The Source - October 13, 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 remain very short, in fact most shippers don't have any volume of 125s and smaller. New-crop Granny-smith are steady but supplies are still limited. Grannys are peaking on larger fruit. 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 the 125s and smaller are limited. 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 very low as the end of the season is close. 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. 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 all 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. Virtually no harvest in now taking place. We are now 14 days into little harvest to no harvest of fruit. There are still on going talks with the growers, but no agreement. The current on hand inventories of US shippers are extremely low and for the most part will be gone but this weekend. Availability for next week is uncertain and looks very bleak, even if growers start harvesting soon.

Alerts:
Avocado inventories in the US are running out. Availability for next week looks bleak.

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 replaced by good volume 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.

Alerts:
Supplies are still limited on the west coast with better availability on the east coast and port areas.

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. Rain is forecasted for Salinas, Watsonville and Santa Maria starting Friday and lasting through the weekend. This will likely affect production, especially in the northernmost growing areas. Growers are picking and packing heavy today to get as many ripe berries into the pack as possible before the rains come. Some quality issues have been reported with bruising in the northern growing regions and some white shoulders and salmon color in the southern growing regions. There is a wide range in quality from grower to grower and area to area. Sizing is in the low to upper 20s across all growing regions, slightly larger in the south.

Alerts:
Rain is forecasted for the weekend and may affect production in Watsonville and Salinas with a slighter chance in Santa Maria as well.

Transitions:
Oxnard strawberry production is increasing.

The broccoli market is beginning to strengthen as harvests drop off in the Salinas region. This market should continue to strengthen as we leave Salinas and move into Yuma. We expect the transition into Yuma on broccoli to begin about mid-November. Quality is reported as good from all districts.

Transitions:
Broccoli production is expected to begin in Yuma about the second to third week of November.

The Brussels Sprouts market is easing off as supplies continue to improve. Quality continues to be excellent with good availability from all shippers.

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 stronger and moving higher as supplies drop. Harvest's out of the Salinas and Santa Maria Valleys are 7-10 days ahead of schedule. This along with the advent of cooler than normal temperatures has slowed growth and reduced current availability. Sizing has also been affected as the slowdown in growth has resulted in many more 16's and drastically reduced the volume of 9's being harvested. Quality is still mostly good with some reports of bruising and discoloration (the result of the previous higher than normal temps).

Transitions:
Cauliflower production will be transitioning from Salinas to Yuma. Yuma production is scheduled to begin as early as the 15'th of November.

This market is flat. Supplies are strong in northern and southern California. Large sizing, twenty-four counts in particular continues to be the most readily available pack. Production in Michigan continues. Good quality is being reported in all the growing regions. Oxnard will begin production near the end of October. Production in Salinas will continue until the third week of November.

Transitions:
Oxnard will begin production the end of November.

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 steady with good supplies from all districts. Quality is reported as good from all regions.

The Ventura crop is winding down and dropping in volume with the last of their old crop. Demand is strong and is 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.

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 have become very active over the last week. There was a jump in price a couple weeks back, across the industry, due to the Thompson variety thinning out. We have since seen steady markets, but now the Autumn King supplies are lightening up and shippers have raised prices again. Luckily we have been able to source green grapes at a fairly consistent price point this week, but I do expect prices to increase next week. Price bumps will be incremental and order fulfillment will not be an issue, but markets will continue to be active as we approach winter.

Alerts:
Green grape supplies are thinning out and markets are becoming active. Gradual price increases are expected moving forward.

Red grapes continue to be in good supplies, but markets are becoming a little more active. We saw a few shippers raise their prices by a dollar this week. Price will vary depending on the shipper, current inventory and future volume estimates. I do not expect to see any drastic changes in the near future, but prices will start to gradually increase as we move into winter. Next week, I anticipate another dollar increase across all sizes. Quality has been very good with no concerns on the horizon. If weather cooperates, we should have consistent supplies of domestic red grapes through transition.

Alerts:
Red grape supplies are consistent, but market are becoming active.

The green onion market has steadied after several days of "improved" pricing. Most suppliers reacted to the advent of increased demand by raising prices as the regional deals ended. Demand has steadied and supplies are adequate to meet the current need. Quality is good in from all districts with no significant issues being reported.

The green kale market is steady. Supplies from all regions are good. Quality is excellent with full dark green leaves and good size.

This market is steady. Past warm temperatures in the growing regions has created some issues on quality. These issues include lightweights, pinking and slight puffiness. Value added product will have shorter shelf life so try not to order too much at one time. Weights are averaging 34-39 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 will begin production October 17th. Yuma is expected in early November.

Lower yields has caused this market to get stronger. Romaine as well as all leaf items continue to have quality issues. These defects are directly related to past temperatures in the growing regions. These issues include insect damage, 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. We have a couple of our Westside growers finishing this weekend The desert started last week in a small way and supplies are increasing. The market is lower to steady on all sizes and the quality is good.

Demand and supplies are finding a balance right now and a hint of weakness is in it. We can expect adequate supplies and good 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 and supplies are increasing. Mexico is getting closer to exporting honeydews up to us. The market is currently lower to steady on all sizes and quality is good.

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 - Light demand with good supplies has the market slightly lower on yellow except mediums. All other colors and sizes are steady out of all growing areas. Growers over all are about 75 to 80% done with harvest. 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 and continue to peak on 80/90/100s. D'anjou pears are steady and are still peaking on 90/100s now. Stark Crimson pears are about finished for the season. Red pears are steady and continue to peak on 35/40 half cartons. Bosc are also steady and are peaking on 80/90s now. The quality for all varieties 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 potatoes market is steady with light demand and good supplies. This years crop looks good with sizing peaking on 60/70 count. Quality is good. 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. Temperatures hit just below freezing today with the forecast calling for some light rain going on into the weekend.
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 - they remain steady on reds and golds but carton supplies are limited as they are still finishing storage. Both colors are still peaking on A size with good quality.
Western Washington - reds, golds, and whites are steady on all sizes and still peaking on A size. The quality has been good.
North Dakota - golds and reds are steady on all sizes. The quality has been good.
Wisconsin - reds and golds are steady on all sizes. The quality has been good.
Canada - they are steady on all colors but they 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.

We are getting near the end on the domestic stone fruit season. Peaches are finishing this week. Most of the domestic peach harvest is already done. The majority of shippers have finished their programs, leaving only couple options for the remainder of this week. Next week, I know of only 1 shipper who expecting to have very limited inventory. Plums will remain in consistent supply through the end of the month, but loading locations will be limited to just 1-2 shippers. Quality has been strong and prices will remain firm as we finish the season.

Alerts:
The majority of peaches will be done by the end of this week. Next week we will be very limited on what is left. Plums should last through the end of the month.

Rounds - The market is higher. Supplies continue to tighten in all areas. Hurricane Mathewhas taken it's toll on eastern states. Recent weather conditions have pushed some Florida / Georgia growers back from their expected fall programs. Out west, California supplies have been limited by demand and rains. And with additional rains forecasted, growers are picking everything they can before production halts. The Mexican market also continues to be strong, with high FOB's. Look for the market to continue the trend. Wide range in quality from poor to good.
Roma - The market is higher. Supplies also continue to be in short supply, mainly due to the transition across growing regions. With Florida out of production for the next couple weeks, Mexico will see a higher demand for product while Central California will be declining for the season. Mainland Mexico has seen a lot of rain recently, causing limited supplies to cross. Look for the market to continue to be stong. Range is quality due to weather conditions.
Cherry - The market is steady / higher. Supplies continue to be a struggle in all areas. Rains in the east and west continues to hamper yields and production. FOB's continue to be higher, and should remain for at least the next couple weeks, until Florida shippers can begin see better numbers and new Mexican fields come on. Range in quality.
Grape - The market is higher. Hurricane Mathew took out the South Carolina and Virginia crops. Grapes are beginning in Florida, however, with very limited supplies. Out west, market continues to be stronger due to limited supplies in the east. Look for FOB's to continue to be strong, as the west does not have the supplies to keep up with demand from east and west coast. Range in quality, due to weather conditions.

Rounds - The market is higher. Supplies have tightened up throughout the week. California product is limited due to demand and rains. And with additional rains forecasted, growers are picking what they can before the rains hit. Weather conditions have also tightened Mexico product. The Mexican National market continues to be strong, keeping more product in Mexico. Back east, hurricane Mathew has taken it's toll on supplies. Look for the market to continue to be stronger. Wide range in quality from poor to good.
Roma - The market is higher. Supplies also continue to be lighter. Roma's crossing in Baja are sold out daily. Volume on gassed romas from Central California are declining for the season. East coast has limited supplies on romas, and is pulling product from the west. Look for the market to continue to be stronger with the west trying to keep up with demand on both coasts. Range in quality.
Cherry - The market is higher. Product crossing from Baja continues to have higher FOB's, and selling out daily. Florida is beginning production, but with limited supplies. Look for the market to continue to be stronger. Range in quality.
Grape - The market is higher. In the west, supplies looking lighter in all areas. FOB's continue to be strong. Hurricane Mathew has taken it's toll in South Carolina and Virgina. Product is pretty much done for the season. Florida is beginning production, however, with lighter numbers. Look for the market to continue to be stronger, with the west trying to cover supplies in the west and east. Range in quality, due to weather conditions.