The Source - November 14, 2016

Weather Update

A Pacific cold front moves into the Northern California today bringing a cooling trend through midweek as the majority of the energy will remain to the North of Central California. Warm temperatures continue in the desert regions with record highs recorded over the weekend. A cool down and very strong winds are expected midweek as the cold front passes to the north. Tropical moisture will bring scattered showers to Central Mexico with warm temperatures and dry conditions expected to the north. A frontal system moves through South Florida into Tuesday followed by dry conditions through the week.

Freight Update

California trucks remain steady again this week and should stay that way for the near future. Washington apple and Idaho potato trucks are tighter than normal and will be that way thru out the end of the year. The National Average for diesel remained steady and is currently at 2.443 per gallon. A difference of .039 from this time last year. California prices also remained steady and are currently at 2.837 per gallon. Crude oil remained steady and is currently at 43.69 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples Alert

Washington - red delicious are steady on 88's and larger with good availability. Red 125s and smaller are steady but supplies are short and the market remains strong. Most red packers continue to peak on extra-fancy 88s and larger. Golden delicious are peaking on 72/80/88s and are steady but strong due to lighter volume in Washington. Small Golden delicious supplies remain very short, with very few if any 125s and smaller. Granny-smith are peaking on 72/80/88's and the market for large fruit is steady. 100 size and smaller Grannys are steady to higher with very light availability. The availability of Granny 125's and smaller can be described as few if any. The Gala market is steady on larger fruit with good availability and steady but firm on the smaller fruit with only light supplies. Galas are peaking on 80/88/100/72s. Honeycrisp are steady on all sizes but only light supplies available. Honeycrisp are peaking on 80/88/100s now. Fuji's are steady on the small fruit with only light supplies and they are steady on 88s and larger with good supplies. The quality for red delicious, golden delicious, granny-smith, Galas, Fujis, and Honey Crisp has been good.
Idaho---red delicious, Golden delicious, Granny-smith, Fujis, and Red Romes are now peaking on extra-fancy 80/88/100's. The markets are all steady and the quality has been good but the availability is limited.
Michigan--Macintosh, Golden delicious, Jonamacs, Jonathans, Galas, Cortlands, Empires, red Romes, Fujis, Honeycrisp, and red delicious are available and are all fairly steady. Galas, Red Romes, Jonathans, and Cortlands are all heavier to the smaller sizes. Golden delicious, Red delicious, Fujis, and Macintosh are medium in size. The quality has been mostly good in all varieties.
New York-- McIntosh, Cortlands, Empires, Jonamacs, Galas, Ginger Golds, and Macouns are all fairly steady. The sizing has been smaller than other areas with more 100/125/138 size fruit. The quality has been fair with more US#1 grade fruit showing stem-bowl russeting and more bitter pit than usual.

- pa_admin

Alerts:
125 and smaller Golden delicious and Granny-smith apples are virtually non-existent in Washington. 100 and 113 size are starting to get tight as well.

Growing Region Market Quality
Coopersville/Belding/Sparta, MI Steady Good
Hudson/Pleasant Valley/Red Hook, NY Steady Good
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Asparagus

The weather in Mexico growing areas has not changed. Volume has declined by 50% due to the season winding down. Market is up across the board on all sizes with smaller sizes being more prevalent.

The weather is good in the South/North of Peru. Volume is good and the market has improved.

- pa_admin
Growing Region Market Quality
Northern Baja California Norte, Mexico Higher Fair
Ica, Peru to Trujillo Higher Good
Avocado (Mexican)

Mexico continues harvesting steadily. Shippers have good supplies on hand of 48s/60s/70s/84s. Demand is slow as markets continue to move downward. This is new crop fruit and takes longer for them to ripen and fruit is remaining green when ripe.

- pa_admin
Growing Region Market Quality
Michoacan, Mexico Lower/Steady Good
Bell Peppers (Western)

More supply green bells started this week in Nogales, Arizona from Sonora, Mexico. Showing excellent quality and condition. Strong supply has stated from multiple shipper's keeping the market steady on all sizes . Red, Yellow ,and Orange have also started with pallet volume and also showing good quality and condition on all three colors.

- pa_admin
Growing Region Market Quality
Central Sonora, Mexico Steady Good
Central Sonora, Mexico Steady Good
Berries (Blackberries)

Supply is steady. Quality has been good overall with some reports of broken fruit, red cell. Blackberry sizing out of Mexico is large and has resulted in some damaged berries as they are packed into the clamshells. Rain over the weekend did slow down harvesting in Mexico and limited transfers to the US as well.

- pa_admin
Growing Region Market Quality
Oxnard, CA Steady Good
Central Mexico Steady Good
Berries (Blueberries)

Supply is steady with continued shipments from South America and Mexico. As production winds down out of Argentina, we may see supplies tighten somewhat but do not expect any shortages or supply gaps as Chilean production will be picking up as the Argentina season ends. Markets are likely to increase over the next few weeks as the number of air shipments decline and higher volume orders are placed on ocean going vessels to make the 3 week ride to US ports. About 3-4 weeks from now, we'll see increased volume back in the market places and pricing will begin to come off again in December. Quality has been good on all imported product thus far.




- pa_admin

Transitions:
Argentina's growing season will be winding down but Chile will begin to increase production over the next several weeks.

Growing Region Market Quality
Tucuman, Argentina Steady Good
Central Mexico Steady Good
Southern Chile Steady/Higher Good
Trujillo, Peru Steady Good
Berries (Raspberries)

Raspberry supplies are steady with good production volume out of Southern CA and Mexico. Production is peaking over the coming weeks. Quality has been good with only a few reports of wet, leaky fruit.

- pa_admin

Peak Seasons:
Central Mexico production is peaking with good availability.



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

Demand is still exceeding supply. California production volume remains limited as crops transition for the winter and supply is gapping between regions. Oxnard winter crop will begin in late November and increase through December. Mexico is producing in a light way but volume making it to the US is still limited. Rain over the weekend slowed down harvests and production. Berry sizing is very small from Mexico, mid 30s per 1 pound clamshell. Florida is still 3-4 weeks away from steady production but some ranches will begin to walk fields and pick the initial "mud crop" in the weeks ahead. Weather has been clear in all US growing regions however days are getting shorter and temperatures are beginning to cool down. This is the time of year where weather is always a factor and can change production abruptly throughout the growing regions. Keep in mind that we are at the end of the season for many of the CA growing regions and they have already experienced 2 major rain events this season. Quality issues range from soft, overripe and bruised to white shoulder, green tips and misshapen. Fruit will not last as long as you are used to. Quality and shelf life expectation must be adjusted based on what is currently available in the industry.




- pa_admin

Alerts:
Demand is still exceeding supply. Rain in Mexico over the weekend slowed production and shipments to the US.

Transitions:
Oxnard winter production will begin around the last week of November and slowly increase through December.
Mexican production is slightly increasing and will continue to increase week over week.
Florida production will begin around the end of November and increase through December.

Growing Region Market Quality
Santa Maria, CA Steady/Higher Fair
Oxnard, CA Steady/Higher Fair
Central Mexico Steady/Higher Fair
Broccoli

The broccoli market is steady with good supplies and good quality reported from all areas. Yuma is beginning and with the recent heat in the desert quality is still a question mark there. If quality issues arise due to the heat we may see the market react as supplies dwindle out of the Salinas / Santa Maria regions.

- pa_admin
Growing Region Market Quality
Celaya Guanjuato Mexico Steady Good
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Yuma, AZ Steady Fair
Brussels Sprouts

The market continues to be steady with adequate supplies from all growing regions. Quality out of Mexico is fair at best as black spotting continues to be an issue. The Salinas area is doing better for quality but some intermittent issues are reported here as well. California production in the Salinas area will continue through the end of the year.

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

The Bakersfield crop is in full production. Growth is good and producing good percentage of Jumbo size and supplies are good. Supply of baby peeled carrots are good.

- pa_admin
Growing Region Market Quality
Bakersfield/Santa Maria, CA Steady Excellent
Cauliflower

The cauliflower market is steady to higher depending upon the loading area. The Salinas area is finishing and beginning to show limited numbers on a daily basis. Santa Maria continues to ship steady volume and Yuma is beginning. The heat in the desert along with the uncertain supply situation have conspired to raise the market out of the Salinas region. Quality is generally good with occasional discoloration and bruising reported from all areas.

- pa_admin

Transitions:
Yuma has begun shipping cauliflower in very light quantities. Many Salinas shippers are showing lighter volume or finishing by weeks end.

Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady/Higher Good
Yuma, AZ Steady Good
Celery

This market is softer to start the week. Production is still occurring in Salinas as well as southern California. Small sizing continues to have the least availability, but all sizing is available for orders. Demand has fallen off, and although some shippers are higher priced, some deals are being offered by certain suppliers. Shippers are transferring product to Yuma for a fee, so please be aware this option is available.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Lower Good
Salinas Valley, CA Lower Good
Cherries

Chilean cherries are improving in supplies. Fruit is available to load on both the east coast and west coast. Quality is being reported as excellent. Prices are starting to drop slightly as volume increases. All sizes are available.

- pa_admin
Growing Region Market Quality
Coquimbo/Valaparaiso/Santiago/Rancagua, Chile Lower/Steady Excellent
Chili Peppers

Pablano - Good quality and condition expecting in Nogales. Light supply and higher market.

Tomatillo- Current conditions have improved on Tomatillo, sizing is somewhat small but will improve as we increase supply.

Jalapeno- good quality on new crop pepper, mostly large sizing with good color and excellent.

Anaheim- good quality,condition and size are expected to continue as Mexico improves production.

- pa_admin
Growing Region Market Quality
Northern Sonora, Mexico Steady Good
Cilantro

The market is steady on cilantro with very good supplies available out of Oxnard and Mexico. Salinas continues to ship but loading has moved primarily to the southern regions. Quality from all has been very good with only the occasional yellowing leaves reported.

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

The Desert crop is in full production with good supplies. The Central Valley crop harvest is still slow and supplies are limited. Mexican fruit is available and supplies are good.

Meyer Lemon season is in full swing.

- pa_admin
Growing Region Market Quality
Coachella, CA / Yuma, AZ Steady Good
Merced/Bakersfield, CA Steady Good
Citrus (Limes)

Limes are all moving up in price and the smaller sizes are higher than the larger ones. Demand is good on all sizes of limes. Quality is improving overall with less and less leaf shading (yellow color) showing up and some skin breakdown is showing up from packing limes while they have moisture on the skins. New crop limes are being harvested and all sizes are coming in so quality is 100% better. The market is higher on the larger sizes and even higher on the smaller ones. An increasing market has formed and is in force on all sizes and especially the smaller limes due to a shift in the size profile caused by the previously low markets which growers curtailed harvests.

- pa_admin
Growing Region Market Quality
Veracruz, Mexico Higher Excellent
Citrus (Oranges)

New crop Navels production is now in full swing with all shippers packing. There are a good range in sizes, with peak on 88s/113s/72s and heavy to fancy grade. Flavor and internal color are very good.

- pa_admin
Growing Region Market Quality
Merced to Bakersfield, CA Lower/Steady Good
Riverside, CA Lower/Steady Good
Cucumbers (Western)

Good condition and quality in Nogales, Arizona. Stronger demand for Super Select and Select sizes. Market has started to creep up on cucumbers

- pa_admin
Growing Region Market Quality
Central Sonora, Mexico Steady/Higher Good
Eggplant (Western)

Quality and condition on eggplant will continue to improve. Production will continue to be limited starting in the Coachella Valley with fresh crop. Product has started in Nogales this week with excellent quality and condition. Supply will increase as we move into next week.

- pa_admin
Growing Region Market Quality
Northern Sonora, Mexico Lower/Steady Excellent
Grapes (Green) Alert

Domestic green grapes are very limited. What is developing is a 2 tiered market. All available product is storage crop and fruit is being separated by quality. The majority of the remaining fruit is holding strong on quality, but this fruit is being guarded closely and market prices continue to climb. We can expect this to be the case as we move forward. The second tier of the domestic green grape market is the lower quality fruit. This is high color grapes with occasional creamy or amber color on the bunch (see pictures attached). This fruit is being sold at a less expensive price point, but color and condition may be an issue, depending on individual requirements. Peruvian green grapes continue to increase in volume on the east coast. Prices have been steady and are more in line with the more expensive California fruit. Chilean fruit is expected to arrive on the west coast by Christmas.

- pa_admin

Alerts:
Domestic green grapes are very limited. Quality is being separated by color. Two tier markets are developing based on quality.

Transitions:
Peruvian green grapes are available on the east coast.

Growing Region Market Quality
Delano, CA Higher Fair
Fresno, CA Higher Fair
Grapes (Red) Alert

Not much change to report on the red grapes. Domestic red grape supplies continue to be in good shape. Shippers are in storage crop and we have adequate inventories to cover demand. Market prices have stayed flat and are expected to remain consistent all week. Quality on the remaining domestic fruit is expected to hold strong. Peruvian red seedless grapes are now available to load on the east coast, but prices are much higher than California. Prices are expected to remain elevated until more vessels arrive. Chilean red grapes are expected to arrive on the west coast by Christmas.

- pa_admin

Alerts:
Steady supplies and market prices on the domestic red grape storage crop.

Transitions:
Peruvian fruit available on the east coast. Chilean fruit expected by Christmas on the west coast.

Growing Region Market Quality
Delano, CA Steady Good
Fresno, CA Steady Good
Green Onions

The green onion market is steady with excellent supplies out of Mexico. Barring a weather event we see no reason why this market will move. Quality has been very good with few complaints other than the very occasional discoloration of the tops. Domestic green onions are available in a much lighter volume with good quality reported on these as well.

- pa_admin
Growing Region Market Quality
Mexicali, Baja Steady Good
Salinas Valley, CA Steady Good
Kale

The kale market is steady as volume remains healthy and quality is reported as excellent from all growing regions. Full color, full cartons and minimal dehydration continue to be the norm.

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

Temperatures have been warm in both Huron and Yuma. In particular, Yuma had 90 degree temperatures this past weekend, with more heat expected this week. Dust between the leaves of this commodity is common as this region has experienced winds up to 45 MPH. Discoloration and ribbing as well as some seeder is already being seen as well as misshapen heads, discoloration and sporadic weights. Yields are down. Weights are being reported averaging 40-44 pounds in Huron, while Yuma has been 38-44 pounds. Production in Santa Maria is moderate at best.

- pa_admin
Growing Region Market Quality
Huron, CA Steady Fair
Oxnard/Santa Maria, CA Steady Fair
Yuma, AZ Higher Fair
Lettuce Leaf

This market is steady with most suppliers. The quality is fair at best. Very warm temperatures in Yuma has caused for seeders approximately three plus inches to be seen on leaf items, especially romaine and romaine hearts. Insects, fringe burn, twisting, brown spotting, dust and lower yields are factors that all suppliers are dealing with currently. Salinas will have some production on leaf items, but limited. The weights on romaine average 27-34 pounds. Red, green and butter leaf have moderate weights at best. Production in southern California is moderate. This region has had lower temperatures in the growing regions compared to Yuma and Huron.

- pa_admin
Growing Region Market Quality
Oxnard/Santa Maria, CA Steady Fair
Salinas Valley, CA Steady Fair
Yuma, AZ Steady Fair
Huron, CA Steady Fair
Melon (Cantaloupe)

Demand is has continued to pick up. Supplies on 9ct are very short and 12's continue to get increased demand due to substitution for 9ct. The 15ct are also experiencing some added buying pressure. The desert started a little over six weeks ago with a few lopes crossing over from Mexico. Offshore supplies have arrived in Florida and are being shipped out on our trucks. The market is steady on all sizes due mainly to increased supplies. The quality is excellent on the offshore melons. The Mexican lopes are also excellent and the desert crop is too.

- pa_admin
Growing Region Market Quality
Zacapa, Guatemala Steady Excellent
Maricopa, AZ Steady Excellent
Guaymas, Mexico Steady Excellent
Melon (Honeydew)

Supplies of honeydews are steady and we can continue to expect adequate supplies and good quality to be the pattern for a while longer with a moderate range of up and down movement. The desert started over six weeks ago and supplies are almost finished now for the season. Some growers in the desert are finished now. Mexico is exporting honeydews up to us and their volume is supporting the declining domestic supply. Offshore dews started arriving this past weekend are being shipped on our trucks, quality is outstanding. The market is currently steady on all sizes. Quality is excellent in the desert.

- pa_admin
Growing Region Market Quality
Zacapa, Guatemala Steady Excellent
Guaymas, Mexico Steady Excellent
Maricopa, AZ Steady Excellent
Melon (Watermelon)

The current availability is improving with better sizing and offering fresh Product from Northern Mexico crossing in Nogales Az. All sizes being offered in load volume both bins and cartons, peaking on larger fruit 36/45 with brix exceeding 10%.Volume will continue to improve. Demand has improved with stronger pricing.

- pa_admin
Growing Region Market Quality
Northern Sonora, Mexico Steady/Higher Good
Onions Alert

Northwest onion season is now all coming out of storage. Demand is moderate on all sizes, packs and colors. Market is steady at low levels. Some growers are slowing down running due to the low markets, in hope of higher markets. This combined with packing facilities having reduced packing hours over the upcoming holidays could firm the market slightly. This years storage crop looks to be abundant with a larger than normal size profile. Quality is very good out of all areas. Trucks are very limited due to the Christmas Tree growers paying good money.

- pa_admin

Alerts:
Trucks limited

Growing Region Market Quality
Ontario, OR to Nampa, ID Steady/Higher Excellent
Quincy/Hermiston, WA Steady Good
Pears

California - there are a few Bartlett and Bosc pears but most suppliers are finished for the season.
Washington - C.A. Bartletts are steady and still peaking on US#1 70/80/90s. Many suppliers will flex on pricing for volume of the larger sizes. D'anjou pears are also steady and are still peaking on US#1 80/90/100s. Most shippers will flex on volume orders of 100s and larger. Bosc pears are steady and are peaking on US#1 80/90/100s. There are a few small Bosc pears available. Red pears are steady as well and are peaking on US#1 45/50 half cartons. The quality for all varieties pears has been good.

- pa_admin
Growing Region Market Quality
Wenatchee/Yakima, WA and Hood River, OR Steady Good
Stockton, CA Steady Good
Pineapples

Supplies are good for all shipper, and look to be moving into the firs part of December.

- 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 (colored)

Bakersfield California - red As and B's were a touch lower, all other sizes and colors are steady. All colors continue to peak on A size. The quality has been good.
Idaho - red and gold potatoes are steady and they are still peaking on B size, while As are more limited. The quality is good.
Western Washington - red A and B size are slightly lower, all other sizes are steady. Reds and golds remain heavier to size A. Whites are limited in all sizes. The quality has been good.
North Dakota - red and gold potatoes are steady on all sizes and continue to peak on A size. The quality has been good.
Wisconsin - reds and golds are steady and both colors are peaking on A-size. The quality has been good.
Canada - reds, golds, and whites are steady on all sizes. Sacks are more available while cartons are limited for all colors. The quality has been good.

- pa_admin
Growing Region Market Quality
Bakersfield, CA Steady Good
Mount Vernon, WA Steady Good
Rupert to Rexburg, ID Steady Good
Plover, WI Steady Good
Red River Valley, ND Steady Good
Squash (Western)

Supply on yellow squash is lighter than last week and market has spikes up quite a bit. quality and condition is good .Italian squash is still very heavy supply on all sizes and grades with very depressed pricing. all varieties of hard squash are now in good supply loading in Nogales.

- pa_admin
Growing Region Market Quality
Northern Sonora, Mexico Steady Good
Tomatoes (Eastern)

Both demand and supply are increasing keeping the market relative stable this week. Rain free weather in the Sunshine State has allowed for a good quality tomato crop in Florida. Extreme temperatures during the growing cycle is causing sizing to trend towards smaller sizes and improving each week. Volumes are increasing weekly and forecasted to improve further into the week of Thanksgiving. Roma tomatoes continue to be available in steady supply. Grape tomatoes are steady out of Florida but cherry tomatoes remain tight.

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

The west has ample supply of fruit importing from Mexican growing regions. Baja and Eastern Mexico have a steady stream of rounds and romas crossing US boarders. With Mainland preparing to begin their winter crop next month there is anticipation for favorable supply in the market heading into the new year.

- pa_admin
Growing Region Market Quality
Southern Baja California Sur, Mexico Steady Good
Jalisco, Mexico Steady Good

Things You Should Know

Apples
125 and smaller Golden delicious and Granny-smith apples are virtually non-existent in Washington. 100 and 113 size are starting to get tight as well.

Berries (Strawberries)
Demand is still exceeding supply. Rain in Mexico over the weekend slowed production and shipments to the US.

Grapes (Green)
Domestic green grapes are very limited. Quality is being separated by color. Two tier markets are developing based on quality.

Grapes (Red)
Steady supplies and market prices on the domestic red grape storage crop.

Onions
Trucks limited

Transitions and Temperatures

Grapes (Green)
Peruvian green grapes are available on the east coast.

Berries (Blueberries)
Argentina's growing season will be winding down but Chile will begin to increase production over the next several weeks.

Berries (Strawberries)
Oxnard winter production will begin around the last week of November and slowly increase through December.
Mexican production is slightly increasing and will continue to increase week over week.
Florida production will begin around the end of November and increase through December.

Grapes (Red)
Peruvian fruit available on the east coast. Chilean fruit expected by Christmas on the west coast.

Cauliflower
Yuma has begun shipping cauliflower in very light quantities. Many Salinas shippers are showing lighter volume or finishing by weeks end.

A Peak at Peak Seasons

Berries (Raspberries)
Central Mexico production is peaking with good availability.



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