The Source - May 9, 2016

Washington - Most red suppliers are peaking on 72/80/88s. Red delicious are mostly steady on the larger sizes and they are steady to slightly higher on 113s smaller. Most shippers are still subbing up to the extra-fancy grades to cover volume orders of the fancy grade, especially in the smaller sizes. Golden Delicious are also 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 steady on all sizes and 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 to slightly higher on all sizes and grades. The market remains firm. Most Gala suppliers still don't have much fruit larger than an 88. Fujis are steady for now on all sizes, but the market is firm due to light supplies. The Fuji market continues to slowly rise as the end of the season approaches. Washington Fujis continue to peak on extra-fancy 80-100's. Pink Lady's are steady but firm due to very strong demand. The quality for all varieties has been good.
Michigan - Red delicious are steady on all sizes, but supplies are limited especially on smaller fruit. Reds continue to peak on 80/88s. McIntosh are steady to higher and supplies remain very short with most packers being close to finishing. Galas are steady to higher on all sizes due to light supplies, but most suppliers are close to finishing. Jonathan supplies are light, but the market is steady. Red Rome supplies are very light and they are almost finished as well. The quality for all varieties has been good.
New York - Red delicious, Empires, and McIntosh are steady to higher and small fruit remains very short. The remaining McIntosh are large and Empires are nearly finished for the season. The fruit quality has been good for all.
Chile - There are a few Chilean Galas on both coasts and the markets are steady on both sides of the country. Both coasts have 100-size and larger.

The asparagus market remains steady. There are a vast amount of growing regions currently producing which is keep the market at current levels. Quality remains excellent with little dehydration or spreading of the tips. Sizes still predominantly to Standard and Large.

California has ramped up harvest and we are in peak harvesting season. We are now seeing good volume coming into the packing houses. Demand for California fruit has picked up as supplies for Mexico drop and markets are very active. We still continue to see more smaller fruit than we would typically would see this time of year.

Mexico continues to raise their field price and is holding back on volume coming to the States and forcing a supply shortage. We are seeing a 30-40% reduction in volume this week arriving to the US. It now appears that Mexico has less volume left of their old crop than we though a couple of weeks ago and supplies have gotten very short. The US shippers are raising their price and trying to get the volume back up, but Mexico is slow to respond. It is unclear as to when we will get the supply chain back in line.

Alerts:
Mexico continues to raise their field price and holding back on volume coming to the States and forcing a supply shortage. Markets very active.

Most growers in Mexico are finishing with quality and sizing being only fair. Southern California is shipping good size and quality.

Red bell peppers are becoming less and less available every week. Quality with mostly number one product being offered in both the blocky and elongated variety. Many shippers winding down on volume. Mixed color issues are due to cool weather.California has started with mixed color on Reds.

Yellow bell pepper volume is lightening with some growers finishing. Quality and condition are only fair on both number one and number two product.

Mexican production has already passed peak for this season and will begin to decrease in volume over the next several weeks. California production will not begin until later May or early June. We will begin to see lighter availability over the next few weeks as we transition from Mexico to California. Quality has improved and we're seeing less red cell and soft berries.

Domestic production is increasing with good availability out of California, Florida, Georgia, Carolinas and many of the smaller (regional) areas as well. Good volumes are reported again this week. Mexico continues to produce steadily. Availability and quality remain good in all areas. Promotional opportunity is available.

Central Mexico continues to be the largest production area. California is increasing production as we move into May. We have had some issues with availability as forecasted volume estimates have decreased. Some issues with mold have also decreased pack outs. Quality has been good and fairly consistent with the fruit that makes the pack.

California strawberry production is ramping up and weather forecast is favorable for the next 7-10 days. Quality has been good in all areas and sizing in the low-mid teens per 1 pound clamshell. Promotional opportunities are available.

Broccoli supplies remain steady. Mexico, Santa Maria, and Salinas are the current main growing areas. There are fewer supplies of bunched broccoli but that hasn't affected the market. Plenty of supplies of broccoli crowns. Quality remains good with nice green color and crown size. They are still quoting hallow heart out of the Mexico growing region from the past weeks of warm temperatures.

There have been better supplies out of Mexico, but the only problem is that quality hasn't improved. Black decay, scattered holes in the leaves, insect presence, to brown discoloration. The market has also declined.

We are in the final weeks of the Coachella and Imperial Valley crop production. We expect to start the Bakersfield crop by mid May and be in full production by early June. Jumbo size are still very tight, but we expect this to start to change as we get into June. Supply of baby peeled carrots are good.

The cauliflower market in the Salinas Valley is active with limited supplies. Santa Maria on the other hand has better supplies and offers more value if you can have your trucks load down there. There have been quality issues seen upon arrival with brown discoloration and bruising.

This market is steady, overall. Shippers are flexing on large sizing, so please be aware.Small sizing continues to command a higher price in the marketplace. Seeder is no longer an issue and quality is good in the Southern California region. Florida is all but finished in production as suppliers are in clean up mode. Demand is light. Oxnard and Santa Maria are the main growing areas for this commodity at this time.

Following the rains that hit late last week, cherry supplies were limited today. Markets have remained steady but firm. We may see some of the fruit that was affected by the weather be sold for cheaper prices, but quality will be a concern. New crop harvest started today, but sizing is expected to be on the smaller side with 11 row and smaller being the peak size range this week. The good news is the weather is being reported as clear and warm for the next 2 weeks. This will lead to increased harvest and bigger sizes as we move forward.

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.

The market varies depending on the growing area. In Salinas supplies are lighter and are commanding higher prices. The better value is out of Oxnard. Also transfers from Mexico are keeping the market at current levels. There have been quality issues such as yellowing of the leaves and dehydration upon arrival.

The central valley crop is 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.

The lime market remains high on all sizes. Demand is good on all sizes across the board. The peak size has remained in the smaller sizes. This is the time of year where overall supplies are low and will remain at lower levels until the second to third week of May. The overall long term upward market trend will likely continue with the lower supplies through to middle of May. Quality is good overall. The overall supplies have decreased a lot and remain low. Demand exceeds supply still. There has been off and on rains in the growing area which are supposed to have ended, so supplies have been cut back. The market is higher on limes.

Alerts:
Limes are in an extremely tight market that looks to last for another couple of weeks.

California orange demand is very strong with the Texas and Florida crops winding down. 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.

Supply on cucumbers has decreased as the season comes to an end. There are less supply from the northern district. Quality is good on all sizes and pack styles, peaking on Super Select and Select. The color is good. Euro cucumbers are available with limited supply in number one and number two pack styles.

Eggplant will continue with lighter supply from both Central and Northern Mexico. Excellent color and condition will continue
with many number two product being offered. Many growers in the south are finishing and supply will lighten. New crop has started in Southern California with good quality and limited availability.

Mexican green grapes are currently available to load out of Nogales. The cooler weather over the weekend slowed down production, thus supplies remain light. However, with the warmer weather this week, supplies are expected to increase. Quality is being reported as strong and markets continue to be steady. Californian green grapes continue to be very limited. A few growers are starting to scratch at harvest this week, but availability is sporadic. Next week we will see full production in California.

Transitions:
Mexico will continue to be in steady supplies this week. California will start next week.

We will continue to see limited availability of Chilean red grapes this week on both the East and West coats. The quality is being reported as stable and market prices have remained steady. The remaining inventory of Chilean reds will be gone by this weekend. Californian red grapes remain consistent in supplies. Product is shipping out of Coachella and quality has been strong. All sizes are available and market prices have been fairly consistent. However, as supplies continue to increase and Mexico begins to ramp up their production, we anticipate a drop in market prices by late this week. Mexico has started their red grape production with light numbers. The cooler weather over the weekend slowed production for the front part of the week, but harvest is expected to pick up as the weather warms up moving forward. Quality on the Mexican fruit is being reported as good and early market quotes are in line with California.

Transitions:
Mexican red grape production is expected to increase this week. California will continue to move forward with good supplies.

Good yields and quality out of Mexico have been keeping this market at a steady pace. Iced and Iceless green onion are available and look to be steady for the week. Quality has been nice with little arrival issues.

As we enter this week, there seems to be a shortage of kale supplies. The cold weather in the Salinas Valley has pushed back acreage. And supplies in Oxnard are not enough to carry the demand. Hence the increased market this week. Quality remains excellent with minimal yellowing or dehydration.

This market is steady. A few suppliers are down slightly while others are firm or sold out for the day. There continues to be issues with this commodity. Defects on this commodity include pale color, misshapen heads, lightweights, and insect damage. These defects are occurring in Santa Maria and Salinas. The weights are averaging 38- 42 pounds on palletized. Harvesting will be light to moderate until the middle of the week, minimum. If demand is strong, this market will jump again with most suppliers by the middle of the week.

Although the holiday pull is over, supplies are snug to begin the week. Fringe burn continues to be is industry wide. Other defects include tip burn, insect damage, mildew, and lightweights on all leaf items. Salinas and Santa Maria have very similar issues with one another . A few suppliers have started the week sold out. Supplies hopefully will be better towards the end of the week, pending weather. There was a little rain over the weekend in the growing regions. There continues to be sporadic complaints on chopped romaine. All leaf items will be light in availability including romaine hearts for the next few days at a minimum. Demand after the holiday pool will dictate what will happen the marketplace for the rest of the week.

The quality is good overall with some lots being overripe. The peak size is currently 9ct. The current market is steady on all sizes. Demand has leveled and supplies are steady, so the market is trading sideways for now. There are very few 15ct cantaloupes are being packed now and virtually zero 18ct are coming over. Mexico has started shipping light supplies of cantaloupes. The offshore supplies will be finished by the middle of this month. The desert has started to pack a few cantaloupes this week and volumes will slowly increase.

Transitions:
Offshore melons are finishing this month. Domestic melons have started in a small way in the desert.

Demand is steady on honeydews and supplies have decreased causing the market to come up a little more. The peak size for the offshore is 5ct. Very few 8ct are available. The Mexican honeydews are peaking on 8ct. Honduran and Guatemalan grown honeydews are good. Mexican honeydews shipping out of Nogales, Arizona continue to slowly pick up in volume, but still not enough to effect the market. The Mexican honeydews are also very nice. The market is a little higher across the board than it was the first part of the week. The offshore honeydews are going to finish by the middle of this month and supplies are drying up, especially on the West Coast.

Transitions:
Offshore honeydews finish this month. Domestic dews have started in the desert with light volume.

Product is now being shipped from both southern and northern Sonora, Mexico. The supply has increased along with the demand. Cool weather has slowed production. Shippers are promoting to increase the movement. 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.

Old crop onions are essentially finished for the season.
New crop onions are coming out of California, Texas, and Vidalia, Georgia and the quality is good. The yellow and red markets are a little sloppy based on the shippers that have the product. The suppliers with lighter availability are more bullish. Most California and Texas shippers have better supplies of jumbo and larger yellows and have light supplies of medium yellows. Whites are fairly stable in California and Texas.
New Mexico and Central California onions growers will start harvesting in late May with some overlap with the California desert. We expect a smooth transition with some overlap between southern California and Northern California/New Mexico.

Washington - D'anjou pears are steady to higher on all sizes with 110s and smaller being the shortest. The fruit continues to peak on US#1 70/80/90's. Most suppliers have very limited supplies of the fancy grade. Controlled atmosphere (C.A.) rooms have what they have, so expect small pears to remain limited. Bosc pears are steady to higher, but supplies are short as they are cleaning up for the season. The quality on domestic D'anjous has been good.
Chile - Argentinian Bartletts are steady and continue to peak on US#1 70-100s. Chilean Packhams are steady and continue to peak on US#1 80/90/100s, but there are some 110s on the West Coast. Chilean Bosc are also steady and they are peaking on 70-100s. The quality on all of the imported varieties has been good.

Some shippers have good supplies, while others are still tight and hoping to see better volume in a couple of weeks.

The Idaho, Washington, Colorado, and Wisconsin storage potatoes are rougher then most years. Shippers are having to run more potatoes to get amount of #1's required so they are running through their storages faster. All areas should have enough potatoes to make it through until new crop potatoes start in late summer, we just may some market strength in the mean time. Idaho 80-count and smaller are steady to lower with good supplies available. Idaho 70-count and larger are higher with lighter supplies. Demand and pricing for 40-70 count potatoes is on the rise out of all areas.

Bakersfield, California - New crop red potatoes are mostly steady while golds and whites are steady to slightly lower. Golds and whites are still peaking on A-size while the reds are heavier to Bs but the A numbers are improving. Many suppliers still have limited supplies of red Premiums and red Bakers, but we have a few larger golds. The new-crop quality has been good.
Phoenix, Arizona - Red potatoes are steady and are still peaking on A-size. The gold market is steady and they are also heavy to A-size. The quality has been good.
Idaho - Reds and golds are steady to higher and supplies remain very short. Both colors continue to peak on A-size. The quality has ranged from fair to good.
South Florida - supplies are extremely light, most packers have finished.
North Florida - Supplies of new-crop reds remain fairly short and most shippers are peaking between A and B-size. A couple shippers have started packing whites and golds and the rest will start at the end of the week. The quality is reported as good.
Pearsall, Texas - They started packing a few reds this week.

Hard Squash will continue to lighten in supply. Spaghetti and Kabocha are becoming less available. Yellow and Italian squash are being harvested with good volume and deals being offered with good quality on most volume from all growers. Some lots of yellow squash are showing scarring on arrival.

Availability and sizes continue to increase on Peaches, Nectarines, Apricots and Plums. We continue to see a strong push for smaller size fruit across all varieties, but a wider range of sizes are becoming available this week. Both Tray Pack and Volume Fill packs are available to load with several shippers to choose from. Quality is being reported as excellent. Market prices have remained consistent on larger size fruit, but aggressive opportunities are available on the smaller sized volume fill. Red plums are in good production and supplies are expected to increase this week. Black plums are available in limited amounts, but production will ramp up next week.

Florida weather has been favorable in recent weeks and harvest are proving to be bountiful with a wide range of availability spanning all tomato varieties including Rounds, romas, grapes and cherries. Rounds specifically are currently available in larger sizes as many growers are into crown pickings from new vines out of Palmetto/Ruskin regions. Quality has been excellent and supply is expected to remain in abundance through the month of May. Demand continues to lag as seen in past weeks with pricing remaining low as shippers try to keep moving fruit through the pipeline. In addition, Roma tomatoes are widely available on both coasts keeping prices near minimums. Similarly, grape and cherry tomatoes are widely available and remain steady this week with prices holding constant. With rain in the calendar, picking schedules have been delayed over the weekend, but there is plenty of fruit moving through the supply chain so we may not see prices firm up for another week but still present a very promotable price in the interim.

Multiple growing regions in Mexico are bringing a strong supply of tomatoes across the border keeping market conditions low with steady availability for all types. Culican has finished producing for the season and has transitioned to Baja where availability mirrors eastern programs with Rounds heavily available in larger sizes. There are a plethora of romas crossing at suspension agreement minimums and grape tomatoes are crossing regularly in large volumes. The cherry tomato market in the West is firmer than that of its Florida counterpart where supply is more limited overall and priced to keep fruit regionally tied to western buyers. Overall, the market remains flat trudging along with fruit widely available on both coasts, and is expected to remain a buyers market through the rest of the month.