The Source - November 20, 2019

EASTERN REGION:

With Thanksgiving upon us, movement has slowed; especially with many schools on break for ‘Turkey Day’. Many receivers are stocked up and keeping their inventories close until we are on the other side of 11/28. There is still plenty of fruit available between the Midwest and East Coast, but quantities in the pipeline should lessen as we make our way through December and regional shippers finish.

Deals are available mostly on Gala and Red Del. with a few other red varieties sprinkled in.

WESTERN REGION:

Washington

Markets in the Northwest remain steady. Smaller, foodservice sizes (125ct/138ct) remain plentiful on most red varieties as shippers continue to deal in an effort to move fruit and compete with the Midwest/EC. Quality is excellent with good shelf life.

Alerts:
The wait is over! Sources tell me that the Cosmic Crisp will be available next month. Please inquire for more details

Ciudad Obregon, and Northern Baja both have light production due to weather. Movement on small/standard is slow, but there is good movement on the bigger sizes. Volume is about the same as last week from both regions in Peru (Ica/Trujillo). Volume is still excellent on the larger sizes and should continue until production slows down at the end of December. Markets on both coasts are steady with good movement on all sizes.

Rain expected in the growing region of Michoacan this week with mild to intense rains that may slow the harvest. Mexico continues to lead the industry in supplies giving Chilean fruit no chance. Mexican harvest has slowed due to an increase in inventory. There is so much fruit in the pipeline. Demand should slow down due to Thanksgiving, but we anticipate strong December pulls with good volume.

North Florida and South Georgia made it through a cold spell last week when temperatures dipped into the mid to low 30's. Growers in the region are continuing to harvest bell pepper this week and could possibly go through the end of the month. South Florida has started packing bell pepper on both sides of the state but growers are not getting much volume and sizing is small. Quality is good in both regions with most shippers there are some bruising issues in Georgia. Bell pepper in south Florida went through very hot temperatures during the growing season. This is the reason for small sizing and lighter color on the fruit. Volume in Georgia will continue to go down. Florida shippers are getting off to a slow start and will not harvest a lot of volume until late November. Cooler temperatures the last couple of weeks will help the quality and receivers should see the improvement next week.

GREEN BELL-Good supplies of green bell pepper are being harvested in Thermal and Coachella, CA and all pack styles being pack from this district. Steady supplies of green bell pepper are expected through the week. Quality from the California growing areas is good on all sizes. Moderate supplies of Green bell pepper are being harvested in the Mexican state of Sonora. Supplies from the Mexican growing district are expected to increase as we head towards the end of November. The Green bell pepper market remains steady in the mid-teens this week. Moderate supplies of green pepper also available to load McAllen, Texas.

RED BELL -Light supplies of red bell pepper are being harvested in Thermal and Coachella, CA this week and most small to medium sizes are being packed from this district. Full volume from this crop is expected to start within 10 days. Quality on product that is being harvested in this crop fair is good. 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. Few Hot House bells continue to cross through San Diego and the quality from San Diego is good. Moderate supplies of Red bell pepper also available to load in McAllen, TX.

YELLOW BELL -Light supplies of Yellow bell pepper are being harvested in California and Mexico. The Market on yellow bell peppers has increased due to lighter supplies from both districts. Light supplies of Mexican Yellow Hot house bell pepper are also available to load in McAllen, TX.

The blackberries are still in light supply for most shippers although some shippers are beginning to see better numbers begin to make their way across the border of Mexico. Quality is just fair with many shippers still seeing some lingering soft fruit with the occasional leaker accompanied by red cell. Look for the market to remain steady this week with a slightly lower trend on the front end of next week.

Alerts:
Supplies will still be snug this week as we look for better supplies mid next week.

There are still multiple choices of loading locations on blueberries with all the offshore fruit coming from Peru, Argentina and Uruguay. The offshore fruit is being distributed out of both West and East coasts. Mexican fruit is crossing into the U.S. through Arizona and Texas. The market is steady with lower trends expected as Mexican volume reaches its peak in the coming weeks. Quality has been excellent on the fresher fruit out of all locations.

Alerts:
Strong production in Mexico combined with peaking Peruvian product should prove to be enough to push the market in a downward trend next week.

Peak Seasons:
Peruvian and Mexican blueberries are in peak season

Raspberries are in steady supplies and the market has been steady with lower trends. Quality has been good but some older transfer lots are still showing leakers and some early breakdown. Look for production to remain steady out of Baja Mexico and Central Mexico.

The strawberry market continues to be snug on the front end of this week with decent advanced bookings and reduced yields coming out of Santa Maria and Oxnard CA areas. Mexican product is becoming readily available out of the McAllen and Laredo Texas areas. Some product is being transferred to Yuma AZ and Miami FL to fill orders at those locations. Demand has been strong with the retail sector although there is a lull in demand expected to move into the end of this week with the retail pull ending and the Foodservice piece reacting negatively to the closure of the schools for the holiday/winter break. Quality is good out of the California areas although, we are reaching the end of the Santa Maria deal. Florida has started in a very light way with shippers coming in with a few pallets of product every other day.

Alerts:
The first storm of the season is expected to arrive today with only moderate rainfall expected in the Oxnard area and even less likely amounts in the Santa Maria area

Peak Seasons:
Peak production is sharply declining in the Santa Maria area

The Broccoli market has slowed down as supplies are up and running now in Yuma. 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 remain the same going into next week.

The west coast jumbo market is elevated due to above normal temperatures consistently exceeding 100 degrees late last summer. The heat caused the new crop carrots in Bakersfield, CA area to be smaller in sizing than normal. This shortage is expected to last for 4 to 5 weeks. This will affect the cello carrots, the jumbo 50 lbers and the jumbo 25 Lbers. Shippers may be purchasing outside products from Canada and possibly Mexico. The baby carrots, snack packs, and other smaller pack styles will not be affected. Jumbo carrots are still readily available in Canada and also from Mexico. Quality has been good in all areas.

Alerts:
Jumbo carrots on the West Coast will be in short supply due to heat related improper growth and sizing.

Transitions:
New crop Bakersfield carrots are starting

The cauliflower market is coming off as supplies are now coming on in Yuma. The quality is good with slight 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 is firm as we enter the last week of shipping before the holiday. Supplies are light to moderate with multiple shippers in Oxnard/Santa Maria. Salinas will have production until the end of this week. Yuma will begin production the first to the second week in December. The demand is steady. Mexico will have some production through the end of the year to help with demand. The quality of this commodity continues to be above average. Weights continue to be reported at 53-58 pounds.

Transitions:
Salinas will finish production this week. Yuma will begin to harvest the first to second week in December.

Jalapenos- Light 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. Light supplies have also started to be harvested in the Mexican state of Sonora. Quality from Sonora is good. Jalapeno market is currently high due to light volume. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Light supply of Pasilla peppers available to load in Los Angeles from Mexico this week. Light supplies continue to be harvested in Baja California. Quality on Pasilla from this region is good. Size on the pepper is mostly medium. The pasilla market is high due to light 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. The Anaheim pepper market is currently steady and is expected to remain steady with better production expected from Sonora. 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. 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, Texas.

The cilantro market has come off a bit 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 by the first week of December. Supplies on small sizes are steady and the market is slightly softening up on those particular sizes. Majority of orders are being booked out of the District 3 (Coachella/Mecca/Yuma). We can expect to transition to District 1 in the next month. Current markets remain steady with good quality.

The lime market is beginning to react – slowly, but surely. Availability has decreased quite significantly. Last week, availability decreased compared to prior weeks, but demand hasn’t been too strong. With the holiday approaching, we believe that the market will catch up and pricing will continue to rise. This week we can expect a slight jump in prices across all sizes. We will likely see another jump come in the next few weeks due to rain in the growing region causing harvesting delays. Overall the quality is consistently improving each week.

California Navel season is now in full swing, supplies continue to ramp up, gas hours are coming down and quality/eating experience is starting to hit stride. Heading into week three of the season, our suppliers have plenty of supplies to promote for the upcoming holidays! The season started with very good demand and that has continued, but the additional supplies are providing a settling market. Prices are starting to trend down as we focus on keeping all inventories fresh. The quality looks good and continues to get better each week. We are now in the 48 hours of gas range (depends on ranch and block) and natural color continues to get better. Brix average has been consistent between 11 and 12.5. Size is peaking 72/88/56 with steady supplies on 113/138s. We’re seeing a higher ratio of fancy grade fruit over choice. 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.

There are only 1 or 2 Georgia shippers left harvesting cucumbers. The cold temperatures have just about finished the season. Cooler temperatures in south Florida have slowed harvest this past week. Florida shippers should pick up in volume as more farms become ready for harvest. The amount of acreage planted in Florida is less this year and storms in Mexico could keep supplies tight until Thanksgiving. With cooler temperatures cooling off in the southeast quality has gotten better. Georgia will finish for the season this weekend and the Honduras season is still 2 to 3 weeks from starting, so all the supply will be concentrated in Central and South Florida.

Alerts:
Very Light supplies.

Good supplies of cucumber are being harvested from Sonora, Mexico. Supplies are expected to remain steady through the week. Quality from Sonora are good on all pack styles. The market on West Coast cucumber remains steady this week. Moderate supplies of Mexican cucumbers are crossing through McAllen. Quality from McAllen is being reported is fair.

Eggplant supplies are tight with Georgia winding down and Florida not producing a lot of volume. Pricing has risen considerably over the past week to 10 days. Georgia has been the largest supplier for some time and the region will continue to produce as long as the temperatures do not get too cold. Production has dropped considerably and Florida will continue to produce steady volume through the winter but acreage in south Florida is lower than it has been in the past.

Moderate supplies of Eggplant being harvested in California. Quality of domestic eggplant is mostly fair. Moderate 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.

As expected, the green grape supply and quality position continue to dwindle. As an industry, the volume of green grape storage crop is much less this year than last. Due to the unfavorable weather patterns we experienced earlier in the year, the strength of the storage fruit is not as sturdy as we would have liked. We are seeing reports of dark color, dry stems, wet berries, and early decay. As a result of limited availability and in an effort to stretch the remaining storage crop, shippers are raising prices to slow movement. We expect prices to continue to climb as we look to transition into Peruvian fruit by early December. We expect the new import fruit to be priced higher to start and should level off by mid to late December as import production and arrivals improve.

Alerts:
Supplies are light and quality is fair. Markets are higher. We expect quality to continue to diminish on storage crop.

Transitions:
We will get into new Peruvian green grapes by early December.

Although the industry still has a substantial volume of California red seedless left in cold storages, supplies are lighter than last year. Overall demand remains moderate to good with retailers continuing to promote weekly. The industry has moved through the bulk of the Scarlet Royal crop this season, although some shippers are still packing to order from tubs. Late-season varieties like Timco, Allison and Holiday are topping shipping reports and overall quality and condition has been fairly good. However, we are starting to see some decline in quality as reports of soft berries and decay are coming in. Market prices have been climbing slowly and will continue to go up as we look toward transition into new Peruvian fruit by mid-December. We hope to be fully transitioned into import fruit by late December.

Alerts:
Supplies are steady and quality is fairly good. Markets are climbing slowly. No disruptions are expected.

Transitions:
We should see new Peruvian fruit by early to mid 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 has come off a bit 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 for this commodity has fallen off as we approach the holiday. Multiple suppliers are flexing for volume type orders, and other shippers are staying strong as they feel the markets are still active. Production for this commodity is coming out of Huron, Santa Maria, and Yuma. Huron will finish up this week. Defects being reported upon arrivals to include, misshapen head, tip burn, insect damage and mechanical. Weights on wrap have been 37-40 pounds. Escalated pricing on value-added lettuce is currently in effect but likely will come off by the end of the week.

Transitions:
Huron will finish up this weekend.

The romaine market is firm, overall. Some suppliers are stronger than others and this has created a gap in the marketplace. Escalation on romaine value-added items continues. Demand has softened slightly and this has created extra product that was not seen last week on open market purchases. Production in Salinas is finished. Weights on romaine are reported between 26-32 pounds. Defects include slight mildew, mechanical, wind damage, as well as insect damage. Green and red leaf are having the same defect issues. Supplies are moderate to light. Weights are reported at 19-22 pounds. Yuma, as demand falls off, is expected to have better supplies next week.

Transitions:
Salinas production has finished on all leaf items.

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.

Desert- The forecast this week calls for unseasonably cool temps (lows in the 40's and highs in the 60's). Rain is also expected to hit as of tomorrow. Rainfall could total up to 2 inches. This cold front could very well wrap up the season. Growers are already seeing very low yields and pretty much in clean up mode. Quality has been just fair with reports of internal and external issues. As the desert tapers off of the season, Central America will be the dominant source of supply.

Offshore- Better availability this week on cantaloupes and honeydews. Good numbers in Florida with fruit slowly making its way across the US into New Jersey, Houston, and California. Arrivals into the US will continually pick up momentum as the demand remains strong. Reports of the first arrivals showing great quality and good brix levels.

Alerts:
As the desert tapers off, offshore arrivals continue to pick up momentum.

Light supplies of watermelon continue to be harvested in Sonora, Mexico. The seedless watermelon market will continue to be steady this week. Watermelon quality from Sonora is good and mostly cartons are being packed from this district.

Onion markets continue to hold steady with the exception of medium yellow and white onions. Demand is increasing on medium yellow onions for the upcoming Thanksgiving holiday and pushing markets up slightly. White onions in the Northwest have seen an uptick in demand due to delays at the Mexican border limiting supplies from down south. Medium whites are especially limited at this time. Demand continues to increase as we move closer to the holiday so expect some increases in markets; in particular, medium-size yellow and white.

Alerts:
Demand active for upcoming Thanksgiving holiday. Medium yellow and white onion markets are on the rise.

Washington:

Many shippers are firming up prices on pears due to California finishing up their season. Bartletts, Anjous, and Bosc are available with Bosc commanding slightly higher prices along with larger fruit across the board. 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:

With mostly large fruit remaining (100ct and bigger), CA pears will be done for the season by the end of November. For those still loading in CA, be aware that quality is sketchy and shelf life is minimal.

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. Please be sure to send orders over in a timely manner to account for the heavy demand-pull for this time of year. Quality is looking good!

Russet potato markets continue to make their way upwards as demand is active for the Thanksgiving holiday. Retail demand is up and consuming a heavy portion of the smaller size potatoes for poly bags as well as #2 grade product for processors. Larger size potatoes are also in short supply pushing markets up across the board. Demand has been increasing into other regions such as Washington, Colorado, and Wisconsin pushing those markets up as well. We expect a demand exceeds market for the next 6-8 weeks while we push through the holidays. Transportation into the Northwest is becoming increasingly limited with an increase in freight rates. Advanced lead time (5-7 business days prior to ship date) is advised for proper coverage and on-time deliveries.

Alerts:
Markets higher across the board. Retail demand active; poly bags and #2 grade limited. Lead time needed on all russet orders, up to 7 days advised.

The 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 steady but tight. There are only a very few shippers in Georgia with squash and they should finish this weekend. Florida is going in all regions, Plant City, Immokalee, and Homestead are all shipping steady supplies but cooler temperatures have slowed production the past 10 days. Zucchini has been much tighter than yellow for the past week but expect that to change before the weekend. Yellow supplies have dropped significantly in the past 2 days and pricing will rise. Quality has been good with most shippers, but there is some scaring on yellow squash due to wind this past week. Storms in Mexico have slow production and sending many customers east to find supplies.

Alerts:
Yellow squash supplies are becoming very tight.

Good supplies of Italian squash are being harvested in the Mexican state of Sonora and Italian squash quality is good on all pack styles. Market on Italian squash is steady but could increase the back end of the week due to rain forecasted in the Sonoran growing areas this week. Very light supplies of Yellow S/N squash this week and is expected to remain light into next week as new fields are not ready for Harvest. Quality on Yellow S/N is good. Market on Yellow S/N is high and is expected to remain high through next week when new fields break-in. Light supplies of soft squash continue to cross through McAllen, TX.

Only limited volumes of red plums are left on domestic stone fruit. The quality is fair. The late-season storage crop is showing inconsistent size and color as well as soft fruit. Market prices are higher on what is left. We expect supplies to last through the end of the month. We are anticipating the first arrivals of Chilean stone fruit to arrive early to mid-December, barring any interruptions from protests or strikes in Chile. We will update as we get closer.

Alerts:
Only limited volumes of plums are left. Quality is fair. Markets are higher.

Transitions:
We expect the first arrivals of Chilean stone fruit by mid to late December, barring any interruption from Chilean strikes.

The round tomato market continues a slow downward trend this week with more volume coming from Central Florida. Freezing temperatures at the end of last week put an end to production out of the Quincy district. Simultaneously, volumes continue to build out of Palmetto and Ruskin programs where round tomato sizes are on the larger side with approximately half supply as XL or bigger. Southern Florida also has farms coming into production helping the overall market come down this week. Quality is improving as the transition continues newer plants harvesting past initial picks affected by heat weeks ago. Florida grown Roma tomatoes have little acreage committed to the crop. As such, demand exceeds supply as anticipated for this time of year when Mexico usually controls the market. 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 is low.

Varying rainfall from Tropical Storm Raymond has brought windy wet weather to Northwest Mexico on the cusp of winter programs beginning in Culiacan, Los Mochis, and Sinaloa. Operations in Baja are also receiving remnants of the storm in San Quentin and Ensenada. Without any reports of damages, volume should rebound when harvest resume by next week. Similarly, roma tomatoes have been steadily increasing helping to soften the market again this week. Grape tomatoes are also very affordable. New fields continue working to break ground by December helping to boost overall western imports lessening the Mexico market in the next 7 to 10 days.

Alerts:
The U.S. Department of Agriculture’s Animal Plant Health Inspection Service (APHIS) has announced the implementation of phytosanitary controls to prevent the introduction of the Tomato Brown Rugose Fruit Virus (ToBRFV) to the United States through actions restricting imports of seed, plant, and fruit of tomatoes and peppers. ToBRFV does not affect humans or animals but is an immediate threat to domestic farm production. Effective November 22, immediate action will be taken to prevent the spread of ToBRFV from countries where the virus exists including imports from Mexico, Israel, the Netherlands, and Canada.
In accordance with the Federal Order issued November 15, APHIS and U.S. Customs and Boarder Protection are required to increase inspections of tomato and pepper seed, plant, and fruit imports. Inspections will require all tomato and pepper fruit imported from Mexico, Israel, the Netherlands, and Canada be inspected at shipping point of origin to ensure it is free of any and all disease symptoms. It is not clear at this time how operations will affect supply in the coming weeks.