The Source - November 27, 2019

EASTERN REGION:

There is still plenty of fruit available—between the Midwest and East Coast—on assorted varieties, but quantities in the pipeline should lessen as we make our way through December and regional shippers finish. A definite uptick in activity this week with most schools returning from holiday break next week.

Shippers continue to deal on Red Del. with a few other red varieties sprinkled in.

WESTERN REGION:

Washington

Markets are a little active on certain varieties. Foodservice sized Granny Smith apples are snug; shippers aren’t not coming up with smaller sized fruit. Also, Gala deals seem to have gone away with shippers caught up on inventory and firming up their prices. Smaller, foodservice sizes (125ct/138ct) remain plentiful on Red Del. as shippers continue to deal in an effort to move fruit and compete with the Midwest/EC. Quality is excellent with good shelf life.

The ever so coveted Cosmic Crisp should begin hitting the streets during the first/second week of December. Many shippers are confirming that sizes will be BIG (100ct being the smallest). Volume will be extremely light to start off and available quantities will be few. Some shippers are accepting pre-books, but please know that there will NOT be a lot of fruit and some orders will be partially filled or not filled at all. On the off chance that small fruit is available, few shippers will offer a 113/125/138ct tray pack (again, supplies will be extremely limited).

Volume from both regions in Mexico (Ciudad Obregon/Northern Baja) is better this week. Demand is light due to the Thanksgiving pull wrapping up. Large sizes from these 2 regions are still short. Volume is still heavy from both regions in Peru (Ica/Trujillo), and the larger sizes (Large/X-large/Jumbo) are plentiful. We should see this trend through the middle of December. Markets on both coasts are slow due to better volume from both coasts and the holiday rush concluded.

Mexico-
The growing region of Michoacan has been getting hit with rain week in and week out. This week forecast calls for partly cloudy skies but, mostly sunny. Currently, the Mexican market has tightened up as they are transitioning into new crop fruit. This, in turn, has increased market pricing on all sizes and the industry will continue to see price increases for the coming weeks. Keep in mind the sizing will trend to more 48's and larger. Overall, this is forecasted to be a heavy crop so look for promotable volumes and pricing going into Super Bowl.

California-
California is looking to rebound after last season's lower than average crop. The forecast is ranging from 350 million to 400 million lbs. We anticipate promotable volumes being harvested going into Super Bowl.

Most of the bell pepper supply is coming from Florida. Georgia growers are continuing to harvest and will until the temperatures get too cold. South Georgia is shipping a consistent supply of product with good quality and are firm with excellent color. Florida is harvesting in all districts, from Plant City south to Immokalee and east to Pompano, growers are producing good quality and steady volume. Sizing in Florida is trending to the smaller side and shippers will not pack big volume until the first week of December. Early product in Florida tends to be on the smaller side after growing through hot weather. The next blocks of bell pepper that start will have grown in more seasonable temperatures and overall quality will be better. The forecast early next week is calling for some cold temperatures, cold enough to finish Georgia for the season and slow production in Florida for at least a few days.

Transitions:
Green Bell Pepper is transitioning to Florida.

GREEN BELL- Good supplies of green bell pepper being Harvested in Thermal and Coachella, CA. 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 are 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. Mostly small to medium size being packed from this district. Full volume from this crop is expected to start within 10 days. Quality on product is fair to 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. 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.

Blackberries continue to be short with some suppliers and fairly abundant with others. The market is steady with higher undertones due to some shippers resorting to purchasing outside products to cover orders. Quality has been good in most lots however there are a few reports of red cell and early breakdown causing some loads to be rejected back to Mexico. These intermittent rejections are keeping supplies spotty for some shippers. Look for the market to remain steady through the end of the week.

Alerts:
Blackberries still remain in a demand exceeds supply status.

Blueberries continue to be in good supplies with fruit available in California, Texas, Florida, and Pennsylvania. All fruit is import at this point with Peru, Argentina, Uruguay coming via ocean containers and Mexico crossing into the U.S. through Texas and Arizona. The market is steady with lower undertones moving into the Holiday weekend.
Promotable volume is readily available for this item.

Raspberries are in good supplies and markets are steady as we move into the weekend. Transfer trucks to western locations have presented some challenges but overall availability is good. Quality has been good and improving. This Item is also highly promotable right now.

The strawberries are very light in supply right now with the numbers out of Santa Maria trending down and Oxnard yields are lower due to significantly cooler weather in the growing regions. Florida numbers have not yet begun to produce in any meaningful way. Baja Peninsula and Central Mexico are in production but that increase in the overall numbers is not expected to counter the decrease in California leaving a very firm winter market in all areas. Quality has been good in all locations thus far.

Alerts:
Wet weather is on the way this evening expected to bring substantial rain production will definitely be impeded in the Santa Maria and Oxnard Growing areas.

The Broccoli market continues to slow 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 California carrot market is still a steady go on most pack styles saved for the Jumbo category. Jumbo carrots are very light due to the inclement weather we received in late summer. Several days in a row reached 100 degrees plus weather causing stunting in growth and maturation. The results were the reduced size on the front end of the Bakersfield harvests. Canadian storage carrots are still available and should remain so through December. Mexican jumbo carrots are in fair supply out of Texas. Look for the markets to remain steady and the California jumbo market to remain elevated through the next several weeks.

Alerts:
The California jumbo market remains elevated and demand exceeds supply.

The cauliflower market continues to come off as supplies are continuing to come 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.

The major part of the holiday shipping is over. The market is softer with all shippers. Expect steady supplies for the week. It should be noted that large sizing is not as readily available as small sizing. This will likely continue for the rest of the week. Oxnard/Santa Maria will be the main growing regions for this commodity. Production in Salinas will continue through this week. Yuma is expected to have production the first to the second week in December. Mexico will have supplies as well. The overall quality of this commodity continues to be good. Weights continue to be reported at 52-58 pounds.

Jalapenos- Better supplies of Jalapeno are being harvested in the Sonoran and Sinaloa growing district. Good supplies are expected to continue throughout the week. Quality from both districts is good. The Jalapeno market is decreasing with better volume. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Moderate supplies of pasilla crossing through Nogales this week. Quality on pasilla crossing through Nogales is good. Size on the pepper is mostly medium to large. The pasilla market steady this week with better supplies. Pasilla from Mexico also available to load in McAllen, Texas.

Anaheim- Moderate supplies of Anaheim crossing through Nogales this week. Quality on Anaheim crossing through Nogales is good. Size on the pepper is mostly medium to large. The Anaheim market remains steady this week with better supplies. Anaheim from Mexico also available to load in McAllen, Texas.

Serrano – Light supplies of Serrano peppers available to load in Nogales, Mexico. Supplies are expected to remain light throughout the week. Supplies currently meet demand. Serrano supplies also crossing through McAllen, Texas.

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

The cilantro market continues to come off a bit as yields continue 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.

All 3 districts are currently packing. The sizing profile is peaking on 140, 115, 165 and 70/30 ratio from fancy to choice. The large sizes 75/95 continue to come out with very light supplies but are projected to be more readily available after the New Year. As we head into December we can expect good supplies with steady markets and good quality.

With the holiday approaching, suppliers feel that the market will catch up & 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.

We’ll have good supplies on Navels available for the Holiday weekend and heading into the first week of December. We have a high demand and markets have started to soften to keep inventory moving and staying fresh. All arrivals have been received with good feedback, so our suppliers are staying focused on pushing volume. Sizing profile is peaking on 88’s and smaller. Our suppliers are still packing a heavier percentage of fancy to choice fruit. We’re hearing positive feedback on brix levels between 11.5% – 12.5% with good quality. On Specialty citrus keep pushing mandarins, quality has been looking solid and markets have been steady. Grapefruit will be transitioning in the Central Valley in the next week along with Cara Cara and blood oranges.

Cucumber supplies are tight and cooler weather has slow production in south Florida. The number one product is much tighter than selects or carton 24's. Quality varies greatly from shipper to shipper and early-season product was light in color and did not have a very long shelf life. Shelf life and color are better now but high winds last week are creating some scaring issues. Cucumbers should grow out of these issues by next week. Florida will continue to produce in steady volume through the end of the year.Tthe first imports from Honduras should start to arrive in the first week of December.

Good supplies of cucumber continue to be harvested in Sonora, Mexico. Supplies are expected to remain steady throughout the week. Quality from Sonora is 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 in the east are tight and pricing has risen sharply this past week. Georgia is winding down for the season with much lower yields plus harvest has been slowed by cooler weather. Cooler temperatures have slowed harvest in Florida also. There is not as much planted acreage in Florida as there was a few years ago but more supply should start the first week of December. More product is crossing from Mexico the last few days putting some pressure on eastern markets.

Light supplies of Eggplant is 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.

The domestic green grape storage crop is very limited. Shippers are trying to stretch it as long as possible by raising prices, but even at slow movement, we are looking at only 2-3 weeks left of availability. The storage volume is considerably lower this year than last. Additionally, the quality continues to decline. Storage green grapes are showing signs of early decay, soft berries, and dark color. Stems are a little dry and there are some loose grapes in the bag (see pictures attached). Although we expect Peruvian green grapes to slowly arrive next week, supplies will be far less than demand and prices will be much higher. We expect green grape supplies to be a challenge and markets to remain escalated through the month of December. January will bring some relief as we expect to see more Chilean grapes arrive.

Alerts:
Storage greens are limited and quality is fair at best. Prices are higher. Supplies will last another 2-3 weeks.

Transitions:
New Peruvian grapes will arrive next week, but supplies will be very limited for the next month. Prices will be higher.

Currently, we are utilizing only the domestic storage crop to fill orders. There are still good volumes of domestic red seedless grapes in storage. Quality is holding up fine. Shippers will try to stretch the storage crop as long as possible (quality permitting), as market prices will be much more attractive than import fruit. With the estimated 6.8 million cases of storage crop left, shippers expect to service program business through Christmas. Market prices on storage crop are slowly climbing and will continue to do so as supplies lessen. The varieties are Allison, Timco and Holiday. Sizes are heavy on the Large to Extra Large. First arrivals of Peruvian red seedless are expected by the second week of December, but again, prices will be higher.

Alerts:
Storage supplies are steady. Markets are higher. Quality is solid. Supplies will last through December.

Transitions:
New Peruvian red grapes are expected to arrive the second week of December. Prices will be higher.

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 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.

With the holiday pull being over, demand has fallen off. Expect supplies to be more readily available throughout this week. With the issues of the romaine that closed out the Salinas season, there is a possibility that demand will be up the following week as romaine orders could be substituted with lettuce orders. This scenario awaits to be seen. A few shippers were flexing early for Yuma production but then sold out later in the day. Production for this commodity is finishing up this week in Salinas and Huron. Santa Maria will have light production. Some common defects being reported to include tip burn, mechanical and misshapen heads. Weights on wrap have been 38-40 pounds. Escalated pricing on value-added products is completely off.

Transitions:
Production in Salinas and Santa Maria will finish up this week with lettuce.

The demand in the marketplace has fallen off for romaine, as the advisory from the CDC has slowed down demand for this commodity. Although Yuma production has nothing to do with this advisory, hangover effects of the ecoli scare will keep people from purchasing like normal if history plays out like in past cases. Escalated pricing does not exist on romaine as well as green leaf items. Production in Salinas is finished with all leaf items. Weights on romaine are reported between 28-35 pounds in Yuma. Defects include mechanical, mildew, wind damage, as well as insect damage. Green and red leaf are having the same defect issues. Supplies are moderate. Weights are reported at 19-23 pounds. Production is light in Santa Maria but there is availability if needed.

Transitions:
Salinas production is 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.

Offshore-
With domestic fruit being done for the season, Central America will be the dominant source of supply. We are seeing good arrivals from Guatemala on all sizes. Nice clean external quality with brix ranging from 12-16%. Late December/early January, production in Honduras and Costa Rica will ramp up. Inventories are steadily replenishing in Florida, New Jersey, and Houston. Arrivals on the west coast will hit California this coming week.

Mexico-
Mexican cantaloupe is done for the season. Honeydews are available and production will run into the spring. Quality is just fair as we are seeing some external damage due to weather, mostly rain. Yields have also been affected causing this market to remain strong.

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

Onion markets remain steady on yellow and red onions with the exception of medium sizes due to the recent retail demand for the Thanksgiving holiday. White onions also saw a slight upward trend on markets with less volume available. Markets are expected to stabilize as we head into next week as demand will slow and supplies remain plentiful. Quality is excellent and markets will remain steady as we head into December. Availability can be found in Idaho, Oregon, Washington, Utah, and Colorado.

Peak Seasons:
Northwest storage onions are in full swing with excellent supplies and quality.

Washington:

Shippers continue to firm up prices on Bartlett pears. The state of Washington experienced a 30% reduction in overall Bartlett volume. Couple that with California ending their season, many WA shippers are sitting on short inventory. Some smaller shippers will be done by the end of December, with larger shippers shouldering the load through February/March. Bartlett, Anjou, and Bosc remain available, with Bartlett/Bosc pears commanding higher prices over the cheaper Anjou.

Red pears – Starkrimson is no longer available with many shipping Red Anjou 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.

Pineapple supplies are looking steady out of both coasts. Markets 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 heavy demand-pull for this time of year. Quality has been consistent and looking good!

Russet potato markets continue to inch higher as supplies are limited across the board. Consumer demand has slowed as the Thanksgiving rush is beyond us. As we head into the last week of November and into December, demand will lighten up with markets stabilizing. Larger size potatoes will remain scarce as the Burbank variety has a smaller size profile and more growers will start making this shift from Norkotahs. Due to the lack of Idaho supplies, Washington, Colorado and Wisconsin markets will also remain elevated from the additional demand. Trucks into the Northwest are limited as Christmas tree freight is taking over a good portion of available transportation; rates are also increasing. Advanced lead time (5-7 business days prior to ship date) is highly recommended for proper coverage and on-time deliveries.

Alerts:
Markets steady to slightly higher. Larger sizes and #2 grade remains limited. Lead time needed on all russet orders, up to 7 days advised.

The color potato markets are holding steady with the exception of yellow in Wisconsin. Idaho, Washington, North Dakota, and Wisconsin continue production of reds and yellows. Minnesota continues to quote a limited volume of yellow potatoes. Mt Vernon, Washington product is showing excellent quality and is also available for loading out of Bakersfield, CA. Markets are expected to remain elevated through November and December. Due to the huge crop loss from the winter storm experienced back in October, It is said that North Dakota and Wisconsin will finish their season sometime in February or March. This will push demand up to the Northwest regions of Idaho and Washington and push markets much higher. As we roll through the 2019 holiday season we will continue to monitor the supply situation and update further once we hit the new year.

Alerts:
Markets remain steady but elevated. Holiday demand is slowing as we approach the Thanksgiving holiday.

Squash supplies are tight in the east. Georgia will finish by this weekend and there are only a few growers left with light volume so the market place will not feel the loss. Florida is harvesting in all districts, Central, southeast and southwest Florida are all in light supplies. Cool temperatures the past week have slowed production across the state and quality is good on both colors. Volume should increase with warmer temperatures this week. Demand has been good with light supplies crossing from Mexico more buyers are looking to eastern shippers to cover orders. Temperatures in Florida are forecast in the low 40's for early next week, which would slow harvest tremendously.

Good supplies of Italian squash is being harvested in the Mexican state of Sonora. All pack styles are being packed with Italian squash. Italian squash quality is good on all pack styles. The market on Italian squash is decreasing this week as harvest has started on new crop in the Mexican state of Sinaloa. Light supplies of Yellow S/N squash continue this week as new crop is not quite ready to begin harvest. Yellow S/N market is expected to remain steady/high through the week due to light volume. Quality on Yellow S/N is good. Light supplies of soft squash continue to cross through McAllen, TX.

Limited availability of late-season storage plums is available. Quality is fair. We have had several reports of soft fruit, decay, bruising and breakdown. I would suggest staying on the west coast with what is left. We do expect new Chilean stone fruit to arrive by the week of December 9th. Peaches and Nectarines will arrive first, followed by plums by mid to late December. We expect market prices to be higher and level off with time. We will have a clearer picture of how much fruit in on the water next week.

Alerts:
Very limited availability of plums remain. Quality is fair and prices are higher. Fruit will not travel well.

Transitions:
New import fruit is expected to arrive the week of December 9th. Volumes will increase later in December.

The Florida tomato market continues to improve as production increases. 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. Grape tomatoes have begun to strengthen amongst rising demand. 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. With more rain in the forecast, this week as another storm begins to churn in the Pacific. Volume should rebound when harvest resumes in full near December. Roma tomatoes have been steadily increasing, helping to soften the market again this week. Grape tomatoes are affordable but strengthening amidst abbreviated harvest schedules. 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.