_admin
Growing Region Market Quality
Northern Sinaloa, Mexico Steady Good
Berries (Blackberries)

Mexican production has already passed peak for this season and has begun to decrease in volume. California production out of Watsonville should start in a very light way by the end of this week. 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.





- pa_admin

Transitions:
Watsonville production should begin in a very light way by the end of this week.

Growing Region Market Quality
Central Mexico Lower/Steady Good
Watsonville, CA Steady Good
Berries (Blueberries)

Domestic production is increasing with good availability out of California, Georgia, Carolinas and many of the smaller (regional) areas as well. FL production has slowed down. Overall, good volumes are reported again this week. Mexico continues to produce steadily. Availability and quality remain good in all areas. Promotional opportunity is available. Memorial Day ads will increase demand for the next couple of weeks and into the first of June.









- pa_admin
Growing Region Market Quality
North Carolina Steady Good
Georgia Steady Good
Central Florida Steady Good
Central Mexico Lower/Steady Good
Central Valley, CA Steady Good
Berries (Raspberries)

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.

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

California strawberry production continues to increase in Watsonville and Salinas. Santa Maria has passed peak production and has now diverted some ranches into freezer/processing due to weaker demand and weaker markets over the past few weeks following Mother's Day. We should see demand increase next week as Memorial Day ads break and retail demand will increase through the first of June. Quality has been good out of all areas. Salinas and Watsonville sizing in the low-mid teens and Santa Maria sizing in the mid-upper teens per 1 pound clamshell.

- pa_admin
Growing Region Market Quality
Salinas Valley, CA Steady Good
Watsonville, CA Steady Good
Santa Maria, CA Steady Good
Broccoli Alert

The broccoli supplies have finally hit their planting gap due to previous weather in the Salinas and Santa Maria growing regions. Shippers are walking in today being sold out and taking the market up. Look for this trend into next week. At the same time quality remains nice out of Santa Maria and Salinas but Mexico is still quoting hallow stem.

- pa_admin

Alerts:
Supplies are starting to decrease rapidly with the market reacting on an upward trend

Growing Region Market Quality
Salinas Valley, CA Higher Good
Oxnard/Santa Maria, CA Higher Good
Celaya Guanjuato Mexico Higher Fair
Brussels Sprouts

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.

- pa_admin
Growing Region Market Quality
Northern Baja California Norte, Mexico Lower Fair
Carrots

We are in the final weeks of the Coachella and Imperial Valley crop production. The Bakersfield crop has begun in a light way, but with unseasonably cool weather, growth is slow. Jumbo size are still very tight, and expect this to be the case until mid to late June. Supply of baby peeled carrots are good.

- pa_admin
Growing Region Market Quality
Bakersfield/Santa Maria, CA Steady Excellent
Cauliflower Alert

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.

- pa_admin

Alerts:
We are still experiencing extremely short supplies and loading delays due to this shortage. The market remains extremely active.

Growing Region Market Quality
Salinas Valley, CA Higher Good
Oxnard/Santa Maria, CA Higher Good
Celery

Supplies continue to be strong on large sizing. Small sizes have picked up in production. In essence, there is plenty of this commodity available in the marketplace. Shippers continue to flex on volume type orders. Salinas is expected to start production next week. This market is steady, overall. Good quality is being reported from all shippers. Production in Michigan has started, with good quality being reported as well.

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

The Californian cherry harvest is coming to an end. The rain that hit in the beginning of the month has cut the estimated crop numbers in half. There will be limited availability through the end of the CA season. Most shippers will be done this weekend with a handful of shippers expecting some very light harvest in the front part of next week. Quality has been an issue with most fruit showing splits and discoloration. Washington production is expected to start at the end of May with Dark Sweet Cherries. Demand will be very strong and market prices will be expensive in the beginning, then gradually decline as volume increases in June.

- pa_admin

Transitions:
California season will be done by next week. Washington is expected to get started at the end of the month and ramp up volume in June.

Growing Region Market Quality
Fresno / Visalia, CA Higher Fair
Stockton / Lodi, CA Higher Fair
Chili Peppers

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.

- pa_admin
Growing Region Market Quality
Northern Sonora, Mexico Steady Good
Cilantro

There are steady supplies of cilantro from all growing regions. 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.

- pa_admin
Growing Region Market Quality
Salinas, CA Steady Good
Oxnard/Santa Maria, CA Steady Good
Baja, MX Steady Good
Citrus (Lemons)

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.

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

The lime market remains high on the 110 - 175ct but they are coming down a bit. 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 looks to have broken and lower prices are happening. Quality is good overall. The overall supplies are now increasing. The market is slightly lower on the large sizes and lower on the smaller ones such as 200 - 250ct limes.

- pa_admin
Growing Region Market Quality
Veracruz, Mexico Lower Excellent
Citrus (Oranges)

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.

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

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

- pa_admin
Growing Region Market Quality
Northern Sinaloa, Mexico Steady Fair
Eggplant (Western)

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.

- pa_admin
Growing Region Market Quality
Northern Sonora, Mexico Steady Fair
Grapes (Green)

Green grape supplies continue to remain steady coming from California and Mexico. Quality has been strong in both areas. California fruit is shipping out of Coachella. Perlette and Sugarone varieties are available. Mexican fruit is available to load in Nogales as well as LA. Perlette and Early Sweet varieties are available. Market prices adjusted down slightly at the beginning of the week, but have remained steady since then. Production will continue to increase and we expect to see another slight drop in price next week.

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

Red grape supplies continue to increase. Coachella and Mexican production numbers are going up with the warm weather. Quality and size has been excellent. Fruit is available to load in Coachella, Nogales and LA. A split market has developed for loading the end of this week. Mexican fruit shipping out of Nogales and LA has seen a big drop in market price since Monday. Coachella fruit, however, has remained fairly consistent this week on price. Next week as volume continues to climb, we expect to see California price be in line with Mexican prices as shippers face a declining market.

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

There are steady supplies of iced and iceless green onions. The market remains flat on both packs and suppliers are looking to move volume. Aggressive pricing is available. Quality is good with little arrival issues of the past, like yellow to brown discoloration of the tops.

- pa_admin
Growing Region Market Quality
Mexicali, Baja Lower/Steady Good
Kale

Supplies vary depending on if you load in Salinas versus Santa Maria and Oxnard. Some shippers in Salinas have priced themselves above normal market prices due to their lack of availability. Quality is still good with nice green color with minimal yellowing and dehydrations.

- pa_admin
Growing Region Market Quality
Salinas, CA Steady/Higher Excellent
Oxnard/Santa Maria, CA Steady Excellent
Baja, MX Steady Excellent
Lettuce Iceberg

Ideal weather conditions and a lack of demand has caused the lettuce market to be softer. There is a chance of rain this weekend, but overall, the availability of product will be strong. Some defects on lettuce consists of irregular size heads, puffy, ribby and slight insect damage. The weights are averaging 40-45 pounds on wrap. The market is very price competitive, but gaps are out there so please be aware. strong availability is expected all week.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Lower Fair
Salinas Valley, CA Lower Fair
Lettuce Leaf

This market has softened with many suppliers. Although romaine, as well as green and red leaf are having some issues of fringe burn, this defect has been minimal. Much of all leaf items have been cleaned up. 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. The market is still fairly tight on hearts. Supplies will be moderate for the rest of the week on all leaf items. Escalated pricing continues on romaine and green leaf as well as romaine hearts.

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

The quality is good overall with some lots being overripe. The peak size is currently 12ct. Demand has leveled and overall supplies are increasing, so the market is trending down. Mexico has some cantaloupes in Nogales. The offshore supplies will be finished by the third week of this month. The desert has been packing cantaloupes and volumes are increasing. The current market is lower on all sizes.

- pa_admin

Transitions:
The desert is shipping lopes and the offshore supplies are about done.

Growing Region Market Quality
Brawley, CA Lower Excellent
Choluteca, Honduras Lower Good
Zacapa, Guatemala Lower Good
Melon (Honeydew)

Demand is steady on honeydews and supplies have increased. The peak size for the offshore is 5ct. The Mexican honeydews are peaking on 8ct. Honduran and Guatemalan grown honeydews are good. The Mexican honeydews are also very nice. The offshore honeydews are going to finish by the end of this month and supplies are done on the West Coast. The desert is producing honeydews now. The market is lower.

- pa_admin

Transitions:
The offshore dews are nearly finished and the desert is shipping dews.

Growing Region Market Quality
Brawley, CA Lower Good
Hermosillo, Mexico Lower Excellent
Choluteca, Honduras Lower Good
Zacapa, Guatemala Lower Good
Melon (Watermelon)

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.

- pa_admin
Growing Region Market Quality
Northern Sonora, Mexico Steady Good
Onions

South Texas onion growers are on the tail end of their season when they got hit with heavy rain over the weekend. This heavy rain has put most if not all of these grower to bed for the season. The Uvalde, Texas growing, which was slated to start harvesting this week has been pushed into next week due to the rain. Southern California is the main shipping point for onions currently. Supplies are good on all colors with good demand. Market is firm. Central California Onion growers will break ground next week which will be followed by New Mexico onion growers the following week. Look for the market to start active through the end of this month.

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

Washington - D'anjou pears are steady on most sizes. Supplies of 110-size and smaller are still very short. 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 remain steady and continue to peak on US#1 70-100s. Chilean Packhams are steady as well and continue to peak on US#1 80/90/100s, but there is some smaller fruit on the West Coast. Chilean Bosc are also steady and continue to peak on 70-100s but there are also some smaller sizes on the west coast. The quality on all of the imported varieties has been good.

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

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

- pa_admin
Growing Region Market Quality
La Virgen, Costa Rica Steady Good
Heredia, Costa Rica Steady Good
Guapiles, Costa Rica Steady Good
Retalhuleu, Guatemala Steady Good
San Luis, Guatemala Steady Good
La Cieba, Honduras Steady Good
Potatoes

Storage potatoes are still coming out of Washington, Idaho, Colorado and Wisconsin. Quality is still be reported as good out of all areas with occasional late storage quality issues showing up. (dk, Soft rot and dry rot). All growing areas except Washington are peaking on 80 - 120 count potatoes with 70 - 40 count being very limited. Washington is the only area that is peaking on 70 count and larger. The market on 80 - 40 count continues to climb each week. I don't see this trend changing any time soon.

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

Bakersfield, California - all colors are being quoted steady but the volume-flex on certain sizes and colors is still available. Golds, reds, and whites are all peaking on A-size. The new-crop quality has been good.
Phoenix, Arizona - Both red and gold potatoes are steady and both colors are still 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 off this week due to rain and some shippers are higher while some remain steady. 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.

- pa_admin
Growing Region Market Quality
Bakersfield, CA Steady Good
Phoenix, AZ Steady Good
Rupert to Rexburg, ID Steady/Higher Fair
Pearsall, TX Steady Good
Hastings/Bunnell/East Palatka, FL Steady Good
Squash (Western)


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 with Italian squash being mostly larger sizes. Mexico will finish shipping very soon. California is just getting started.

- pa_admin
Growing Region Market Quality
Northern Sinaloa, Mexico Steady Fair
Stone Fruit

Excellent supplies of all stone fruit. A wide range of sizes are available for both Tray Pack and Volume Fill peaches, nectarines, apricots and plums. Quality has been very strong. Markets continue to adjust lower as more varieties and volume becomes available. Aggressive promotional opportunities are being offered for future ads as well as daily spot buys. Plutos are just getting started. More varieties are expected to become available as we move forward.

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

Rounds - The market is steady. Supplies continue to be good, however, with recent rains, looks for volume to decrease and prices begin to tick upwards. Mexico continues to have supply's, however, the Baja region looks to be off to a slightly slow start. demand is consistent, but, look for it to also tick up, as supplies tighten. Quality is Good.
Roma - The market is steady. Supplies in the east, as well as the west, continue to look good. But, like the rounds, look for supplies to lighten up and demand to tick upwards due to rains in the east and region transitions in Mexico. Sizing looks to be more on the larger sizes like XLG and jumbo's. Quality is Good.
Cherry - The market is steady. Florida continues to see volume on cherry's, but should tighten up due to the weather. Look for demand to get stronger, as well as prices. Mexico continues to see lighter numbers, with higher FOB's. Quality is Good.
Grape - The market is steady / higher. Due to recent rains, demand has picked up along with prices. Look for supplies to shorten up. Due to the rains in the east, the west is also looking at an uptick in demand. Quality is Good.


- pa_admin
Growing Region Market Quality
Southern Florida Steady Good
Northern Florida Steady Good
Tomatoes (Western)

Rounds - The market is steady. Mexico supplies look to be lightening up a bit, with the Baja region a bit short. Limited supplies crossing through the Nogales area. Rains in Florida have decreased production and supplies look to be lightening up as well. Look for demand and FOB's to tick upward with the lighten supplies. Quality is Good.
Roma - The market is steady. Supplies continue to be good with plenty in the pipeline. However, look for supplies to lighten up with some areas at the tail end. Florida also is looking to tighten up due to the rains back east. Look for the market to tick upwards with shorten supplies. Range in quality due to some of those areas finishing up.
Cherry - The market is steady. Few cherry's out of Mexico, with higher FOB's. Back east, supplies continue to be strong. However, look for lighter supplies due to the rains back east. Look for demand to tick upwards. Quality is Good.
Grape - The market is steady / higher. Supplies looking to continue to be lighter out west, with higher FOB's. Florida also looks to be stronger in demand, due to the rains Florida is experiencing and the forecast calling for more rains. Look for demand to tick upwards, along with FOB's. Quality is Good.

- pa_admin
Growing Region Market Quality
Northern Baja California Norte, Mexico Steady Good
Southern Baja California Sur, Mexico Steady Good

Things You Should Know

Avocado (California)
Demand is great and markets very active with Mexico's short fall in supplies.

Avocado (Mexican)
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.

Broccoli
Supplies are starting to decrease rapidly with the market reacting on an upward trend

Cauliflower
We are still experiencing extremely short supplies and loading delays due to this shortage. The market remains extremely active.

Transitions and Temperatures

Cherries
California season will be done by next week. Washington is expected to get started at the end of the month and ramp up volume in June.

Melon (Cantaloupe)
The desert is shipping lopes and the offshore supplies are about done.

Melon (Honeydew)
The offshore dews are nearly finished and the desert is shipping dews.

Berries (Blackberries)
Watsonville production should begin in a very light way by the end of this week.

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