The Source - October 16, 2019

Eastern Region:

This week, we are definitely seeing softer markets as all growing locations/regions, across the U.S. have hit their stride on new crop harvest. It is truly a ‘buyer’s market’ with shippers aggressively dealing on certain red varieties and sizes while still having a few varieties. Quality is great and volumes are plentiful.

Western Region:

Washington

Northwestern shippers are feeling the need to aggressively price some commodities in an attempt to keep pace with the Midwest/EC customers and to mitigate freight costs. Also, many shippers are just beginning light harvest on Pink Lady, Braeburn, Lady Alice, Jazz, Envy, and Granny Smith apples, which should keep most varieties at favorable price points. Quality is excellent and volumes will remain plentiful.

Production from Southern Baja has continued to be steady and should remain this way until the beginning of November, then Sonora should startup. Both regions in Peru (Ica/Trujillo) have the same volume as last week. This should not change until the end of November or beginning of December when production slows down due to seasonality. Volume remains good on the larger sizes, and should continue until production slows down in December. Markets on both coasts are steady with good movement on all sizes.

Current weather for the state of Michoacan calls for mild to intense rains, which could limit the harvest. Field prices remain steady on new crop fruit (Aventejada). The size curve continues to lean towards smaller fruit out of Mexico, causing an oversupply of 60's and smaller. Sizes 48 and larger continue to strengthen with little expectation for change. We expect a stable supply from Mexico for the remainder of the month.

Green Bell Pepper is in Peak supply. Most of the mid-west, the northeast and Mid-Atlantic are finished for the season. The bulk of the supply is in South Carolina and Georgia. Most shippers are packing good volume of quality product. Demand has been a little weak over the past 2 weeks but with the northern tier of the country and Canada out of production demand is picking up for southern pepper shippers. Quality is very good and getting better. Early production was affected by abnormally high temperatures. Cooler temperatures in the southeast will slow production slightly but will make bell pepper with better color and thicker, heavier sidewalls. South Carolina and Georgia will continue to ship a steady volume through the month.

Peak Seasons:
Bell Pepper is in Peak supply

Moderate supplies of Green Bell Pepper continue to be harvested in the Oxnard, Hollister, and Stockton California area. Both retail and choice grade continues to be packed from these districts. Quality of green bell pepper from these areas remains good. Green bell pepper supplies currently meet demand. Moderate supplies of green pepper continue to be harvested in Baja California, where quality is good.

Moderate supplies of red bell pepper continue to be harvested in the Hollister and Oxnard growing district. All pack styles are being packed from these districts. Supplies from Oxnard and Hollister are expected to remain steady throughout the week. Good supplies of Mexican Hot House bell pepper continue to cross into San Diego, CA, and Nogales, AZ. The market on red bell pepper remains steady and expected to remain steady throughout the week. Moderate supplies of Red bell pepper continue available to load in McAllen, TX.


Moderate supplies of yellow bell pepper are available to load in Los Angeles, CA. Supplies of Yellow bell peppers continue to be harvested in California and are expected to continue throughout the week. Good supplies of Yellow Mexican Hot House Bell pepper continue to cross through San Diego, CA, and Nogales, AZ. The Market on yellow bell peppers is lower and should remain steady for the week. Moderate supplies of Mexican Yellow Hot house bell pepper are also available to load in McAllen, TX.

The blackberry supplies still remain very limited coming primarily out of Mexico. Weather including heavy rain and hail in some of the growing areas have decimated yields. Transfers into the US should begin to recover towards the front end of next week. Look for the market to remain firm on the higher side until then.

Alerts:
This item is in extremely short supply

Imports on the blueberries are coming out of Mexico , Peru, and Uruguay. The offshore fruit is being shipped out of both Coasts East (Philly and Miami) and West ( LA ) while the Mexican fruit is primarily coming out of California after transfer or McAllen Texas and Otay Mesa , AZ. FOB. Quality has been very good on these blues so far. Look for the market to remain steady through the weekend .

Raspberries continue to be harvested in greater numbers coming out of Mexico . Quality is good and these are a "push" item for some of the larger shippers. There are some great volume deals to be had out of McAllen, Texas and even on the transferred fruit in California and Florida. Look for this market to remain steady in the lower ranges due to the volume of harvest at this point in time. Quality has been good.

Alerts:
Good volumes very promotable.

The strawberry market is easier on the front end of this week than it has been in quite some time. There is a two-tiered price level occurring with the Santa Maria and Oxnard areas commanding a premium for the new crop " fall fruit" and Salinas and Watsonville priced to move a few dollars lower. Quality up North has benefitted from the moderate days and cooler nights. The fruit has firmed up and is not exhibiting the bruising it once did a few weeks ago. Quality down south is good with some shippers reporting smaller clam counts, up to 28 per clamshell in some lots but mostly 22 to 24 across the board. Look for the market to continue to be steady although the weekend albeit with downward overtones. We are in the midst of a cooling trend in both areas which should hold harvest numbers on the lighter side.

Peak Seasons:
Santa Maria is peaking and Oxnard is beginning to see some significant early numbers.

The Broccoli market continues to react higher as supplies and yields are not keeping up with demand. Quality has slightly improved with slight purpling, some mechanical damage, and occasional yellow cast. Look for Broccoli to remain very active going into next week.

Alerts:
Broccoli is now in a demand exceeds situation. Lower yields and slow growth is causing the decrease in supplies.

The brussels sprouts market continues to stay steady. There is still some internal decay, causing slightly lower yields. Look for the Brussels sprouts market to continue to stay steady going into next week.

West Coast production will remain steady on all pack styles including the jumbo varieties. Mexican Jumbo carrots are coming across the border in steady numbers as well. Look for the market to remain firm through the week and into the next.

The cauliflower market continues to be in a demand exceeds supply situation. Cauliflower is extremely scarce and all suppliers are seeing lower yields and even skipping a few days of harvest to size up the cauliflower. The quality is fair with bruising and yellow cast with weights in the 25 to 28-pound level. Look for the market to continue to adjust going into next week.

Alerts:
Cauliflower supply is extremely short. Lack of growth plus bad quality is causing yields to be very short.

Supplies and quality continues to be strong industry wide with this commodity. There are multiple items that are limited but celery is not one of them. All sizing is available and suppliers are flexing on volume type orders. Santa Maria, as well as Salinas, continues to be the main growing regions with this commodity. Mexico has had production as well. The quality continues to be reported as strong, overall. Slight bowing, leafy tops and mechanical has been reported, but minimally. Expect steady supplies for the entire week. The weights are averaging 50-54 pounds.

Jalapenos- Good supplies of Jalapeno continue to be available to load in Los Angeles from Mexico and California. Jalapeno is being harvested in Baja California where the quality is fair to good. Domestic jalapeno being harvested in Santa Maria, CA is mostly medium to large size. Jalapeno being harvested in Baja, California Mexico is also medium to large size. Market on jalapeno has remained in the teens. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Good supply of Pasilla peppers available to load in Los Angeles from Mexico. Pasilla is being harvested in Baja California. Quality on Pasilla from this region is mostly good. Size on the pepper is mostly medium to large. Pasilla peppers also being harvested in Santa Maria, California. Market on Pasilla is steady. Pasilla from Mexico also available to load in McAllen, Texas.

Anaheim- Good supply of Anaheim continues to be available to load in Los Angeles from Baja California and Santa Maria. Quality from Baja and Santa Maria are mostly good. Market on Anaheim pepper continues to remain in the mid-teens and is expected to remain the same throughout the week. Anaheim from Mexico also available to load in McAllen, Texas.

Serrano – Good supplies of Serrano peppers available to load in Los Angeles, from Mexico. Supplies are expected to remain steady throughout the week. Supplies currently meet demand. Serrano supplies are also crossing through McAllen, Texas.

Tomatillo – Husk tomatillos are available to load in Los Angeles, from Mexico. Quality of husk variety is good. Good supplies on husk tomatillos are expected to continue. Market on both peeled and husk tomatillo is steady. Both husk and peeled tomatillo are available to load in McAllen, TX.

The cilantro market continues to stay steady as there are plenty of supplies. The cilantro quality is good with an occasional yellow leaf. Look for the cilantro market to continue to stay steady going into next week.

Domestic supplies on 140’s and larger continue to remain snug. Supplies on small sizes are improving weekly and the market is slightly softening up on those particular sizes. More orders are being booked out of the District 3 (Coachella/Mecca/Yuma) area as supplies continue to improve weekly. The Central Valley and coastal districts are winding down for the season. We’ll start to see more of the Yuma area come on towards the end of the month. Current markets remain steady with good quality.

Supplies on the large sizes continue to be limited and expected to be for the remainder of the month. We’re seeing supplies on the small sizes in be in better shape and the markets have softened up. The industry will continue to get light packouts and minimal crossings after this weekend but should improve after next week. Quality is looking fair across the board.

Small size Valencia demand continues to be strong and quality remains fair. Markets will stay firm until we transition to California Navels. California Navels are expected to start at the end of the month and we have been hearing positive feedback on the upcoming supply and quality. On specialty citrus, California grapefruit is improving out of the southern California districts, and CA Mandarins have started this week with a few suppliers, please reach out if you have any questions.

Cucumber supplies are getting very tight in the eastern half of the country. Cold temperatures have moved across the mid-west and northeast bringing their seasons to an end. There are still a few pockets from south Jersey, Virginia and North Carolina producing light volume, with some quality issues. South Carolina and Georgia are producing steady volume, abnormally high temperatures during September brought the crop to market much sooner than normal and now growers are getting past the peak of the season 2 weeks ahead of schedule. Quality varies from shipper to shipper. Most of the product is good quality, some cucumbers have lighter color and yellowing on the bellies, almost all growers are packing heavier to select cucumbers making super selects and carton 24ct even tighter. Look for fewer supplies and higher pricing for the weekend.

Alerts:
Cucumber supplies are getting very tight.

Cucumbers continue to be harvested in Baja California. Supplies from this district continue to decrease and are expected to finish by November. Quality from Baja remains good on all pack styles. Cucumbers are also being harvested in Sonora, Mexico and are crossing through Nogales. Quality from the Sonora district is good and better supplies are being seen this week. The market on the West Coast cucumber remains steady. Light supplies of Mexican cucumbers continue to cross through McAllen.

Eggplant is in peak supply with shippers from South Carolina, Georgia and North Florida producing good quality product. The mid-west and northeast are finished for the season and demand is starting to increase because of it. The quality in the south is very good and buyers in the northeast and mid-west are moving their business south. The southeast is known for producing high quality, high volume eggplant and growers are in the peak of their season now with promote-able volume. The season will go well into the second week in November but shippers will be passed the peak by the last week of October.

Peak Seasons:
Eggplant is in Peak supply

Good supplies of eggplant are available to load in Los Angeles, CA. Domestic eggplant continues to be harvested in the Oxnard and Hollister growing districts. All pack styles currently being packed. Quality of domestic eggplant is mostly good. Light supplies of eggplant continue to be available to load in Nogales, AZ.

Green grapes supplies are becoming increasingly limited. Some shippers are already starting to build light inventories of storage fruit. This is in preparation for the gap in supply between domestic and import seasons. We expect the gap to occur from late November to early December. As shippers utilize their best fruit for storage crops and we can anticipate seeing a decline in quality and availability moving forward. Growers will demand a premium price for their high-quality storage crop and I expect to see a split market develop over the next 2-3 weeks. The less expensive fruit will start to show amber-colored berries, early decay, and mildew. The stronger grapes will be held as storage and sold for a premium price. Eventually, we will only have a limited amount of storage crops available and prices will escalate quickly. Please take note of quality concerns moving forward and prepare for limited supplies and elevated markets.

Alerts:
Supplies are lighter, prices are higher and quality is diminishing. We expect a gap in supply by late November.

Transitions:
New import fruit will arrive on the east coast by late November and the west coast by early December.

Red grape supplies remain steady. Quality is strong and demand is good. Market prices have remained flat over the last several weeks. There are several varieties currently being harvested with more range in size. We currently have all sizes (Medium to Extra Large) available. We continue to get aggressive spot buy and Jumbo Buy opportunities being offered. Speaking with shippers, we anticipate having good volume of red grapes all through transition. Import season will start in December and we will see an overlap of domestic and import fruit.

Transitions:
Import season will start in late November to early December.

The green onion market has dipped a little with the increase in supply from the recent warm weather. Quality is good with occasional leaf minor. The market will continue to stay steady going into next week.

The kale market continues to remain steady as supplies continue to stay plentiful. Quality is good with full bunches and an occasional yellow leaf being reported due to the recent warm weather.

Demand continues to exceed supplies industry-wide and this will continue for the next two weeks minimum. Yields continue to be lower in both Salinas and Santa Maria. The extreme temperatures the prior month has really hurt the crop in terms of production numbers as well as quality. Some common defects being reported upon arrivals to include puffiness, misshapen heads, mechanical and decay. Weights are being reported with ranges of 37-42 pounds pending on the supplier. Escalated pricing on value-added lettuce items is in play with all shippers. Huron has begun with a few shippers. Yuma will start production the first to second week in November.

Transitions:
Huron has production on lettuce. Yuma will start in 3-4 weeks.

Supplies continue to be very limited with romaine both in northern and southern California. Demand exceeds supplies industry-wide. Yields continue to suffer industry-wide due to excessive warm temperatures in the growing regions in the past months. The quality is fair. Common defects being reported to include mechanical, fringe burn, mildew, and insect damage. Supplies on green and red leaf are also getting active in the marketplace, but not as extreme as romaine. Green and red leaf are averaging weights of 20-22 pounds. Value-added romaine product will likely reach second-tier escalators by the end of the week. Yuma is expected to begin harvesting in early November on most leaf items.

Transitions:
Yuma expected to begin production in early November.

Tender Leaf market continues to stay steady as supplies have adjusted back to normal. Curly parsley, spinach, and arugula are now at a steady supply going into next week. Quality is good with occasional yellowing and bruising of the tender leaves.

San Joaquin Valley-
Honeydews have finished up for the season, while cantaloupes are limited but still available. As volume continues to decrease daily, the next few weeks will be a challenge due to a major setback on the desert crop. Demand is strong and has outpaced the harvest.

Desert-
It has been a rough transition from the get-go, due to abnormal weather. Very light harvest this week but, volume is slowly increasing. The weather forecast shows low temps in the 60’s and highs in the 90’s through the weekend. If the weather stays consistent, it will only bring on the fruit quicker. The current size curve is leaning towards large fruit (4/5/6ct). Small fruit will be limited.

Mexico-
Production on honeydews started in a slow way. Mostly size 6 fruit on the pack-outs. Availability is limited but with optimal growing temps, growers anticipate the harvest to ramp up. Mexican Cantaloupe has also started up this week in a slow way.

Alerts:
Demand is strong and has outpaced the harvest.

Transitions:
Arizona is struggling with production due to abnormal weather a few weeks back. Mexico has started but in a small way.

Few watermelons are still being harvested in Visalia and Modesto California. Watermelon from these districts is expected to finish this week. Quality from California is fair. Better supplies of watermelon continue to be harvested in Sonora, Mexico. The seedless watermelon market is currently steady. Watermelon quality from Sonora is good. Better supplies from the Sonora district are expected.

Onion markets are steady to slightly lower as supplies and quality are good in all regions. Demand has been most active in the Idaho/Oregon regions. Idaho/Oregon quality is excellent in all three colors. Size profile is leaning to the jumbos and smaller as super colossal and colossal improve in quantity. Other regions that are producing include Washington, Utah, Colorado, and Kansas. Super Colossal yellow is very limited out of Washington with Kansas producing only jumbo and medium sizes for their yellow onions as well. Markets are expected to remain stable as we head into next week.

Washington:

Northwestern Bartletts are peaking on larger sizes, but foodservice sizes are available. Many shippers will transition to Anjous over the next few weeks as Bartletts tend to “turn” faster around this time of year.

Some shippers have reported an acreage reduction of 10-15% on Green Anjou and a 30-40% reduction on Bosc with regard to this year’s harvest. Prices remain much higher on Anjou and Bosc vs. Bartlett ($6-$8 spread). Red pears (Starkrimson) are coming into volume. ½ carton and full (40#) are available. Special varieties—such as Seckel, Forelle, Comice, and Asian—are also available. Quality is excellent.

California:

The California pear season is winding down with some shippers done for the season and some selling from storage inventory (Bartletts). This time of year, be wary of quality as Bartletts tend to ripen quicker, reducing shelf life.

ASIAN PEARS are available; 10ct-24ct (1 and 2-layer) available to load in the San Joaquin Valley. Smaller sizes (66ct-96ct, 3-layer) are sporadic in availability, so please inquire about availability.

Pineapple supplies out of booth coast look to be steady, markets remain fair and demand continues to be strong this week. We have plenty of opportunities to push product out. Please reach out for any special volume or prices. Quality has improved and we’re hearing positive feedback.

Markets are on the rise as the recent early winter storm that passed through Idaho caused a shortage of supplies due to lack of harvesting and available potatoes for shipments. Harvested products before and after the storm have been going straight to cellars in order to go through the suberization (sweat) process to set the skins and build up inventories for the storage season. The product that did hit cellars in late August / early September is still going through the sweat and have yet to be released for production. Labor this week has been redirected to harvesting all viable products leaving packing sheds running minimal hours with limited product. Demand has quickly shifted to other regions (Washington, Colorado, and Wisconsin) which will, in turn, create rising markets in those areas as well. Many of the Idaho orders are getting pushed on ship dates as well as searching for other areas to secure and cover product. We expect a demand exceeds the market over the next couple of weeks as most shippers will be playing catch up when the early harvest storage potatoes become available (after the suberization process) for open market sales. It is highly advised to provide ample lead time on all russet potato orders to make every attempt to cover product. It is possible some orders could be pushed out as far as 7 days to cover.

Alerts:
Markets are rising in all regions. Demand is active with limited production out of Idaho.

Heavy rain and snow last week in North Dakota put a standstill to harvests with approximately 40-50% left in the fields to be finished. Growers are harvesting this week to get what is salvageable and get placed into storage for the upcoming season. Red potatoes will be the most impacted and have an effect on the other regions of Idaho and Washington with the demand shifting into those areas. Markets will start to rise as suppliers evaluate the crop loss over the next several weeks and throughout the storage season. Yellow potatoes show better numbers as a good portion was harvested before this latest storm but will see an increase in demand as some shift will go from red to yellow potatoes. Wisconsin is all but done on red potatoes as rain and cold temperatures have forced an early exit to their season this year. Expect to see lighter supplies and active markets as we head into November and start to see the increased holiday demand.

Alerts:
Markets on the rise with limited supplies and active demand. Weather related issues limiting supplies from North Dakota and Wisconsin.

Squash supplies are bouncing back after shippers have had light supplies for the past 2 weeks. Growers in the southeast have had light supplies due to heat issues causing plants to stop producing, now with temperatures getting back to normal fall conditions, supplies are bouncing back. Growers in South Carolina, Georgia and North Florida will continue harvesting through the month but are past their peak. Central Florida has started harvesting light volume but growers will pick up in volume by early next week. Product crossing from Mexico is starting to put pressure on eastern markets as the squash volume being imported increases.

Transitions:
Squash supplies are starting to transition to central Florida.

Supplies of Italian and Yellow S/N squash continue to decrease from all three California growing districts. Lower volume of soft squash is expected from California districts as we move into Mid October. Production of soft squash from California is expected to finish by November. Quality from these districts is mostly fair. Better supplies of Italian and Yellow S/N squash continue to cross through Nogales, AZ this week from Sonora, Mexico. Quality from Sonora is good on all pack styles. Light supplies of both varieties of soft squash continue to cross through McAllen, TX.

The domestic stone fruit season is coming to an end. Peaches, Nectarines and Apricots are done for the season. We have red and black plums available currently. Sizes are mostly on the larger side (VF 50ct and larger). Quality is still holding strong. The color on late season plums tends to be a bit lighter as the weather cools. Market prices are gradually climbing. We expect to have good supplies through November. Import fruit will slowly make it's way to the east coast by December.

Alerts:
Peaches, Nectarines and Apricots are done for the season. Plums remain steady.

Eastern regional programs have begun their seasonal Fall/Winter transition, and as supply begins to shrink amidst regional programs finishing, markets are jumping up as expected. Growing operations are wrapping up in Tennessee, Virginia and North Carolina, and moving back to Florida. As such, overall volumes are light while harvest overlaps through October. Round supplies are limited, and sizing is on the small side due to heat exposure during the earlier phase of the growing cycle. The Quincy deal in North Florida will provide light supply for the rest of October. The Palmetto/Ruskin programs are preparing to break ground before Halloween bringing Eastern supply into heavier volume by November. Similarly, Roma availability has contracted though the start of transition and supply will be light until central Florida begins harvesting again near November 1st. The grape tomato market has been mixed in recent days. 20lb Bulk packs have experienced as much as a $7 dollar spread, often reflecting quality and condition as growers push to clear their coolers following their final harvests. Quincy will have light volume in October until Ruskin picks up closer to November.

The overall volume in California has started to shrink as farms begin to fade and the season ends near the end of the month. Sizing and quality vary by grower and operations are forecasted to fade in the coming weeks wrapping up by the end of the month. Volume is building in Mexico where crops are also beginning to transition to Fall plantings. As California winds down through October, Mexico crossings will continue to build, so that supply is continuous while foreign and domestic operations overlap helping to boost round and Roma availability. Grape and cherry tomatoes have improved slightly from the past couple of weeks but are mostly steady now while supply continues to build through October.