The Source - October 10, 2016

Washington - red delicious are steady but tight on the smaller sizes and steady to lower on 88's and larger. Most shippers continue to peak on extra-fancy 64-88s. Most suppliers still have only light availability of 125s and smaller. The Golden delicious market remains steady but strong due to lighter volume this year. Small Golden delicious are especially short. New-crop Granny-smith are steady but supplies are limited. The Gala market is steady on larger fruit with good availability and steady but firm on the smaller fruit. Galas are peaking on 80/88/100/72s so expect the smaller sizes to remain short. Honey Crisp are steady to slightly lower on most sizes and grades but the fruit remains large and is still peaking on 48/56/64s. Fuji's are steady on the small fruit due to light supplies and steady to lower on 88s and larger with good supplies. The quality for red delicious, golden delicious, granny-smith, Galas, Fujis, and Honey Crisp has been good.
California - Granny-Smith are steady on all sizes but the availability is down as the end of the season is near. The quality has been good.
Idaho---they are steady on Gala's and Jonathans and are peaking on Washington extra-fancy 88/100/113's for both.
Michigan--McIntosh, Golden delicious, Jonamacs, Jonathans, Galas, Cortlands, Empires, Honey Crisp, and red delicious are available now and all are steady to slightly lower. Most varietys are heavier to larger fruit although some have good availability of the smaller sizes. The quality has been good.
New York-- McIntosh, Cortlands, Empires, Jonamacs, Galas, Ginger Golds, and Honeycrisp are the main varieties now and the markets are steady. The sizing has been smaller than other areas with more 100/125/138 size fruit. The quality has been good.

With weather improving in Northern Baja Mexico, asparagus volume is increasing. We should see the peak from this region in about 2 weeks. The market is steady and sizing is good.

The weather in Peruvian growing regions is good, volume is very heavy and will continue to be for the next 4-6 weeks.

The Mexican growers dispute and harvest disruption still has not been resolved. Very little harvest to no harvest has gone on for the last 12 days. A select few growers are still protesting current regulations in place in terms of harvesting and grower returns/payment. There are still on going talks with the growers. The current on hand inventories of US shippers are extremely low. Shippers are pro rating order to try to stretch out supplies through the week. Avocado inventories in the US are running out. Availability for next week is uncertain if growers don't start harvesting soon.

Alerts:
Avocado inventories in the US are running out. Availability for this week very limited to none.

Green bells out of the California Central Valley are winding down in volume and will soon transition to Southern California. Supply is lightening and showing stronger pricing.

Red bells out of Fresno are now in better supply and are showing good overall quality and condition. These will also transition to southern California.

Yellow bells showing better availability with quality and condition still showing some trouble.

Supply is steady. Demand has been fairly light. Increased production from Mexico has brought more volume into the industry and continued to fill demand. Some reports of red cell and wet, leaky fruit have brought growers to cull and discard more fruit which is controlling some of the heavy volume that was coming on last week.

Transitions:
Northern California production continues to wind down for the season but is quickly being replaced by large volumes of blackberries coming from Central Mexico.

Blueberry shipments from South America are increasing and we are slowly seeing the pipelines begin to recover. There's more fruit on the east coast and in the southeast port areas than there has been available for several weeks. We are seeing some Mexican fruit in McAllen as well. California shipping points are still in shorter supply as fruit is not making it to the west coast as quickly as the other areas where it's being brought into country. Overall supply should continue to increase toward mid-late October. Quality has been good on all of the imported blueberries up to this point and quality issues have been non-existent due to the severely limited availability over the past month.

Raspberries are increasing in volume and availability as production increases out of California's southern growing districts and Central Mexico. Supply will be better this week than we have seen in the past several weeks. Fruit has looked nice with limited reports of wet, leaky berries.

Peak Seasons:
Current crops will be ramping up in volume to peak in mid-late November.

Supply is steady with increased production in Oxnard and steady production in Salinas, Watsonville and Santa Maria. A chance of rain is in the forecast for Friday through Sunday of this coming weekend and could affect production in the northern regions. Early forecasts are showing showers beginning on Friday then occurring again on Monday and Tuesday. A heavy shower this late in the northern season could severely disrupt production or even prompt some growers to end production as we are approaching transition to the southern regions. Some growers have already begun removing crops for this season to prepare for next season or return the land to the rotation crop growers.

Transitions:
Oxnard production is increasing in volume.

The broccoli market shows some signs of firming up. Supplies from the Salinas and Santa Maria regions are slightly ahead of schedule with some shippers covering orders on the outside. The effects of this so far are minimal but several suppliers are quoting higher prices out of the Salinas growing region. Quality is good with few issues reported from any area.

Transitions:
Broccoli production will be moving from Salinas to the Yuma Desert region the third week of November.

The Brussels Sprouts market is about steady with some lower quotes. Availability is improving and demand remains unchanged. Quality is excellent with better than normal supplies of small sprouts providing a buying opportunity for those who are able to use them.

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

The cauliflower market is showing signs of strengthening as many shippers find themselves 7 to 10 days of "normal" harvest schedules. Several suppliers have begun raising prices as they find harvest dropping and demand beginning to accelerate. Quality is generally good with an abundance of the smaller 16 count available and the larger 12's and 9's dropping in numbers.

Transitions:
Cauliflower is transitioning from Salinas to the Desert; with Yuma projected to begin production the week of November 21.

This market remains steady to begin the week. Good supplies exists out of Santa Maria and Salinas. Large sizing, twenty-four counts in particular continues to be the most readily available pack. Production in Michigan continues. Good quality, overall continues to be reported. Oxnard will begin production near the end of October. Production in Salinas will continue until the third week of November.

Transitions:
Salinas' production will end the third week in November. Oxnard production will start shortly.

Pablano - Good quality and condition expected to continue.

Tomatillo- Rainy weather has affected quality of Tomatillo most recently but current conditions are improving.

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

Anaheim- good quality,condition and size are expected to continue.

The cilantro market is about steady. Supplies from all growing regions are good with the quality issues of recent weeks no longer a factor.

The Ventura crop is winding down and dropping in volume with the last of their old crop. Demand is strong and far exceeding what supplies are left. The Desert crop has started, but their start up is slow and very light in volume and will be increasing through the month, but will not reach volume until November. Chilean supplies are starting to fall of as their shipments to the states fall off. Mexican fruit is available, but the lack of California fruit is putting heavy presser on these supplies also.

Alerts:
California lemons are extremely short.

The larger sizes 110ct through 175ct continue to remain more expensive than the 200ct and 250ct sizes. Demand is good on all sizes across the board. Limes are peaking on the 230ct. Quality is improving overall with less and less leaf shading (yellow color) showing up and fewer stylar end breakdown showing up from weather. New crop limes are being harvested and all sizes are coming in so quality is 100% better. The market is lower on the 110ct through 200ct and steady on the 230 and 250ct.

This season's Valencia crop is nearing it's end. Some shippers will be finishing this week and next. Supplies of small size Valencia oranges, 113s and 138s both grades are very tight and getting tighter as shippers finish with their crop. we are seeing a demand exceed situation. The Navel crop looks to start at the end of October/first of November. Valencia's are showing some weakness of quality, which is typical for this time of year after a long hot summer.

Alerts:
Small Valencia's, 113s/138s, supplies are limited in availability.

Fair quality and condition on cucumbers coming out of Northern Baja coast. Fresh crop from Northern Mexico crossing through Nogales is now available, Quality will be improved as we move forward, supply is also improving.

Quality and condition on eggplant has remained good coming out of Fresno. Minimal cosmetic issues. Production will continue to be limited
production soon to start in the Coachella Valley with fresh crop.

Green grape markets are getting more active. We have seen some gradual increases in price as varieties come to an end. Currently, quality is holding strong and supplies are steady. The market prices are coming up slowly and we expect this to continue as we move forward. We will have some opportunity buys as volume spikes allow. However, as a whole, the green grape supply and market conditions will remain active as we approach the transition.

Red grape supplies and quality remain consistent this week, but we did see a couple different shippers raise the bottom of their prices on the smaller sized fruit. As mentioned last week, we can expect this to be the trend moving forward. As some of the smaller growers start to finish their season, we will see the supply of red grapes began to lighten throughout the industry. Prices will start to slowly but gradually increase moving forward. Looking at this week, quality and supply will be strong and we will continue to have options on aggressive price points.

The green onion market eased off the end of last week but is now showing some sign of firming up. We attribute this strengthening to the regional growing deals around the country finishing. Supplies on the west coast have steadied out. Quality is being reported as good from all districts.

The green kale market is good with excellent supplies of excellent quality. All are showing a full dark green color.

This market is firming up to begin the week. There are a few shippers trying to up the market on price but demand is not quite there as of yet. This market looks to be stronger by the end of the week. Some defects being reported include lightweights, pinking and slight puffiness. These defects are being reported more often after customers have received the product. In other words, the past high heats have lessened the shelf life of this commodity. Expect a few complaints on value added product as well. Weights are averaging 35-41 pounds on wrap lettuce.Transition is coming upon us soon. Huron will begin production with this commodity on October 17th. Yuma is expected to begin production in early November with a few suppliers.

Transitions:
Huron production expected October 17th. Yuma production expected the first week in November.

Although supplies are good to start the week, a few shippers have started to increase leaf items, while others have remained steady. Romaine as well as all leaf items continue to have defects in quality worth noting. These defects are directly related to past temperatures in the growing regions. These defects include fringe and tip burn as well as some internal burn. These defects are industry wide. Although Temperatures have lessened in the growing regions, problems are surfacing. The weights on romaine average 28-32 pounds. Red, green and butter leaf have had lighter weights reported.

Demand is steady right now. Supplies have stabilized since last week in the Westside growing area and growers are coming close to the end of their season. The desert started last week in a small way. The market is steady on all sizes and the quality is good.

Transitions:
The desert started in a small way last week.

Demand hand supplies. We can expect good supplies and quality to be the pattern for a while with a moderate range of up and down movement. The desert started last week in a light way. Mexico is getting closer to exporting honeydews up to us. The market is currently steady on all sizes and quality is good.

Transitions:
The desert started last week with small volume.

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

Idaho/Oregon - Growers over all are about 75 to 80% done with harvest. Demand is moderate with a steady market on all sizes and colors. The size profile of all colors are peaking on large jumbo's and larger. Quality is very nice. Chance of rain later this week could interrupt harvest.
Washington - Growers over all are about 90 to 95% done with harvest. Rain yesterday has interrupted harvest going into storages. Demand is light. Market is low but steady. Quality is good.

California - Bartlett pear supplies remain light but with very few suppliers still packing. The quality has been good. Crimson pear supplies are also light but we have one shipper still shipping them. Bosc are steady and are peaking on smaller fruit but supplies are light. The quality has been good.
Washington - Bartlett pears are steady on all sizes and continue to peak on 80/90/100s. D'anjou pears are also steady and are still peaking on 90/100/110s. Stark Crimson pears are about finished for the season. Red Bartletts are steady and continue to peak on 40/45 half cartons. Bosc are steady to slightly lower and are still heavier to larger fruit in the Wenatchee valley and smaller fruit in the Yakima valley. The quality for all pears has been good.

Supplies are still light, but are improving with some shippers and others are looking to improve by the end of the month.

Idaho - The Norkotah market has firmed up slightly across all carton sizes. The market increase has been caused mainly by the disruption of supplies due to the rain a week ago. Quality is good. The size profile is still peaking on 60/70 count with an occasional lot peaking on 80/90 count. A few shippers have started bringing Burbanks out of storage. Quality is being reported as good. Burbank market is slightly firmer on all sizes and packs. Number twos remain limited due to most pack-outs are heavy to number ones. A few growers in the south have finished harvest and have all their potatoes in storage. Growers in the north still have a couple weeks left before they have everything under cover. Freezing temperatures is the biggest concern for these growers which luckily for now is not in the forecast.
Washington - The market is steady on all sizes and packs. The size profile is peaking on 70/80 count. Quality is good. Growers are getting close to finishing with harvest.
Colorado/Wisconsin - The market is steady on all sizes. Quality is good. The size profile is peaking on 70 count.

Bakersfield California - all colors are steady and continue to peak on A-size. The quality has been good. Remember to plan ahead so the shippers can transfer product down.
Idaho - the market is steady on reds and golds but carton supplies are limited as they finish up storage. Both colors are still peaking on A size with good quality.
Western Washington - the market for all colors are steady on all sizes with good availability. The quality has been good.
North Dakota - golds and reds are steady and red Bs are still fairly short. The quality has been good.
Wisconsin - reds and golds are steady on all sizes. The quality is good.
Canada - they have a steady market and good availability for all colors but they can only pack bags, no cartons are available. The quality has been good.

Supply on Italian squash and Yellow S/N out of the Santa Maria have remained steady. New fields have started in the Santa Maria. Quality and condition have improved from fair to Good. Italian and Yellow S/N have now started in Nogales Arizona with increased supply this week.

Stone fruit is finishing quickly. Last week we had several option left for peaches and plums. This week however, our options are more limited. Peaches are now limited to just a couple shippers and availability is in short supply. We expect most of this fruit to be gone by the end of the week, leaving very few options moving forward. Plums continue to be in good supplies this week with several options in loading locations. Plums are expected to remain steady through the end of the moth. Quality is strong and market prices are level.

Alerts:
Peaches are very limited and are finishing quickly. We expect supplies to last another week before coming to an end.

October will be a tumultuous tomato market as Eastern growers struggle to gain steady production amidst waves of repeated storms and growing challenges. Mass evacuations have pulled laborers away from picking and damages are being assed as workers return to fields from Florida to Virginia. Round tomatoes are steady with quality ranging across growers. Roma tomatoes are tight with worsening availability as Virginia struggle to produce in limited numbers to satisfy regional markets. Cherry tomatoes remain in very short supply with grape tomato availability tightening further in VA. North Florida will have grape tomatoes in a light way to help fill the pipeline, however it is nowhere near enough to offset eastern demand. Hurricane Matthew has struck at a time when fields are moving south to Florida and now face worsening shortages during transition and delayed start times to major growing areas as crops are assessed and recovered. Markets have the potential to be light with quality fruit well into mid November.

Demand continues to drive prices this week as local programs spread throughout the Eastern region of the United States have finished and the focus shifts to California to fill the gap. Mexico is preparing for their winter crop with Baja beginning in new fields mid October to finish out the fall season. With limited crossings and summer crops finishing in Mexico, California is taking the brunt of US demand. California production is decent for the season and sizing has improved from recent weeks, but growers are not able to keep up with rising demand. Roma tomatoes are gapping in Baja and a strong national market is keeping much of what is grown in Baja home in Mexico. Inopportune weather patterns in Mexico have also disrupted plantings for tomatoes where production is already light for cherry tomatoes. Grape tomatoes are also short and the market is strong. Like romas, shortages are expected until November when Central Florida is able to inject much needed volume into the market place.