The Source - October 05, 2015

Weather Update

The low pressure system moving through Southern California today will continue to move off to the east as high pressure returns midweek. This system that brought light rain to Southern California Sunday will incorporate moisture from the Pacific Ocean as it moves to the east. This will bring a cool down, strong winds and a chance of precipitation to the Southwestern desert locals today into Tuesday, The bulk of this precipitation is expected to remain well north of the major growing regions. Baja and Northern Mexico will also see cooler temperatures early this week warming midweek under the high pressure ridge.
The southeast remains under an extremely wet pattern into tomorrow as a low pressure system continues to stream in moisture from the Atlantic Ocean. This region has seen historic precipitation and flooding over the past few days covering a wide swath of the Southeast. The Carolina's have been particularly hard hit by this event. The low is expected to move off the coast Tuesday with a dry pattern expected thereafter.

Freight Update

California trucks remain steady but look to tighten on Friday. Washington and Idaho trucks look to remain steady for the week. The national average remained steady again this week and is currently $2.492 per gallon. A difference of $1.248 from this time last year. California prices dropped slightly and is now 2.803 per gallon. Crude oil remains steady and is at 46.34 per barrel.

Commodity Updates (Click row for summary) Expand All

Apples

California - there are a few Granny-smiths, Braeburns, and Fujis left but supplies are light and the shippers are looking to clean-up for the season. They are supposed to pack Pink Ladys this week but havent started yet. The quality has been good.
Washington - C.A. Red Delicious are still available but only light supplies. New-crop Red Delicious are more plentiful but the fruit is large. Most suppliers are peaking on 72/80/88s and have very few 125s and smaller. Golden delicious are steady to slightly lower and still peaking on premium grade 100/113/88s. New crop Granny smiths are steady and peaking on 88/100/113s. Most Granny packers don't have much size larger than an 88. Galas are steady and the fruit remains relatively small. Most suppliers are still peaking on 100/113/125s and some will deal for volume. Large Galas are extremely limited! Fujis are heavier to larger fruit amd the market is steady to slightly lower. Honeycrisp are steady to lower and are peaking on 64/72s. The volume Honeycrisp deals remain in the lower grades. Jonagolds and Braeburns are available but supplies are light. The quality for all varieties has been good.
Michigan - McIntosh are steady on all sizes and are still heavier to big fruit. Galas are steady on all sizes due to steady demand. Golden delicious are peaking on 113-138s and the market is steady. Honeycrisp are steady to lower and the availability is better but they are peaking on 100's and larger. Jonathans, Cortlands, Jonamacs, and Empires are all steady and the sizing is heavier to the smaller fruit but the volume is still limited.
New York - Macs, Galas, Honeycrisp and Gingergolds are all being quoted steady. McIntosh volume is still good and some shippers will flex on certain sizes and grades. The Macs are peaking on 100s, the galas are heavier to 100/113s and the Gingergolds are peaking on 56-88s. They have started packing a few Cortlands and Empires. The quality has been good on all varieties.

- pa_admin

Transitions:
Michigan should start packing Fujis, Ida-reds, Jonagolds, and Romes this week.

Washington will start packing Pink Ladys in tow to three weeks.

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

The asparagus market is showing some strength for the front side of the week. Supplies from Mexico are less than expected which has driven prices back up. Supplies from Peru are steady off the East Coast. Jumbo size asparagus is still limited and demanding a premium.

- pa_admin
Growing Region Market Quality
Ica, Peru to Trujillo Steady Good
Southern Baja, MX Steady/Higher Good
Avocado (Mexican)

Mexico is beginning to harvest this years new crop. Production remains primarily Flor Loca. Supplies crossing look to remain steady with good volumes. Stating to see improvement in the range of sizes, but still heavier to 48's and larger fruit. Limited volume on #2 fruit as quality is very good. The fruit is still low in its maturity, but is coming in with better oil content and breaking better. Ripe fruit could still be green in color as the skin isn't mature enough for it to darken. Color is not an indication of ripeness, pressure is.

- pa_admin
Growing Region Market Quality
Michoacan, Mexico Steady Good
Berries (Blackberries) Alert

Demand exceeds supply of fresh blackberries in all California growing regions. Production has slowed down considerably and quality continues to be more of a concern. The current crops have past peak for this season and the recent heat accelerated quality issues with soft fruit, red cell and juicing. Labor is also an issue as more pickers are focusing on culling fruit and controlling quality for the limited harvests. Projections show a shortage of blackberries all the way through October until the Mexican blackberries come on with more volume and begin crossing the border into the United States. Some shippers will struggle with volume and availability until the end of October / beginning of November when Mexican fruit will be in full swing. Shippers are becoming increasingly particular about where they will ship their limited quantities of fruit. Quality expectations should be adjusted to what is currently available. A few Mexican blackberries have crossed and have been available in Los Angeles, CA and McAllen, TX with limited availability daily. Fruit is being held up in inspections and is slow to release so this is limiting availability daily.

- pa_admin

Alerts:
DEMAND EXCEEDS SUPPLY. We are very short on blackberries in CA again this week. Supply is gapping as the CA season declines and the volume of MX fruit crossing the border is still very small in comparison.

Growing Region Market Quality
Watsonville, CA Higher Fair
Santa Maria, CA Higher Fair
Oxnard, CA Higher Fair
Central Mexico Higher Excellent
Berries (Blueberries) Alert

Demand exceeds supply. Pacific Northwest (OR, WA, BC) blueberry shippers have ended major commercial production for the season. Quality continues to suffer on the remaining PNW storage fruit with shriveled, aging, soft berries and some mold. Southwest Michigan has slowed down in production and looks like the season will wrap up by midweek. These blueberries have some splitting, shrivel, soft and occasional mold as well. Pricing is continuing to climb upward as we move into October. As the domestic fruit ends, demand will increase for the short supply of offshore fruit arriving into US ports from Uruguay, Argentina, Peru then Mexico and Chile. Early reporting that Argentina experienced extreme weather with hail that damaged up to 30% of some grower's crops. The volume of offshore fruit is very low to start but we expect it to steadily increase later in October and into November. This new product is also demanding a premium price. Some light color being reported along with damage from rain in the early growing season. Shippers are anticipating weekly shortages into October until more import fruit arrives into the US.

- pa_admin

Alerts:
DEMAND EXCEEDS SUPPLY. Production is gapping as the domestic crops have ended and the import crops have been very slow to arrive with good volume. We are extremely short in supply again this week.

Growing Region Market Quality
Concordia, Argentina Higher Good
Salto, Uruguay Higher Good
Trujillo, Peru Higher Good
Central Mexico Higher Good
Grand Junction, MI Higher Fair
Berries (Raspberries)

Quality and availability of California fruit has improved over recent weeks. Also, the first arrivals of Mexican raspberries began crossing into McAllen, TX at the end of last week. Arrivals have been delayed due to inspection but the limited quantities that have arrived have been excellent quality.

- pa_admin
Growing Region Market Quality
Watsonville, CA Steady Good
Santa Maria, CA Steady Good
Oxnard, CA Steady Good
Central Mexico Higher Excellent
Berries (Strawberries)

The Salinas/Watsonville growing regions continues to struggle with quality issues. Wet and dry bruising, ripe red to overripe, decay and some mildew. After the rain last week, possibility of pin rot increases and this is very hard to spot in the field and cooler QA inspections. These plants are very tired and fruit is weak. The early onset of the Spring crop in the northern district is also causing an earlier decline at the end of the season. Typically production will continue throughout October and even into November and December (in recent dry years) but this year looks to end much sooner than normal. More and more fruit is being diverted into processor and actually making availability short out of this region. Santa Maria fruit has been much stronger, the berries are larger and more firm than out of the north. However, there is still some soft shoulders being reported along with white and green tips / shoulders and occasional sunburn. Oxnard fruit is measuring small to begin their season, which is typical. Overall quality has been good with firmer fruit. Rain over the weekend has actually shortened harvests to start this week and fruit will be limited out of this area again this week.
Overall availability is short out of all areas to begin this week. We will be utilizing all growing regions to cover orders.

- pa_admin

Transitions:
Oxnard's growing region is slow to get started and rain over this past weekend has further slowed down harvesting and production. Limited fruit out of this region this week.

Growing Region Market Quality
Salinas Valley, CA Higher Fair
Watsonville, CA Higher Fair
Santa Maria, CA Higher Good
Oxnard, CA Higher Good
Broccoli

Broccoli supplies remain limited with the market remaining strong. Supplies from Salinas and Santa Maria are limited and will be that way for the next couple of weeks. Supplies from Mexico offset the demand but the market for Mexican broccoli is similar to the domestic broccoli market.

- pa_admin
Growing Region Market Quality
Salinas Valley, CA Steady/Higher Good
Oxnard/Santa Maria, CA Steady/Higher Good
Celaya Guanjuato Mexico Steady Good
Carrots

Bakersfield crop is in full production. Size in the fields has improved and the percentage of jumbo size carrots is much better. Quality is good.

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

The cauliflower market remains firm with supplies varying from shipper to shipper. There seems to be better supplies out of the Salinas Valley. Quality is good with decent white color. Look for prices to remain steady for this week.

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

Celery supplies remain steady with product out of Salinas, Santa Maria, and Michigan. Deals remain on the bigger sizes with the smaller sizes demanding higher prices. There has been good quality from all growing areas. Prices look to remain steady for this week.

- pa_admin
Growing Region Market Quality
Michigan Steady Good
Oxnard/Santa Maria, CA Steady Good
Salinas Valley, CA Steady Good
Cilantro

The cilantro market has finally settled to regular levels. Plenty of supplies in Salinas and Oxnard. Also steady supplies from Mexico. Quality is still a problem with yellow discoloration and bruising of the cilantro leaves.

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

Demand remains very high. We are to see better availability on 140s and larger fruit, but still seeing demand exceeding supplies on 165s and smaller fruit coming from the new crop in the desert. Expect this shortage on smaller fruit to continue through the month.

- pa_admin

Alerts:
Demand exceeds supply on the smaller sized fruit 165s/200s/235s. Expect shortages to go through the month.

Growing Region Market Quality
Coachella, CA / Yuma, AZ Steady/Higher Excellent
Citrus (Limes)

The lime market is lower. The old crop is finishing up and the new crop volume is picking up nicely and is filling the volume decreases from the old crop finishing. The overall quality is very good on the new crop. The old crop limes are average to below average in quality and they are tired now and nearly finished for this season. Stylar breakdown is the main defect some lots of old crop and yellowing also may be found. We continue to have good demand on limes. The old crop looks to be finished by mid October.

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

California Valencia oranges supplies are very short on all sizes and are in a extreme demand exceeds supply situation. Most shippers have finished or will be finishing this week on the Valencia crop, this is much sooner than many expected. California Navels look to start in limited volume by the 3rd week of October for some shippers

- pa_admin

Alerts:
California Valencia oranges on all sizes have reached an extreme demand exceed supplies as this season comes to an early end.

Growing Region Market Quality
Merced to Bakersfield, CA Steady Fair
Riverside, CA Steady Fair
Grapes (Green)

The green grape market is steady with average demand and adequate supplies to cover. We continue to see a range of size and quality based upon the variety of grape available. Quality is generally good to excellent overall with a few lots showing some issues with amber.

- pa_admin
Growing Region Market Quality
Arvin, CA Steady Good
Delano, CA Steady Excellent
Fresno, CA Steady Excellent
Madera, CA Steady Excellent
Grapes (Red)

The market on red seedless grapes is about steady with good demand. We are seeing some signs of improvement from some shippers but overall supplies and quality are unchanged. The market appears as though it will remain steady throughout the coming week.

- pa_admin
Growing Region Market Quality
Arvin, CA Steady Good
Delano, CA Steady Excellent
Fresno, CA Steady Excellent
Madera, CA Steady Excellent
Green Onions

This market remains firm at higher prices. There seems to still be limited supplies crossing from Mexico. Look for better supplies next week. Quality remains inconsistent with some browning and dehydration.

- pa_admin
Growing Region Market Quality
Mexicali, Baja Steady/Higher Fair
Kale

Kale supplies remain steady as well as the market. Some quality reports show minor yellowing to dehydration. The market and supplies will remain steady for the week.

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

The lettuce market is hard to call. Some quotes have remained high with some shippers being sold out. And other shippers have plenty and have been priced aggressively. But with any type of increased demand could cause this market to spike. As we enter transition 3 weeks from now to Huron, we will see this market tighten up along with limited supplies. The Salinas season could possibly end early putting pressure on Huron and Yuma. Quality remains fair with light weights, tip burn, fringe burn, russet spotting.

- pa_admin

Transitions:
Lettuce will start in Huron CA the week of 10-19-15

Growing Region Market Quality
Salinas Valley, CA Steady Fair
Lettuce Leaf

Romaine supplies are steady for the front side of this week. The market still varies from shipper to shipper. Quality reports of fringe burn, seeder, tip burn, and light weights still exist. Green and Red leaf supplies are also steady with aggressive markets. Also there is steady supplies of Boston.

- pa_admin
Growing Region Market Quality
Salinas Valley, CA Steady Good
Oxnard/Santa Maria, CA Steady Good
Melon (Cantaloupe)

The West Side is producing less volumes of all sizes. The peak size at the moment is 12ct. The 9ct and 12ct are available again. The West Side has good quality but green cast is prevalent and some melons are cutting with more green in them than normal, this will continue until the West Side is finished in October. The current market on all sizes is steady right now. We are experiencing good demand for cantaloupes at this time. The desert started last week in a small way down in Maricopa with 9ct and 12ct mainly coming in and a few 15ct showing up. Momentum is building down in the desert and the quality is good too

- pa_admin

Transitions:
The desert is shipping melons.

Growing Region Market Quality
Firebaugh, CA Steady Good
Mendota, CA Steady Good
Maricopa, AZ Steady Excellent
Melon (Honeydew)

The peak size is currently 6ct. The quality and sugar contents continue to be good and this looks to continue. Our honeydew market is steady on all sizes currently. Honeydews are also past their peak production now and Mexico will begin towards the end of October. The desert has started packing very light volumes of dews in Maricopa last week with Jumbo 4ct and 5ct being the peak sizes with 6ct being the smallest coming in. We continue to experience good demand across the board. I have added Maricopa and Mexico to the growing regions in order to allow you access to their weather.

- pa_admin

Transitions:
The desert started last week.

Growing Region Market Quality
Firebaugh, CA Steady Excellent
Mendota, CA Steady Excellent
Hermosillo, Mexico Steady Excellent
Onions Alert

Harvest is about 85% complete in both Idaho/Oregon Onion growing areas. Washington growers should finish with harvest the end of this week. Yellow onion yields in Washington are being reported to be down 25% due to 7 to 8 weeks of 100 plus degree weather during the growing season. This caused an overall smaller size profile with the onions peaking on Mediums. On the Idaho/Oregon side, yellows are yielding well with sizing right in line historically. A few growers are reporting slightly lower yields out of this growing area. The yellow market has maintained a fairly level market during harvest which should stay fairly stable till the first of the year. The biggest challenge this year looks to be Red Onions. Red onion yields across the Northwest are down this year. Washington is reporting to be down 40 plus percent. This was due to the high heat during the growing season which affected the Red onions even more than the yellows. The overall size on Red onions out of Washington being harvested is Mediums and smaller with few Jumbo's. Some growers in Washington have opted to not harvest a considerable amount of their Red Onion acreage due to quality issues in the fields. Idaho/Oregon acreage of Red Onions is being reported as average, however lower yields and smaller overall size profile are going to lead to some potential supply issues as we get into the winter months. Quality is being reported as good. Market are steady to slightly firmer out of all growing areas.

- pa_admin

Alerts:
Red Onions supplies could get active as we get closer to the end of this year.

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

California - there are a few pears left but most shippers are cleaning up their remaining Bosc, Bartlett, red pears. The quality has ranged from fair to poor for all varieties.
Washington - Bartletts are peaking on 110/120s and the market is steady along with demand. Some suppliers will flex for volume orders of the smaller sizes. Larger Bartletts are still short. Washington Bosc are steady and they are still peaking on 90/100s. D'anjou pears are also steady and are still peaking on 100s. Most shippers have limited supplies of 80's and larger. Red pears are steady on all sizes and are peaking on half carton 45/50s and full carton 90/100s. The quality has been good on all Washington pears.

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

Idaho potato harvest has been interrupted by rain the end of last week which has tighten up supplies. Supplies will improve as this week moves on as good weather is in the forecast. Some growers are also in-between their storage Norkatoh's being ready to come out of the sweat. It takes 30 to 40 days for potatoes to be ready. Market has firmed up slightly on all sizes and packs. Quality is being reported as good. Washington, Colorado and Wisconsin have steady markets with moderate supplies. Quality is being reported as good.

- pa_admin
Growing Region Market Quality
Hamer/Rupert, ID Steady/Higher Good
Quincy/Hermiston, WA Steady Good
Eastern Colorado Steady Good
Plover/Bancroft, WI Steady Good
Potatoes (colored)

Stockton, California - All colors are steady and continue to peak on A-size. The availability of premium and baker reds and golds is still limited. The quality has been good on all colors. Stockton will pack through this week and then they will be finished.
Western Washington - Reds, golds, and whites are all steady and still peaking on A-size. The quality for all colors has been good.
Central/Eastern Idaho - Reds and golds are steady and both colors are heavy to A-size. Gold inventories are still relatively short but the availability is improving. The quality has ranged from fair to good.
Wisconsin - Reds and golds are fairly steady on all sizes. Both colors are peaking on A-size. Premium and baker reds, premium and baker golds, and gold Cs remain limited. The quality is good.
Minnesota - they are finished for the season.
North Dakota - Both reds and golds are steady and both are heavy to A-size but gold supplies are light. The availability is better this week than last as more shippers get started. Premium and baker size remain very short for both colors. The quality has been good.

- pa_admin
Growing Region Market Quality
Stockton, CA Steady Good
Mount Vernon, WA Steady Good
Rupert to Rexburg, ID Steady Fair
Red River Valley, ND Steady Good
Plover, WI Steady Good
Stone Fruit

The domestic stone fruit season is essentially over. Nectarines are done. Peaches are limited to a few late season growers this week and anything not yet cleaned up in inventory. Plums are done and cleaned up with a few odd exceptions. Demand for anything left is average at best while quality at the end of this season is still good.

- pa_admin

Transitions:
Domestic stone fruit has mostly ended with the Chilean deal still several months away.

Growing Region Market Quality
Madera south to Arvin, CA Steady/Higher Good
Tomatoes (Eastern)

Rounds - The market is steady. Virginia and the local seasons are coming to an end. South Carolina had some terrible weather hit them over the weekend and we have not got a full report of the issues that were a result. The Northern Florida region was also hit with bad weather and may extend the delay further out than 2 weeks. Market should really begin to lighten up when the Palmetto region gets up and running in Mid-October.
Roma - The market remains steady/rise. The Mexican national demand continues to be on the rise and is limiting the amount of product coming across. The local programs and Virginia are finishing up which may cause an increase in the market pricing. Quality is good.
Cherry/Grape - Cherry market is strong. Still waiting for the Northern Florida crop to begin harvest. Until then the market will remain elevated. Grape market remains strong with Virginia/Maryland area starting to finish up. As with the Cherry market, grapes are looking for the Northern Florida harvest to begin. Market will remain strong until then. Quality is fair

- pa_admin
Growing Region Market Quality
Northern Florida Steady Good
Charleston, SC Steady Good
Cedarville/Hammonton, VA Steady Good
Benton Harbor/Byron Center, MI Steady Good
Tomatoes (Western)

Rounds - The market is steady. Central California just about finished with their season. The volume coming out of Mexico is enough to fill demand but will keep the market steady. When the Northern Florida harvest comes into play we should see the market begin to lighten up. Although Florida did get some bad weather recently that may delay the harvest a bit further (2-3 weeks). Quality is good.
Romas - The market remains steady. Not much has changed with the Roma market. Supplies are meeting demand coming out of Mexico and some in California. With the east coast weather recently the may need to rely on the west coast romas for 2 -3 more weeks. Quality is good.
Cherry/Grapes - Cherry market is strong. Product will remain elevated until the Florida season starts harvesting. Quality is fair. Grape market is steady. As with the cherry market, the grape market will remain steady until Florida begins harvesting. Still having a few quality issues coming out the Baja area. Quality is fair.

- pa_admin
Growing Region Market Quality
Northern Baja California Norte, Mexico Steady Good
Southern San Joaquin Valley, CA Steady Good
Coachella Valley, CA Steady Good

Things You Should Know

Berries (Blackberries)
DEMAND EXCEEDS SUPPLY. We are very short on blackberries in CA again this week. Supply is gapping as the CA season declines and the volume of MX fruit crossing the border is still very small in comparison.

Berries (Blueberries)
DEMAND EXCEEDS SUPPLY. Production is gapping as the domestic crops have ended and the import crops have been very slow to arrive with good volume. We are extremely short in supply again this week.

Citrus (Lemons)
Demand exceeds supply on the smaller sized fruit 165s/200s/235s. Expect shortages to go through the month.

Citrus (Oranges)
California Valencia oranges on all sizes have reached an extreme demand exceed supplies as this season comes to an early end.

Onions
Red Onions supplies could get active as we get closer to the end of this year.

Transitions and Temperatures

Lettuce Iceberg
Lettuce will start in Huron CA the week of 10-19-15

Berries (Strawberries)
Oxnard's growing region is slow to get started and rain over this past weekend has further slowed down harvesting and production. Limited fruit out of this region this week.

Stone Fruit
Domestic stone fruit has mostly ended with the Chilean deal still several months away.

Melon (Honeydew)
The desert started last week.

Melon (Cantaloupe)
The desert is shipping melons.

Apples
Michigan should start packing Fujis, Ida-reds, Jonagolds, and Romes this week.

Washington will start packing Pink Ladys in tow to three weeks.

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