The Source - May 30, 2018

Washington Red Delicious, Gold Delicious, Honey Crips and Pink Ladies have very good demand with a firming market. Export demand is still excellent with some shipper putting the breaks on to make sure they have enough supplies to cover domestically. Fuji supplies are light with a steady market. Gala's will start to wind down, and we get into the middle of June. Granny Smith supplies are moderate with slightly better demand. Sizing is peaking on 100/113/125. Braeburn and Jonagold will be the first to finish up for the season. Gold Delicious movement is steady to good with sizing peaking on Prem/Waxf #1 80-100s. Regional shippers in Michigan and Pennsylvania are finished for the season which has put more pressure on Washington. New York has limited supplies of red delicious with a few Romes, Macs and Empires in the mix. Quality on all flavors has been good with few reports of issues.

Ciudad Obregon, Mexico has wrapped up their season. Guanajuato, Mexico has better volume this week with warmer weather in the region. Gonzales, CA volume remains unchanged with their weather pattern remaining the same. Volume should start to decrease in the next two weeks as their season wraps up during the first week in July. Washington State weather remains unchanged, and volume should be similar to last week. Volume in both Ica, and Trujillo, Peru also remains unchanged from last week. Markets on both coasts are steady to lower after the Memorial Day holiday; local supplies are also affecting the markets.

California production good and steady. Expecting good production into August. 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 beginning to lightly decline weekly through June to its seasonal end of their normal crop toward the end of June. Demand is strong, and we are still seeing tighter supply situation on 48s & 60s #1 fruit.

There are better bell pepper supplies coming from Georgia if growers can get in the fields and pick. The high prices of the past three weeks have cooled demand, but the supply is still not overly heavy. Most Florida shippers are winding down, producing smaller sizes and the quality is only fair. Georgia is mainly producing jumbo and extra large pepper, with very good quality. Buyers that want a premium product are paying more money for the newer pepper.

Alerts:
Big quality deference between Florida and Georgia.

Transitions:
Bell Pepper is transitioning to Georgia.

Peak Seasons:
Bell Pepper is coming into peak season.

Green Bell Peppers - Supplies in Nogales, from Mexico, are finishing up. Green bells still being quoted in Nogales. Mostly small size with thin walls. Quality mostly fair for peppers still coming out of this region. Good supplies and quality being produced in the Coachella Valley by multiple Grower/ Shippers in the area. Market for green bells remaining steady for the week.

Red Bell Peppers – Supplies in Nogales, from Mexico, are finishing up. Hot house Red bells still being quoted in Nogales. Mostly choice size available. Quality mostly fair for peppers still coming out of this region. Good supplies and quality being produced in the Coachella Valley by multiple Grower/ Shippers in the area. Market for red bells remaining steady for the week.

Yellow Bell Peppers – light supply of Yellow bell pepper being Harvest in Baja. Good supply of yellow bell choice and #1 sizes being packed in the Coachella Valley growing district. Good quality and condition being reported by both growing districts. Market for yellow bells remaining steady for the week.

Blackberry supplies are very limited this week. Shippers have come to an unexpected supply gap due to weather. Mexico has experienced some hot weather over the last two weeks which has affected a large portion of the remaining fruit and lowered yields drastically. Domestic harvest in California is barely scratching the surface and is not expected to ramp up for another week, and Georgia is being delayed by rain. This has left the industry in a short-term supply shortage. Market prices are higher. We expect supplies to remain limited until California harvest improves by mid-June.

Alerts:
Supplies are very limited and prices are higher.

Transitions:
Salinas and Watsonville harvest is expected to start week of June 11.

Blueberry supplies on the west coast are improving as the east coast growers are still being held back due to weather. Georgia production is very limited because of rain and availability is sporadic. North Carolina started last week with light production, but harvest has yet to ramp up, so supplies are limited. We expect peak harvest over the next two weeks. California production continues to improve week over week, with fruit available in the central valley. Quality on California fruit is being reported as strong with firm berries and good color. Market prices on the east coast fruit remains high. California prices are adjusting down slowly as production improves. We expect supplies in California to reach peak production mid-June.

Peak Seasons:
North Carolina and California are expected to enter peak production over the next 2 weeks.

Raspberry supplies have slowed down again this week. Unfortunately, due to weather-related issues in all growing regions, raspberry production is experiencing a setback. Shippers were expecting lighter supplies as we transition between Mexico and Domestic harvest, but volumes have declined very swiftly as Mexico has been experiencing a heat wave and harvest has come to a crawl. The domestic harvest in California has yet to reach full production, leaving the industry in an unexpected shortage. Shippers expect this to be very short lived as domestic harvest will improve next week in Salinas / Watsonville. Market prices remain higher and firm this week. We will see a gradual decline in market prices over the next three weeks as California ramps up.

Alerts:
Harvest has slowed down this week, but will bounce back quickly next week.

Transitions:
Salinas and Watsonville areas are expected to start ramping up next week and gradually improve over the next 3 weeks.

Strawberry supplies continue to be good in all regions. Santa Maria continues to have good quality and availability, but shippers who have heavy acreage in Salinas and Watsonville had pulled out of this area and are focusing on the northern regions. However, shippers who stay in Santa Maria will continue to have great availability. Salinas and Watsonville continue to have excellent availability and quality. Market prices as a whole have been gradually trying to firm up. Last week, we saw some higher prices with occasional spot buy opportunities at aggressive prices. This week, however, I expect to see a lot of the cheaper fruit gone and most shippers sticking to firmer prices. Moving forward, we expect to see more consistency in supply and prices will level off and be steady.

Broccoli supplies are sporadic across all growing regions. But your most competitive prices are coming from Mexico crossing in McAllen Texas. The Salinas and Santa Maria growing regions have limited supplies from shipper to shipper. This has kept the markets steady at higher prices. The overall quality has been nice with minimal yellowing or dehydration.

Even with limited supplies from Mexico, the quality of brussels sprouts has been relatively nice. We have seen minimal yellowing or spotting of the leaves, full range of sizes, and nice coloring. The market although is still trending higher due to the limited supplies from both growing regions.

California carrot supplies are good on value-added packs and medium-size carrot. Coachella Valley is winding down production as the transition back to Bakersfield's crop as it begins. We are seeing a better production of jumbo sizes coming out of the last of the Coachella Valley crop, and Bakersfield's crop looks to have nice size.

The cauliflower market is steady with good supplies from all shippers. Although your most competitive prices are in Santa Maria. Quality has been really nice with white color, minimal bruising / brown spotting, and weights in the 27 to 30-pound level.

Supplies continue to be plentiful out of Southern California. This market will be steady for the week. Production in Salinas is set to begin in a few weeks on the light side, and then production will ramp up by the second to third week in June. Large grades, twenty-four counts, in particular, continue to have the best supplies. All sizing is available though. Shippers are flexing on volume type orders so promote as much as possible. Orders loading in Salinas will continue to have a surcharge for the transportation of this commodity to the shipping facilities in Salinas.

Transitions:
Salinas will begin production in a few weeks.

With temperatures in the 85-90 degrees in Bakersfield. Supplies on hot peppers should remain steady and consistent.

Jalapeño – Mostly #2 quality jalapeno peppers available through Nogales. Nogales should continue to have #2 quality for the next couple of weeks. Brand new fields of Jalapeno in Bakersfield and Baja California. Good to excellent quality being reported on California districts.

Pasilla – Mostly #2 quality Pasilla peppers available through Nogales. Nogales should continue to have #2 quality for the next couple of weeks. Brand new fields of Pasilla in Bakersfield and Baja California. Good quality being reported on California districts.

Anaheim – Mostly #2 quality Anaheim peppers available through Nogales. Nogales should continue to have #2 quality for the next couple of weeks. Brand new fields of Anaheim in Bakersfield and Baja California. Good quality being reported on California districts.

Tomatillo – Mostly #2 quality Husk and peeled tomatillos available through Nogales. Nogales should continue to have #2 on both husk and peeled for the next couple of weeks. Brand new fields of tomatillo in Bakersfield and Baja California. Good quality being reported on California districts.

Serrano – Brand new fields of Serrano in Bakersfield and Baja California. Good quality being reported on California districts.

The cilantro market varies from shipper to shipper as well as growing region. Although the market to start this week is steady at current levels. The most competitive prices will be loading in Santa Maria, Oxnard, and Mexico. We have seen exceptional quality with minimal yellow to brown leaves, full bunches, and little dehydration.

The Central Valley crop is near its seasonal end toward the end of June. Fruit in this area are peaking on 115s and larger sizes. The Ventura/Oxnard areas are becoming the main growing area and are also peaking on 115s and larger sizes. Demand is improving, especially on the smaller sizes of 162s/200s. These smaller sizes are beginning to sell out daily, and supplies are tight.

Not much change on Limes other than price. Supplies continue to improve across all sizes. Quality is being reported as good, and market prices are adjusting down as supplies increase. The weather looks to be ideal for the next week. All sizes are available and large size lime prices are coming down. Promotional opportunities will be available moving forward, barring any weather interruptions.

Navel crop is winding down with only 4 or 5 shippers still packing, and supplies are very limited. Demand remains strong and market firm for Navels. Size structure is mostly large sizes 72s/56s/48s. California Valencia harvest is increasing, and available is improving. Valencia's are very nice and peaking on 88s/72s/113s. Small size fruit 113s/138s will be limited through to entire Valencia season.

Cucumbers are a split market with as much as 10 to 12.00 deference between supers and selects. Growers are reporting pack outs heavy to selects and the demand for supers is more than the supply can handle. Quality is hit and miss with all the rain in the region, cucumbers grown on poles are fairing better than plastic grown cucumbers. Rainy, cloudy conditions are a big part of the poor pack outs. Rain totals vary greatly from place to place over a two week period. The continuous wet, cloudy weather has had as much effect as the actual rain.

Alerts:
Supers are very tight, selects are not.

Cucumber supplies still being crossed trough, Nogales . Quality on cucumbers being crossed through Nogales is Fair at best. Cucumbers also being harvested in Baja California. Quality out of Baja is Good. Heavy rain on the east coast has driven good demand on California cucumber. Market on cucumber has trended upward for the week.

With all the rain central Florida has had, quality is a real issue. The shelf life on most eggplant is not long. The Florida season is past its peak, and the rain is only going to end it sooner. Georgia will start light supplies late this week but do not expect any volume for at least ten days. We expect the market for good eggplant to get stronger by the end of this week.

Alerts:
Supplies are tighter and quality is going down

Transitions:
Eggplant is not in transition but Georgia will start in light supplies this week.

Eggplant supplies through Nogales are limited. Mostly #2 labels and quality being seen. Good supplies and condition being Harvested in Thermal, CA. #1 and choice being packed. Market through Nogales is down. Eggplant market in California on #1 and choice quality remaining steady for the week.

Supplies on green grapes are somewhat limited but available from Mexico crossing the border into Nogales, as well as Domestic product in Coachella. Supplies are light, but quality is reported as good. We do have the ability to have product delivered to the LA area for an additional fee.

Supplies on red grapes are light but available from Mexico crossing the border into Nogales, as well as Domestic product in Coachella. Supplies are somewhat limited, but quality is reported as good. We do have the ability to have product delivered to the LA area for an additional fee.

We continue to see ample supplies of iced and iceless green onions crossing from Mexico. The market is competitive at current levels. The quality has been really nice with white tips, green tops, and minimal yellowing.

We continue to have plenty of supplies of kale. This has kept the market competitive. The quality is exceptional as we are seeing full bunches, dark green color, and minimal yellowing.

Supplies are plentiful, mainly in Salinas. Santa Maria has moderate production. Warm weather has accelerated the growth of this commodity, and the ending of many schools for the summer has created a fall in demand. Hence, there is plenty of product. Shippers are flexing for volume type orders. The overall quality is good, north and south. Slight insect damage to the outer leaves and a little puffiness is being reported but minimally. The weights are good, with palletized averaging 42-45 pounds. Expect steady production numbers in northern and southern California for the rest of the week.

Ideal weather conditions have caused production to be stronger. This coupled with schools finishing up has created a surplus of product in the marketplace. Romaine hearts continue to be abundant in availability as well. Production in Santa Maria is stronger compared to the previous week. Some defects that have been reported have been insects and slight mildew as well as slight mechanical. The overall quality is good from multiple shippers. Expect steady sup[plies throughout the week.

The supplies of spring mix, baby spinach, cello spinach, and arugula are plentiful. We have had optimal weather in the Salinas Valley to keep supplies at steady levels. The market is steady from all suppliers. Also, we have seen nice quality with minimal bruising of the leaves, little excessive wetness, and multiple components in all blends.

In both Arizona and California, we have experienced cooler nighttime temperatures. As a result, we have seen supplies decrease this week causing an upward trend to the market. Although next weeks weather looks to be optimal to increase supplies. There has been an influx of 9 count available but the others sizes remain limited. The overall quality is excellent with high sugar / brix levels and little to no soft spots/decay.

Alerts:
Cantaloupe supplies are limited this week due to cooler nighttime temperatures in California an Arizona growing regions.

The honeydew market has firmed up and is trending higher. We have seen supplies decrease this week due to cooler temperatures in all growing regions. Although the weather is looking to rebound to optimal growing conditions next week. We have seen limited supplies of 4 count and five count honeydews with better supplies of 6 count and 8count for this week. The quality is excellent with minimal spotting, good sugar / brix levels, and no decay.

Alerts:
We have had much lower nighttime temperatures in the growing regions. As a result the supplies of honeydews have decreased this week.

Light supply of seedless watermelon being crossing through Nogales. Supplies will also become available in Manteca, California in the first weeks of June.

Onion market is unchanged from last week. Supplies will start to transition from Southern California to Central over the next week and a half. New Mexico has started with light supplies of all colors. Quality is being reported as good out of these new growing areas. Be careful not to fall into the price trap as there are some quality issues in some of the onions out of Southern California that are being discounted at very low fob's. Look for the new areas to be getting a premium as their supplies build and others finish for the season. Washington is still hanging on with a couple of shippers still packing good to fair quality storage yellow onions.

Transitions:
New Mexico has started with building supplies of all colors and sizes. Central California will start in a light way the start of next week.

Washington pear supplies are in only a few hands and are all being repacked due to quality. Sizing is 70/80/90's with only handfuls of smaller sizes. Demand on pears is very good.

On the import front, we have a few Packham and Bosc which are mostly in the 100 and larger.

Expect small pears to be much tighter than they have been. The only relief is California Bartlett pears, but it's too early to tell what size they will be, and at this point due to cooler than normal temperatures they won't be available until mid-July.

Pineapple volume coming from the tropics remains good, but we are soon to see a small seasonal decline during the summer. This is planed production drop as summer time a period of good availability of other fruit types which compete with pineapples. Size peaking on 6s/7s.

Carton Potato market is steady with moderate to light demand on most sizes. Retail bag demand is light. Quality is still good out of all loading areas (Idaho, Washington, Colorado, and Wisconsin). Look for the markets to slowly firm as we get into the middle to end of June. Supplies out of Washington, Colorado, and Wisconsin are down to the largest growers with supplies of Storage potatoes putting more demand into Idaho. Large cartons out of these areas are limited. Idaho so far has been able to keep up with the extra demand. 2018/2019 storage crop is coming along nicely out of all growing areas.

Color potato market is steady from last week on Red and Yellows. White market is firm. The tropical storms that hit the south did not hurt the supplies coming out of Florida as the rain was only moderate over this growing area. White potatoes supplies are winding down quickly in Florida and are finished for the most part. California has moderate supplies of good quality white. Reds and Yellow have around two and half weeks left before they finish for the season in the Northern growing regions of Florida. North Carolina supplies will start up in a light way the middle of June. Look for the markets to firm as we transition areas the middle of June. North Dakota still has good supplies of Red potatoes and could make it through the month of June. This will all depend on the quality and demand. Supplies of Idaho Reds and Golds are starting wind down with some of the smaller growers have already finished for the season.

Transitions:
Northern Florida growing areas will start to slowly wind down for the season by the middle of June. North Carolina with start the middle of June.

Squash supplies are good with product coming from central Florida, Georgia, North and South Carolina, and Virginia. This time of year squash supplies are almost in a race up the coast the transition is so fast. The biggest supply is still coming out of Georgia, with only a few shippers still hanging on in Florida. South Carolina and Virginia are not big players in the deal but have light supplies that take care of local markets. North Carolina will produce some volume soon, but rain has slowed production there as well. Demand has been good on fancy size and slow on medium. A lot of growers are struggling with labor issues, and squash is at the bottom of the priority list, meaning, growers will skip more days than normal, producing more medium sizes.

Alerts:
Fancy supplies tighter than medium.

Transitions:
Squash is Transitioning up the coast fast, with supplies in Georgia, North Carolina and Virginia.

Peak Seasons:
Squash is in peak season.

Zucchini and Yellow s/n– Very light supplies of squash still crossing through Nogales this week. Mostly #2 labels and quality. Very Good supplies of both Italian and Yellow S/N being harvested in Santa Maria. With temperature from 75 degrees to 85 degrees this coming week we should continue to see good supply out of this district with both varieties. Good quality being reported out of California. Due to increasing supply on squash. Market is trending down for the week.

Stone Fruit out of California is steadily increasing on peaches, nectarines, and apricots. We have had a slow start to the season, but larger size volume fill fruit is becoming more readily available. Plums have just barely started in very limited quantities. Reds have been the first to get started, with black plums starting next week. It will be another week or two before we see big numbers on plums.

Lessening demand is helping to ease the market amongst tight supplies this week. As fields transition further north, Florida crops are being harvested in wet conditions helping markets to ease off while buying patterns slow as schools let out of session, and much of the southeast prepares for Tropical Storm Alberto. Palmetto/Ruskin districts are continuing to put rounds into gas rooms this week and will end harvests with the close of the month. Quincy Florida is on track to start at the end of next week and with South Carolina harvesting shortly after that at the mid-month mark. The hot commodities in the tomato category remain the bite-size grape and cherry tomato varieties that have been hindered by rain in recent weeks. Although the range in grape tomato pricing has narrowed a bit this week, availability has tightened further. Similarly, cherry tomatoes availability is sparse from reduced harvest induced by wet rainy climates, and there isn't much coming out of the fields. Demand exceeds supply amidst Tropical Storm Alberto, and the market is firm with relief expected near mid-June.

Mexico’s imports are helping supply while Florida programs begin to transition north. There is a wide spectrum of fruit on the Mexican market with pricing equally representing what is paid for. Normally by late May, Baja has healthy supplies of Romas to help meet demand. However, growers have been set back from weather and disease that has compromised crops. FOBs have remained steady but have the potential to slowly climb each week while supply shrinks until the middle of June when both California and Florida break ground in new fields. Quality is reported as sporadic with size varying widely between shippers. There is also a considerable variance in the quality of grape tomato crops as operations begin transitioning and shippers pick between fields. Grape tomatoes are receiving a lot of demand as Florida struggles to produce. Markets are forecasted to go higher through the begging of June as supply grows limited.