The Source - May 22, 2019

Eastern Region:
Apple market remains steady out east, even though availability on sizes, grades and varieties continue to be extremely limited. Only four shippers reporting out of Michigan and sheds continue to close as we make our way to June. Prices are up, especially on smaller, foodservice sizes, with ‘pocket’ deals available from shippers looking to clean up on inventory.

Washington:
The Northwest continues to see demand from the Midwest and East which has put the squeeze on an already depleted inventory of smaller fruit (125ct and smaller). Retail demand is commanding a significant percentage of the already minimal inventory at a higher dollar amount. There are deals to be had on larger fruit (100ct and larger), so please be on the lookout for ‘Spot Buy’ emails.

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/grade/variety substitutions be allowed. We are seeing some ease in volume due to schools ending for the summer, but it is gradual.

New harvest Chilean (FOB-L.A.):
Chilean Granny Smith – 80ct XFCY (available now)
Chilean Braeburn – 70-90ct XFCY (available now)
Chilean Pink Lady – 70-90ct (available June 13)

Northern Mexico is just about done for the season, Guanajuato is expected to start next week with very little volume, and run through late August depending on the weather. Volume from California/Washington remains unchanged. Volumes from New Jersey/Michigan/Canada have improved with better weather in the 3 growing regions. Peru is starting to increase volume from both regions, and we should see this trend as long as the weather holds up. Markets on both coasts are slightly off with more domestic production in the mix. We should see this trend continue through the next 4 weeks.

Spring rain hit over the weekend and also some light showers in the forecast later this week. Market is strong as we are seeing an increase in pricing this week. The current crop is small and peaking on medium to large sized fruit. Excellent eating quality and long shelf life. Growers are anticipating production to taper off in June and be done by mid-July.

Peruvian-
The bulk of the volume will hit the US mid-June. The fruit is said to be peaking on 48s/40s. Volume in the US is dependent on the strength of the US market compared to the European market. Eating quality on early season fruit is fair.

We are expecting rain this week in the growing region of Michoacan, Mexico with temps in the 70s-80s. Mexico continues to control its harvest in efforts to have fruit through mid-July. Field prices increased dramatically last week resulting in a stronger market. The current crop is winding down and expected to finish up in June. Late season fruit has a great flavor profile and eats well but, also has a shorter shelf life and appears rougher externally. Expect fruit quality to continue to decline. That is perfectly common and normal for this time of year. New crop fruit will ramp up in July. Mexican growers are anticipating 20% increase in production for the summer crop.

Alerts:
The industry has seen a recent strengthening in field pricing resulting in a stronger market. We could see the market come off slightly but should remain strong through the summer.

Georgia shippers started harvesting green bell pepper late last week. Central Florida shippers are still harvesting but have past their peak. Quality in Florida has only been fair after rain and high heat over the past 3 weeks has caused decay, turning color and bruising. Quality in Georgia has been very good, volume is still not close to peak levels with some shippers still waiting to start harvesting for the season. Pepper supplies have been short and markets will be high for a few weeks, we expect supply in Georgia to increase along with supplies from California bringing the market back to normal levels.

Alerts:
Quality in Georgia is very good

Transitions:
Bell Pepper is in transition to Georgia.

Green Bell Pepper- Light production of green bell pepper arriving in Nogales from Sonora, Mexico and is peaking with choice grade. The quality from the Sonora district is fair to good. Green bell pepper demand exceeds supply in Nogales as the bell pepper supply from Sonora is decreasing rapidly and is expected to end within the next week. 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 slowly rise. Light/steady volume continue with 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 harvest has begun in out of Coachella, California, and continues with availability in McAllen, TX.

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 and fair to good quality. Yellow bell pepper demand has decreased and currently meets supply. Market on yellow bell is lower/steady. Coachella will begin production on yellow bells. Yellow Hot House bells are also available to load in McAllen, TX.

Blackberries remain steady as supplies from Mexico remain the same. West Coast blackberries are now producing small amounts helping to augment these numbers. Quality has been good. Look for markets to remain steady with lower undertones.

Blueberries are in good supplies coming primarily out of Mexico but that trend will be giving way to increase production from Central California. The recent rains have caused some slight delays but most shippers are reporting better numbers coming online this weekend. Quality has been good. Markets look to remain stable with lower undertones moving into the weekend.

Raspberries continue to be in steady supplies out of both Mexico and Central California. New crop West Coast product is still slow in coming along due to the cooler wet weather we are experiencing. Quality has been good out of both areas and the market remains stable. Look for this trend to continue through this week and on into the next.

Mother nature has temporarily dealt a serious blow to growers in all three growing regions of Salinas, Watsonville and Santa Maria. Multiple rain events usually reserved for the winter season have pelted fields in both Northern and Southern Central California with up to 1-3/4" of rain over the past few days putting a damper on Memorial day strawberry supplies. Rain of this nature at this time of year spells big trouble for strawberries due to the fact that the spring varieties being used are not suited to this type of weather. Being engineered for early spring, these plants are more easily damaged by uncommonly harsh weather such as we are experiencing now. The markets are firm and will remain so through the next week. Shippers will be packing simultaneously for juice, cannery and severely reduced numbers of fresh market until the plants recover mid next week.

Alerts:
Multiple rain events causing berry shortages

The broccoli market has started to come off with more supply in the pipeline. The gaps we've experienced recently have closed a bit in Salinas. Look for supplies to be more available 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 has started to come off as there are more supplies in the pipeline. Yields are getting better and the heads are starting to size up. 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 continue to adjust going into next week.

Demand continues to exceed supplies for record months on this commodity. Some shippers have predicted strong markets until July of this year. Oxnard/ Santa Maria is the main growing regions currently, with light production in Mexico occurring as well. Salinas will not begin production until the second week in June. With this being said, demand will continue to exceed supplies and markets will stay active with this commodity. The acreage loss is really coming into play from losses in January-February. Rain this past weekend and rain expected this week will only further increase production shortages. Please keep in mind this industry is down 25-30% of normal capacity. Some defects being reported upon arrival to include seeder. insect damage, leafy and mechanical.

What a difference rain can make! After the heavy rainfall in all California growing regions, the forecasts for future cherry production is dismal. The initial harvest projection before the rain was approximately 8 million cases. Now, after the rain, that number has dropped to 1 million and possibly less. Growers are currently walking orchards and assessing the damage. Some growers have completely pulled out and have deemed their crop a total loss. Others are hoping to salvage what they can. Moving forward, supplies will be extremely limited and prices will be very high. California season is essentially done. We will look to the Pacific Northwest to start harvest mid-June.

Alerts:
Rain has forced an early end to the CA season.

Transitions:
Pacific Northwest will start mid June.

Jalapenos- Good supply of Jalapeno available to load in Nogales, AZ from Mexico. Growers continue to harvest jalapeno out of the Sinaloa but is expected to finish as soon as this week. 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 Sinaloa, Mexico. Moderate Anaheim production expected to continue through the week. 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.

Tomatillo – Husk tomatillos are available to load in Nogales, from Mexico. Quality of husk variety is good. Good supplies on husk tomatillos are expected to continue through the week. The tomatillo market is expected to increase. Both Husked and Peeled tomatillos are increasing in teens. Both varieties of tomatillos are also available to load in McAllen, TX.

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.

Lemon supplies on our main 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, with markets in the mid to low 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 the volume of the small sizes. The market is still expected to stay strong on large size fruit until supplies improve by mid to late June.

Light supplies are expected for the week on the late season Navels and early season Valencia’s. Our growing regions in the Central Valley and Southern California district got hit with more rain than expected over the weekend until Tuesday. The Foodservice sizes 113’s and smaller will remain very limited until the rest of May. It’s advised to place orders in advance to help fulfill orders in full. A majority of 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 $14-$16 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 supplies are good, the market is steady. Central Florida is still harvesting, Georgia is picking up in volume and North Carolina is set to start next week. Quality in all regions is good for the most part, growing cucumbers suspended on poles has become the trend over the past few years. This practice has made for better quality and color. Pole cucumber traditionally pack a higher percentage of number one product, however, this year seems to be the exception with growers packing a higher percentage of selects causing a wide gap in pricing. There have been some isolated quality issues, mostly due to disease in fields.

Peak Seasons:
Cucumbers are hitting peak season now.

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 sluggish 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 supplies are tight with Central Florida the only producing area in the east. Markets have been elevated for the past few weeks and quality has been good with most shippers. Georgia is set to start this weekend or the first of next week, but it will take at least a week to 10 days for shippers to start any volume. There is a big spread in pricing between fancy and choice product, expect the market to continue at a steady pace through early next week at least.

Alerts:
Eggplant supplies are very tight.

Lighter supplies of eggplant arriving from the Mexican State of Sinaloa. Eggplant supplies have decreased in the month of May and will continue to decrease as season winds down. The market will continue to be strong. Quality from Sinaloa on fancy and choice pack is mostly fair. Eggplant from California is expected to be harvested as soon as later this week but in light volumes.

Unfortunately, the supply situation continues to get worse and we are starting this week with virtually no green grapes available in any loading location. Currently, the industry is relying 100% upon Mexico production to fill the demand and Mexico’s volume has been severely less than years past. Additionally, all imported fruit from Chile has been done for over a month and Coachella harvest continues to get pushed back due to cooler weather. The reality of the situation (industry wide) is green grapes are extremely limited. Order fulfillment will continue to be a challenge for the next 1-2 weeks and we may need to be flexible on loading areas. Because supplies of Mexican green grapes are so limited, most of the fruit is being sold and loaded out of Nogales. I am not aware of any green grapes available on the east coast and west coast loading locations are hit and miss. We may see an occasional pallet become available in the central valley, but we will not see any consistency until Mexico production increases and Coachella begins. We expect things to improve by June.

Alerts:
Markets are higher and supplies remain very limited.

Transitions:
Coachella will get started later this week.

Supplies have become limited this week as import supplies have fallen off and we are still waiting on Mexico and Coachella to pick up. We expect this week to be the worst week in regard to availability. We expect have some fruit available on both the east and west coasts, but volumes will be limited. Mexico’s harvest will slowly ramp up, but this week will be limited and most of that fruit will load in Nogales. Coachella is expected to start later this week with very light numbers and gradually ramp up next week. Market prices are higher.

Alerts:
Supplies are lighter this week. New harvest market prices are higher.

Transitions:
Coachella will start later this week with light harvest. Mexico will ramp up.

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 remain plentiful. Quality is good with full bunches, and only an occasional yellow leaf being reported.

Plenty of rain in northern as well as southern California this past weekend has caused for slow harvesting and smaller overall quantities with this commodity. The market has firmed up. Rain is expected for the next few days in all the growing regions. Demand overall is steady. Some common defects being reported include misshapen heads, mechanical, insect damage, and puffiness. The weights on liner product are ranging from 40-44 pounds with some suppliers up while others are down. Expect moderate production throughout the week. There should be enough supplies to meet demand, even with the rains.

Harvesting crews with shippers have been delayed due to heavy rains over the weekend. This market has firmed up with most suppliers. Demand is up slightly. A few issues on quality are being reported on romaine as well as all leaf items. These issues include fringe burn, insect damage, mechanical, and yellowing. Must shippers are announcing this up front. More rain is expected in the next few days, so overall quality will just be fair. The weights on romaine are averaging 30-34 pounds while green and red leaf has been 22-24 pounds. Demand looks to be moderate throughout this 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.

There is an overlap on fruit in the pipeline. We have the last of the offshore fruit, Mexico is pumping out good volume and, domestic fruit just starting up with light volume. Offshore fruit still showing good internal and external quality as it is late season fruit. The pipeline should be cleaned up on offshore fruit by the end of the week. Good volume coming out of Mexico and will be available into the first week of June. Quality is just fair. Domestic fruit is shaping up nicely. Better volume this week out of Brawley, California and very light offerings out of Yuma, Arizona.
Specialty melons are grown in the region of Brawley, California and available.
Hami, Juan Canary, Galia, Santa Claus, Orange Flesh, Casaba and Crenshaw.

The honeydew market remains flat this week. Last arrivals on offshore fruit have hit the US and should be cleaned up by end of this week. Mexico pumping heavy volume into the pipeline and will run into July. Domestic fruit is starting off slow. Light offerings out of Yuma Arizona and Brawley, California showing better volume for the week.

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 strengthening as summer demand increases.

Northwest storage onions have finished for the season. Texas will continue with yellow, red and white onions through May. Supplies are winding down and demand is heavy pushing markets higher, in particular on yellow onions. California desert also continues to produce supply and will wind down over the next two weeks and transition to the San Joaquin Valley the first week of June. Markets are also stronger from the desert. New Mexico has started with light supply and will increase as we approach June. Quality is good on the fresh run onions but will exhibit a thin, flaky skin set and shorter shelf life. Markets will be higher as we transition into these new growing regions.

Washington Anjou and Bosc pears are seeing increased demand – with minimal availability on smaller sizes – 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.

Bosc pears are expected to end mid-June. Volume is on 110ct and larger, with smaller sizes (120ct and smaller) pretty snug. Anjou’s should be available through July and Red Anjous through mid-June.

Chilean and Argentinean Bartlett pears are still available and loading in Los Angeles. Also, Chilean Packems (70-120ct) are available to load in the City Of Angels.

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. With Monday being a holiday, expect some delays at the ports depending on release time from the USDA. We’ll be sure to communicate any delays to help loading times. Markets remain steady $12-$14 depending on the size.

Idaho russet potato markets are higher on the 40-70 count as Norkotah's have finished up and Burbank's are now the main supply. The Burbank's have a smaller size profile. 80 count and smaller are holding firm. Consumer business is active with the Memorial Day and Father's Day holidays coming up. Quality on Burbanks is good with a few lots showing some shoulder bruise and occasional hollow heart. Washington, Colorado, and Wisconsin continue to product Norkotah's. Wisconsin quality remains fair. Advanced orders for large size potatoes out of Idaho are necessary to ensure full coverage. Expect rising markets on the larger sizes through the summer months until new crop harvests begin in August.

Alerts:
Idaho 40-70 count Burbank markets are rising quickly. Advanced orders are needed to ensure full coverage.

Color potato markets are on the rise as Idaho is winding down for the season and will have limited supplies of storage until new crop begins in September. Sizing and colors will be sporadic with rising markets. California is producing out of the Bakersfield region on red, yellow, and white into July. Stockton, CA is expected to start mid-July and run through August. Eloy, AZ currently has fresh run red and yellow potatoes with excellent quality and great color. Supplies will run through the 4th of July holiday. Florida is currently transitioning from the southern region to the northern part of Florida in the Hastings area. Red, yellow and white is available with excellent quality. Expect supplies through mid-to-late June. Texas will start early July with Minnesota and Wisconsin starting early August.

Squash is in peak season and the market has been depressed for a few weeks. That could all change with the heat forecast for this week and weekend. Yellow squash supplies are starting to tighten up, zucchini supplies are still plentiful. Supplies are still coming from Florida but they are winding down, Georgia is in good production and that should continue, the Carolina's are stating this week. Quality is good with green squash, there are some issues with yellow squash with scaring due to wind over the past week.

Alerts:
There is extreme heat forecast for the southeast this week and weekend that could change production in a negative way. Keep an eye out.

Transitions:
Squash is transitioning up the east coast from Florida to Georgia and the Carolina's

Peak Seasons:
Squash is in peak season.

Moderate supplies on both Italian and Yellow straight-neck squash continue to cross through Nogales, AZ from Sonora, Mexico. Italian and Yellow straight-neck squash 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. Both Italian and yellow s/n squash harvest from the Baja growing district has started in a light way.

We started off the domestic season with a good push of apricots, nectarines and peaches. However, the heavy rains California growers experienced last week has slowed production. All shippers are walking fields this week and assessing the damages. Depending on the exact location of the orchard, rainfall totals vary between half an inch to a little over an inch. We will see a small decline in production this week and possibly some spikes in prices. Depending on how much more rain we receive later in the week, we may see supplies remain lighter for another 1-2 weeks, but the industry is expected to rebound quickly. Plum harvest is expected to start later this week.

Alerts:
Rain has slowed production. Some prices are higher.

Most Florida shippers will finish crown picking this week in the Ruskin and Palmetto districts. Temperatures in Florida have been in the mid-nineties the past week helping crops flourish. There have been fewer offerings on the 6x6 and 6x7 size over the past two weeks, however, smaller offerings are improving through the rest of May. Roma tomatoes are steady with the better dollar value crossing Mexico. Grape and cherry tomato is also improving this week with more overall supply in the market. In the next 7-10 days, the Quincy district in North Florida and South Carolina are expected to begin production and run through the July 4th holiday. Tennessee forecasted to begin operations near July 10th, shortly followed by Virginia and smaller eastern seaboard deals.

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. As of last week, Mexico has refused the May 10 proposal made by Florida growers requiring negotiations to continue until a deal can be struck.

Mexico tomato prices continue to fluctuate while growing regions transition. Nogales was expected to finish round imports, however crossing continue this week. Baja crossings are increasing this week, helping western supply in the weeks ahead. San Diego will have crossings through Summer with a small dip in supply the first part of September. 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 the supply will be affected but it is expected that imports will be reduced at some point. For the time being, soft demand is allowing for easy pricing with some varieties the cheapest they have been in years. Vine Ripes have increased in availability helping the price to slide a couple of dollars this week already. Roma tomato FOBs are nearly half the previous minimum mandated by the former suspension agreement. Grape and cherry tomatoes are also competitively priced this week equal or slightly higher to their eastern counterpart for the time being coming down a couple of dollars in step with the East from the end of last week.

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. As of last week, Mexico has refused the May 10 proposal made by Florida growers requiring negotiations to continue until a deal can be struck.