The Source - May 31, 2017

Washington - red delicious are steady to slightly higher on all sizes but esp. 125s and smaller. Most fruit is still peaking on 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 remain very short. 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 continue to sub 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 with supplies of smaller size fruit being very short. Fuji's are steady to higher on all sizes and are still peaking on 72/80/88s. Fuji supplies are still very light esp. on 113s and smaller. The quality for all varieties has been good.
Michigan--Red Delicious are steady on all sizes and the demand has been relatively light. Reds are still expected to remain into mid to late June. 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 still aren't much of a factor. The quality has been good.
Chile--there are some Chilean Pink Ladys, Fujis, Galas, and Granny-smith on the east coast. The Pink Ladys and Granny's are peaking on 90 size and larger while the Fujis and Glas are evenly spread between 70-110s. The quality has ranged by variety.

Alerts:
Smaller size Golden delicious and Granny-smith apples are still in a demand exceeds supplies situation.

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

The weather in Central Mexico has been better this week and production and quality has improved compared to previous weeks. California weather will be in the mid 60s for the week and production should be steady. Expect this region to continue to produce product for another 4-6 weeks. The quality has been good. Washington production is strong, with ideal weather conditions. In Peru the volume remains steady from both regions. The temperatures have begun to subside, which should help the quality of the product. In Michigan, a lot of rain and cool weather is expected, and this will inevitably hurt production for the next ten days.

California is harvesting daily now. We are half way through this year's crop, with this year's roughly half the size of last of last year's. June will be the peak in volume and begin to tapper of in July and looks to finish in August. The crop is now peaking on 48's.

Mexico continues with lighter shipments, but still decent volume continues to arrive weekly. We still expect lower volumes coming as we move through June.

The bell pepper market is steady with sings of weakness. The southeast had some rain last week but the main pepper growing region escaped the bulk of it. The rain fall varied from 2.5 to 3.5 inches, the area was dry before the storm so the rain was absorbed quickly. Since then the weather has been mostly sunny and warm, quality has been good and all the major packers are running steady volume. Central Florida is on it's last legs filling orders of mostly off-grade pepper. South Carolina is set to start the second week of June, until then it's Georgia's deal but the region has enough volume to handle the demand.

Peak Seasons:
Bell pepper is in peak availability and quality.

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.

Not much change on blackberry supplies this week. Salinas / Watsonville harvest has started and volume is still light. Quality is expected to be excellent and production will gradually increase over the next 2-3 weeks. Market prices on new California fruit is still high. Mexico harvest has been consistent with good availability in Texas. Quality on Mexico blacks has been fair to good, but we have seen occasional soft fruit and red cell. Markets have been steady with opportunity buys available in certain loading locations.

Transitions:
Salinas and Watsonville harvest will gradually improve over the next 2-3 weeks.

Central California blueberries continue to be in good supply. This week production is expected to increase with load volume available by the end of the week. Quality is excellent. Markets have been gradually declining as more fruit becomes available. This week seems to be holding steady with possible volume opportunity buys for the weekend. Mexico is finishing up, but there is some final arrivals crossing into Texas that will be available at aggressive prices, but quality is not as solid as California fruit. Eastern production has been minimal out of Georgia and North Carolina as weather has been an issue. However, North Carolina will start to increase this week and should improve through mid June.

Peak Seasons:
Central California is entering peak season for the next 2 weeks.

Raspberry supplies remain limited this week. Salinas and Watsonville harvest has started, but volume is still very light. Production will continue to gradually 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 until supplies improve.

Strawberry production will remain consistent and very similar to last week. Santa Maria production, as a whole, has slowed down as many shippers have pulled out of the area or decided to go to freezer with their fruit. Those shippers who continue to harvest, will have steady numbers, but volume is down trending. Salinas and Watsonville areas will continue to gradually increase production over the next 3-4 weeks as we approach peak season mid to late June. Quality has been reported as strong in all areas. Santa Maria has smaller sizing (16-20ct), Salinas and Watsonville have bigger fruit (12-14ct). Market prices have been fairly flat with not a whole lot of aggressive deals being offered on high quality fruit. I expect this to be the case until production numbers start to ramp up again in Salinas / Watsonville.

Transitions:
Salinas and Watsonville will continue to gradually increase production. Santa Maria production is down trending.

Peak Seasons:
Salinas / Watsonville is expected to peak mid to late June.

The broccoli market is showing signs of improvement as supplies out of all growing regions lighten up. The current cool weather along with lighter plantings (a carry over from the winter rains) has reduced supply. Demand is about steady so we currently see some strengthening but do not expect the severe market fluctuations of the recent past. Quality is generally good.

Light supplies out of Mexico continue to drive the market on Brussels Sprouts higher. Quality has suffered with yellowing, brown discoloration and decay showing up in many lots. We will continue to see this market struggle for supplies well into the California domestic season starting about the middle to end of June.

California is producing good supplies and quality on Jumbos, cellos and value added carrots.

The cauliflower market has rebounded from it's recent lows and is trending higher this week. Supplies have eased back as the recent cool weather has slowed growth in the fields. Demand is steady. Quality has been excellent with good color and only a minimal of bruising or discoloration reported. We expect the market to remain strong well into the coming week.

The celery market is firm with all suppliers. Demand exceeds supplies and escalated pricing is in effect. Salinas has begun production in a light way,- but sizing is on the small side, mainly thirty- thirty six counts. Supplies in Oxnard/Santa Maria continue to be light compared to demand. A few shippers have continued to raise pricing. Better supplies are not expected until about 2-3 weeks. Planting gaps due to heavy rains earlier in the year is the direct cause of the current shortages in the industry. The quality overall is average.

Transitions:
Salinas has begun production.

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 cilantro market is steady although supplies from shipper to shipper and region to region can be inconsistent. This is a case of the "haves and have not's". Demand is light so those with good supply are pushing aggressively while sketchy supplies for some, especially in the Salinas Valley, means a firmer stance. Quality is generally good from all regions with only an occasional yellow leaf being reported.

The Ventura crop is in full production. Size growth has and color (still green) now has all sizes and grades in a demand exceed situation. Now relief in this until Chilean fruit begins to arrive late June, first part of may.

Alerts:
Demand exceeds supplies on an sizes and grades of fruit.

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 tight with 110's becoming more available now. 110's will remain in a 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 slower on the larger sizes and steady on the smaller sizes.

California Valencia is up and going. Demand remains strong and supplies are limited. Shippers are and will be adjusting their weekly harvest and pack numbers slightly to make this years light volume crop last through September. We expect very limited supplies of the smaller fruit 88s/113s/138s when we enter August and though September.

The cucumber is split, supers are in good demand but carton 24's and selects are weak. Quality in most places is good with some reports of sunken and swiveled ends mostly confined to dry fields. The shippers growing on poles or with drip irrigation are packing good product. Central Florida is still packing light volume but most of that product is staying local. North Carolina is set to begin late this week, however there are reports of storms that hit this morning with strong winds and isolated hail. We will need to keep a close watch on central North Carolina.

Alerts:
Strong Thunderstorms with high winds and hail hit central North Carolina in the early hours of May 30th. There are reports of structural damage and some crop damage, the extent remains to be seen. The region has started harvesting squash and was set to start cucumber this weekend. Pepper is about 2 weeks away.

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 finished on Euro cucumber as well.

The eggplant market is tight on good fancy fruit. The choice market is week, Florida is winding down and packing a lot of off-grade product. The "fancy" product in Florida is fair but certainly not as classy as it was 2 weeks ago. Georgia is just starting it's production and not all shippers have started, the first reports are of poor pack outs due to some high wind the region experienced 2 weeks ago. This should not be the case for long, the weather over the past weekend was sunny and hot, just the type of weather eggplant like and should grow out of any scaring issues. Look for the eggplant market to stay steady for through the weekend and more production coming next week.

Alerts:
Good eggplant is tight in Georgia, Florida is having some quality issues.

Transitions:
Trying to move to Georgia as fast as we can. Florida is winding down quickly with only fair quality and Georgia is not up to full volume yet but will be soon.

Eggplant in Nogales has finished, limited supply from Coachella is now available. Quality is good with both number one and number two being offered.

Green grapes are continuing to come down. Supplies are picking up in both areas Mexico and Coachella 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 are pumping along now out of Mexico and domestic production is ramping up nicely also. 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. We are very close to have ample supplies to promote with great deals improving daily. The market is lower.

Excellent supplies of very good quality green onions continue to come in from Mexico. We have a range of sizes in all packs, iced or iceless. There is nothing in the near future that would suggest anything but a steady market on the green onion front.

The market for green kale is steady with adequate supplies to meet current demand. Quality continues to be excellent out of all areas. Good green color, thick healthy leaves are the norm with only minimal yellowing showing from any location.

This market has changed significantly compared to the previous two weeks. Expect this market to rise throughout the week as many shippers have caught up with production. Some quality defects in the Salinas valley for this commodity include fringe burn, rib blight and slight insect damage. Weights on the other hand have been good with an average of 42-46 pounds on palletized product. Demand is up and supplies will be light to moderate for the next few weeks, minimum. Light production in Santa Maria will continue over the next few weeks, as well.

This market has remained unchanged for the most part. Romaine in particular has multiple suppliers flexing. Good volume is expected throughout the week. Green and red leaf have very minimal demand as well as butter. There continues to be some issues reported upon arrivals. These issues include light fringe burn, pink ribbing and slight insect damage. Supplies even with the defects mentioned will be plentiful for the week. Demand is minimal.

Offshore and Mexican cantaloupes are done now. The domestic growing areas in Arizona and California and supporting our demand. The desert grown melons have experienced overall good growing conditions. We have had some instances where the melons had some soft spots which were probably caused by hot weather. A vast majority of arrivals have been excellent. Lopes are peaking on 9ct with very few 15's coming in. The market is steady to lower on lope 9's and 12's while the 15's are steady.

Honeydews are continuing to increase in cost. We are peeking on dew 6's and very few 8's are being packed. The offshore supplies are done now so we are relying on domestic production. Mexican supplies are dropping off due to fewer growers planting to have product during this time period. The market during this time last year was very low and many growers lost a lot of money so they didn't plant this year. Thankfully there has been good growing conditions in the desert so the increased market is really just a temporary one that should last for another week or two. Schools are ending this week 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.

Yellow, Red and White onion markets are steady out of all growing areas. Demand is light. Quality is being reported as good out of all area. Supplies are winding down out of Southern California and are shifting to Central California. New Mexico will be up to full speed with all colors and sizes by the end of this week. Look for the market to stay steady at lower levels into the middle of June if not longer. Northwest storage crop is in the ground with plantings estimated to be close to last years. Mother Nature is in control and only time will tell how next year crop will come out.

Transitions:
Central California and New Mexico supplies increasing

Washington -- D'anjou pears are steady on 110s and larger while 120s and smaller are steady to higher. The fruit continues to peak on US#1 80/90s and the quality has been good. Red pears are steady and they are still peaking on US#1 50-size half cartons. Red pears will last another 2 weeks approximately.

Chile - Chilean Packhams are steady on all sizes and they still have a fairly even size spread from large to small. Argentinian Packhams are also steady to higher and are 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.

Alerts:
Washington will finish shipping red pears in the next couple weeks.

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

We currently have very good supplies coming in from the tropic's, but now are hearing that supplies will start to back off by the end of June. Supplies look to really lighten as we move into July and August and get tight in supplies.

Demand on large cartons (40 - 70 count) out of all shipping points continue exceeds offering. Supplies coming out of storage are peaking on 80 count and smaller. This trend looks to continue through this years storage crop. Quality is still being reported as good with an occasional lot 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. I am recommending to stay a head on supplies, as orders with large counts are taking 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 steady with good availability especially on Red As. All colors are peaking on A size. Premium/Bakers and C-size of all colors are relatively limited. 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. One supplier has finished for the season. The quality is good.
North Florida -- reds and golds are steady, the reds have good availability while the golds are starting to dwindle. Some suppliers will still flex for volume on #1 and #2 red A size while B size reds are still relatively short. Some suppliers are finishing with gold and most have finished with whites. All colors are peaking on A-size and the quality is good.

Alerts:
Florida white potatoes are finishing and gold potato supplies are beginning to dry up. Expect supplies to get shorter and shorter with the N.C. transition coming.

Transitions:
North Florida will finish up all colors of potatoes over the next 2-3 weeks.

North Carolina is scheduled to start packing white potatoes in approximately two weeks with reds and golds coming a couple days behind.

Peak Seasons:
Bakersfield is in the peak of its colored potato season for golds, reds, and whites.

The squash market remains extremely tight on both colors but green squash is the tighter of the two. There is still some squash being harvested in Florida but the main production is in Georgia. Yields are still not high and acreage is down because growers did not replant after the March freeze. Georgia has not seen prices like this through the month of May in a very long time and with the storms that passed trough central North Carolina on May 30th the market could stay strong for sometime. North Carolina has started harvesting but production will be reduced for a few days until the effects of the storms are calculated. New Jersey has started some very light production but will not be a factor for a least 10 days. The quality of green squash has been good in all locations but good yellow is getting harder to find. Look for production in Georgia to go down as some of the first fields are winding down and will soon stop production.

Alerts:
Storms in North Carolinas could have an impact on an already tight supply of squash. There are reports of crop damage due to high winds and hail from severe thunder storms passing through central North Carolina

Peak Seasons:
Squash is moving out of peak availability.

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.

Alerts:
limited availability on squash out of Santa Maria due to cool weather.

Transitions:
Italian and Yellow Squash are transitioning from Nogales Az (Sonora ) to Santa Maria Ca. California crop is very limited supply but will improve as the week progresses. Pricing is very high but will also ease a little as we move into the week.

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 and are increasing in volume. The market is lower on what is being harvested other than some growers increasing prices temporarily on nectarines.

National demand has fallen softening prices this week. Supplies remain low but the lack of demand has caused FOB prices to fall this week on all sizes. The Palmetto/Ruskin district continues with additional pickings trending toward smaller sizes. Quincy, Florida region started harvesting crown picks this week helping supply in XL size that is lacking in central Florida crops. Roma tomato demand is down and supplies have improved slightly this week causing prices to fall by a couple of dollars, however it is worth noting high heat and moisture is producing mixed quality amongst the roma crops. Grape tomato supply got an injection of new fruit with South Carolina starting up harvesting operations this week. FOB bulk prices are down more than 30% this week with pints following suit. Cherry tomato supplies remain tight but demand is down. FOB prices are down slightly from last week. Weather can make for some turbulence over the next couple of weeks where eastern operations are generally smaller this time of year when California is usually the main producer, getting a late start this year scheduled for July.

The gas green market in the west continues to follow their eastern counterpart. Demand is low with the focus on eastern picks until California begins harvesting in July. Extreme heat in the growing region is causing quality to be only mostly fair with softness being the main issue. Baja crossings continue to get ramped up where romas are in good volume. Prices for all sizes are trending back toward the minimums. The quality of fruit crossing at Baja is generally good. Grapes supplies continue to be tight at Baja but can meet most of the demand from the west. Prices remain generally steady from last week. Cherry supplies are a little more plentiful this week and demand is light. FOB prices are down by around $4 compared to last week. More repackers will be able to meet their needs without having to go east next week.