The Source - October 11, 2017

California – Granny Smiths are still cleaning up, but there are still a few hanging around. We expect Pink Ladies to start at the end of next week. The quality has been good.

Washington – Red Delicious are steady on all sizes and grades with only light supplies available. The strong red delicious demand remains because new-crop supplies are limited and most shippers cant catch up due to light packing. Golden Delicious are steady with good availability on 100 size and smaller. The new-crop Goldens are clean and peaking on Premium grade 100/113s with only light supplies of 88s and larger. Granny Smiths are steady to lower on the larger fruit with light availability. 100 size and smaller are steady with better availability. Galas are steady to slightly lower on 100s and smaller as they continue to peak on 113/125/138s. Fujis are steady to lower and are still peaking on 88/100s. Honeycrisps are steady to slightly lower with more higher grade fruit ranging from 56s to 100s but peaking on 56/64/72/80s. A few Jonagolds have started along with a few Braeburns. The quality of all varieties has been good.

Idaho – Galas are steady and are cleaning up already. Jonathans are steady and peaking on 100 size and smaller. The quality has been good.

Michigan – Michigan continues to pack Galas, Honeycrisps, McIntosh, Jonathans, Jonamacs, Golden Delicious, Red Delicious, Cortlands, and Empires. Most varieties have excellent quality and better than normal color, so markets are holding. Galas are steady due to strong demand, and the fruit is heavy to the smaller sizes with excellent color. McIntoshes are steady and peaking on 88/100's. Jonamacs are also heavy to smaller fruit, but supplies are limited. Honeycrisps are large and peaking in the 64-88 range with a few smaller sizes. Jonathans are smaller and have good red color this year but are also more limited. Golden Delicious are steady and peaking in the 88/100 range. Cortlands are steady and are peaking in the 88/100 range. Red Delicious are also steady and are peaking on 88/100s now with not much small fruit. The quality has been good for all.

Pennsylvania – they continue packing Galas and Honeycrisps, Fujis, red delicious, and Golden Delicious. All markets are steady, but the demand remains strong. Honeycrisps are peaking on 56/64s, reds are peaking on 88/100s, while the rest are heavier to 100/113s. The quality has been good.

New York – they continue packing Cortlands, Galas, McIntosh, Honeycrisps, Macouns, Red Delicious, Fujis, Snap Dragons, and Empires. Most varieties are large and peaking on 88/100s. There are a few small Galas, Macs, and Empires. The quality is good for all.

Alerts:
Large Granny Smith remain limited in Washington.

Peak Seasons:
Washington continues in the peak of its Gala apple season.

Northern Baja (Ensenada) is still having good growing weather and should be in for another 10-14 days. Southern Baja still has warm weather which is helping production. Northern Peru (Trujillo), and Southern Peru (ICA) are both in heavy production with excellent growing weather. Overall markets are lower due to Southern Baja, and both regions in Peru in full production.

We continue to see improving volume being harvested out of Mexico as the maturity of the fruit improves. Supply lines in the states are also improving. As we move forward through October, we expect to see steady harvest and good supplies available. Size is still peaking of 60s/70s/84 and improving on 48s/40s. The larger fruit, 36s/32s are still very limited.

The green bell pepper market is still on the bottom. With all the northern sections of the country still harvesting bell pepper and the south-east coming into a very good volume the bell pepper market is struggling to get off the floor. With all sizes in single digits, it's a buyers market and quality is good. The southeast is in good volume but will not peak for another week. Michigan, Ohio and New Jersey are still harvesting with great weather for the past few weeks. Most shippers are reporting they will wind it up for the season late this week. Southern shippers are reporting more demand for their product this week so look for some strength to the marker next week.

Transitions:
Green Bell pepper is transitioning to the southeast.

Peak Seasons:
Green bell pepper is in peak availability

Orange Bell Peppers – light supply being harvested in Fresno. Showing good quality and condition.

Yellow Bell Peppers – light supply being harvested in Fresno. Yellow bell peppers are showing good quality and condition.

Green Bell Peppers – lighter supply of green bell peppers being harvested in the Fresno growing area. Green bell peppers are showing good quality and condition on all sizes.

Red Bell Peppers – good volume of red bell peppers still being harvested in the Fresno growing area. Red bell peppers are showing good quality and condition on all sizes.

Blackberry supplies continue to suffer. The domestic crop in Salinas, Watsonville and Santa Maria remains limited as we finish up the season. The quality of the domestic fruit is improving slightly, but we are still seeing some red cell and soft fruit. Volumes are light, and availability is sporadic. Central Mexico was hit with some rain which delayed production and arrivals. Unfortunately, this is further extending the gap in supply. Mexico is expected to resume harvest later this week, and we anticipate more fruit arriving next week. Barring any further weather issues, we expect to see Mexico increase in production week over week. Quality is being reported as good. Markets have been steady.

Alerts:
Supplies remain limited with domestic fruit and quality is fair.

Transitions:
Mexico harvest was delayed due to rain. Better supplies are expected next week.

Blueberry supplies have started to improve this week. We have now transitioned into all import fruit, and shipments are arriving on a regular basis. We have product available from Peru, Argentina and Mexico. Quality is being reported as very good on all fruit. Good size, color, and flavor. Fruit is available to load in multiple locations on both the east and west coasts. Markets have been high, but are starting to gradually decline as more fruit arrives. We expect supplies to increase and quality to remain consistent moving forward.

Transitions:
Import fruit is ramping up in production. Good supplies expected moving forward.

Raspberry supplies will be consistent this week. Salinas, Watsonville and Santa Maria areas are in steady production, but Central Mexico did experience some rain over the last several days which is delaying harvest and arrivals of fruit. The quality of the domestic fruit has improved with firmer berries and good color. Mexico is expected to resume harvest later this week with fruit expected to arrive next week. Quality on the Mexican fruit is being reported as strong. Markets have been steady in all areas.

Alerts:
Mexico production delayed due to recent rains.

We continue to have good supplies of strawberries with steady production in multiple areas. Quality overall is improving, and markets have been slightly lower.

Salinas / Watsonville – Up until recently we were dealing with the impacts of hot weather on this fruit. For the last several weeks, the fruit that was being harvested had endured hot days and warm nights. With the warm weather comes overripe and soft fruit. Night time temps were not dropping low enough for the fruit to rest and firm up. We saw a lot of bruising and dark soft fruit. Luckily, the weather over the last few days has been much better for strawberries. We have had warm days and cool nights, helping the berries firm up. However, we are at the tail end of this season, so the crops are not producing the size we would like (counts range between 22-28). Although the berry condition is improving, it not optimal quality as we finish up the last of summer crop.

Santa Maria – Looking back over the last three weeks, this area was experiencing the same hot weather, so we did see some soft fruit that did bruise easily. However, this is new fall crop, so the plants are younger, healthier and will recover much better. Again, the quality has not been optimal because of the heat, but slightly better than Salinas. The good news is, the weather in this area has been cooling off which is helping with overall quality and firmness moving forward. Counts are expected to be between 20-24. We expect quality to improve as we move forward, barring any further heat waves.

Oxnard – This is new fall crop as well. Harvest has been very light over the last two weeks but is gradually increasing week over week. The quality has been reported as good with occasional white shoulders, but firm. Counts have been between 20-24. Overall quality will continue to improve moving forward

The broccoli market continues a downward trend. As the demand has fallen off, it has forced suppliers to lower their prices. Although supplies remain limited, the market continues to correct itself. Processors are still struggling to get enough raw product to produce florets. We should hopefully see better supplies by next week. Quality out of Mexico is still showing hollow heart, which is a hole up the center of the stem of the broccoli crown. Salinas and Santa Maria are still dealing quality issues such as pin rot, yellowing, and brown beads.

The brussels sprout market continues to be steady at current market levels. Supplies are slowly increasing, but demand is at high levels. Processors are also purchasing raw product supplies keeping the market at higher levels as well. Quality is much improved with all size packs available from jumbo to small. There has also been minimal worm damage with dark green color.

Carrots supplies are still fairly tight as a result of weather earlier in the summer. Most orders have been getting covered with few shortages. The market continues steady to slightly higher on some items. Supply situation will remain the same through the rest of the year.

The cauliflower market was trending lower as we finished last week. Now we have seen that switch and turn the other direction. Suppliers excess volume has been sold, and the supplies look to decrease into next week. Overall quality is nice with minimal off-white to cream color, uniform appearance, and minimal brown to black spotting.

Supplies have tightened up with multiple suppliers while others continue to be steady. Overall, the market is up. Large sizing has become much tighter in availability compared to past weeks. Oxnard is expected to begin production at the end of October. Michigan weather is changing, and production has slowed down. Production in Santa Maria and Salinas is moderate at best. Slight bowing and seeder has been seen but minimally in northern as well as southern California. Overall quality in all the growing region continues to be above average.

Transitions:
Oxnard will begin production at the end of October.

Chili pepper volume remains light out of our growing areas. Baja will be mostly done in the next few weeks, and Santa Maria is also struggling to produce any real volume. This will continue to be the case until we transition to Northern Mexico in late October or early November. Demand remains strong; with supplies down, the market is getting stronger. Very light volume on Anaheim peppers. Mostly #2 Anaheim available at this time.

The overall cilantro market is steady at current levels, although some suppliers are much higher than others. The best value continues to be out of Santa Maria. Quality has vastly improved with minimal yellowing or the brown to black spotting that we have seen in the past.

The Oxnard/Ventura crop is 97% harvested and nearing its seasonal end. Fruit out of this district is peaking on 165's and smaller. The Desert crop is going with limited volume that will build in availability as we move through October. Fruit from this district is peaking on 140s/115s, heavier to the fancy grade. Imported fruit from Chile and Mexico is in good supplies.

Lime quality levels continue to improve slowly. Tropical Storm Franklin and other storms had caused a lot of damage to the new crop lime supply and quality. Quality defects range from stylar, skin breakdown, and wind scarring. The size curve is changing to be lighter on the 110's and 150's. Overall supplies have decreased while demand has picked up a bit. The market is higher.

California Valencia crop is near to its seasonal end. Most shippers have already finished, and the few left packing are down to almost nothing, leaving a very limited supply available that in most part will be clean out by the end of this week. Navel crop is not expected to begin until toward the end of October to the first part of November. We will see a gap in California oranges.

Alerts:
California Valencia orange season is coming to an early end. Demand far exceeds supplies.

The supply of eastern cucumbers is increasing this week with more growers starting in the southeast. After a week of decreasing supplies, the warm weather has newer fields starting ahead of schedule. The northern producing regions of the country are winding down, the past month has seen above-average temperatures and kept growers going longer than normal. October is the traditional month for the mid-Atlantic and southeast regions to hit their peak volume. Last week showed a slight gap in supply, but that appears to be coming to an end by this weekend.

Alerts:
There are quality issues to watch out for in older fields.

Transitions:
Cucumbers are transitioning to the Southeast.

Peak Seasons:
Cucumbers will be in peak availability next week.

Cucumber volume from Baja remains steady. Quality out of Baja remains mostly good. Cucumber volume has increased out of Nogales, from Sonora, Mexico. The market has adjusted down and may continue to do so as volume increases from the Northern Sonora growing region. Nogales quality is good. Cucumbers will be a promotable commodity with overlapping seasons from Baja and Nogales producing heavily.

The eggplant supply is steady with the southeast in good supply but not in its peak yet. The Midwest and Northeast are winding down this week on most suppliers. Quality is very good in the Southeast. Northern regions have good quality with most shippers. The above-average temperatures are keeping the mid-west going longer than normal. Supply in the southeast should increase next week as more shipper start, and current fields will be producing more volume. The market has been very steady for the past two weeks as demand has been better than normal for this time of year. Expect the market to continue on this path for the next week.

Transitions:
Eggplant is transitioning to the southeast.

Peak Seasons:
Eggplant will come into peak availability next week.

Eggplant production out of Fresno remains light. We should remain to see light supply until the end of the California Eggplant Season. Quality out of Fresno remains mostly good. Nogales, from Mexico, is still light volume. Production is heavy to smaller fruit in both growing areas (24 count and smaller). The Western market remains steady. Quality from Fresno and Nogales are good to Excellent at this time.

Good quality and steady supplies on green grapes as we head into autumn. Growers have worked through their problems they had with heat and rain back in September. Expect more of the same barring weather-related issues.

Red grapes also continue to have good quality and supplies. Again, growers have worked through the weather-related issues in September. Expect supplies and quality to be good barring any more weather problems.

Overall green onion supplies are back to a somewhat sense of normalcy. There seems to be an abundance of iced versus iceless green onions. Although the jumbo-sized green onions are extremely limited. The market is steady, but the iceless packs are commanding a premium. The quality is much improved with minimal brown to yellow tops and minimal amounts of mechanical damage.

We continue to see ample supplies of kale out of Oxnard, Santa Maria, and Salinas growing regions. This superfood is abundant due to all the processors utilizing it in some salad blends. The quality has been excellent with full cartons, dark green color, little dehydration or yellowing. The market although varies from supplier to supplier but is relatively competitive.

This market is extremely active, and this will continue for the entire week. Demand exceeds supplies. Production gaps continue in northern and southern California. Huron will begin production next week, but supplies will be limited. Weights on wrap lettuce have been reported at 36-40 pounds which is a decrease on weights in comparison to past weeks. Slight tip burn, mechanical, puffiness, ribbing, and slight insects are the main defects with this commodity. Currently, processors are out with their checkbooks trying to buy as much acreage as possible for this commodity. This will only create a greater strain on production for the carton market. We will be in a demand exceeds supply mode for a few weeks minimum.

Transitions:
Huron expected to begin production next week.

Although green and red leaf has not reacted in the marketplace like romaine, these commodities are getting stronger. As production starts to slow down in the Salinas Valley, expect rising markets. As far as romaine, supply has tightened up considerably compared to past weeks, and things are only going to get worse. Processors are attempting to buy as much acreage as possible, and this will make this market active for weeks to come. Defects on romaine include slight mechanical, pink ribbing and insect. These defects can be seen for green and red leaf as well as butter, but overall the quality has been good. Romaine hearts continue to be stronger in the marketplace. Huron is expected to begin production next week in a light way.

Transitions:
Huron to begin light production next week.

We have seen price increase across the industry with spring mix, baby spinach, and arugula. This is mainly due to limited supplies in the Salinas Valley. The transition cannot be soon enough to the Yuma growing region, although there has been some harvesting in Yuma already. Those supplies are not enough to meet demand. We are struggling with the heat from September that brought about acreage too soon. We have seen quality issues such as yellowing in arugula, mildew issues in the organic side of all these items, bruising, to increased moisture in some packs creating slimy decay. We will see this trend for another four weeks.

Alerts:
Spring mix, arugula, and baby spinach supplies are extremely limited as an industry due to limited supplies in the Salinas growing region.

The desert has started in a light way with mostly large fruit. Offshore supplies are set to start the first week or two of November. We are experiencing good demand and supplies that are a bit less than last week. Quality out of the desert is outstanding while quality in the San Joaquin Valley is still very nice. A few lots have come in with some soft melons, but overall they are great still. The market is steady to higher.

Transitions:
The desert has started with light volume. Offshore will hit during the first week or two of November.

Honeydews are continuing to see a little more demand. The overall supply of honeydews is lower as growers finish harvesting for their season. Quality has remained excellent. The desert has started in a light way, and Mexico has also started. The market is higher.

Transitions:
The desert and Mexico have started in a light way. Offshore supplies will come in the later part of November.

Watermelon supply out of California remains light. Quality is being reported at fair to good. Volume on new crop watermelon in Nogales crossing from Mexico has increased. More Nogales shippers have started to received steady volume on this commodity. This should have an impact on the market. Demand is very strong, mostly due to a lack of supply from older fields in competing districts. Quality on Mexican watermelons is mostly good to excellent

Onion market is steady on all sizes and colors with moderate demand and good supplies. Quality is looking really good out all growing areas. Sizing is still peaking on Jumbo/medium out of most areas. Weather looks to be good for the next 7 to 10 days as growers push to get all their onions into the storages. Look for the market to be fairly steady at current levels until harvest finish by the end of this month start of November. Transportation is very limited with no relief in sight. Christmas Tree season is right around the corner which will only make transportation even tighter. Please stay ahead on inventory and place orders with as much lead time as you can.

Alerts:
Transportation very limited.

Stockton, California – Bartlett pears are steady on all sizes with 110s and larger now. There is still some price-flex for volume in most sizes. California should continue shipping mountain fruit through this month. Red pears are steady and continue to peak on 45/50 half cartons, but supplies are light. Bosc pears are still peaking on 100/110s, and the market continues to fall slowly due to more Washington volume. The quality has been good for all three.

Washington – Bartlett pears are steady on all sizes, and they continue to peak on small fruit. Most suppliers are peaking on 110/120s. Red Bartletts/Red Sensations are steady on all sizes and continue to peak on 45/50 half cartons. Larger Bosc and D'anjous are steadier due to lighter supplies while the smaller fruit is lower with better availability. The Bosc haven't been small like the D'anjou's. The quality for all has been good.

New York – they continue to pack bushel, bin, and tote Bosc and the market is steady. The quality is reported as good.

Peak Seasons:
Washington continues in the peak of its Bartlett pear season.

We are seeing good supplies coming in for the tropics. Expect good supplies as we move through October and into November.

Markets have started to tighten as harvest of the 2017/2018 potato crop slowly finishes. Idaho will have most if not all fields in storages by the end of next week. Colorado/Wisconsin have 80 to 90% under cover with growers watching the cool weather very closely. Washington is all but finished. Quality is being reported as good out of all areas with very little issues being reported. Sizing out of Idaho is peaking on 60 count and larger. Smaller cartons are limited as shippers are putting most of these sizes into their retail bags. Looks for the markets to be a little unstable as supplies transition from the field to coming out of storage. Transportation is very limited and is demanding a premium. Please stay ahead on your inventory.

Alerts:
Transportation is very limited. Potato supplies transitioning from field run to coming out of the storages.

Eastern Washington – red and gold potatoes remain steady and are heavier too. The quality has been good.

Western Washington – reds, whites, and golds are steady with good availability. All are peaking on number-one A size. The quality has been good.

Bakersfield, California – red, white, and gold potatoes are steady on all sizes. The availability has been good, but the current truck situation is making it tougher to get product down from Washington. Reds, whites, and golds are peaking on As with good quality.

Idaho – red and Gold potatoes are steady on all sizes, but the availability is better as a couple more suppliers have started. The quality has been good for both.

Wisconsin – the red and gold markets are steady, and the availability is good for both. The quality has been good.

North Dakota – reds and golds remain steady with good availability. Transportation is the toughest thing to find up there. The quality is good.

Peak Seasons:
Idaho, western Washington, and Wisconsin continue in the peak of their colored potato seasons.

Squash supplies are picking up in the southeast with new fields starting and above average temperatures for this time of year. Yellow squash is still tight, trying to recover from hurricane Irma and the white fly pressure the region has endured. More supply from the west has taken some pressure off the eastern market. With warmer weather all over the east, a lot of local deals have continued to produce product longer than normal. Newer fields will start next week in Georgia, and northern Florida as the region gets into its traditional window. Look for a steady market the rest of this week.

Alerts:
Some quality issues on yellow squash.

Transitions:
Squash is transitioning to the southeast.

Peak Seasons:
Squash will move into peak availability next week.

Italian and Yellow squash have finished out of Santa Maria growing area in California. This has impacted demand, and the focus on the west coast has shifted to Mexican product. Squash volume in Nogales, from Mexico, has increased significantly in the last few days. The market has adjusted down; demand remains steady in Nogales. Quality is mostly good on zucchini, yellow squash, and gray squash

We should be seeing the last of peach harvests wrapping up this week as expected. Peaches should be available into next week and dwindle down after that. Plums are still going and should continue for the month. Pomegranates and persimmons are well into harvest and available readily. California kiwi has started now with volumes starting to increase. Apple pears will also continue to be available. Quality on all items is very nice.

Peak Seasons:
Peach harvests will wrap up this week and supplies will continue to decrease.

Fall harvests remain light and pricing is steadily meeting light demand. As crops begin to wrap up in October, the outlook for November is bleak with much of the Florida growing regions set back or destroyed from Hurricane Irma. In the meantime, NC, SC, TN, and VA continue to harvest in a light way. Some growers are experiencing harvesting gaps, while others have been curtailed due to rain and wet fields. Lighter than anticipated demand is helping markets stay affordable considering the short supply. However, the market has edged upward this week. It is anticipated the market will strengthen as supply contracts further towards the month of November. California continues to have a decent volume of round and Roma verities. Also, the injection of Mexico imports in recent weeks is helping markets stay low and steady at this time. Grape and Cherry tomatoes remain steady as VA has come into a new crop and will remain competitive until the first production gap after the first frost usually occurring near the end of October.

Ca, Baja, and Mexico are steady in the western Market showing prices that have been driven down by light demand. As crops begin to yield less going into November markets can jump quickly. The California growers have experienced an extremely hot summer and quality remains a concern. There is a wide range in quality and condition in fruit coming from Mexico and Baja as well. Premium pricing is likely the top of the range in quality being offered. Similarly, Grape supply has increased significantly from just weeks ago also with price being an indicator of quality. Cherry tomatoes remain limited in the west with the majority of the market being determined by VA shippers.