The Source - May 9, 2018

Weather Update

A cold front moving into the northwest will bring a coastal marine layer, cooler temperatures to the Central Coast into the weekend. inland regions will see breezy afternoons winds and seasonal temperatures. Scattered showers and thunderstorms continue to drift across Central Mexico with warm and dry conditions expected in the northern regions into the weekend, cooling to seasonal norms next week. Florida will see dry conditions through mid week with scattered showers moving up from the south into the weekend.

Freight Update

California trucks have been adequate early in the week but seem to tighten up as the week progresses. Freight rates continue to increase. Washington apple truck supply is steady. Idaho potato trucks remain steady as well. The national average on diesel rose slightly and is currently at 3.171 per gallon. An increase of .606 from this time last year. California prices increased as well and are now at 3.863 per gallon. Crude oil remained steady and is currently at 69.96 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples

Washington Apple market continues to strengthen on all varieties of red and golds with good demand from schools and export. Schools are getting close to finishing in the next couple weeks which will take some demand off the smaller sizes. Granny Smith applies are still in a buyers market. Look for this to continue especially on the smaller sizes. Honeycrisp, Braeburn, and Jonagold will be the first to finish up for the season. Red Delicious movement has been great due to export causing the lower end prices to firm up as availability get tighter. Sizing is peaking on 88 -113s. Gold Delicious movement is steady to good with sizing peaking on Prem/Waxf #1 80-100s. Regional shippers (Michigan and Pennsylvania) are finished for the season which has put more pressure on retail bags that take 125 and smaller. The Gala market continues to be good. The market has increased on the smaller sizes. Fiji demand and markets are steady with sizing peaking on 88-100 counts. Quality on all flavors has been good with few reports of issues.

- pa_admin
Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Higher Good
Hudson/Pleasant Valley/Red Hook, NY Steady/Higher Good
Asparagus

Production and weather have not changed in any of the regions. Ciudad Obregon, Mexico still has warm weather and is expecting even warmer weather early next week. Gonzales, CA still has good volume with their weather pattern staying the same. Washington State will see better weather next week, which should help production. Volume in both Ica, and Trujillo, Peru are about the same as the previous two weeks. Airfreight is still high from Peru but should drop at the end of this week with the Mother's Day rush over. Markets have started to level off with the Mother's Day AD's wrapped up.

- pa_admin
Growing Region Market Quality
Ica, Peru to Trujillo Lower/Steady Good
Cuidad Obregon, Mexico Steady Fair
Yakima, WA Steady/Higher Excellent
Gonzales, CA Steady/Higher Good
Avocado (California)

California production dipped some last week due to post Cinco de Mayo pull. Volumes are expected to taper off slightly for the balance of May and ramp back up come June. Export demand remains strong. The crop is currently peaking on 48s & 60s. Fruit is ripening well and has good flavor.

- pa_admin
Growing Region Market Quality
Oxnard/Ventura, CA Steady Good
Temecula/Escondido, CA Steady Good
Avocado (Mexican)

Mexico's harvest volumes are starting to decline as the seasonal end of their normal crop approaches toward the end of May / mid-June. They still are reporting fair to good supplies, but expect weekly decline. Demand is strong, and we are still seeing tighter supply situation on 48s & 60s #1 fruit.

- pa_admin
Growing Region Market Quality
Michoacan, Mexico Steady Good
Bell Peppers (Eastern) Alert

Bell pepper supplies are considerably tighter with shippers in south Florida winding down, and central Florida does not have a lot of acreage planted. Quality is good but pack outs are trending to smaller size peppers, and yields are down. Georgia is at least two weeks behind; most shippers will not start until late May.

- pa_admin

Alerts:
Supplies tight; market considerably higher.

Growing Region Market Quality
Hillsborough / Western Collier County, FL Higher Good
Indian River / Dade County, FL Higher Good
Berries (Blackberries)

Blackberry supplies have leveled out this week, but remain consistent. Demand is being covered without disruption, and additional volume is available with specific shippers. Mexico continues to be the primary source of production. Quality has been good with occasional soft berries being reported. Market prices have been steady. Domestic harvest is on pace to start in Santa Maria by the end of the month and Salinas / Watsonville by June.

- pa_admin

Transitions:
Domestic harvest is expected to start by late May.

Growing Region Market Quality
Central Mexico Steady Good
Berries (Blueberries)

Blueberry supplies have become lighter this week. Due to recent weather in Florida, a large portion of the late season crops have been wiped out. Most shippers have pulled out of this area and are no longer harvesting. This quick decline in supply has left the industry in a small gap as we wait for California and North Carolina to ramp up. Georgia and Mexico harvest has been light but consistent, and most fruit is being packed in 6oz clamshells. However, the volume is not sufficient enough to cover demand. Quality has been good, and market prices are higher. We expect this gap to last another week as California harvest is slowly improving and we wait for North Carolina to start by May 21.

- pa_admin

Transitions:
California is slowly ramping up and will continue to improve over the next 2-3 weeks. North Carolina will begin in the next 2 weeks.

Growing Region Market Quality
Central Valley, CA Higher Good
Georgia Higher Good
Central Mexico Higher Good
Santa Maria, CA Higher Good
Berries (Raspberries)

Raspberry supplies are finally starting to improve. Although promotional volumes are not yet available, demand is getting covered with little disruption. Domestic harvest is increasing in Santa Maria this week in addition to the existing Mexican production in the pipeline. Quality on the new domestic harvest is being reported as very good. Mexican fruit has seen some issues recently with soft berries. Market prices have remained fairly steady. Moving forward, as domestic harvest continues to improve, we will see better supplies, quality and markets gradually adjust down. Salinas and Watsonville are expected to start by late May.

- pa_admin

Transitions:
Santa Maria harvest is improving. Salinas and Watsonville is expected to start by late May.

Growing Region Market Quality
Central Mexico Steady Fair
Santa Maria, CA Steady Good
Berries (Strawberries)

Strawberry supplies are booming this week. We have multiple areas in full production, and the weather has been ideal for good quality and high yields. Oxnard continues to have product this week, but the season is quickly winding down, and the quality is diminishing. We will see very aggressive prices in this area, but we do not recommend traveling far with this fruit. Santa Maria has really ramped up this week, and quality is excellent. Salinas and Watsonville continue to increase volume every week, and quality is being reported as very strong. Sizes are running on the larger side, color is bright red, and the berries have good flavor. As the Mother's Day pull begins to slow down midweek, we will see supply far exceed demand and shippers will be desperately looking for additional volume. Aggressive spot buy opportunities will be available all week in all locations. Looking out over the next two weeks, we expect supplies to remain heavy and market prices to be aggressive and steady.

- pa_admin

Peak Seasons:
Santa Maria will be reaching peak production over the next 2-3 weeks.

Growing Region Market Quality
Oxnard, CA Lower Fair
Santa Maria, CA Lower Good
Salinas Valley, CA Lower Good
Watsonville, CA Lower Good
Broccoli Alert

We are experiencing the typical Salinas season supply gap with broccoli. We have seen plenty of supplies up until this point, but that has come to an end. Supplies are starting to decrease at a rapid pace. The market is trending higher as a result. Quality remains really good despite the supply decrease. We are seeing minimal dehydration or yellowing.

- pa_admin

Alerts:
Supplies will continue to decrease well into next week as we see a small supply gap in both Santa Maria and Salinas growing regions. As a result, the market is trending much higher.

Growing Region Market Quality
Salinas Valley, CA Higher Good
Oxnard/Santa Maria, CA Steady/Higher Good
McAllen, TX Higher Good
Brussels Sprouts

We continue to see plenty of supplies of brussels sprouts from all suppliers. The market is competitive but does vary from supplier to supplier. Quality is really nice with dark green color and a full range of sizes.

- pa_admin
Growing Region Market Quality
Oxnard, CA Steady Good
Northern Baja California Norte, Mexico Steady Good
Carrots

California carrot supplies are good on value-added packs and medium-size carrot. We are now seeing a better percentage of jumbo sizes coming out of the fields of the Coachella Valley.

- pa_admin
Growing Region Market Quality
Coachella Valley, CA Steady Excellent
Cauliflower Alert

Cauliflower supplies are extremely limited, and we are about ten days away from the supply base to resume some sense of normalcy. The market is extremely high with most suppliers fill rating orders. Also holding customers to their respective averages. This is the same story for processors. Quality has decreased as suppliers reach for acreage. We are seeing more yellow cast and smaller size heads.

- pa_admin

Alerts:
Extremely limited supplies of cauliflower is driving the market to much higher levels.

Growing Region Market Quality
Salinas Valley, CA Higher Fair
Oxnard/Santa Maria, CA Higher Fair
Celery

There has been slight upward movement in the marketplace by some shippers while others have remained firm. Demand is moderate at best. Small sizing continues to have the lightest availability, thirty-six counts in particular. Aside from some slight seeder and bowing, the overall quality continues to be good. All orders are expected to be filled throughout the week. Loading in Salinas is not a problem with a day's notice and an upcharge by the shipper.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady/Higher Good
Cilantro

Supplies continue to be abundant from all growing regions. This has kept the market fairly competitive. The quality has been good with minimal yellow to brown leaves or that slimy decay we see from time to time.

- pa_admin
Growing Region Market Quality
Salinas, CA Steady Good
Oxnard/Santa Maria, CA Steady Good
Baja, MX Steady Good
Citrus (Lemons)

The Central Valley crop is near its end with 97% of the crop harvested. The Ventura/Oxnard areas are becoming the main growing area. Demand is improving, especially on the smaller sizes of 162s/200s. These smaller sizes are beginning to sell out daily, and the market is firming.

- pa_admin
Growing Region Market Quality
Merced/Bakersfield, CA Steady/Higher Good
Oxnard/Ventura, CA Steady/Higher Good
Citrus (Limes)

Lime supplies are finally starting to improve. As expected, the smaller sizes (200-250ct) have really ramped up in volume this week. As a result, market prices have begun to adjust down to volume buy opportunities becoming available. We expect to see supplies continue to improve on all sizes with more availability of the larger fruit week over week. Quality is being reported as very strong, and demand is consistent. Promotional opportunities will be readily available as we enter summer season.

- pa_admin
Growing Region Market Quality
Veracruz, Mexico Lower Good
Citrus (Oranges) Alert

We are now into the late varieties of navels and eating quality is some of the best of the season. Size structure is mostly large sizes 72s/56s/48s and very few of the small size fruit 113s/138s. These small sizes are extremely tight and will remain so for the balance on the Navel season. California Valencia harvest has begun in a limited way by some packers for export. Growers are size picking for 72s and larger sizes that export uses, but we see some fall out of smaller sizes for domestic shipments. Volume for domestic shipments still looks to be two weeks away.

- pa_admin

Alerts:
Demand exceeds supplies on small fruit 113/138s.

Growing Region Market Quality
Merced to Bakersfield, CA Steady Good
Riverside, CA Steady Good
Cucumbers (Eastern) Alert

There are steady supplies of Cucumbers in central Florida and some supplies coming from South Florida. Central and South Florida have had some storms and hot weather through the region, and it has caused some quality issues. Some new fields will start in Plant City this week improving the quality situation. Georgia will start light supplies this weekend, with more volume coming late next week.

- pa_admin

Alerts:
Good Supplies; quality is only fair.

Growing Region Market Quality
Indian River / Dade County, FL Steady Fair
Hillsborough / Western Collier County, FL Steady Fair
Eggplant (Eastern)

Central Florida has started new fields of eggplant with better supply and better quality. Supplies should pick up over the next week with hot weather and longer days. The market is holding steady with almost all the supply coming from Central Florida and Georgia late due to a cool spring.

- pa_admin
Growing Region Market Quality
Hillsborough / Western Collier County, FL Steady Good
Grapes (Green)

Green grapes have finally started to cross into Nogales from Mexico regularly. Quality is very good, and supplies are becoming more consistent. Coachella greens will not start for another two weeks. There are still a few Chilean greens available but the quality is not holding up, and all fruit should be closely inspected upon arrival.

- pa_admin
Growing Region Market Quality
Coquimbo/Valaparaiso/Santiago/Rancagua, Chile Steady Fair
Hermosillo, Mexico Steady/Higher Excellent
Grapes (Red)

There are still Chilean reds available on both coasts. Quality is fair, and all product should be inspected and checked upon arrival. We will have Chilean reds for another ten days to 2 weeks. Mexican reds are beginning to cross the border into Nogales very slowly. Quality is being reported as good, and we will see supplies ramp up over the next few weeks. Coachella typically follows Mexico by about two weeks.

- pa_admin
Growing Region Market Quality
Coquimbo/Valaparaiso/Santiago/Rancagua, Chile Lower Fair
Hermosillo, Mexico Steady/Higher Good
Green Onions

We have hit that time of the season in Mexico where the thrip insect will cause damage to the green onion crop. They leave little stings on the green tops that turn to brown spotting. We will continue to see this type of quality condition for 6 to 8 weeks. Although we are experiencing this situation, the market has continued to stay relatively competitive.

- pa_admin
Growing Region Market Quality
Mexicali, Baja Steady Fair
Kale

Kale supplies are abundant with a competitive market from all suppliers. Quality is excellent with dark green color, minimal yellowing, and no dehydration.

- pa_admin
Growing Region Market Quality
Salinas, CA Steady Excellent
Oxnard/Santa Maria, CA Steady Excellent
Lettuce Iceberg

Light supplies will continue in the industry for the entire week with this commodity. This market continues to gain strength. Production in Salinas has seen defects like puffiness, light weights, misshapen heads, and occasional tip burn. Weights have been averaging 35-42 pounds. Santa Maria will continue to have minimum availability. The weights have been on the lighter side as well. A few shippers were buying on the outside at the beginning of the week just to cover orders.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Higher Fair
Salinas Valley, CA Higher Fair
Lettuce Leaf

Very light supplies continue on red and green leaf as well as butter. This market is up. Romaine continues to struggle as the hangover of the past week's reports of contamination has altered sales severely on this commodity. Plenty of romaine hearts are available as well, and shippers are flexing on both for volume type orders. Santa Maria's production is moderate on romaine and extremely light on all other leaf items, like Salinas. Mechanical, insect damage, wind damage, and occasional mildew is being reported. Overall, weights are reported to be above average on most leaf items.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady/Higher Fair
Salinas Valley, CA Steady/Higher Fair
Lettuce Tender Leaf

The tender leaf market is steady with all suppliers. We have seen really nice quality on all packs. Suppliers are continuing to push volume as supplies have ramped up on both the conventional side as well as the organic side.

- pa_admin
Growing Region Market Quality
Salinas Valley, CA Steady Good
Melon (Cantaloupe)

As the Import fruit finishes the season, we have started to transition to both domestic fruit and fruit from Mexico. The market is two-tiered. The market on Mexican fruit is more competitive than the domestic fruit. Quality from Mexico, California, and Arizona is really nice with good sugar levels. Although we are seeing some issues with mold and soft spotting on the import fruit as they finish up their acreage.

- pa_admin
Growing Region Market Quality
Brawley, CA Steady/Higher Good
Maricopa, AZ Steady/Higher Good
Hermosillo, Mexico Steady Good
Zacapa, Guatemala Steady Fair
Choluteca, Honduras Steady Fair
Melon (Honeydew)

We are also finishing the season for offshore fruit. We do have plenty of supplies out of Mexico and limited supplies on the domestic front. The markets are steady with the most competitive out of Mexico. Sugar levels are really good on the new crop honeydews.

- pa_admin
Growing Region Market Quality
Brawley, CA Steady/Higher Good
Maricopa, AZ Steady/Higher Good
Hermosillo, Mexico Steady Good
Zacapa, Guatemala Steady Good
Choluteca, Honduras Steady Good
Onions Alert

The market is weak with light demand on all colors and sizes with supplies coming out of Washington, Idaho, California, Texas, and Georgia. Storages supplies out of Idaho will finish in the next week or so followed by Washington by the end of May. Quality is still good coming out of these late storages. Quality is great coming out of all the new areas. Heat in Southern California is something to keep an eye on with temperatures at 104 dropping down into the low 90's this weekend then jumping back to high 90's next week. Uvalde, Texas crop started this week with Yellow and reds. Whites to start this week. Look for the onion market to stay low at current levels for the next couple weeks.

- pa_admin

Alerts:
104 temperature in Southern California onion growing area something to keep an eye on. Transportation limited in the Texas area.

Growing Region Market Quality
Calipatria/El Centro, CA Lower/Steady Good
McAllen/Uvalde, TX Steady Excellent
Quincy/Hermiston, WA Steady Good
Ontario, OR to Nampa, ID Steady Fair
Pears

Washington - D'anjou pears supplies are in only a few hands with mainly fancy 110 and larger available. Shippers are having to repack all pears before shipping due to quality. Finish date will be mid to end of July. Small sizes are very limited. Red pears supplies have limited availability and are only in a few hands with a firm market. Supplies should last into the end of May. Quality has been hit and miss. Look for pricing to continue to firm up.

Offshore - Supplies of Bosc pears are starting to improve. Markets are still firm but should start to soften slightly over the next couple of weeks. Sizing is peaking on 90/100s. Packams Pears will become the main offshore variety. Quality is very nice.

California Pears supplies are a couple of weeks behind schedule.

- pa_admin
Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Higher Fair
Chile Steady/Higher Good
Pineapples

Pineapple volume coming from the tropics remains good and looks to be so through May. Size continues to peak on 5s/6s.

- pa_admin
Growing Region Market Quality
La Virgen, Costa Rica Steady Good
Heredia, Costa Rica Steady Good
Guapiles, Costa Rica Steady Good
La Cieba, Honduras Steady Good
Retalhuleu, Guatemala Steady Good
San Luis, Guatemala Steady Good
Potatoes

Markets are steady on carton counts out of all areas. Demand is light to moderate. Quality is good with a few issues being reported. Look for this trend to continue with a slight uptick in the market as we enter June. Retail bales market is steady with light demand. A few of the smaller growers/shippers in Washington, Colorado, and Wisconsin are starting to finish for the season.

- pa_admin
Growing Region Market Quality
Hamer/Rupert, ID Steady/Higher Good
Quincy/Hermiston, WA Steady/Higher Good
Plover/Bancroft, WI Steady/Higher Good
Eastern Colorado Steady/Higher Good
Potatoes (colored)

Bakersfield, California - Reds, golds, and white market are steady on all sizes and packs with moderate demand. Quality is good.

Idaho - Buyer market continues on Red A's and B's as shipper need to move supplies before they start having issues. Demand is light on both Red and Golds. Quality is being reported as good to fair with an occasional issue being reported.

Wisconsin/Colorado - Supplies are being brought from other growing areas to ship with the russets The market is steady but higher due to the extra freight. Quality is still being reported as good.

North Dakota - Market steady on both reds and golds, Quality is good. Supplies will go into June maybe longer.

South & North Florida - Market steady with good supplies of both red and golds. There is overlap as supplies slowly finish in the South and building supplies in the North has the market flat. Quality is very nice. Transportation is limited

- pa_admin

Transitions:
Supplies finishing in South Florida with building supplies in the North.

Growing Region Market Quality
Bakersfield, CA Steady Excellent
Hastings/Bunnell/East Palatka, FL Steady Good
Imokollee/Palm City/Punta Gorda, FL Steady Excellent
Red River Valley, ND Steady Excellent
Squash (Eastern) Alert

Squash supplies are still coming from south Florida to south Georgia, but no one region is producing much volume. Supplies are still tight but more shippers are starting in Georgia this week, and with hot weather finally arriving in the southeast, production should increase. Quality is good in most growing regions, south-west Florida had some storms this past weekend that caused quality issues in squash, but product should be better by this weekend.

- pa_admin

Alerts:
Squash supplies are still tight but new fields are starting.

Transitions:
Squash is transitioning to Georgia.

Growing Region Market Quality
Dade / Eastern Collier County, FL Steady Good
Hillsborough / Sarasota County, FL Steady Good
Lee/Grady/Echols County, GA Steady Good
Stone Fruit

California season is starting to pick up after a slow start due to colder temperatures in the valley. Peaches and nectarines are readily available in smaller sizes so now is a good opportunity to promote stone fruit to school business. Quality is reported as excellent. Apricots have been slower to start, but there are some available but only in very small sizes. Black plums are still available on both coasts out of Chile, but the California crop will start here in approximately two weeks.

- pa_admin
Growing Region Market Quality
Madera south to Arvin, CA Steady/Higher Good
Coquimbo, Valaparaiso, Santiago and Rancagua, Chile Lower/Steady Fair
Tomatoes (Eastern)

The round tomato market is a little stronger from last week pressing FOBs up a dollar or more. Sizing has evened out as harvest break into second picks translating into traditional step-down pricing respective to size. As the weather continues to help crops flourish, springtime volumes remain promotable at this time. Similarly, Roma tomatoes are widely available and being offered slightly below Mexico minimums to entice buyers. No different than the larger fruit, the grape and cherry tomatoes in the bite-size category are available, but the market is rising as demand increases. As supply continues to be abundant, quality may be reflected in cheap price quotes as shippers try to move over-conditioned product to keep their coolers clear. Markets are steady at this time.

- pa_admin
Growing Region Market Quality
Southern Florida Steady/Higher Good
Tomatoes (Western)

Tomatoes from Mexico remain at price minimums where the western market is forecasted to remain for the immediate future. Both gas green and vine-ripe round varieties are peaking/moving past peak production with plenty of supply available at this time. Though the end of May, vine ripe tomatoes will lead the category as gas green supply drops off against vine ripe production planted for Spring harvests. Similarly, Roma tomatoes are expected to harvest all the way through May with no supply interruption pending a significant weather event. With the abundance of Roma tomatoes in the marketplace currently, over-conditioned fruit may be something to watch out for as shippers struggle to move inventory. Grape and cherry tomatoes are beginning to tighten up, and the market is rising. As production tapers from mainland Mexico in mid-May, Baja will begin operations to offset any interruption in supply helping to keep western offerings even through much of the 2nd quarter.

- pa_admin
Growing Region Market Quality
Southern Nayarit/Sinaloa, Mexico Steady Excellent

Things You Should Know

Bell Peppers (Eastern)
Supplies tight; market considerably higher.

Broccoli
Supplies will continue to decrease well into next week as we see a small supply gap in both Santa Maria and Salinas growing regions. As a result, the market is trending much higher.

Cauliflower
Extremely limited supplies of cauliflower is driving the market to much higher levels.

Citrus (Oranges)
Demand exceeds supplies on small fruit 113/138s.

Cucumbers (Eastern)
Good Supplies; quality is only fair.

Onions
104 temperature in Southern California onion growing area something to keep an eye on. Transportation limited in the Texas area.

Squash (Eastern)
Squash supplies are still tight but new fields are starting.

Transitions and Temperatures

Potatoes (colored)
Supplies finishing in South Florida with building supplies in the North.

Berries (Blueberries)
California is slowly ramping up and will continue to improve over the next 2-3 weeks. North Carolina will begin in the next 2 weeks.

Berries (Blackberries)
Domestic harvest is expected to start by late May.

Berries (Raspberries)
Santa Maria harvest is improving. Salinas and Watsonville is expected to start by late May.

Squash (Eastern)
Squash is transitioning to Georgia.

A Peak at Peak Seasons

Berries (Strawberries)
Santa Maria will be reaching peak production over the next 2-3 weeks.

Want to receive our most recent market reports by email as soon as they're released?
Click here to sign up
Back to Top