The Source - May 26, 2016

Washington - Red delicious are steady but the market remains firm on all sizes. Most suppliers are still peaking on extra-fancy 72/80/88s. Most shippers are still 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 also steady on all sizes and they 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 on all sizes but 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 firm and supplies remain limited. Reds continue to peak on 80/88s. McIntosh, Galas, Jonathans, and Red Rome are still available but supplies are extremely short. The quality for all varieties has been good.
New York - Red delicious, McIntosh, and red Romes are all steady but supplies are very limited. Small fruit remains very short for all varietys. The remaining McIntosh are very large. The fruit quality has been good.
Chile - Chilean Galas are steady to slightly lower on both sides of the country. Imported Galas are peaking on 100-size and larger, the quality has been good. Imported Braeburns and Pink Lady's having started coming in and they are peaking on 90s and larger.

Volume from California is slowing down. Washington, Peru, and New Jersey are still strong. Markets are steady.

California will be peaking over the next few weeks with good volume. Size is skewed to small fruit, creating a supply issue for the mid-sized and large fruit. Demand and supply is beginning to match ounce again.

Mexico's shipments to the US has stabilized some, but is still down nearly 40% from what it was just a few weeks ago. Demand has back off and we are staring to catch up with supplies even though key sizes of 40s/48s/60s remain tight. Markets are stabilizing. We are still looking at late June to the beginning of July when Mexico starts their Flor Loca crop, before any real volume increase is expected.

Green bell pepper. Southern California is shipping good size and quality, volume is improving with very good demand.

Red bell peppers- Mexico is winding way down with most shippers finished. Southern California is shipping good supply with Quality much improved.

Yellow bell pepper-. California has started with good quality and all sizes being offered.

Mexican production has already passed peak for this season and has begun to decrease in volume. California production out of Watsonville has started in a light way and will continue to increase over the next several weeks. Quality has improved, fewer reports of red cell and soft berries. Earlier reports of a possible gap period seem to have diminished. It now looks as if CA production will ramp up just in time to replace the diminishing volume out of Mexico.

Domestic production is increasing with good availability out of California's Central Valley, Georgia, Carolinas and many of the smaller (regional) areas as well. With higher volumes, more shippers are packing into larger clamshells of pints, 18oz, 1# and 2#. 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 are increasing demand this week and should continue with better demand into the first of June.

Central Mexico production is beginning to decrease but California production is beginning to increase out of Watsonville and Santa Maria. Oxnard is also producing raspberries. Quality has been good out of all areas.

California strawberry production continues to increase in Watsonville and Salinas. Santa Maria has passed peak production and some shippers are diverting some ranches into freezer/processing due to weaker demand and weaker markets over the past few weeks following Mother's Day and the high volume production out of the northern districts. Demand has increased some this week as Memorial Day ads and retail demand 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.

Broccoli supplies vary form shipper to shipper as well as growing regions. There are much lighter supplies from Mexico and they are continuing to see hallow heart. Quality is still very nice out of Salinas and Santa Maria with dark green color and minimal yellowing. The market continues to be strong and has an upward daily pricing trend.

Alerts:
Much lighter supplies and the market is active.

Supplies have been increasing weekly out of Mexico. Oxnard is right around the corner for the domestic crop. The market is finally getting to reasonable prices. Quality is still fair out of Mexico with inconsistent sizing, black to brown discoloration, and mechanical damage.

The Coachella and Imperial Valley crop is done. The Bakersfield crop has begun and is picking up in production. Growth rate is also showing some improvement and starting to yield a better percentage of Jumbo size, still a low percent, but improving. Supply of baby peeled carrots are good.

The cauliflower market remains at high levels. Supplies are sporadic from all shippers. There have been minimal quality issues upon arrival but some have shown bruising and brown discoloration. Most suppliers continue to have light supplies. Look for this trend into next week.

Alerts:
Cauliflower supplies remain limited and the market is still at high levels.

Demand has leveled off, and this market is steady, overall. Supplies continue to be strong on large sizing in Oxnard and Santa Maria. Production in Salinas will begin next week with a few suppliers. Small sizes have tightened up, and is demanding a higher price. Good quality is being reported from all shippers. Michigan is in production and this region is packing heavier to large sizing. All sizing is expected to be moderate to good for the rest of the week.

The Washington cherry season is just getting started. Product is being picked out of the Yakima region and only dark sweet varieties are available. This week's harvest was very light and availability has been extremely limited. As we move through June, production will gradually increase, but the peak of the season is not expected to hit until the beginning of July. Quality has been reported as good and market prices are expected to remain firm. Rainier variety cherries are estimated to start the week of June 6, also in Yakima.

Transitions:
Washington is just getting started. Supplies are limited.

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.

Cilantro supplies remain steady from the Salinas Valley, Santa Maria, Oxnard, and Mexico. The market varies from shipper to shipper depending on the loading area. Quality reports have been minimal yellowing, dehydration, and black leaves.

The central valley crop is 96% harvested and winding down their season and the Ventura crop is our main supplier. Demand is very strong and continues to build. We are seeing 140s/165s/200s supplies clean up daily and many shippers sold out for the week by mid week.

The lime market remains high on the 110 & 150ct 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 has broken and lower prices are happening. Quality is good overall. The overall supplies are now increasing. The market is lower on the 175 - 250ct limes.

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. Labor to harvest fruit is beginning to be an issue for some growers.

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.

Eggplant has finished in Mexico and is now being harvested in Southern California Excellent color and condition on new crop product. more growers offering product this week.

There is excellent supplies of green grapes in all loading locations. Mexican green grapes are available to load in Nogales and Los Angeles. Californian green grapes are available to load in Coachella. Quality has been very strong in all areas. Markets prices have been gradually declining with some aggressive offers being quoted in Nogales. There continues to be a noticeable price difference between domestic and Mexican fruit. Next week we expect supplies to remain consistent and we may see another small drop in market, but the price spread between CA and MX will still be there.

Mexican and Californian red grape supplies continue to increase. We saw the market drop in both areas at the beginning of the week with a slight difference in price between CA and MX crop. However, as the week moved on, Mexican product loading in Nogales has taken another plunge in price; where as the California product loading in Coachella has remained steady in price. This split market is an effort to attract more orders to load down south. We expect to see these aggressive deals in Nogales to be available all next week. Coachella fruit is expected to remain fairly steady in price. Quality has been strong in both areas. If loading in Nogales is an option, it may be worth a separate pick.

Alerts:
Aggressive prices available in Nogales.

Not much change here as supplies are plentiful. The market is flat with deals for volume orders. Quality is really nice with little yellowing of the tops.

Kale remains the staple of the super food trend. And with that more acreage has been devoted to this commodity. Supplies remain stable and the market varies from each supplier. Quality has been excellent with good sizing, little yellowing, and dehydration.

This market is active as demand has picked up. A few suppliers are sold out for the rest of the week on open market business. The weather has been cooler and rain is a possibility at the end of the week. Defects on on lettuce continues. Expect to see defects like irregular size heads, puffy, ribby and slight insect damage. The weights are averaging 41-45 pounds on wrap. Expect this market to get stronger for the rest of the week.

This market has softened on all leaf items. Defects continue to effect growers at harvesting time. These defects include fringe burn, insect damage and slight mildew. Yields are still lower in the fields. Demand has fallen off, however. Salinas and Santa Maria are the main growing regions for these items. The romaine heart production has increased and a few suppliers are flexing on volume type orders, so promote this commodity as much as possible.

The offshore melons are done being harvested now and the last supplies are being cleaned up this week. The desert has been shipping for a few weeks now and supplies are continuing to increase. Quality out of the desert is very nice while the remaining offshore supplies are acceptable in quality. The market is steady currently for domestic supplies and lower to steady for the offshore supplies.

The desert started shipping honeydews a few weeks ago. Supplies are increasing as the offshore supplies finish up this week. Mexico has good supplies and quality. The desert quality is good also. Offshore quality is acceptable. The market is lower on all sizes.

Product is now being shipped from Northern Mexico, Western Arizona and Southern California The supply has increased along with the demand. Warm weather has increased production. Shippers are promoting to increase the movement for the Memorial Holiday. 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.

Southern California is the main shipping point for yellow, red and white onions currently. They have hit their peak volume last week and are winding down just in time for Central California to start. Supplies out of Central California will not build till the end of next week or the start of the following week. Quality is still being reported as good out of both areas. New Mexico supplies have been push back a couple of weeks from the heavy rain storms that rolled through the growing area last week. Supplies will start with a few grower late next week and with all growers by the week of June 13th. Quality will start out with some staining which will clean up quickly as long as mother nature stays away. Few growers have started up in Uvalde, Tx with supplies peaking on mediums. Quality is currently showing staining from the rain last week. Markets are firm but steady the middle of this week. I see the markets staying at these levels for the next couple of weeks.

Alerts:
New Mexico onions growers are starting up a couple weeks late due to the heavy rains last week in the growing area.

Washington - D'anjou pears are steady on all sizes but the market is very strong. Supplies of 110s and smaller are still very short. The remaining C.A. fruit is peaking on large US#1 fruit so expect the smaller sizes to remain limited until the season ends. The quality on D'anjous has been good.
Chile - Chilean Packhams are steady and continue to peak on US#1 80/90/100s. Chilean Bosc & Argentinian Bosc are both steady and are peaking on 70-100s. The quality on all of the imported varieties has been good.

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

Larger-sized russet out of Idaho, Colorado and Wisconsin continue to gain strength as supplies tighten with good demand. The Washington growing areas is still packing some large cartons. The over all market out of all areas had few changes. Quality is still being reported as good out of all areas. Idaho has reported some lots showing internal bruising which sounds like will spread throughout Idaho. All growing areas have already planted next years crop.

Bakersfield, California - all colors are steady and the availability is good for all colors. 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 continue to peak on A-size. The quality has been good.
North Florida - reds, whites, and gold potatoes are mostly steady and the availability is good for all colors. The quality has been good.
Pearsall, Texas - The red market is steady and the availability is also good for all sizes. The quality has been reported as good.

Hard Squash is finishing in Mexico and is transitioning to southern California. Yellow and Italian squash are being harvested with limited supply as they are also winding down to a finish in Mexico. Some lots of yellow squash are showing condition issues with Italian squash being mostly larger sizes. Mexico will finish shipping very soon. California is just getting started with good Quality and supply.

Come and get it! Plenty of Peaches, Nectarines, Plums, Apricots and Pluots are available. Shippers have been pressing for business on smaller sized volume fill fruit this week as schools are finishing up and summer starts. If you have any opportunity for smaller sizes, there are many aggressive offers available to grab. Larger sizes are also in good supply, but market prices have remained fairly steady. Quality has been excellent. Promotional opportunities and advanced pricing is available from all shippers.

Alerts:
Aggressive prices are available on smaller size fruit. Plenty of promotional opportunities on larger fruit.

Rounds - The market is steady. Supplies continue to look good, however, additonal rains in the east have slowed up harvest. Out west, Mexico also continues to see good numbers, with plenty crossing. If current weather continues back east, look for the market to get stronger. Quality is Good.
Roma - The market is steady. Still plenty of product, in all areas in th east and west. Florida continues to harvest in several areas. More and more product is crossing from Baja in the West. Sizing continues to be tighter on the smaller sizes, but, plenty of XLG and jumbos available. Quality is Good.
Cherry - The market is steady. Supplies continue to be strong in Florida, with afforable pricing. Mexico is crossing a few cherry's through Texas and Baja, but, FOB's are higher out west. Quality is Good.
Grape - The market is steady / higher. Supplies still a bit ligher in the East, until South Carolina begins. Mexico also looks to be lighter with grapes, with the FOB's a bit higher as well. However, Torreon and Baja should start to pick up. Look for the market to continue to tick up a bit. Quality is Good.

Rounds - The market is steady. Mexico continues to look good on supplies, with several areas in production. Back east, additional rains have slowed up harvest, with more rains in the forecast. However, west coast has plenty of supplies, if production does slow up back east.
Roma - The market is steady. Supplies on the roma's also continues to be strong. More and more volume is crossing from Baja. Back east, Florida also has a few areas in production. Sizing however continues to be lighter on the smaller sizes, with more XLG and jumbo's available. Quality is Good.
Cherry - The market is steady. Few cherry's out of Mexico continues, with higher FOB's. Back east, supplies continue to be strong and pricing is affordable. Quality is Good.
Grape - The market is steady / higher. Supplies continue to be lighter, with growers finishing up in Mexico. Back east, supplies also are lighter, intil South carolina picks up production. Look for te market to continue to tick upwards. Quality is Good.