The Source - May 24, 2017

Washington - red delicious are mostly steady with some shippers higher. Most fruit is still peaking between 72/80s. Golden delicious are steady but strong due to light supplies esp. on the smaller sizes. Golden delicious continue to peak on 72/80/88s. Supplies of gold 100s and smaller are very light and will remain so. Granny-smith are steady to higher on all sizes due to light supplies and strong demand. The fruit is still peaking on 72/80/88's. The availability of 88s and smaller is extremely light and most suppliers are still subbing up in size and grade just to cover orders. Galas are steady to higher on 113s and larger while 125/138s are higher. Galas continue to peak on 80/88/100/72s. Fuji's are steady to higher on all sizes and are still peaking on 72/80/88s. Fuji supplies are still very light. The quality for all varieties has been good.
Michigan--Red Delicious are steady on all sizes and the demand has been relatively light. Reds will continue into mid to late June depending on the shipper. The quality has been good.
New York---The McIntosh market is high and strong due to extremely light supplies. Red delicious are steady to higher on the larger fruit and mostly higher on the smaller sizes due to light supplies. New York should continue packing into June but they aren't much of a factor at this point. The quality has been good.

Alerts:
Small Granny-smith and Golden delicious apples remain extremely short in Washington.

Peak Seasons:
Washington is still in the peak of its red and Golden delicious, Gala, and Granny-smith apple seasons.

In Central Mexico the weather remains warm in the region which is affecting quality, and shelf life. California weather continues to be favorable for growing in the region, quality remains excellent. Washington production has come on this week with better weather in the region. In Peru the volume continues from both regions, quality is still fair due to warm weather over the last month. In Michigan production has increased with warmer days, and nights in the growing region.

California harvest continues with steady volumes and size remains peaking on 60s/40s/70s. Demand is strong, with 48s and larger demand outpacing the supplies.

Mexico's shipment are steady, with expected slightly lower volumes coming as we move into June.

The green bell pepper market is lower this week due to increased supplies in Georgia and Florida still shipping steady supplies. Florida has good supplies of good quality pepper in the Plant City area, shippers also have been cleaning up fields on the east coast. With a strong market the past two weeks growers continued harvesting older fields of lower quality product to recoup losses from this winter. Georgia shippers picked up volume this week with more shippers due to start this weekend or early next week depending on the weather. We do not expect the market to weaken much further this week, supplies of good pepper still will be low enough that the market will hold steady. Some western shippers are gapping in California keeping pressure off the eastern markets.

Alerts:
The southeast from the Carolinas to central Florida are due to get a lot of rain over the next 3 days. The forecast is calling for 3 to 6 inches. We need to keep a close watch on the system.

Transitions:
We are loading more product in Georgia as volume picks up.

Peak Seasons:
Green Pepper will move into peak season next week if the rain over the next few days does not hurt crops.

Green bell Pepper are finishing in Nogales this week. Green Pepper from Coachella Ca. are in good supply with excellent quality peaking on large and Ex- large sizes.

Colored Bells ( Red, Yellow and Orange) are finishing in Nogales this week. Good quality and condition are shipping from Coachella Ca, . Market and demand are much better Packing 25# 15# units. Both number one and number two grade. Warmer weather is improving supply this week.

Salinas / Watsonville blackberry harvest will start with very light volume this week. Quality is expected to be excellent and production will gradually increase over the next 2-3 weeks. Mexico harvest has been consistent with a little push of product at the front part of the week as production was pulled ahead by the warm weather. Quality on Mexico blacks has been good with occasional soft berries. Markets have been steady with opportunity buys available in certain loading locations.

Transitions:
Salinas / Watsonville will start this week and gradually increase over the next 2-3 weeks.

Central California harvest is ramping up this week with good volume expected by the weekend. Quality is being reported as excellent. Market prices started off high, but are trending down quickly. Georgia is still producing fruit but a chance or rain this week may slow harvest. We expect fruit to be available from Georgia into June. Mexico harvest started to decline with little fruit available in the market. We will continue to see Mexico taper off moving forward. North Carolina started with light harvest this week and is expecting to increase over the next 2 weeks.

Transitions:
New Central Valley California fruit is coming on strong this week.

Raspberry production started with very light numbers this week in Salinas and Watsonville. Production will continue to increase over the next 2-3 weeks as the plants mature. Mexico production has been consistent but light. The growing regions in Mexico have been very warm and some of the fields are nearing the end of production. Supplies will continue to remain limited until California production ramps up. Quality has been good, but with the warm weather in Mexico, we may see some softer berries. California quality is expected to be excellent. Market prices will remain firm.

Transitions:
Salinas / Watsonville production has started and will continue to increase over the next 2-3 weeks.

Strawberry supplies continue to be strong in Salinas and Watsonville, but Santa Maria production slowed this week. Due to the increased demand for the Memorial Day holiday, shippers started the week off with limited availability of open fruit and demand seems to be holding strong through the weekend. With the decreased production in Santa Maria, I expect market prices to firm up as the week moves forward. We will see better supplies and markets start to come off again next week.

Salinas / Watsonville - The weather is expected to be mild this week with highs in the 70's. Quality has been good with reports of some green fruit and white shoulders due to the warm weather over the weekend. The mild temps should help correct this and we can expect to see excellent supplies moving into next week. Sizes range in the 12-14ct.

Santa Maria - This area experienced some gusty winds last week followed by a really warm weekend. This week's temps are a bit more mild with highs expected to be in the 70's with a chance of more wind. We did get reports of some bruising due to the winds last week. A lot of shippers are cleaning through their field and dropping a lot of the damaged fruit or sending it to freezer; decreasing production this week. We expect better quality by the weekend with sizes in the 18-22ct range. Production will increase next week.

The broccoli market is trending lower as a result of better supplies from all growing regions. Quality is really nice out of all growing regions with vibrant green color, little dehydration, and improved crown size. This will trend into next week.

Brussel Sprout supplies remain extremely limited out of Mexico. This has caused a significant increase in the market. Sizing is inconsistent as they struggle with current acreage. We are also seeing quality issues such as yellowing, some decay, and brown discoloration upon arrivals. We will continue to see limited supplies until we transition to domestic supplies in late June.

Alerts:
Extremely limited supplies from Mexico have caused the market to significantly increase.

California carrots are in good supply and quality on jumbos, cellos and value added product.

We are seeing supplies start to tighten up and decrease as we finish the week. The market has firmed up from the lower ranges and looks to trend higher to finish the week. There are cooler temperatures in Salinas and Santa Maria reported for next week. So we could possibly see this market trend much higher next week. The quality has ben really nice with little yellowing, minimal bruising / black spotting, and the full range of sizes.

The celery market remains strong due to limited supplies in the Oxnard region. Celery supplies are suffering due to planting gaps and reduced yields caused by the heavy rains earlier this year. We see no relief for this market until Salinas comes into better volume about mid-June.

Transitions:
Salinas celery will be starting around the last week of May to the first week of June. Good volume supplies are expected about mid to late June.

Pablano - Excellent size and Quality will continue with new crop in Baja California.

Tomatillo-Much lighter supply and just fair quality, both peeled and husked. Sizing is only fair. Color and condition will continue to be only fair.

Jalapeno- good quality on new crop pepper, Excellent Size color and condition with supply dropping. Some number 2s are being shipped.

Anaheim- good quality, condition and size are expected to continue as supply have improved slightly.

The supplies from all growing regions has improved. Although the market really depends on where you are loading. Salinas is commanding a premium in price due to the accessibility to load with the core commodities. Oxnard and Santa Maria is your best option for competitiveness. Quality is good with only a few arrivals of yellow to brown leaves in the bunches.

California's Central Valley crop is nearly finished for their season. The Ventura crop is in full production. Size growth has left the 165s/200s/235s both grades well short for the increasing demand for these sizes. This short fall looks to last into the fall.

Alerts:
Demand exceeds supplies on 165s/200s/235s.

Limes continue to peak on smaller sizes such as 230's and 250's while the larger sizes remain snug to unavailable. 110's through 175's are extremely tight with 110's being virtually unavailable. 110's will remain in an extreme demand exceeds supply until the end of July according to some growers. New crop limes are smaller in size and due to the lack of rain and hot temperatures they look to remain peaking on the small sizes for several more weeks. Quality has been excellent on the limes over the past several weeks and looks to keep this trend. The market is currently steady on the larger sizes and lower on the smaller sizes.

California's Navel season is coming to it's end. We are now moving into the Valencia crop. This years Valencia crop looks to be the smallest crop in a decade, Bearing acres have been falling yearly and are down another 6% from last year and the average estimate of fruit set per tree looks to be lower by 30% of normal. Shippers will be adjusting their weekly harvest numbers slightly to make the crop last through September. We expect to see size growth of fruit through the summer, which will leave the small sizes 113s/138s very limited when we get to August and September.

The cucumber market is showing signs of weakness. Better supplies of cucumbers in Georgia is causing a lower market. Florida is still shipping steady supplies from Plant City with good quality and will continue for another week to ten days. Georgia so far this season has had very good quality and volume is picking up. Demand has been very good and continues to be strong on super selects, select and cartons are weaker. We have at least two weeks until the Carolinas have any product at all, so we expect the market to be moderate at least for the next week.

Alerts:
Florida, Georgia and the Carolinas are expecting a lot of rain over the next 3 days. This system could have a big impact on crops.

Transitions:
We are moving into Georgia.

Peak Seasons:
Next week will be peak volume in Georgia for cucumbers.

Limited supply on cucumber coming out of Nogales Az.Product has also started crossing in Baja California. Excellent color, quality and condition on all grades, sizes and pack styles. Supply has dropped on Euro cucumber as well, #1and #2 both single layer and bushel boxes.

The eggplant Market is steady trading in the mid-teens. All supplies are concentrated in central Florida around the Plant City region. Supplies are in a few hands, acreage as a whole is down in the region as a few growers opted out for this spring. Georgia will start light volume this weekend weather permitting but it will not be enough to affect the market. Quality in Florida has been very good and volume is steady, we should see the market hold where it is for the next week.

Good quality and condition with good size are currently being shipped from Nogales, mostly 18 count followed by 24 count are available. Volume is very limit. Supply from Mexico is winding down and Coachella Valley has started shipping. Cool weather has limited current supply.

Green grapes are coming down. Supplies are picking up in both areas and building daily. Quality is very nice. The season started off slowly and rocky but here we go now!! Sizing is picking up now too. The market is lower.

Red grapes have given us all grey hair for sure. I am happy to report we now have supplies that can sustain our demand. Quality is very nice from Mexico and Coachella and berry size is improving too. The grapes started off small but are mostly large and getting larger. The market is lower.

We continue to see ample supplies out of Mexico. The market remains competitive on both iced and iceless green onions. There is also a full range in sizes. Quality is really nice with few arrivals of yellow to brown tops.

The kale market remains steady with plenty of supplies. The quality is really good with little dehydration, minimal yellowing, and full cartons. Suppliers seem to have an abundance of supplies as processors continue to provide plenty of variety in the salad world.

The iceberg lettuce market is about steady with good volume for the current demand. Some quality issues (fringe burn, rib blight and "tobacco" stain on the ribs) have shown up in some lots. Most lots, however, are showing good quality, size and weight. Some select shippers are experiencing lighter than normal volume but we see no reason for change in the current market.

The market for all leaf lettuces (red leaf, green leaf, Boston and romaine) remains steady. We are seeing some light fringe burn showing up in some lots as well as an occasional pink rib. None of this is significant enough to affect supplies or consequently the market. Demand is steady and supplies are more than adequate to meet it.

Offshore cantaloupes are done now. We are relying solely on Mexican and American supplies. Thankfully we are in the midst of good growing conditions in the desert and Mexico. Quality has been very nice with a few issues such as softness. Supplies are increasing which will curtail the current upward market. We have probably another week of a somewhat increasing market to steady market conditions, nothing to stress over. A few shippers with Mexican product are cutting deals. Schools are ending this week and next which cuts into demand. Other areas of consumption are getting started for the summer. The market is steady to higher.

Honeydews are starting to increase in cost now. The offshore supplies are done now so we are relying on domestic and Mexican production. Thankfully there has been good growing conditions in all areas so the increased market is really just a temporary one that should last for another week. Schools are ending this week and next in most states so demand will slow down a little until the other consumers ramp up for the summer.

Quality and condition and conventional seedless continue to be good. Personal seedless are available in limited supply peaking on smaller sizes. Sonora spring crop continues to be good,cooler weather has slowed production slightly. Sugar has improved . Good demand on all sizes, peaking on larger fruit. mostly bins available and cartons being packed to order. Crop in Sonora is expected to finish much earlier than normal.

Onion market is steady out of all growing areas which include Southern California, South Texas, Mexico, Washington and New Mexico with no change in sight on all sizes and packs. Idaho has finally finished for the season. Washington has about two maybe three weeks before they finish. Temperatures in Southern California are ranging in the 100's for the first time this season. This should not have much affect on quality as the season is slowly winding down just as the Central California growers are getting ready to break grown the end of this week. Quality is still being reported as good out of all areas. South Texas received around two inches of rain over the weekend which has stop harvest for most of this week as they wait for the fields to dry out. Shippers in this area are able to work off of supplies that they harvested before the rain to not miss a order.

Alerts:
High temperatures hitting southern California growing areas. Rain in South Texas has stopped harvest for the week

Washington -- D'anjou pears are steady on all sizes and continue to peak on US#1 80/90s. Small sizes remain very short. The quality has been good. Red pears are steady and they are still peaking on US#1 50-size half cartons but they are almost finished for the season. The quality has been good.

Chile - Chilean Packhams are steady on all sizes. They have an even size spread from large to small. Argentinian Packhams are also steady and remain heavier to 100s and larger. The quality for both has been good. Both Argentinian and Chilean Bosc pears are steady and heavy to 100 size and larger although the Chilean fruit has more of the smaller sizes. The quality for both have been good.

Peak Seasons:
Washington is still in the peak of its D'anjou pear season.

We are seeing good supplies coming in from the tropic's and supplies look to stay good through June.

Not much change going on in the potato world. Supplies of large cartons potatoes (40- 70 count) out of Idaho, Washington, Colorado and Wisconsin continue to be in shorter supply. Small potatoes (90 count and smaller) continue with ample supply as do 6oz #2's. This trend could continue as we progress through the end of this year storage crop. Market's have settled in for a gradual upward trend. Quality is good/fair with a few lots still showing some light internal bruising, hollow heart and occasional soft rot. Light retail demand for the non-A bags has some shippers only running short days which is helping keep supplies of the cartons tight. I would recommend to stay a head on supplies as orders with large counts are taking a couple of extra days to get loaded. Growers have been able to get next years crop into the ground and it is now in the hands of mother nature. We will keep you posted as weather condition change that could affect this crop.

Bakersfield California -- golds, whites, and reds are mostly steady with some sizes lower especially Red As. All colors are peaking on A size. Premium/Bakers and C-size remain short for all colors. The quality is good.
Phoenix, Arizona -- Red and gold potatoes are steady on all cartons and all are peaking on A size. Gold supplies remain limited on all sizes. The quality is good.
North, Florida -- reds and whites are steady with good availability on all sizes. Some suppliers will flex for volume on carton red As or #2 A size. B size reds are very short. Golds are steady to higher. All colors are peaking on A-size and the quality is good.

Peak Seasons:
North, Florida and Bakersfield, California are in the peak of their colored potato seasons.

Squash this week is very strong, the lack western supplies has kept this market propped up. There are good steady supplies in central Florida and Georgia. Quality is good on both colors and demand is great, many customers who have loaded in Nogales or California in years past do not have that option this year. There is light volume in the Carolinas starting this week but logistically it is difficult to load on mixer orders. We expect the squash market to continue on a strong pace for the next two weeks.

Alerts:
lack of western supply is keeping the market tight.

Yellow Squash and Italian Squash are winding down shipping from Sonora.(Crossing in Nogales) Yellow squash is in very short supply and Italian is also limited. Cool weather has slowed the new crop in California. sizing is mostly medium followed by fancy and xfancy with very few W/B being offered. Hard Squash is still being offered in fair supply but is also coming to an end in Nogales.

Transitions:
Italian and yellow squash are finishing in Nogales Az. and just getting started in Santa Maria Ca. Cool coastal weather is providing a very slow start.

Weather in California's San Joaquin Valley has been positive for good production albeit slow to start. The wet winter and plenty of cold nights has growers expecting a great CA stone fruit season. Stone Fruit harvesting started slowly in the San Joaquin Valley it's still not up to full speed but in the next couple of weeks we will feel a huge difference in the stone fruit arena. Nectarines, peaches and apricots are being packed. Plums started too but are super light in volume so far. Cool temperatures last week and before held back harvesting but thankfully hot temps lasting overnight have been happening since this past weekend which has promoted growth. The market is lower on what is being harvested

Florida tomato supplies are short sending prices up again this week. Palmetto/Ruskin operations are just about finished where plantings were already reduced by as much as 1500 acres as a result of cheap markets cutting into grower earnings in the first part of the year. As a result, Gas greens have strengthened further from last week to the highest prices into the $20 range. Demand for Florida grown grape tomatoes has risen sharply (into the $30 range for 20lb bulk) with yields being reduced in the west. Cherry tomatoes have followed suit firming up this week as buyers look to Florida where quality in general is superior to its western counterpart. Quincy Florida and Beaufort South Carolina are preparing to start picks out of new regions the first part of June to help supply but there will not be enough to calm the market until California can begin in July.

Alerts:
The tomato market is in high demand with supplies in very few hands. Fob’s have reacted sharply, as Ruskin/Palmetto finish up and we look at a three week tomato gap. Quincy, Florida will get started around June 1st and South Carolina will start June 5th.

Nogales is just about finished with poor quality yields from crops that weren’t tended to due to low markets in previous months. New growing areas out of Baja have began production where yields are marginal this time of year. Roma tomatoes out of Baja are coming into better production this week helping the transition of western supply. Grape tomatoes have also transitioned to Baja where both grape and cherry varieties are available in limited numbers. As supply improves the next couple of weeks it will not be enough to return the market to the low prices experienced the first part of the year until California can begin production as late as July to carry much of the national demand.

Alerts:
Supply is short of demand pushing Markets higher. Crossings into Nogales are winding down. Baja will begin sending rounds and romas across San Diego by the end of this week to help with supply in a small way. California is due to begin around June 20th, but is expected to have a rough start so a high tomato market through the July 4th holiday is likely.