The Source - November 13, 2019

EASTERN REGION:
Market remains steady in the world of apples. With Thanksgiving around the corner, we will see movement begin to slow due to holiday break for schools. Fortunately, we have seen some smaller, regional shippers end their harvest and with no CA (controlled atmosphere) program, they will sell what they have left and be done for the season, which should lessen the number of apples available in the pipeline. Deals are available mostly on Gala and Red Del. with a few other varieties sprinkled in.

WESTERN REGION:
Washington
Much like the Midwest and EC, markets remain steady in the Northwest. With Red Del. production under 20% for the state of Washington, many shippers are encouraging customers to transition into another red skin…Gala, Fuji, Braeburn, Pink Lady, etc. With that said, many of the same shippers are dealing with these varieties in hopes of encouraging usage. Quality across the board remains excellent.

The Southern Baja region is just about closed due to seasonality. Ciudad Obregon and Northern Baja have started, production has increased, and we should see a steady increase in the next 2-3 weeks. Volume has picked up this week from both regions in Peru (Ica/Trujillo) with more fields opening up for the last push before Sonora starts in December. Volume remains excellent on the larger sizes and should continue until production slows down at the end of December. Markets on both coasts are lower/steady with good movement on all sizes.

Not much change this week. We continue to see a strong harvest from Mexico with a better size curve. Despite the fact that we are entering the slowest demand period of the year for avocados, retail ad activity remains strong so the market is stable. We expect the consistency to continue for the coming weeks and there should be confidence in continuing to promote avocados through the holidays. With so much Mexican fruit in the pipeline, there is little to no demand for Chilean fruit.

Bell Pepper is in full Transition to Florida. Florida shippers are not in peak volume and many shippers have not started for the season. Georgia shippers are winding down but there are still steady supplies of good pepper with just a few bruising issues over the past week. Georgia growers could continue to pack for another 2 weeks but will be watching the temperatures Wednesday morning with freeze warnings out for Georgia and North Florida. Bell Pepper supplies have decreased over the past 10 days and a freeze this week would make the market that much tighter but supplies will continue to increase in Florida on both coasts. So it will not be a disaster if Georgia were to get frozen out but would certainly make customers scramble for the product over the next week.

Alerts:
Freeze warnings are out for Georgia and North Florida.

Transitions:
Bell Pepper is in full Transition to Florida.

GREEN BELL
Light supplies of Green bell pepper have started in Coachella, CA. The Coachella crop is behind schedule due to cold weather. Better supplies of green bell pepper continue to cross through Nogales this week from Sonora, Mexico. Quality from the Coachella Valley and Sonora, Mexico are both good. The Green bell pepper market is steady this week. Moderate supplies of green pepper also available to load McAllen, Texas.
RED BELL
Very light supplies of red bell pepper continue to be harvested in Hollister and Oxnard this week. Mostly small to medium size being packed from this district. Quality from these two areas is fair. New crop red bell pepper from the Coachella Valley has been pushed back about 2 weeks due to colder weather. Light supplies of Mexican Hot House bell pepper are also crossing through Nogales, AZ this week. The market on red bell pepper remains high this week with light supplies. Moderate supplies of Red bell pepper also available to load in McAllen, TX.
YELLOW BELL
Light supplies of Yellow Mexican Hot House Bell pepper are also crossing through Nogales, AZ this week. The Market on yellow bell peppers has increased due to lighter supplies. Moderate supplies of Mexican Yellow Hot House bell pepper are also available to load in McAllen, TX.

Blackberries continue to be in light supplies coming out of Mexico. Quality is fair with red cell being reported in most lots. The market should remain firm moving into the weekend with supplies moderately improved next week.

Import blueberries from Peru, Argentina, and Uruguay are arriving by boat on both West and East coasts. Mexico is also producing good numbers arriving through the points of entry in Texas and Arizona in good numbers. These are being transferred to both the West and East coasts for distribution. Markets will remain steady with lower undertones moving into the weekend. Quality has been excellent out of all regions.

Raspberries are still in fairly good supplies coming primarily out of Mexico and the market is steady. Quality is just fair with some lots experiencing residual issues with moisture causing early breakdown. Numbers are expected to increase as more strawberries out of Mexico provide better logistical options for transfer.

As the production curve continues on a downward arch in Santa Maria and Oxnard we will be relying on Mexican Imports to pick up the slack until we hit the real volume Oxnard new crop has to offer in December. Markets are firm with higher undertones moving into the weekend. We are seeing more volume beginning to cross through Texas out of Mexico and Florida. Growers are just starting to see very light production this week. Those numbers will slowly begin to increase as we approach December. Quality has been improving in Mexico as growers rebound from weather-related issues from weeks past.

Alerts:
Possible rain next week in the North may prove to finally end the lingering production of strawberries in Salinas and Watsonville

Transitions:
We will see strawberry production end in the North this week and move South to Oxnard and Santa Maria. Yuma cross docks will begin consolidating berries on 11/18 /2019. Mexican crossings are increasing
Florida production has begun and will improve in numbers moving forward.

The Broccoli market has picked up a bit as some suppliers are coming across lower yields heading into transition. Quality has slightly improved with slight purpling, some mechanical damage, and occasional yellow cast. Look for Broccoli to continue to adjust going into next week.

The brussels sprouts market continues to stay steady. There is still some internal decay, causing slightly lower yields. Look for the Brussels sprouts market to continue to adjust slightly higher going into next week.

It is a steady go on the carrot front with Jumbo carrots still at elevated prices out West. The Mexican Jumbo market is steady at lower pricing and provides a good substitute loading location out of Texas for volume orders of both the 50lbers and the 25lbers as well. Quality has been good in all areas.

The cauliflower market continues to be high as suppliers are seeing lower yields and even skipping a few days of harvest to size up the cauliflower. This is causing suppliers to struggle on Cauliflower Florets as there is not enough raw product. The quality is fair with a bruising and yellow cast with weights in the 25 to 28-pound level. Look for the market to continue to adjust going into next week.

This market continues to be active as we head into the Thanksgiving holiday. Supplies are moderate to light in both Santa Maria/Oxnard and Salinas. As expected, demand will increase daily as this commodity is a big holiday item for food service. Mexico continues to have production as well. Harvesting in Salinas will end around the third week in November. Santa Maria and Oxnard currently have moderate production. The overall quality of this commodity continues to be good. Slight defects being have been leafy tops bowing and mechanical. These defects are minimal, however. Weights are being reported at 52-56 pounds.

Jalapenos- Moderate supplies of Jalapeno are available to load in Los Angeles from Baja California. Jalapeno quality from Baja is fair. Jalapeno size being harvested in Baja, California is mostly medium with few large. Jalapeno from Santa Maria has finished this week. Light supplies of jalapeno from Sonora have also started this week. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Good supply of Pasilla peppers available to load in Los Angeles from Mexico this week. Pasilla continues to be harvested in Baja California. Quality on Pasilla from this region is good. Size on the pepper is mostly medium to large. Pasilla peppers from Santa Maria have finished this week. The pasilla market has increased this week with lighter supplies. Pasilla from Mexico also available to load in McAllen, Texas.

Anaheim- Moderate supply of Anaheim continues to be available to load in Los Angeles from Baja California this week. Quality from Baja is mostly good. Light supplies of Anaheim peppers are being harvested in Sonora, Mexico this week. The Anaheim pepper market is currently steady and is expected to increase slightly towards the end of the week. Anaheim from Mexico also available to load in McAllen, Texas.

Serrano – Good supplies of Serrano peppers available to load in Los Angeles from Mexico. Supplies are expected to remain steady throughout the week. Supplies currently meet demand. Serrano supplies also crossing through McAllen, Texas.

Tomatillo – Husk tomatillos are available to load in Los Angeles, from Mexico. The quality of husk variety is good. Good supplies on husk tomatillos are expected to continue. Market on both peeled and husk tomatillo is steady. Both husk and peeled tomatillo are available to load in McAllen, TX.

The cilantro market continues to stay steady as yields have started to improve. The cilantro quality is fair with an occasional yellow leaf. Look for the cilantro market to continue to stay steady going into next week.

No real change on domestic lemon supplies on sizes 75ct – 115ct. We can expect supplies to improve in a few weeks out of the Southern California/ desert area. Supplies on small sizes are steady and the market is slightly softening up on those particular sizes. The majority of orders are being booked out of District 3 (Coachella/Mecca/Yuma). We can expect to transition to District 1 in the next month. Current markets remain steady with good quality.

Overall the Mexican Lime Market has decreased due to excess rain in the Mexican growing regions. The Lime Market will begin to see a shift in the crop's size distribution towards mid/large-sized fruit due to rain. Small sizes will become scarce as a lot of growers have not been able to harvest due to the rains. The market will remain firm until crossings normalize, but projections in Mexico indicate that we likely won't see relief until January.

Two weeks into the Navel season volume is ramping up quickly. The season started with very good demand and that has continued. The quality looks good and is getting better every day. Suppliers are gassing fruit as needed and the hours are already starting to come down. Brix average has been consistent between 11 and 12.5 Size structure has been consistent on 72/88/56 with supplies being snug on 113/138s. We’re seeing a higher ratio of fancy grade fruit over choice. As the season goes on we’ll see more choice fruit available. This week will be another big week of harvest and production. The market is settling in as more supplies are available, especially on 72/88 fancy. Keep pushing Navels and please be sure to run all offers by us. On specialty citrus, California grapefruit is concluding this week out of the southern California districts, and transitioning to the Central Valley. Keep pushing CA Mandarins, lots of opportunities for the holidays.

Cucumber supplies are getting very tight and will continue to get tighter as the week goes on. Georgia shippers are about done for the season and cooler weather production has slowed even more. Regardless of whether Georgia gets frozen out or not, the cucumber season in Georgia will be done this week. Florida has started cucumbers but has not hit their peak season yet. Temperatures in central and south Florida have cooled enough to slow production of cucumbers. More volume will start on both coast in the next 10 days. Quality has been spotty on the first cucumbers, after very warm temperatures during the growing season, the product has had poor color and limited shelf life. Cooler temperatures will slow growth but help quality tremendously. Supplies will continue to be tight through most of November with less acreage planted in Florida this fall.

Good supplies of cucumber are being harvested in Sonora, Mexico, and supplies are expected to increase as more Mexican growers begin production. The cucumber quality from the Sonora district is good on all pack styles. The market on West Coast cucumber remains steady this week and is expected to continue. Moderate supplies of Mexican cucumbers are crossing through McAllen. Quality from McAllen is being reported is fair.

Eggplant supply is getting very tight. Cooler temperatures are slowing production tremendously on top of lower yields with the season over the peak in Georgia. Central Florida has started but has not reached peak production. Many growers in the southern part of the state have not started for the season. There is less acreage planted for the fall in the central region of the state due to past oversupply and low markets. Quality in Georgia and Central Florida has been very good. Demand has been good and inventories are fresh. Supplies will get tighter as the week goes on and will stay low for about two more weeks.

Alerts:
Eggplant supplies will get very tight.

Light supplies of Eggplant being harvested in California. Quality of domestic eggplant is mostly fair. Better supplies of eggplant continue to be available to load in Nogales, AZ. Eggplant crossing through Nogales is being harvested in Sinaloa. Both 18ct and 24ct being packed. Quality is good on eggplant crossing through Nogales.

Green grapes have been a challenge all season. Weather played a big roll in this year’s crop. Rain in the spring resulted in some mildew issues early in the season. Then we saw a very warm summer which advanced many plantings and has left the industry in a bit of a shortage as we approach transition. Additionally, the quality of the remaining storage crop will be fair at best. Depending on the particular variety, quality can vary slightly, but overall we can expect to see issues as we move forward. Wet and soft berries, early decay, shatter, and discoloration will all be present in the storage fruit from now until transition. Supplies will be limited throughout transition. Market prices have already started to climb up and will continue to be higher through November. We expect limited supplies of domestic fruit to last through the Thanksgiving Holiday, then taper off quickly. Import fruit is expected to arrive on the east coast by the end of November. Volume will pick up quickly by December. We do not expect any major disruption in fulfillment unless the quality turns worse before expected. Markets will be higher as we transition into import fruit.

Alerts:
Quality is fair and will remain so through transition. Soft berries and discoloration may be present. Markets are higher and supplies will be limited.

Transitions:
New import fruit will start late November on the east coast. West coast should see fruit by early December.

The overall quality on red varieties has been fairly consistent. Storage crop is strong. Berries are firm and crunchy, stems are green and the color is a little pale. We anticipate this to be the case through the Thanksgiving Holiday. According to the USDA storage crop report, there are currently 1.8 million Scarlets left to go and another 5.4 million cases of other red varieties. Prices have started to firm up over the last week and are expected to slowly climb up as we get closer to Thanksgiving. After the holiday, we can see a bigger jump in price as we get closer to the end of the season. We expect storage crop of domestic red grapes to last through the middle of December. Import fruit will start to come into the east coast ports as early as the first week in December. Prices will be higher on new import fruit. Volumes will ramp up as we move through December and we expect to be fully transitioned by the end of December.

Alerts:
Shippers are now into storage crop. Quality is strong. Markets will get firmer. Steady supplies expected through transition.

Transitions:
New import fruit will start early December.

The green onion market continues to stay steady with the consistent supply brought on by the warm weather. Quality is good with occasional leaf minor. The market will continue to stay steady going into next week.

The kale market continues to remain steady as supplies continue to stay plentiful. Quality is good with full bunches and an occasional yellow leaf being reported due to the recent warm weather.

Demand exceeds supplies for this commodity. Production in Yuma is moderate to light. Huron and Salinas are winding down production as next week may be the last production days. Santa Maria has minimal production. Common defects that have been reported upon arrivals include mechanical, epidermal peel, misshapen heads, and lightweights. Weights on wrap have been 29-34 pounds. Escalated pricing on value-added lettuce items will start up this week. Expect active markets for the next two weeks with this commodity.

Alerts:
Light supplies expected for 2 weeks with lettuce.

The romaine market continues to be strong. Demand exceeds supplies. Escalated pricing is in effect on all romaine value-added items. Demand exceeds supplies on romaine hearts as well. Low yields in the growing regions are not expected to get better until the month of December. Production in northern California is simply winding down. Weights on romaine are reported between 26-30 pounds. Defects include insect damage, mechanical, slight blister, and mildew. Green and red leaf are having the same defect issues. Supplies are light as well. Weights are reported at 17-21 pounds. Yuma has started to pick up and better supplies are expected next week.

Alerts:
Light supplies on romaine as well as all leaf items in the industry.

Tender Leaf market continues to stay steady as supplies have stayed consistent. Curly parsley, spinach, and arugula are now at a steady supply going into next week. Quality is good with occasional yellowing and bruising of the tender leaves.

Arizona-
Supplies continue to be a challenge as the season winds down. A cold front that moved through the desert a few weeks ago brought on some quality issues and also slowed production drastically. These cooler temps and less daylight seem to be preventing the fruit to size up. Growers are reporting some internal breakdown on the melons due to unseasonably cold temps. The overall quality is fair. All sizes are limited, but large fruit is extremely tight. This industry-wide shortage has open market fruit at a premium.

Mexico-
Mexican growers continue to struggle with production. Very light volume crossing into the US due to low brix levels and quality issues. Quality has been hit and miss on this late-season fruit out of Hermosillo, with mostly small fruit available. Hermosillo is tapering off and Guaymas will ramp up in about a week or two with new crop fruit. Growers in the Guaymas region are anticipating good volume on larger sized fruit. Mexican cantaloupe will be available for another few weeks, honeydews will be available into the spring.

Offshore-
Cantaloupe is arriving in a light way in Pompano, Florida. Honeydews are expected this week in a light way as well. Guatemala will be the dominant source of supply out of Central America until Costa Rica and Honduras ramp up in January. We anticipate better availability moving forward as the fruit is already on the water headed for the US. The first arrivals will lean heavily towards large-sized fruit. Arrivals into the US will continually pick up momentum as suppliers see a strong demand and a hot market.

Alerts:
Domestic market remains hot as offshore arrivals attempt to provide relief.

Light supplies of watermelon continue to be harvested in Sonora, Mexico. The seedless watermelon market is currently steady but is expected to increase with lighter supplies. Watermelon quality from Sonora is good and most cartons are being packed from this district.

Onion markets are status quo with excellent supply and quality. Idaho, Oregon, Washington, Utah, and Colorado continue to produce great supplies of yellow, red, and white. Holiday demand is kicking in for Thanksgiving and suppliers are not missing a beat. Expect much of the same as we head into the second half of November.

Washington:
The pear market continues on a steady course. All pears are off the trees and into ‘the barn’ (storage). Bartletts, Anjous, and Bosc are available. Red pears (Starkrimson, Red Anjou) are available in ½ and full cartons. Markets are steady and quality is excellent.

Specialty varieties—such as Seckel, Forelle, Comice, and Asian—are also available. Quality is excellent.

California:
CA shippers should be done around Thanksgiving with mostly larger sizes remaining (70ct-100ct, some 110ct). Truth be told, this time of year calls for attention to quality as Bartlett pears tend to quickly ripen; therefore, greatly reducing shelf life.

ASIAN PEARS are available; 10ct-24ct (1 and 2-layer) available to load in the San Joaquin Valley. Smaller sizes (66ct-96ct, 3-layer) are sporadic in availability, so please inquire about availability.

Pineapple supplies out of the east coast continue to be snug on the crowned fruit. This is normal around this time of year. On the west coast, supplies are steady. Markets out of both coasts remain fair and demand continues to be strong for the Thanksgiving pull. Quality is looking good!

Russet potato markets continue to inch up as demand exceeds supply. Consumer bags are limited with retail coming in heavy for the Thanksgiving holiday. Packing sheds continue to run production 4 days per week in order to extend the storage season. Both Norkotahs and Burbanks are available out of Idaho with limited volume. Size profile for Norkotahs leans to the larger sizes while Burbanks are heavy to the smaller range. Washington, Colorado, and Wisconsin markets are also inching up as demand is shifting to those areas for potato coverage. Expect to see much of the same over the next 4-6 weeks as demand will be active for the holiday season. Weather forecasts do not show temps that will slow transfers from cellars to packing sheds at this time. We continue to advise up to 7 days of lead time to make every attempt on covering orders and on-time shipments.

Alerts:
Markets continue to rise; demand exceeds supply. Consumer bags limited. Lead time needed on all russet orders, up to 7 days advised.

Color potato markets are steady to slightly higher in all regions. Availability can be found in Idaho, Washington, North Dakota, and Wisconsin. Minnesota is nearly finished with a few yellows still available. Bakersfield, CA is shipping some reds and yellows from the Mt Vernon, Washington region. Expect markets to climb as we move through the holidays; in particular red potatoes. North Dakota and Wisconsin suffered a severe crop loss of up to 50% and will start to have an effect as we move through 2019 and approach the new year.

Alerts:
Demand increasing for upcoming Thanksgiving holiday. Markets expected to rise. Red B potatoes will become limited.

Squash supplies are split. Zucchini supplies have gotten very tight but yellow squash supplies, on the other hand, are very good. Supplies of both colors will likely get tighter as the week goes on. Georgia which is on the last legs of their fall season will finish for the season this week. Florida is harvesting squash in the central part of the state and on both the southern coast. Cooler weather has slowed production in all regions and demand has been very good with less volume crossing from Mexico in Texas and Arizona. Expect supplies to stay tight for at least another week. Quality in all regions has been good with very few issues.

Soft squash supplies have finished in the California growing districts for the season. Moderate supplies on both Italian and Yellow S/N currently being harvested in Hermosillo, Sonora. Supplies have decreased due to colder weather these past weeks in the growing areas. Mostly Extra Fancy and Fancy size being packed on both varieties. Moderate supplies expected through the week. The soft squash market has increased this week with lighter supplies. Quality from Sonora is good on all pack styles. Light supplies of soft squash continue to cross through McAllen, TX.

The domestic stone fruit season is done with the exception of a limited amount of plums. Depending on the grower, a red or black plum will be available through the end of the month. Quality on the late-season plums has started to diminish over the last 2 weeks. We are seeing soft fruit, bruising and early decay. Market prices are higher and demand is tapering off quickly. We expect new import fruit to start by early December. Market prices will be higher on new fruit but expect better quality.

Alerts:
Only plums are left. Quality is fair. Supplies will last through the end of the month.

Transitions:
New import stone fruit will start by early December on the east coast.

The round tomato market continues to trend downward from last week. More growers are harvesting in central Florida helping to boost supply. Roma tomatoes are still very short, and quality is mixed. Premiums are expected for packs outs from better quality lots. There are plenty of grape tomatoes available right now and the market remains affordable. Similarly, there are also steady volumes of cherry tomatoes in good supply and the market remains affordable.

California has finished for the season, shifting western demand to Mexico where the market is steady at the beginning of new programs. Although volume is building, prices are relatively unchanged from previous weeks. Baja and Mainland Mexico are each harvesting Roma tomatoes where prices vary by region. Grape and cherry tomatoes are widely available from Mexico but slightly higher than their Florida grown counterparts.