The Source - October 10, 2018

As we get further into the harvesting season for apples, more varieties are available. Such as Jonagolds, Braeburns, and Pink Ladies. The rest of the varieties are continuously being harvested. The size profile is still leading itself to 113ct and larger with the smaller sizes of 125ct and smaller will be limited as the rest of the season plays out. The storage crop is all finished so placing your orders well in advance will help the accuracy and availability of your needs. All states are in full swing harvesting with availability for local apples. The overall quality is excellent with a full line of grades, good sugar levels, and decent pressure testing. The market is steady with all varieties and sizes.

Southern Baja (Constitucion) is starting to cool off during the day which should help quality, and decrease some of the spreading/seeding issues. Production is about the same as last week, rain is expected in the region during the weekend. The weather in Northern Peru (Trujillo) has become cooler which has slowed production, Southern Peru (Ica) has become warmer which will help production. More fields will be in production over the next few weeks in the South, we should start seeing bigger sizing across the board from this region. Overall markets are steady with production about the same as last week.

The growing region of Michoacán Mexico is seeing a plenty of rain and thunderstorms this week with temps in the low 70s. Mexico is peaking now, October- December. There is plenty of fruit out there and not much of a demand. On 48 size fruit the market is ranging from $27-$30. With size 60 fruit we are seeing a market price ranging from $28-$29 and on the 70 count fruit market is ranging from $27-$28. There are opportunity buys on fruit as we are entering peak season for Mexico. Fruit is cutting good and eating good with minimal reports of quality issues. Aventajada crop is ready to harvest as soon as Flora loca crop finished up in the next few weeks. There is still a good supply of Peruvian fruit available as the season is tapering off for them. Chilean fruit is also available and we will see good volume on fruit until the end of November.

Demand for bell peppers is very good, supplies in California are very tight. The northern growing regions of the country are on their last legs and should finish this week with most product being smaller and fair quality. Georgia has steady supplies and good quality, the area is still not in peak season, some shippers still haven't started for the season and most of the ones that have, still haven't hit peak volume. South Carolina has some supply but some quality issues have been reported on arrival. Hurricane Michael is set to make landfall Wednesday morning and will, at the very least, interrupt harvest.

Alerts:
Bell pepper demand is very good with supplies tight in California.

Transitions:
Pepper is in full transition to the Southeast.

Peak Seasons:
Pepper is not in peak season but it's coming soon.

Green Bell Peppers – California bell pepper finishing up out of the coastal growing areas. Green bell pepper volume has dropped. Volume should increase within 14 days as California growers transition into the Coachella valley. The quality of the peppers remains good. Currently demand exceeds supplies. Green bell peppers from Mexico are also available to load in McAllen, TX.

Red Bell Peppers – Moderate supply of red bells being harvested at this time in Fresno and coastal areas. California Growers getting ready to make transition to the Coachella valley by the last week in October, moving into November. Red bells are also available to load out of San Diego, with hothouse peppers being grown in Baja California. Few hothouse red bells are crossing through Nogales From Jalisco, Mexico. The quality of the peppers in all districts remains good. Pricing has firmed up on #1 pack red bell pepper. Lighter volume on Large, X-large bushel, and 15lb pack. Grower’s are packing more choice grade fruit. Red peppers are currently shipping from San Diego, Fresno. Hothouse red bells from Mexico are also available to load in McAllen, TX and Nogales, AZ.

Yellow Bell Peppers – Hot house peppers are available to load in San Diego, from Baja California. Few Hothouse yellow bells are crossing through Nogales from Jalisco, Mexico. The market is steady along with pricing. Demand is steady along with supplies. The quality of the pepper remains good. Shipping districts are San Diego, Fresno. Hothouse yellow bells from Mexico are also available to load in McAllen, TX and Nogales, AZ.

Domestic production of blackberries continues to fall off as we wait for Mexico to ramp up. Supplies in all California loading locations continue to be limited. Mexico harvest is slow to go with the majority of that fruit being sold out of McAllen, TX. We expect to see this situation continue to be the case for the next 2-3 weeks. By the end of October, we hope to see some of the bigger players start their Mexican harvest and the pipeline will start to fill back up. Until then, expect limited supplies and firm prices in California. If loading in McAllen is an option, there will be more aggressive prices and recovery fruit available.

Alerts:
Supplies continue to be limited as we wait for Mexico to ramp up.

Blueberry supplies remain dismal this week. Not much has improved from last week. With the cooler weather in the South American growing regions, arrivals of import fruit remain limited. This is an industry-wide issue. Although shippers on the west coast are relying on storage blues from the Pacific Northwest to help fill demand, we are still in a demand exceeds supply position. Supplies will not improve until we see increased arrivals of import fruit on the east coast and Mexico pick up harvest for the west coast. We expect this to be a slow improvement over the next 3 weeks. Markets will continue to be higher and firm.

Alerts:
Supplies remain limited as we wait for the import fruit arrivals to improve.

Domestic raspberry production will continue to taper off as we move forward. Mexico has started with light numbers this week and is expected to ramp up as we phase out of California harvest. No gaps or disruptions in supply are expected as we continue moving through the transition. Demand has been steady and the markets are flat. As we begin November, we expect Mexico to become the primary production region.

Transitions:
Mexico just started this week and will slowly ramp up as we move forward. Domestic production will phase out as we approach November.

Strawberry supplies are steady, but all shippers are working through the effects of the rain last week. As it turns out, the first rain of the season did hit Santa Maria, Oxnard and Salinas. Luckily, the rainfall was minimal, but it was enough to have an effect on harvest for a day or so and quality for the next week. This week, yields did decrease slightly as growers worked through the rained on fruit. The damage was not excessive, but as with any rain, it will have an underlying effect on quality. Some growing areas and varieties were more affected than others, but it is safe to say that all areas are aware and cautions of soft berries and bruising. We expect most of this fruit to be worked through by the weekend with quality improving next week. Barring any more rain in the near future, we can expect to see normal supplies in Salinas, Watsonville and Santa Maria next week. Oxnard production will continue to slowly ramp up through the month. Demand has been slightly lower this week. Market prices have been steady with some more aggressive opportunities in Salinas / Watsonville. Looking further down the road, we expect Mexico to start harvest toward the beginning of November with an overlap of production in Santa Maria and Oxnard. Salinas and Watsonville will continue with production until mid to late November, depending on the weather.

The broccoli market continues to be a little snug as the colder nights have slowed the growing process in the Salinas Valley and Santa Maria areas. Quality is fair with slight purpling, some mechanical damage, and occasional yellow cast. Look for supplies to continue to remain a bit snug going into next week.

The Brussels Sprouts market has remained steady in Salinas, Santa Cruz, and Watsonville areas. Oxnard is currently out and will be back in with product in mid-October. The temps have been relatively mild, which the Brussels Sprouts like, so fields are at budget if not slightly ahead of schedule. Quality has been affected by insect pressure particularly the Diamondback Moth and will be an ongoing battle this season.

Cauliflower market continues to stay steady as supplies have been consistent. Overall, the quality has been good with minor bruising and some yellow cast with weights in the 25 to 28-pound level. Look for this market to continue to stay competitive.

Supplies continue to be good both north and south. All orders are being filled to its entirety. Expect steady supplies throughout the week. Some shippers continue to flex on large sizing in the Oxnard Santa Maria region. Supplies continue to be moderate to good in Salinas as demand has remained flat overall. The quality overall is good with only occasional bowing being reported. The weights are ranging from 48-55 pounds.

Jalapeño – Supplies are available from Baja California, in San Diego and Los Angeles. Low supplies of Jalapeno still being harvested out of Santa Maria, CA and crossing from Baja California in San Diego. The quality of the peppers is fair out of both regions. The market is higher along with pricing. Few jalapenos still being harvested in Fresno. Currently, supplies meet demand. Jalapenos are also available to load in McAllen, TX.

Pasilla –Low to Moderate supplies of Pasilla available from Baja California and the Santa Maria growing areas. Currently supplies meet demand. The quality of the pasilla remains fair out of Santa Maria and Baja, Mexico. The market is higher along with pricing. Pasilla are also available to load in McAllen, TX.

Anaheim – Low to Moderate supplies of Ananheim available from Baja California and the Santa Maria growing areas. The quality of the peppers from Santa Maria and Baja California remain fair. Anaheim supplies meet demand. The market is steady along with pricing. Anaheim peppers are also available to load in McAllen, TX.

Tomatillo – Moderate supplies available on both husked and peeled tomatillos from Baja California. Santa Maria producing light volume of tomatillo’s as well. The market is high and remains steady on both peeled and husk tomatillo. Currently, tomatillo demand exceeds supplies on both peeled and husk tomatillo. Quality is fair to good from both growing areas. Tomatillos are also available to load in McAllen, TX.

Serrano – Supplies are still available from Baja, in San Diego and L.A. There is also serrano pepper available to load in Santa Maria. Volume on Serrano is lower. The quality of the pepper has been good from both growing areas. Demand could exceed supply. Pricing remains steady. Serrano peppers are also available to load in McAllen, TX.

The Cilantro market continues to stay steady with growers coming in with slightly higher yields than previous weeks. The cilantro quality continues to be good. Look for the cilantro market to continue to stay steady going into next week.

The lemon market is still trying to find a level of competitiveness. It also varies from supplier to supplier. Supplies have increased weekly, although certain suppliers have limited availability on 165ct and larger. The quality out of Coachella is very nice with limited browning, decay, or soft rot. The quality out of Oxnard is hit and miss depending on the lot. We should see a sense of normalcy by the end of October.

Heavier rain and thunderstorms in the forecast this week in the growing region of Veracruz Mexico. Under these weather conditions, we can expect the harvest to be affected. Overall quality is fair to good and with a steady market. Plenty of smaller sized fruit (200,230,250) with opportunity buys as well. On the larger size fruit (110,150,175) we are seeing a more limited supply. They are in high demand, limited and double the price of small fruit. Market price on small fruit (200,230,250) ranges from $8-$10 and larger fruit (110,150,175) range from $13-$18.

We are still struggling with small-sized fruit. And now we are starting to feel the pinch of 88 count size valencias and their limited availability in supplies. Quality is fair at best with regreening, decay, stem rot, soft rot, and just an overall ugly appearance. Now we are being told that Navels will be extremely limited the week of the 15th of October. Better supplies of Navels will be available the week of October 22nd. The market is still extremely elevated and even with the onset of navel supplies coming, the market will remain high through the month of October.

Alerts:
The navel crop will be extremely limited the week of the 15th with supplies. Better supplies will start the week of October 22nd. The valencia crop is still extremely limited with elevated markets.

Cucumber supplies are very tight in the southeast which is where the primary supply is being produced during this time frame. North Carolina is shipping light supplies after hurricane Florence and remarkably most product is getting received. Virtually all the northern regions of the country have finished for the season. The southeast is experiencing low yield due to above average temperatures for the past month. Plants have stopped producing the yields that would traditionally come this time of year. Supplies coming from Mexico are not in full swing so buyers are not able to switch yet.

Alerts:
Very Light supply, especially on number 1 product.

Transitions:
Cucumbers are transitioning to the southeast.

Peak Seasons:
Cucumbers are not in peak season.

Cucumber supplies are still available out of Baja, California. The quality of the fruit is mostly good. Baja cucumber still showing strong demand from both west coast and east coast keeping the market steady. Pricing also remains steady. Nogales shippers have started receiving cucumber from the Hermosillo, Sonora growing district. Rain in Sonora this week could affect production and /or quality. Volume is expected to increase in the upcoming week’s. Shipping areas are San Diego and Nogales. Light supplies of cucumbers are also available to load in McAllen, TX.

Alerts:
Rain in Sonora this week could affect production and/or quality for this commodity.

The majority of eggplant being produced in the east is coming from Georgia and North Florida. Supplies are steady and quality is very good, demand is also good, keeping the market steady for the past few weeks. The region is in peak season and should continue with good volume for another week or two. Harvest will be interrupted for the next few days with hurricane Michael set to hit land Wednesday.

Alerts:
Supplies Steady, Demand Good. Quality Very Good.

Transitions:
Eggplant is not in transition.

Peak Seasons:
Eggplant is in peak season.

Eggplant continues to come out of Fresno. Quality remains good. Growers continue to pack both fancy and choice grade. Volume is expected to be consistent through October. Eggplant exceeds supply, market remains strong.

No change from last week. Shippers are seeing excellent yields and quality. Supplies of green grapes remain heavy. Fruit is firm with good size and strong stems. Market conditions have been flat with promotional volumes and opportunities available. Barring any major weather events, we look to have good availability for the next 2-3 weeks.

Like the green grapes, reds continue to be in excellent supplies. We have several varieties to choose from in all size ranges. Quality is being reported as excellent and markets have been steady. Plenty of promotional opportunities available.

The Green Onion market continues to remain extremely tight. The wet weather in Mexico and labor issues have caused product to be extremely snug. The recent heat followed with rain has been causing some occasional leaf minor and some mechanical damage. Growers are assessing the wet fields daily to see if they can even harvest. The green onion market will stay strong going into next week.

The kale market continues to be steady with no signs of changing in the coming week. Supplies continue to be good with steady demand. Quality continues to be good with good color, full bunches, and only an occasional yellow leaf being reported.

This market is softer. Demand has fallen off. Multiple suppliers are flexing due to excessive lettuce supplies that have come on. There continues to be a gap in pricing depending on the supplier. Some quality issues that have come up upon arrivals include some puffiness, ribbiness, and mechanical. The reports have been minimal, however. Weights on palletized have been ranging from 36-44 pounds. Huron will begin production approximately the third week in October, and this will go until the third week in November. Expect some early lettuce in Yuma the first week to the second week in November.

The Tender Leaf market continues to remain steady as supplies on spring mix, arugula, baby spinach, and cello spinach have increased a bit in the Salinas Valley. The recent warmer weather has caused some quality issues such as minimal yellowing and bruising of the tender leaves. This spinach market will continue to stay steady into next week.

Weather in the San Joaquin Valley is calling for temps in the low to uppers 80s this week with no rain in the forecast. We are seeing a limited supply on 9 ct. fruit this week as well as jumbo size fruit. Plenty of 12s, 15s and some 18s available. Overall quality is good and brix/sugar levels are ideal at a 12-14 range. Orders calling for 9ct fruit are having to sub into smaller fruit to cover orders as 9s are tight this week and will probably remain tight until we see volume increase from the Maricopa growing region in Arizona. Market price on California fruit is ranging from $10.95-$12.95. Weather in the Maricopa growing region is calling for rain come Friday and Sunday. That could delay the harvest and drive the market up.

Weather for the San Joaquin Valley this week calls for no rain and temps in the low to upper 80s. We are at the end of the Westside season and Arizona has started off with light volume out of Maricopa. Overall quality of California fruit is good and brix/sugar levels range from 10-12. Larger size fruit is harder to fins as we are seeing a limited supply. On the smaller fruit we are seeing a good supply of 6s and 8s. Market price on Honeydews this week range from $10.00-$11.00. Maricopa Arizona is expecting some rain this Friday and Sunday. This could delay the harvest, cause quality issues and also drive the market up as we transition from California to Arizona.

Seedless watermelons are also available to load in Nogales, from Mexico. Watermelon production crossing through Nogales has increase in the month of October. Rain in Sonora this week could affect production and or/quality. Watermelon being harvested in the Hermosillo, Sonora growing area. Volume in Central California has decreased with some fields finishing up. Demand is steady. Pricing remains steady.

Alerts:
Rain in Sonora This week could affect production and or quality for this commodity.

Markets are steady at low levels on all sizes and packs. Harvest is all but done in the Washington growing area with about 5 to 10 % left. Idaho is starting wind down with around 20% to go. Rain early this week in Idaho has slowed harvest but growers are already back in their fields and are hoping to get everything under hoops by next week. The onion crop is looking very nice this year with sizing peaking on Jumbo's and larger.

There are several states currently harvesting pears. As well as several varieties such as Danjou, Bartlett, Bosc, Red Bosc, Seckle, and Forelle pears to chose from. The markets have been stable with all size ranges available. The quality has been excellent out of all growing regions with good sugar levels, decent pressure testing, and firm skin as to not bruise.

We continue to see a steady supply of pineapples from all growing regions. The market is also competitive in all growing regions as well. Quality has been hit-and-miss with some fruit arriving cutting brown and overripe. We will see steady supplies and market through the month of October.

Idaho - Markets are steady on 60 count and larger with good supplies. A slightly firmer market on 70 count and smaller with limited supplies as you get to the smaller sizes. Demand is light on the retail bags this week which as shipper running lighter. Light rain and cold overnight temperatures early this week have a slow harvest. Overnight temperatures in the high twenties are forecasted for Thursday through Sunday which have growers concerned. Something to keep an eye on over the next couple weeks as harvest comes to close. Look for the larger counts (60 count and larger) to be in good supplies through the New Year with the Norkotah being the main variety. As we transition into Burbank's being the main variety in April, we will see the sizing shift to peaking on 80 count. Look for the grower/shippers to slow down pack times in an effort to bring the market higher as the potatoes come out of storage. Harvest should finish will all growers over the next couple of weeks. Quality is still very nice will little reports of issues upon arrival.
Washington - Market is steady across all sizes and packs. Demand is light. Sizing is peaking on 80 count with a good mix of sizing smaller and larger. Harvest will be complete with most growers. Quality is very nice.
Colorado - Market is steady. Sizing is very large and is currently peaking on 60 count and larger at most sheds. Quality is nice.
Wisconsin - Markets are steady. Supplies have been interrupted by rain and cool temperatures over the last couple of weeks. Forecast is calling for clear sky's for the next 10 days. Something to keep an eye on as grower don't have much more time to get their crop into the storages. Quality being packed is still being reported as nice.

Alerts:
Rain and cool weather interrupting harvest in Wisconsin. Cold weather to hit Idaho later this week.

Demand is light on all colors and most sizes across the growing areas (Washington, Idaho, Colorado, Wisconsin, North Dakota, and Canada). Weather issues in Wisconsin, North Dakota and in much of Canada is creating some harvest delays and concerns of getting everything into storages. Cold weather is the main concern up in Canada. Rain and cold weather in the Wisconsin areas should clear for the next 10 days as we get into the weekend. B size Reds, Golds, and Whites are limited out of the Midwest shipping points due to limited run times. Quality getting into the packs are still very nice. Look for the markets to stay steady at current levels through this month.

Alerts:
Cold and wet weather in the upper Midwest slowing harvest.

Better supplies of squash are coming after weeks of low yielding fields. New shippers are starting for the season and fields that have been low yielding are now coming to life. Quality has been good for the most part and should get better as the temperature gets a little cooler. South Carolina and Georgia are producing much better supplies, Plant City is starting light supplies.

Alerts:
After weeks of tight supplies, yellow squash supplies have gotten much better and zucchini seems to be following suit.

Transitions:
Squash is not in transition

Peak Seasons:
Squash is coming into Peak season.

Zucchini and Yellow S/N – Good supply of Italian and Yellow S/N still coming out of the Santa Maria growing area. The quality remains good. Italian and Yellow S/N also crossing through Nogales. Currently more volume on Yellow squash than Italian. Squash market is active with low supplies and higher demand. Rain in Sonora this week could affect production and /or quality. Grey squash also available through Nogales. Squash supplies from Mexico are also available to load in McAllen, TX.

Alerts:
Rain in Sonora this week could affect production and/or quality on this commodity.

As mentioned last week, the domestic stone fruit season is winding down quickly. Peaches and nectarines are phasing out quickly with only a limited group of shippers offering a very limited size range (mostly larger). We expect to see the last of this fruit finish up next week. We will finish the month of October with black and red plums. We anticipate black plums to finish first, followed by red plums by November. Markets have been steady and quality is holding up on the remaining tree fruit.

Alerts:
Peaches and nectarines are finishing up quickly.

Quincy Florida has recently started in a light way and the region is now threatened by Hurricane Michael. North Florida and south Georgia are currently the heaviest tomato production areas for the east coast, and this storm will unfortunately have a major impact on all varieties. These growing regions are only 25 miles apart and expecting 6-12 inches of rain and winds exceeding 80 miles an hour by evening tonight. Palmetto Florida further south was scheduled to start production by October 25 but it is too soon to know the status of the crop with the hurricane making landfall today. At this time, there is little concern for winter programs in the central part of the state being compromised, as the brunt of the storm will make landfall further west. The projected path of the storm will result in a likely 2-3 week gap before central/south Florida has anything to harvest. Tennessee has finished harvesting crown picks last week and will continue harvesting second and third pickings until their first frost. Tennessee is continuing to recover from previous rains and quality is fair from this area. Alabama and Michigan programs will finish their summer programs this week. It is likely that October will show a much stronger market with demand shifting entirely to the west.

The market is growing stronger as Mexico and Florida both receive hurricane systems impacting growing regions for the winter. California is near the end of their summer crops and winding down for the season. The central valley continues to produce tomatoes while crossings from Mexico have been reduced from hurricane weather systems Rosa last week and Sergio churning off the coast. Round tomatoes are firm while supplies shorten further from heat related issues. There is a decent production of romas as well, but the demand is particularly heavy due to limited crossings from Mexico and those supplies are sold out for the week. Mexico has endured weeks of rain and currently assessing damage from Hurricane Rosa keeping what limited production there is south of the border. Both Baja and the east are in very short supply on roma, grape and cherry tomatoes at this time and the market is expected to stay active on these items headed into the first week of October until farming operations can recover.