The Source - May 2, 2018

Washington still has a good amount of most varieties of Apples available. Honeycrisp, Braeburn, and Jonagold will be the first to finish up for the season. Red Delicious movement has been great due to export causing the lower end prices to firm up as availability get tighter. Sizing is peaking on 88 -113s. Gold Delicious movement is steady to good with sizing peaking on Prem/Waxf #1 80-100s. Pricing has firmed slightly from last week. Regional shippers (Michigan, Pennsylvania, and New York) are winding down for the season which is putting more presser on retail bags that take 125 and smaller. Granny Smith movement is strong with most pricing steady except for the 100 count and smaller which have a soft market due to large volumes left in storages. The Gala market continues to be good. The market has increased on the smaller sizes. Fiji demand and markets are steady with sizing peaking on 88-100 counts. Quality on all flavors has been good with few reports of issues.

Not much has changed from last week, Ciudad Obregon, Mexico still has warm weather which is causing heavy seeding, and spreading in the tips. Gonzales, CA still has good volume with their weather pattern staying the same. Washington State has started with better volume with cool nights and warm days in the growing area. Volume in both Ica, and Trujillo, Peru are about the same as last week. Airfreight has jumped from this region due to the Mother's Day push on flowers from Colombia. Markets are up again this week with less volume from Mexico, higher airfreight from Peru, and Mothers Day Ad's starting to pull.

Transitions:
Central Mexcio should start up in the next 2-3 weeks.

California harvested good volume again last week for the Cinco de Mayo push. Volumes are expected to taper off some to for the balance of May and ramp back up come June. Export demand remains strong. The crop is currently peaking on 48s & 60s. Fruit is ripening well and has good flavor.

Mexico's harvest volumes are starting to decline as the seasonal end of their normal crop approaches toward the end of May / mid-June. They still are reporting fair to good supplies, but expect weekly decline. Demand is strong, and we are still seeing tighter supply situation on 48s & 60s #1 fruit.

South Florida is winding down on green bell pepper. Central Florida is starting in light volume. The central part of Florida does not plant a lot of pepper so even though they are getting started, do not expect big volume. Supplies are trending to smaller and choice pepper, but yields as a whole are going down. Georgia will not start for another two or three weeks, so we expect the market will be stronger for most of May. Quality is holding up well in all growing regions.

Alerts:
Supplies are starting to get tight.

Transitions:
Bell Pepper is transitioning to Central Florida.

Surprisingly, Mexico saw an increase in Blackberry production this week. However, this bump in volume is expected to be short-lived, and supplies are expected to trend down again next week. The normal seasonal decline is expected in Mexico over the next 3-5 weeks as we wait for the domestic harvest to start. Quality has been good, and market prices have been steady. Again, this week we will see some spot buy opportunities, but I expect market prices to level out next week. California and Georgia are expected to get started late May.

Transitions:
Domestic harvest will gradually start over the next 2-4 in Santa Maria, followed by Salinas and Watsonville by early June. Georgia will start harvest late May.

Blueberry supplies remain consistent this week. California harvest is still light but is expected to improve week over week as we move forward. We currently have southern and central California in production, but volumes are limited. Quality is being reported as good. Market prices have been steady but will adjust down as supplies improve over the next 2-3 weeks. Georgia production has been consistent. The berry size is large, so packing pints is a bit difficult as the size of the fruit is too big to fill the clamshell and meet weight requirements. 6oz packs are in good supply. Quality in Georgia is being reported as good. Market prices are lower on 6oz but firm on the larger packs. Florida harvest has been lighter. Quality is good, and prices have been in line with Georgia. We expect Florida to start trending down over the next two weeks. Mexico continues to bring in fruit with good availability loading in Texas. Quality has been fair, and market prices are steady. Over the next 2-4 weeks, we will see production increase in California and new regions starting in North Carolina.

Transitions:
We expect to see increased production in central and southern California over the next two weeks. North Carolina is expected to start by mid to late May.

Raspberry supplies continue to be limited. I understand this information has been repetitive over the last several weeks, but we have been waiting on domestic harvest to begin. Unfortunately, this has been a slower than expected start. As of this week, shippers are scratching the surface with very light harvest in California. The additional domestic production volume is hardly enough to make a difference in the overall supply situation, leaving the industry in a demand exceeds supply scenario. The good news is, we expect to see domestic harvest gradually increase as we move forward. Quality on the raspberries has been good, and market prices have been firm and high. We expect supplies to continue to be limited for another week, then improve by mid-May.

Transitions:
California harvest is slowly starting and will improve over the next 2-3 weeks.

Strawberry supplies are improving. This week is the beginning of the Mother's Day pull. The additional demand will help in absorbing some of the increased production volumes, but with Salinas and Watsonville coming on strong, shippers are expecting good availability through the weekend. Oxnard is trending down as the season is finishing up over the next two weeks, but supplies remain consistent this week. Quality is fair, and market prices are lower. Santa Maria continues to have consistent production of good quality fruit. Market prices are steady to lower. Salinas and Watsonville will continue to increase production week over week. Quality is strong, and market prices are gradually coming down. Over the next two weeks, we will see shippers transition out of Oxnard and focus on Santa Maria and Salinas.

Transitions:
Oxnard is trending down and will finish the season over the next 2-3 weeks. Salinas and Watsonville production is increasing week over week.

Broccoli supplies are abundant from all growing regions. The market is also competitive as well. The quality we are seeing is full bunches, decent crown size, minimal yellowing or dehydration. This will trend into next week.

We continue to see ample supplies of brussels sprouts from Mexico and Oxnard. The market is very competitive as well. The overall quality is really nice with a full range of sizes, vibrant green color, and minimal yellowing.

California carrot supplies are good on value-added packs and medium-size carrot. We are now seeing a better percentage of jumbo sizes coming out of the fields.

Cauliflower supplies are decreasing as the cooler temperatures in the Salinas Valley and Santa Maria are slowing growth rates. Quality remains really nice with minimal bruising/brow spotting, weights in the 25 to 29-pound level, and minimal cream color. The market will trend higher into this week and also next week.

Alerts:
Supplies are decreasing due to colder temperatures in the growing regions that will cause the current market to trend higher.

A few suppliers have attempted to raise the market, but overall demand and market conditions are steady. Oxnard and Santa Maria production continue to be successful in meeting demand. The tightest sizing available is coming in the thirty-six count with the best coming in large sizing, twenty-four counts in particular. Aside from some slight seeder and bowing, the overall quality continues to be strong. Expect steady supplies on large sizing throughout the week.

We are seeing a steady flow of cilantro supplies. The market is also steady. Quality has been really good. We have seen arrivals with full bunches, minimal yellow to brown leaves, or that slimy decay we have seen in the past.

The Central Valley crop is near its end with 97% of the crop harvested. The Ventura/Oxnard areas are becoming the main growing area. Demand is improving, especially on the smaller sizes of 162s/200s. These smaller sizes are beginning to sell out daily, and the market is firming.

Limes supplies remain consistent this week. We have yet to see any major fluctuations in size, supply or price. The weather in Veracruz is expected to be in the mid 80's all week, and we do expect to see gradual improvements as we move forward. Quality is being reported as strong. Sizes are still running small and larger fruit is limited. Market prices are coming down slowly on the small sizes, but still holding firm on the large sizes.

We are now into the late varieties of navels and eating quality is some of the best of the season. Size structure is mostly large sizes 72s/56s/48s and very few of the small size fruit 113s/138s. These small sizes are extremely tight and will remain so for the balance on the Navel season. California Valencia harvest has begun in a limited way by some packers for export. Growers are size picking for 72s and larger sizes that export uses, but we see some fall out of smaller sizes for domestic shipments. Volume for domestic shipments still looks to be two weeks away.

Alerts:
Demand exceeds supplies on 113s/138s.

Cucumber supplies are steady with better production than last week and new fields starting in Central Florida. Quality is good, the color is fair, Florida cucumber rarely has as good color as offshore cucumbers. The forecast is for warm sunny weather for the rest of the week, so we expect good supplies and a steady market. Georgia is 10 to 15 days away from starting and this time of year is traditionally a high demand period, so look for supplies to tighten after this weekend.

Alerts:
Quality is good, but color is only fair.

Transitions:
Cucumbers are Transitioning to central Florida.

Eggplant supplies are still coming from South Florida, but the Transition is moving to central Florida. Product from South Florida is starting to show quality issues but new fields starting in central Florida will provide better supply and much better quality. Expect the market to be steady for the rest of the week.

Alerts:
Better supplies starting.

Transitions:
Eggplant are transitioning to Central Florida

Peak Seasons:
Eggplant is not in peak season but it's coming soon.

There are very few Chilean Green Grapes available, with prices still in the $40-$50 range with very hit or miss quality. Mexican Greens have started to cross into the US, but only in very limited quantities, but the quality is solid. Prices will continue to be elevated for the next few weeks until supply becomes more steady.

Chilean Red Grapes are still available on both coasts, with deals to be had, as shippers try to sell through their remaining inventory before Mexico is fully up and running. Quality can be suspect, especially on the smaller sizes. Mexico will be up and running fully in the next two weeks, with light supplies trickling into Nogales over the next seven days.

The supplies from Mexico keep rolling into the States. The market has been aggressive. Although the is a Mexican Holiday coming, I do not feel that it will damper supplies. The quality has been really nice with minimal brown to yellow tops.

Kale is one of those commodities that is hardy through any type of weather. We have consistently seen steady markets and supplies up to this point. That will not change. The quality is excellent with full bunches, minimal yellowing, or dehydration.

This market is in a demand exceeds supply situation. Expect this to continue through next week as well. This market is very active. Production in Salinas has seen defects like misshapen heads, mechanical and slight cracking but the overall quality is good. Weights on palletized are averaging 43-48 pounds with multiple suppliers. Santa Maria will have light availability, but some product will be available. Multiple shippers will be called upon to meet market demand.

This market is unusual. There are plenty of supplies of romaine as well as romaine hearts. Excellent competitive pricing is available. Green and red leaf, as well as butter, however, are active, especially green leaf. There will light availability on this commodity for the entire week, minimum. Production in Santa Maria continues to be minimal but is helping somewhat to offset the demand for Salinas product. Slight mechanical, discoloration and a little twisting has been reported, but the overall quality has been reported to be good. Weights are favorable on romaine as well as all leaf items.

Spring Mix, Baby Spinach, Arugula, and all other tender leaf components are in good supplies both conventionally and on the organic side as well. Quality is really good with hearty blends that have resisted the bruising and slimy breakdown. We have seen occasional excess moisture, but it hasn't brought on slimy decay. The markets are also steady.

The small size cantaloupes off the East Coast are plentiful, and shippers are offering deals. The larger size cantaloupes are holding firm with the current market prices. Mexico has started harvesting as well as Arizona in a small way. The markets are also steady. Quality form both areas is really nice with good brix / sugar levels and minimal soft spotting.

Honeydews off the East Coast are still struggling with supplies, and the markets are firm. Although we have seen honeydews from Mexico in production for the past two weeks. That market is competitive out of Mexico. Quality is really nice with minimal spotting and good brix / sugar levels.

Yellow onion supplies are good with a weak but steady market on all sizes and packs. New crop supplies are coming out of California, Texas, Mexico and Georgia. Idaho storage supplies are only in a few hands and will finish up for the season in the next week or so. Quality out of Idaho is fair to good depending on the lot. Washington storage supplies should last into the third week of this month if not longer. Quality is good. Mexico supplies will finish up by the end of this week. Red onions supplies are good in California and Washington with a steady market. Texas has limited supplies of red onions with a firm market. Look for the onions market to stay steady at low levels for the next couple of weeks.

Washington - D'anjou pears are peaking on 90's and larger in the fancy grades then 80/90 in the us#1 grades. Shippers are having to repack all pears before shipping due to quality. Small pears will continue to be extremely tight with price increase on 100s and smaller. Finish date will be mid to end of July. Red Anjous are down to the last 20% in storages. Small sizes are very limited. Red pears supplies have limited availability and are only in a few hands with a firm market. Supplies should last into the end of May. Quality has been hit and miss. Look for pricing to continue to firm up.

Offshore - Supplies of Bosc pears are starting to improve on both coasts. Markets are still firm but should start to soften slightly over the next couple of weeks. Sizing is peaking on 90/100s. Quality is very nice.

Alerts:
Red pears supplies are limited and only in a few hands.

Pineapple volume coming from the tropics remains good and looks to be so through May. Size continues to peak on 5s/6s.

Idaho - Burbanks are the main variety with only one grower still shipping Norkotah's. Demand is moderate to good on 60 - 80 count and light on 40/50 count and 100 counts and smaller. Retail bale demand is very light. Quality coming out of the storages are still being reported as good with an occasional issue being reported. The market is fairly steady from last week.
Washington - Market is steady on most sizes and packs. Some of the smaller grower/shippers will start to finish up for the season as we get into the middle of May. New crop is in the ground which should start to be harvested the middle of July. Quality is still being reported as good.
Colorado/Wisconsin - Market is steady to slightly firmer all sizes of Cartons. Retail bag demand is very light with is limited pack times for some suppliers. May. Quality is good with very few quality issues being reported upon arrival.

Bakersfield, California - Reds, golds, and white are steady on all sizes and packs. Quality is good with little to no reports of any issues upon arrival.

Idaho - Supplies are good with light demand on both Red and Golds making it a buyers market. Let's make a deal! Supplies will last into the middle to end of this month. Quality is being reported as good with an occasional issue being reported.

Wisconsin/Colorado - Supplies are winding down for the season with most shippers bringing product from South Florida and North Dakota to ship with the russets. The market is steady. Quality is still being reported as good.

North Dakota - Market steady on both reds and golds, Quality is good. Supplies will go into June maybe longer.

South & North Florida - Market steady with good supplies of both red and golds. North Florida has started which isn't helping the market. Quality is very nice.

Eastern Washington - Reds are done for the season with a few golds potatoes still available. Markets are steady. Quality is still being reported as good. Most shippers will finish packing next week.

Transitions:
Florida slowly transitioning from Southern growing regions to the Northern growing regions.

Squash supplies are coming from Homestead to south Georgia. With cool weather throughout April, plants have been slow growing, and none of the regions in play are producing much volume. The forecast is for a warming trend in the southeast, and new fields are starting in central Florida, and south Georgia will start producing more product. Quality from all regions has been good, squash from north Florida and south Georgia has excellent quality.

Alerts:
Tight supplies.

Transitions:
Squash is Transitioning to Georgia.

There is still some Chilean plums available but only for the next few weeks. California Stone Fruit has started but only with very small sizes on Yellow Nectarines, White Peaches, and very limited numbers of Yellow Peaches. Most shippers expected to be further along but have pushed back a week due to an unusual stretch of cold weather, staying in the 70's. Over the next two weeks, we will have much better supply and much larger sizing.

The round tomato market is a little stronger from last week pressing FOBs up a dollar or more. Sizing has evened out as harvest break into second picks translating into traditional step-down pricing respective to size. As the weather continues to help crops flourish, springtime volumes remain promotable at this time. Similarly, Roma tomatoes are widely available and being offered slightly below Mexico minimums to entice buyers. No different than the larger fruit, the grape and cherry tomatoes in the bite-size category are available at promotable volumes with traditional pricing for the season. As supply continues to be abundant, quality may be reflected in cheap price quotes as shippers try to move over-conditioned product to keep their coolers clear. Markets are steady at this time.

Tomatoes from Mexico remain at price minimums where the western market is forecasted to remain for the immediate future. Both gas green and vine-ripe round varieties are peaking/moving past peak production with plenty of supply available at this time. Though the end of May, vine ripe tomatoes will lead the category as gas green supply drops off against vine ripe production planted for Spring harvests. Similarly, Roma tomatoes are expected to harvest all the way through May with no supply interruption pending a significant weather event. With the abundance of Roma tomatoes in the marketplace currently, over-conditioned fruit may be something to watch out for as shippers struggle to move inventory. Grape and cherry tomatoes are also widely available and offered at minimums where they are forecasted to remain for the immediate future. As production tapers from mainland Mexico in mid-May, Baja will begin operations to offset any interruption in supply helping to keep western offerings even through much of the 2nd quarter.