The Source - November 30, 2016

Washington - red delicious are steady on the larger sizes with good availability while 125s and smaller are steady but strong due to light supplies. Most red packers continue to peak on extra-fancy 88s and larger and there are volume deals out there. Larger size red delicious are definitely promotable. Golden delicious are peaking on 72/80/88s and are steady but strong due to lighter total volume in Washington. Small Golden delicious supplies remain very short, with very few if any 125s and smaller. The Golden volume is down from last year. 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. There are very few if any Granny-smith 125's and smaller. Many suppliers have taken pre-book Granny-smith orders so even 88's are short. The Gala market is steady on larger fruit with good availability and it is steady but firm on the smaller fruit with only light supplies. Galas are peaking on 80/88/100/72s and some suppliers will flex for volume. Honeycrisp are steady but the demand still exceeds the supplies on all sizes. Honeycrisp are peaking on 80/88/100s. Fuji's are steady on the small fruit with only light supplies and they are steady on 88s and larger with good supplies. Some shippers will flex on volume business of 88s and larger. The quality for red delicious, golden delicious, granny-smith, Galas, Fujis, and Honey Crisp has been good. Braeburns, Jonagolds, Red Romes, Cameos, and the other varietals are available in limited numbers.
Idaho---red delicious, Golden delicious, Granny-smith, Galas, Fuji's, Red Romes, Pink lady's, and Braeburns are all fairly steady. The volume for most is light with a peak on 64-100s for most varieties. The markets are all being quoted as steady with some dealing on various sizes.
Michigan--Macintosh, Golden delicious, Jonamacs, Jonathans, Galas, Cortlands, Empires, red Romes, Fujis, Honeycrisp, and red delicious are all fairly steady. Galas, Red Romes, Jonathans, and Cortlands are all heavier to the smaller sizes while the Golden delicious, Red delicious, Fujis, and Macintosh are heavier medium size fruit. The availability is a little off right now due to strong holiday demand and light packing time. Export demand has also been strong. The quality has been good.
New York-- McIntosh, Empires, Red delicious, Galas, Fujis, and Red Romes are steady to lower. The sizing has been medium to small with a larger percentage of smaller fruit than other areas. Light holiday demand has produced some dealing this week. The quality has been fair with more US#1 grade fruit showing stem-bowl russeting and more bitter pit than usual.

Alerts:
Washington is still in an extreme shortage of small Golden delicious and Granny-smith apples. Most suppliers will try sub up from a 125/138 or smaller to a larger size apple.

Large red delicious supplies are abundant and most Washington suppliers will flex their pricing for volume.

Peak Seasons:
Washington, Michigan, and New York are all in the peak of their apple season.

Weather in the current Mexican growing regions is good, volume has declined by 50% due to field transition. Market is up across the board on all sizes except small. Small size is more prevalent. Obregon and the fall season from Caborca are winding down as they transition to San Luis.

The weather is good in both the South/North of Peru and volume is good. The market is steady now, but expect a market increase into the second week in December with air only product in the market, and airfrieght increasing due to the Christmas rush.

Transitions:
San Luis will begin in 7-10 days.

Mexico's shipments this week are back up after a slight decline from last week. They expect volume should flow steady as we enter the holiday season, prior to the typical ramp up for Super Bowl in January. Supplies and markets have toward stability and demand is slowly picking up, with expected good demand with December promotions.

Green bell pepper is heavy supply peaking on mostly Large to Extra Large sizes. Very good quality color and sizing. Harvest is in both Southern California ( Coachella Valley) and Northern Mexico (crossing in Nogales)

Red and yellow bell pepper are also coming from Southern California (Coachella Valley) and Northern Mexico. Good supply on red and very limited offering on yellow. Quality is mostly good with both blocky and elongated varieties being packed.

Supply has continued to tighten over the past week, especially on the west coast. Rain in Central Mexico and California over the past 2 weekends has slowed production and delayed transfers bound for the US. Quality has been affected with many reports of broken fruit, water damage, soft berries, mold, decay and red cell.

Alerts:
Supply is limited and quality is a concern.

Supply is steady with continued shipments from South America and Mexico. Some vessels will be hitting US ports this weekend with large volume containers. The biggest issues we have faced in recent weeks have been with logistics of getting fruit into ports and across borders, through inspections, fumigation, temperature holds, etc. and on to the coolers where product can be loaded on cold trucks. Quality has been good overall with some shrivel and mold reported in older lots of Argentina fruit.

Supply is more limited than recent weeks as rain and cooler weather in Central Mexico and California has slowed production. Central Mexico has also began to come off peak production and will decline in production from here on. Quality remains favorable.

Peak Seasons:
Supply is more limited as Central Mexico comes off peak production.

Demand for quality fruit remains steady and supplies are still limited. Market has come off some in all areas from recent weeks. Quality is ranging from fair to good. Reported quality issues include overripe and soft bruising to green tips, white shoulders and misshapen. Sizing from Mexico and California is smaller ranging from 20-30 count per 1 pound clamshell and sizing in Florida is a little larger ranging from 16-26 per 1 pound clamshell. While supplies are still short overall, production is increasing from both Mexico and Florida.

Alerts:
Supplies are still limited. California is in short supply this week after recent rain and continued cool weather.

Transitions:
Both Florida and Mexico production should continue to increase in the coming weeks.

A few days away from harvest for Oxnard's Winter Crop

Close-up of Oxnard strawberries

Close up of FL straws

The broccoli market has remained flat with little demand. Although the colder temperatures in some growing regions could bring on decreased supplies. As far as this week, it is business as usual. Quality for the most part has been really nice. There have been occasional arrivals of yellowing and some bracketing upon arrival.

The steady supply of brussel sprouts from both Mexico and California have kept the market steady. Even with the colder weather we have experienced, it hasn't interrupted supplies. Quality has been excellent out of California, but Mexico we have seen arrival issues such as black spotting in the sprouts.

There is still good protection coming out of Bakersfield. Growth is good and producing good percentage of Jumbo size and supplies are good. Supply of baby peeled and other value added packs are good.

The cooler weather has halted growth of cauliflower in all growing regions. This is causing the market on an upward trend. Quality is an issue with arrivals showing bruising to off-white to creamy color. Also sizing will be an issue moving forward as there will be limited 9 count and 12 count sizes. You might have to sub into 16 count.

Alerts:
The colder temperatures have created limited supplies and an upward trend to the market.

The celery market is weaker. Light demand and increasing volume in Oxnard have combined to pull the recent high fob's down into a more promotable range. We expect to see this continue for the short term as harvest numbers continue to climb. We may see a firming trend due to the upcoming holiday pull but we are at least a week to 10 days away from that. Sizing is skewed towards the larger 30's and 24's and quality out of the Oxnard area has been good to excellent.

Alerts:
FOB's on celery are dropping.

Air arrivals of Chilean cherries continue to be consistent. Good supplies of fruit are available loading in New Jersey and Miami with more limited volume available in Los Angeles. All sizes are available, but heavier volumes of XL fruit are opening up opportunity buys (mostly on the east coast). Due to freight costs, there is a substantial difference in price between the east and west coasts. However, the first arrival of container fruit is expected to land on the west coast mid December. Prices will drop significantly once product arrives via boat.

Chilean Rainier variety cherries are available to load in LA, but volumes are very limited. Market prices remain firm and quality is being reported as excellent.

Pablano - Good quality and condition with improved supply.

Tomatillo- good supply and quality on fresh crop, both peeled and husked. Sizing is good. Color and condition are excellent.

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

Anaheim- good quality and condition and size are expected to continue as supply improves.

The cilantro market is steady for this week. Growing regions even with the cooler temperatures have been able to keep up with demand. Supplies are abundant from all growing regions. Quality has been good with minimal dehydration, yellowing, or black leaves.

The Desert crop is in full production with good supplies of both fancy and choice grades. Desert fruit can be loaded in Yuma, Coachella and in Oxnard. The Central Valley crop harvest is still slow and supplies are limited, we should start to see better production toward the end of December.

Meyer Lemon season is in full swing and is shipping out of Oxnard, Coachella, Yuma and the Central Valley.

The lime market is steady right now at the current levels. The market had jumped up too high a few weeks ago and has been correcting to where we are now. The market on larger sizes has been weaker due to increased supplies but looks to hold here at these lower levels. New crop limes are supplying the market and quality is very nice. No adverse weather is being reported for the near future so we should experience normal market fluctuations as we come in and out of holiday demand and export shipments to other countries.

Alerts:
The market has come down on larger sized limes due to increased supplies and it looks to hold at these lower levels.

California Navels are in full swing with all shippers packing. Flavor and internal color are very good. Cooler weather is firming the rind and naturally setting the color. There are a good range in sizes, with peak on 88s/72s/113s and heavy to fancy grade. There was some good rain again this weekend and no harvest on Monday, but there were bins already in storage, so no disruption in packing.

Cara Cara oranges started this week, but Blood oranges have been pushed off to hopefully stating week of December 12th.

Good supply on cucumber coming out Mexico, Excellent color, quality and condition on all grades sizes and pack styles. Supply will continue to be good as we move into the month.Northern Mexico (Sonora) will continue and (Sinaloa) will start next week. Euro cucumber is also available in very good supply, both #1and #2 both single layer and bushel boxes.

As we move into the Nogales season. Quality and condition on eggplant will continue to be very good on #1 product, excellent supply will continue for the beginning of the season.

Domestic green grapes are becoming increasingly limited. Inventories of storage crops are diminishing quickly and quality is becoming a big concern. Soft berries and high color is being reported on a good portion of the remaining domestic product. Due to the limited availability, market prices continue to rise. Coverage will remain a challenge on the west coast until we transition into Chilean product, late December.

Peruvian green grapes are available to load on the east coast and quality is being reported as much stronger. Market prices are still holding firm, but if loading direct or delivery is an option, this is the better route.

Again, Chilean fruit is still expected to land on the west coast by Christmas. The weather has been cooperating and volumes are estimated to be consistent with previous years. Demand will exceed supply until we get several consistent arrivals.

Alerts:
Domestic green grapes are very limited. Soft berries and amber color is being reported. Markets are higher.

Transitions:
Peruvian green grapes are available on the east coast. Chilean grapes will arrive on the west by late December.

Domestic red grape supplies continue to be very strong. Quality has been reported as good on the remaining inventories. All sizes are available with a heavy push on medium/large fruit. Market prices have remained steady with promotional opportunities available. As we approach mid December, we can expect to see volumes gradually decrease as shippers end their season. However, no gaps in supplies are anticipated between now and transition.

Peruvian red grapes are available to load on the east coast. Quality is being reported as very good, but market prices remain elevated.

Chilean red grapes are expected to land on the west coast by late December. Volumes are estimated to good with heavy production this year. We can expect a smooth transition between the last of the domestic fruit and the first Chilean arrivals.

Transitions:
Peruvian red grapes are available on the east coast. Quality is strong and markets are firm.

The continued ample supplies coming from Mexico have kept the market steady. There are plenty of iced and iceless green onions. As we near the Christmas holiday supplies could be depleted for lack of labor. As a result we will see a swing in the market as we approach that timeframe.

Decent demand has the kale market trending higher. But not at serious levels, just a minor adjustment. Quality is excellent with full cartons, little dehydration, and dark green color. Supplies for this week are declining at a small level due to cooler temperatures in the growing regions.

The iceberg lettuce market is steady with good volume and light demand. Quality continues to be an issue as the damage done by the heat earlier in the season continues to be seen. Burn, pink rib russet spotting and seeder are still the main culprits. Add to this the potential lettuce ice/freeze projected for later this week and we see no hope for an improvement in quality. Quite the contrary; extremely cold weather will not only severely impact quality but overall supplies as well. We are seeing the potential for a growing gap caused by the early season heat that will only be expanded by the cold weather. This could cause an abrupt turnaround in the lettuce market in the near future.

Alerts:
Quality continues to suffer and supplies could drop dramatically if cold weather becomes more of an issue.

Transitions:
Iceberg lettuce has fully transitioned into Yuma but we are still about two weeks away from starting in the Imperial Valley.

The leaf and romaine markets are steady but showing some signs of improvement. Quality is still marginal with burn, twist, seeder, pink rib and russet spotting showing up in most samples in varying degrees. Product is being lost in the field to these issues as growers walk around the worst of the lots. The indications are for a growing gap just ahead. Coupled with this is the recent drop in temperatures (ground temps) that indicate a slow growth cycle ahead. Some shippers have begun to firm up pricing in the face of lower yields. Any increase in demand will cause these markets to strengthen rapidly.

Alerts:
Cool weather and continued quality issues indicate potential for a stronger leaf and romaine market.

Demand is good on all sizes. Supplies on 9ct are increasing due to offshore arrivals and the price of them is declining. 12's continue to get increased demand due to substitution for 9ct. The 15ct are also experiencing some added buying pressure and are very short in supply from offshore sources. The desert is past it's peak with some growers being done now and the rest finishing this week. Offshore supplies are in Florida are in full swing and are arriving in California with steadily increasing volume. The market is steady to lower on all sizes due mainly to increased supplies. The quality is excellent on the offshore melons.

Alerts:
The market on lope 9's is weakening due to increased supplies from offshore growers.

Transitions:
We are in full swing with offshore cantaloupes.

Supplies of honeydews are steady overall 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 growers will be finished for the season by the end of this week with some growers already being finished. Mexico is exporting very nice looking honeydews up to us and pricing them much lower than offshore and domestic dews. Offshore dews have excellent quality and are peaking on large sizes such as 4's and 5's. The market is currently steady on all sizes.

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 dropped due to cooler weather across the country.

Demand is moderate to good on Jumbo yellows with all other sizes and colors steady. Markets are steady across all sizes and colors. Quality is good. Trucks availability is still hit and miss. Weather has finally gotten cold enough that shippers have stopped loading Flat bed and vented vans.

Peak Seasons:
Onions will be in peak season through February

California - they are essentially finished shipping pears for the season.
Washington - C.A. Bartletts are steady and still peaking on US#1 70/80/90s. Some shippers will flex on pricing for volume of the larger sizes. 110 size and smaller bartletts are limited. D'anjou pears are steady and are still peaking on US#1 80/90/100s. Some shippers will flex on volume orders of the larger sizes. 110 and smaller size D'anjou supplies are limited. Bosc pears are steady and continue to peak on US#1 80/90/100s. There is some volume available on smaller size Bosc. Red pears are steady and are still peaking on US#1 45/50 half cartons. The quality for all varieties pears has been good.

Alerts:
Most Washington suppliers will deal on volume of the larger D'anjous and Bartletts and have limited supplys of the smaller sizes.

Peak Seasons:
Bartlett, D'anjou, Bosc, and red pears are all in the peak of the season.

Supplies are good for all shippers with post holiday back off in demand. Look for demand to kick back up in couple of weeks as we move toward Christmas and New Years demand. Supplies from the tropics will drop off at the end of the year and the first couple of weeks of January due to lack of labor to harvest during the holidays.

Demand is moderate on cartons out of all growing areas. Idaho potatoes are still peaking on 60 count and larger. All other areas are peaking on 70 count potatoes with a good mix of sizes on either end. Retail demand is very light but should start to pick back up late this week or the front part of next week for the Christmas holiday. Quality is good with very few issues. Market is steady with not much changes in sight. This is a good time to stay ahead of your inventories with the Christmas and New Year Holiday coming up.

Peak Seasons:
Potatoes will be in peak season till late May

Bakersfield, California - The market are steady on all colors and they are peaking on A size. Remember to plan a head as this product is transferred down from Washington. Quality is good.

Idaho - The market is steady. They only grow Reds and Golds, which are both peaking on B Size. Demand and supply are moderate. Quality is good.

Western Washington/North Dakota - Supplies and demand are steady. Both areas only have Reds and Golds which are both peaking on A size. Market is steady with good quality potato coming out of storage.

Wisconsin - Red and golds are steady and both are peaking on A size. Quality has a range from fair to good. Market is steady.

Canada - The red, white and gold potato market are steady along with supplies. Canada mainly pack sacks with only a few packing cartons. Quality is good.

Supply on yellow and Italian Squash have improved from last week. Quality and condition are very good. all sizes and grades are available. all varieties of hard squash are now in good supply loading in Nogales. Cooler weather will slow production some but market will remain steady.

The eastern tomato market is steady this week with steady supplies out of Florida. Fruit is progressively getting bigger as weather conditions improve slowing the maturity of tomatoes on the vine. Favorable weather in the forecast does not show any reason to suspect sharp swings in the market and pricing is steady. Grape tomatoes are promotable dipping slightly this week and quality varies by shipper. Cherry tomatoes are also available and are steady going into next week.

Mexico continues to work from existing acreage shipping mostly Vine ripened tomatoes with gas green rounds mainly being Florida grown. Similarly to the east, the market is steady with sizing trending smaller for vine ripened varieties. Roma tomato volumes are increasing bringing prices to the mandated minimums for imports. Grape tomatoes have also dipped further this week with supply coming from Baja, Central Mexico, and Sinaloa.