The Source - October 17, 2016

Washington - red delicious are steady but the smaller sizes are limited while 88's and larger are steady to lower. 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 extremely short, in fact most shippers don't have any volume smaller than a 113. New-crop Granny-smith are steady but supplies are still limited and they 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 and so they are also short on the smaller sizes. 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 with only light supplies and they are 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 low as the end of the season is close. The quality has been good.
Idaho---Gala's, red delicious, Golden delicious, Granny-smith, and Jonathans and are peaking on Washington extra-fancy 88/100/113's and larger for all. The markets are steady and the quality has ranged from good to fair.
Michigan--McIntosh, Golden delicious, Jonamacs, Jonathans, Galas, Cortlands, Empires, Honey Crisp, red Romes, and red delicious are available and all are steady although some suppliers are lower. Most varietys are heavier to larger fruit although some have good availability in 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.

Weather is warming up just ahead of the peak in Northern Baja, we should see good volume through the end of the month, market is steady, sizing is good.

The weather in both Peruvian growing regions (ICA/Trujillo) is good, and volume is very heavy, and will continue to be for the next 4 weeks.

There was some harvest this weekend by some growers and more will harvest today. Packing houses are packing fruit. Expect to see the first of this packed fruit cross into USA and into the Texas shipping warehouses by Thursday and to the forward warehouses by this weekend.This will be hard green fruit hitting these warehouses, preconditioned and ripe fruit you need to expect another 3 days for preconditioned fruit and 5 days for ripe fruit.Please remember the supply pipeline is clean and these first arrivals will not go very far in filling the industry demand, but it’s a start. It will be a slow process, and will take 2 to 3 weeks to full fill the supply chain.

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 showing lighter supply and 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. 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 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 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 availability as production increases out of California's southern growing districts and Central Mexico. Fruit has been nice with limited reports of wet, leaky berries.

Strawberry availability is getting tighter and markets will be increasing due to the affects of the rain over the past weekend. Many grower-shippers picked and packed ahead of the rain and came in with fruit in their coolers Monday morning. However, there's very little fresh harvesting today. Some crews went into the fields to strip rained-on fruit this afternoon and clean up the plants but many growers do not expect a fresh harvest again until Thursday of this week. Precipitation amounts varied across all growing regions with Watsonville receiving the largest measurement (2.25-2.50") but some rain was recorded in all areas between Friday and Sunday. Weather has now cleared and is expected to continually warm up into the coming weekend. Highs will be in the low to upper 80s across the growing regions by the end of the week. This will present another set of challenges with these high temps following the rain event. This is likely to increase presence of mildew, mold and soft berries. Sizing will be small as plants are being stripped of all colored, rained on fruit and will need time to size up again.

Alerts:
Rain over the recent weekend is quickly affecting the supply and availability of fresh strawberries.

Transitions:
Oxnard is now packing with limited availability.

Increased demand, coupled with local broccoli deals finishing up have caused an upward trend in the market. Some suppliers are sold out today and have firmed up their pricing. Supplies will remain steady for the front side of this week. Quality is still very good with minimal yellowing.

Transitions:
Broccoli will be transitioning to Yuma the week of November 21st.

Increased supplies of brussel sprouts has created a downward trend in the market as we start the week. Quality is excellent with all sizes available.

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.

Increased demand to begin the week has cause shippers to firm up pricing. The past weekends weather will bring on supplies, so the market has the opportunity to trend lower. Quality is really nice with little bruising.

Transitions:
Cauliflower will transition to Yuma the week of November 21st

The quality in Michigan is starting to tail off. This season is coming near the end. Good availability continue in northern and southern California. Large sizing, twenty-four counts in particular continues to be the most readily available pack. Good quality is being reported in California. Oxnard is scheduled to begin production near the end of October. Production in Salinas will continue until the third week of November.

Transitions:
Oxnard will begin production at the end of October. Salinas will continue until the third week in 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 plenty of supplies from all growing regions. Quality has also improved with little complaints of yellowing or dehydration.

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.

Limes are on a path towards similar pricing on all 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 all sizes.

This season's Valencia crop is nearing it's end. Some shippers are finished and others will be finishing this week and next. Few will have some into November. 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. There are a few shippers starting new crop Navels this week and more coming on line next week. More will be going by the first week on November. The Valencia's are showing some weakness of quality, which is typical for this time of year after a long hot summer.

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 grapes are constant in supply and quality has been strong. Markets, however, have become a little more active. As mentioned in last week's update, we saw a small bump in price. This week has started off flat, but I do expect to see another small increase in price by the weekend.

Red grapes continue to remain consistent in supply, quality and price. As discussed in last week's update, I do expect to see more active markets as we move into the winter months and transition. As shippers return from the PMA and get updated harvest and weather information, we may see a slight increase in market prices this week. As a whole, I do not expect to see any drastic changes in the near future. Supply will lighten and prices will rise gradually as we move forward.

Supplies from Mexico are steady without any disruptions from crossings. There are plenty of iced and iceless. Quality is good with minimal yellow to brown discoloration.

Kale supplies are plentiful from all growing regions. The market is also steady at current price levels. Quality is excellent with dark green color and full bunches.

Lettuce in Huron has begun. Weights are averaging 40-43 pounds. Production in Salinas and Santa Maria continue. Rain followed by warm temperatures will cause for some quality issues, mildew being on the top of the list. Other issues expected to be seen include lightweights, pinking and slight puffiness. Weights are averaging 37-42 pounds on palletized. Yuma is expected to begin production at the end of October to early November.

Transitions:
Huron has begun production on this commodity. Salinas continues production. Yuma will begin at the end of October.

Yuma production is expected to begin the first week in November. Romaine as well as all leaf items continue to have quality issues in northern and southern California. Mildew is likely going to be a factor with all leaf items as heavy rains on the weekend coupled with warm temperatures has hit the growing regions. Other defects likely to be seen include some insect damage, fringe and tip burn as well as some internal burn. These defects are industry wide. The weights on romaine average 28-32 pounds. Red, green and butter leaf have had lighter weights reported. Overall, this market is steady to begin the week.

Transitions:
Yuma production is expected the first week in November.

Demand is steady right now. Supplies on 9ct are very short while other sizes are steady to increasing. We have a couple more of our Westside growers finishing this week. The desert started two weeks ago and supplies are increasing. The market is lower to steady on small sizes and higher on 9ct. The quality is good.

Supply and demand are pretty balanced on the larger sizes while supplies are slightly larger than demand on smaller sizes. 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 two weeks ago and supplies are increasing. Mexico is getting closer to exporting honeydews up to us. The market is currently steady on the larger sizes and lower to steady on the smaller sizes. Quality is good in all areas.

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

Light demand and good supplies has the markets on all size and color steady. Main shipping areas are Idaho and Washington. Quality is good. Supplies are 90 to 95% harvested. Idaho growing areas received some rain in the valleys with light snow in the mountains. Look for the markets to stay fairly steady till the first of the new year.

California - Bartlett pear supplies remain light with very few suppliers still packing. The quality has been good. Crimson pear supplies are also light. Bosc are steady and are peaking on smaller fruit but supplies are light as well. The quality has been fair.
Washington - Bartlett pears are steady and continue to peak on US#1 80/90/100s. D'anjou pears are also steady and continue to peak on US#1 90/100s. Bosc pears are also steady and are peaking on US#1 80/90s. Red pears are steady and continue to peak on 35/40 half cartons. The quality for all varieties pears has been good.

Supplies are good, and are still improving through the month.

Demand is light out of all growing areas Idaho, Washington, Colorado and Wisconsin. Quality is being reported as good. Sizing is heavy to the larger sizes peaking on 60/70 count potatoes. Harvest is around 95% finished with some growers already done. Idaho received couple inches of rain over the week which will delay harvest until the field dry out. Colorado growers have already been dealing with 10 days of light frost. Luckily most growers are finish with harvest out this area. Once harvest is under hoops we could see the market firm up slightly. Market is currently steady out of all areas.

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 in time.
Idaho - reds and golds are steady but carton supplies are still limited as they finish up with storage. Both colors are still peaking on A size with good quality.
Western Washington - reds & gold potatoes are steady on all sizes and are still peaking on A size. White availability is limited due to weather. The quality has been good.
North Dakota - golds and reds are steady on all sizes and remain heavy to A-size. The quality has been good.
Wisconsin - reds and golds are steady on all sizes. Both colors are peaking on A-size potatoes. 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 is finishing quality and condition have gone from good to fair, Italian and Yellow S/N have now started in Nogales, Arizona with increased supply every week.

Peaches are pretty well finished for the season. There may be a couple shippers who have some residual inventory left to ship this week, but sizes will be very limited and prices firm. Plums are now becoming light in supply as well. We are down to just a few shippers who have availability and sizes will be limited. Quality is strong, but prices are expensive and will continue to remain so through the end of the season.

Alerts:
Peaches are now finishing for the season; very few left to ship this week. Plums are getting more snug.

The supply of tomatoes has tightened up since Hurricane Matthew caused several areas to finish early for the season. Quincy Florida did not receive any significant weather and supply is increasing as picking schedules have resumed last week. South Carolina usually helps the transition to Florida this time of year but has lost plantings due to extreme wind with fields under water and without the ability to pump or irrigate last week. North Carolina has salvaged what was left of their crops and finished last week wrapping up the season. Virginia received as much as 10 inches of rain also ending the season ahead of schedule in southern portions of the shore where grape and cherry tomatoes are normally harvested. The northern region is continuing to produce what Grape tomatoes they can helping supply but quality is questionable. Cherry tomatoes remain tight and are sold out daily. The market is steady and still 2- 3 weeks away from the first injection of fruit into the market when Palmetto and Ruskin districts begin harvests. Until then California will carry the majority of the market with the help of Roma and Grape imports coming from Mexico.

The supply of California tomatoes is limited due to both demand and rain in the forecast before the weekend causing growers to pick what they could before getting rained out. The market is steady and quality varies across growers. Romas crossing in Baja are selling out daily with crossings increasing as mainland Mexico starts to produce in better numbers toward the end of October. Demand exceeds supply for Grape tomatoes and prices will remain strong until Mexico can produce heavier volume closer to November.