The Source - October 17, 2018

We have really good supplies of all varieties of apples out of Washington, New York, California, Pennsylvania, Michigan, and several other states with their local production. Also, we have a full range of sizes as well. Although the smaller sizes such as 125ct and 138ct have been difficult as supplier run their bin product. Quality has been excellent with good sugar levels and pressure tests. The storage crop is finished and getting your orders in advance is extremely helpful. The markets have firmed up on the lower grade fruit, but the overall market is steady.

Warmer weather is expected this week in Southern Baja (Constitucion), volume has improved this week, and will continue to improve depending on the weather. The weather in both regions in Peru have remained unchanged, Northern Peru (Trujillo) is cooler, and Southern Peru (Ica) is warmer. We have seen an increase in production of the larger sizes in the South due to the warmer weather, and a decrease in the smaller sizing in the North due to the cooler weather. Overall markets are steady to higher, with production of the smaller sizes down, and production of the bigger sizes up.

Weather in the Michoacán growing region continues to show rain and thunderstorms this week. Consistent seasonal rain is leading to a high percentage of fruit with lenticel spotting on the surface, standard for this time of year. Lenticel spotting on the surface does not affect the internal quality of the fruit. An avocado with lenticel will ripen as normal, and as the skin darkens, the lenticel will become less apparent. Lenticel is caused when fruit has taken up water prior to harvest. Plenty of fruit available this week on all sizes with good overall quality. Mexican fruit is cutting and eating well. Market price on avocados ranges from $20-$30 depending on size. We are seeing more Chilean fruit on the market with reports of good quality. Volume will increase weekly and will be available into the beginning of December.

The northern growing areas are scraping through older fields cleaning bushes for the last push of the season. Hurricane Michael did more damage to the Georgia and South Carolina crops than expected. Some areas in western Georgia and central South Carolina got hit very hard and will lose most of their crop. The eastern part of Georgia did not get as much wind and rain, but there was enough wind to open up plants and expose fruit to the sun. This will cause scalding on a lot of pepper that will not be packed and reducing yield greatly. We expect tight supplies for two weeks until Florida starts for the winter season.

Alerts:
There has been more damage than originally thought. Plant blown around by the wind have exposed fruit to the sun causing a lot of scalding and mixed red color.

Green Bell Peppers – California bell pepper finishing up out of the coastal growing areas. Green bell pepper volume has dropped. Some Grower/Shippers expected to start harvesting in Coachella as soon as this weekend. The quality of the peppers remains good. Currently, demand exceeds supplies. Green bell peppers from Mexico are also available to load in McAllen, TX.

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

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

Blacks are definitely in a split market right now. Most of the domestic harvest is done. Mexico is slowly ramping up, but volumes are still low. Very little of the Mexican fruit is making its way over to California, so markets remain higher in all California loading locations. However, the fruit that is coming up from Mexico is being sold out of McAllen, TX at a much more aggressive price. Unfortunately, this still leaves most shippers in a "demand exceeds supply" position, and we can continue to see limited supplies until Mexico's production is consistent enough to fill the pipeline. Additionally, Mexico has received some heavy rains over the last several days which could further delay harvest. As we have discussed, we do not expect to see some relief until later in the month, unless load in McAllen is an option.

Alerts:
Blacks remain limited in California, but we do have availability in McAllen. We expect supplies to be limited until the end of the month.

Transitions:
Mexico is slowly ramping up with better numbers expected later this month.

Blueberry supplies remain far below demand this week. The good news is, we are past the lowest point of production and supplies should start picking up moving forward. We are seeing more arrivals of Peruvian fruit on the east coast and Mexico is increasing for the west. We expect to see supplies continue to be light for the next week, then ramp up by the end of the month. We will see Mexico and Baja start transferring more fruit to McAllen and California. Additionally, we will see Chilean production start up in November. As stated above, demand is still very strong. Market prices have remained higher and firm. We will see some relief by the end of October, and better supplies come November.

Alerts:
Supplies remain limited, but we will see improvements by the end of the month.

Raspberry supplies have been consistent. We now have several areas in production. Salinas / Watsonville are winding down, but are still harvesting. Santa Maria has small volume, and Mexico is ramping up. As we transition to primarily Mexico production, we expect no gaps or shortages of supplies. Demand has been consistent, and markets have been steady. We have fruit available to load in California and Texas. Quality is good.

Peak Seasons:
We expect to see our first peak in production over the next 3-4 weeks.

Strawberry supplies have started to lighten up a bit in all areas. Harvest estimates have been lower than expected. This is due to the loss of fruit from the rain that hit several days ago. We saw market prices jump up if in the front part of this week and remain firm. The weather has cooled down a bit, especially at night and early morning. This cooler weather will help improve quality and produce firmer fruit. We had several reports of soft berries and bruising over the last week, which is to be expected after a rain. Moving forward, we expect supplies to remain consistent, and quality will be better. I do not foresee a big jump in market prices, but it will be a slow and gradual incline. Barring any more rain or freeze, we expect Salinas and Watsonville to continue with production for the next several weeks. Santa Maria and Oxnard will continue to be in full production and Mexico will slowly ramp up toward the end of the month.

Alerts:
Supplies are lighter, markets will slowly climb as we transition.

Transitions:
Salinas / Watsonville will last another 3-4 weeks. Mexico will ramp up by the end of the month.

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

The Brussels Sprouts market has come off a bit in Salinas, Santa Cruz, and Watsonville areas. The temps have been relatively mild, which the Brussels Sprouts like, so fields are at budget if not slightly ahead of schedule. Quality has been affected by insect pressure particularly the Diamondback Moth and will be an ongoing battle this season.

The carrot market continues to remain steady. Quality is good, and supplies are adequate to meet current demand. We see no change in the carrot market until we switch to the southern growing regions around the end of November.

Cauliflower market has picked up as supplies have become a bit snug. Overall, the quality has been good with minor bruising and some yellow cast with weights in the 25 to 28-pound level. Look for this market to continue to be strong going into next week.

This week has begun with steady supplies as well as demand. Some suppliers are flexing while others are remaining firm to current pricing. The best supplies continue on large sizing, but all sizing is available to meet demand both north and south. Good quality overall continues. Expect steady production for the entire week. The weights are ranging from 47-54 pounds.

Jalapeño – Supplies are available from Baja California, in San Diego and Los Angeles from Santa Maria. Moderate supplies of Jalapeño being harvested from both growing regions. Harvesting in Baja was slowed down due to the tropical storm rolled through the growing region last week. The quality of the peppers is fair out of both regions. Nogales expected to start this week with light volume. The market is higher along with pricing. Currently, supplies meet demand. Jalapenos are also available to load in McAllen, TX.

Pasilla -Moderate supplies of Pasilla available from the Baja California and Santa Maria growing areas. The quality of the pasilla remains fair out of both regions. Pasilla market along with pricing remains steady. Nogales has started to receive light volume of pasilla this week from Sonora, Mexico. Pasilla are also available to load in McAllen, TX.

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

Tomatillo – Low supplies available on both husked and peeled tomatillos from Baja California and the Santa Maria growing region driving prices on both commodities up. The market and demand is high. Currently, tomatillo demand exceeds supplies on both peeled and husk tomatillo. Quality is mostly fair from both growing areas. Tomatillos are also available to load in McAllen, TX.

Serrano – Supplies are still available from Baja, in San Diego and L.A. Low volume of serrano pepper available to load in Santa Maria. The quality of the pepper has been mostly fair to good from both growing areas. Nogales is expected to start receiving serrano from Sonora, Mexico this week. Supplies meet demand. Pricing remains steady. Serrano peppers are also available to load in McAllen, TX.

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

Supplies continue to increase from district three (Mecca, CA & Yuma, AZ). The market is still trying to find common ground. Although the market on 140ct and larger size fruit is still higher than the smaller sizes. Quality is really nice from the district three growing region. Although the quality of fruit from the Oxnard region is fair at best with soft rot, mold, and brown spotting.

Forecast this week in Veracruz Mexico continues to call for rain and thunderstorms this week with temps in the mid to upper 80s. The market is steady and holding in the $10-$20 dollar range depending on size. Plenty of smaller fruit available (200,230,250) with opportunity buys on volume. We are seeing a better volume on larger fruit this week as well (110,150,175).

We are one week away from navel season, and initial reports are the size profile will favor foodservice orders. The Valencia crop is still hobbling along with fair quality and limited supplies. We will see some regreening of the navels as we begin this season. The market is still relatively strong, and the navel market will follow in suit.

More supplies are starting in Georgia. Because of a wet growing season, some growers were late planting and are just starting their harvest now. A few Florida shippers will start this week bringing more options to the marketplace. Quality is good in most areas as seasonal temperatures have cooled since hurricane Michael came through last week. Michael did some damage to cucumber fields, but approximately half the volume had already been harvested and fields east of I 75 made out fairly well. There will be enough product coming from Georgia and Florida this weekend to handle the demand.

Alerts:
There are more shippers starting in the South, both in Georgia and Florida.

Transitions:
Cucumber supplies will start to transition into Florida over the next 2 weeks.

Moderate supplies of cucumber available in San Diego from Baja California. Harvesting in the Baja growing region slowed down with the rain that went through at the end of last week driving the market up along with pricing. The quality of the fruit is good. More Nogales shippers have started receiving cucumber from the Hermosillo, Sonora growing district. Grower’s from both growing regions are waiting to asses potential damage from the rain brought from Tropical Storm Sergio. Volume is expected to increase in the upcoming week’s. Shipping areas are San Diego and Nogales. Light supplies of cucumbers are also available to load in McAllen, TX.

Eggplant production has picked up some. Demand is not as good this week as it was last week. Fancy eggplant is steady, but choice eggplant demand has dropped considerably over the past week. The largest volume of eggplant grown in Georgia is in Lake Park and hurricane Michael did not hurt the crop, a small percentage grown in the western part of the state is almost a total loss.

Peak Seasons:
Eggplant is in peak season.

Eggplant continues to come out of Fresno. Quality remains good. Growers continue to pack both fancy and choice grade. Volume is expected to slow down going into next week due to cooler weather during the day and night in growing area. Coachella has also started to harvest their Fall Crop. Eggplant currently meets supply. Market and price remain steady.

Green grapes are plentiful. We are in a "supply exceeds demand" position across the board. Quality is excellent, and markets have been low and flat. Shippers have all sizes available and are willing to get aggressive on prices for opportunity buys. All inquiries are welcome. Let us know how we can help.

Alerts:
Plenty of supplies and looking to put some opportunity buys together.

We continue to see the market being flooded with high-quality fruit. As situations like this typically play out, we see good weather, high yields, and excellent quality during periods of excessive supplies. This is no different, all shippers are loaded with all sizes, and the fruit looks good. Market prices have been low an flat for a long time. Unfortunately, all major markets are being filled with cheap fruit, making it difficult to offer a value at the shipper level. However, that being said, there is plenty of promotional opportunities and shippers are willing to get aggressive for volume. Please let us know how we can help.

Alerts:
Plenty of supplies looking to put opportunity buys together.

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

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

This market is steady to start the week. The market is very competitive, and multiple shippers are flexing on volume type orders. Some quality issues that have been reported upon arrivals include mechanical, puffy and misshapen heads. The weights on palletized have been reported at 40-44 pounds. Huron is expected to begin this Wednesday, with others beginning the week after. Expect some early lettuce in Yuma the first week to the second week in November

Transitions:
Huron will begin production this week. Yuma is expected the first to second week in November.

This market is firm on romaine. Quality issues include twisting, fringe burn and mechanical. Weights are averaging 30-34 pounds. Green leaf is softer compared to past weeks. Moderate supplies are expected throughout the week on romaine, green and red leaf. Butter supplies will be on the moderate to light side all week. Romaine hearts will be light in availability again this week as supplies have not caught up to demand. The quality on all leaf items has been fair, overall.

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

San Joaquin Valley-
The forecast this week calls for mostly sunny skies and highs in the 80s. However, we are seeing cooler nights and mornings ranging from the low 40s to 50s. With less than a handful of growers still harvesting in this growing region, we can expect limited supplies on cantaloupes. Overall quality remains good, and brix/sugar levels are also ideal. Shippers are reporting that they will finish up the season within the next two weeks. Today’s market price ranges from $10.00-$12.00 on cantaloupes and $10.00-$11.00 on honeydews.

Maricopa, AZ-
Reports show that over the weekend the Maricopa growing region received 1-2 inches of rain. Keep in mind they also had rain the previous week. Growers did not harvest yesterday as well as today. Fields are just too muddy to harvest. With no rain in the forecast this week, we are told harvesting will start tomorrow or Wednesday. This week temps will be in the upper 70s to low 80s so the fields should dry up pretty quickly. Rain in Arizona this time of year is not ideal and is a huge setback for the desert melon crop. The rain has been minimal but enough to delay the harvest and drive the market up. We are not hearing of any quality issues as of now. Expect a light supply of fruit this week and into early next week. There is also some fruit starting up in the Yuma area this week. Market price today is ranging from $12-$14 on cantaloupes and $10-$12 on honeydews.

San Joaquin Valley-
The forecast this week calls for mostly sunny skies and highs in the 80s. However, we are seeing cooler nights and mornings ranging from the low 40s to 50s. With less than a handful of growers still harvesting in this growing region, we can expect limited supplies on honeydews. Overall quality remains good, and brix/sugar levels are also ideal. Shippers are reporting that they will finish up the season within the next two weeks. Today’s market price ranges from $10.00-$11.00 on honeydews.

Maricopa, AZ-
Reports show that over the weekend the Maricopa growing region received 1-2 inches of rain. Keep in mind they also had rain the previous week. Growers did not harvest yesterday as well as today. Fields are just too muddy to harvest. With no rain in the forecast this week, we are told harvesting will start tomorrow or Wednesday. This week temps will be in the upper 70s to low 80s so the fields should dry up pretty quickly. Rain in Arizona this time of year is not ideal and is a huge setback for the desert melon crop. The rain has been minimal but enough to delay the harvest and drive the market up. We are not hearing of any quality issues as of now. Crews are on standby, and as soon as they get the green light, they will get back into the fields. Expect a light supply of fruit this week and into early next week. There is also some fruit starting up in the Yuma area this week. Market price today is ranging from $10-$12 on honeydews.

Seedless watermelons are available to load in Nogales, from Sonora, Mexico. Watermelon growers in this region still waiting to asses potential damages to the crop due to the recent rains from Tropical Storm Sergio. Watermelon is currently being harvested in the Hermosillo, Sonora growing area. Demand is steady. Pricing remains steady.

Onions market are steady at low levels on all colors and sizes as growers out of Idaho are still in the middle of harvest. They are scheduled to finish up the first week of November. Washington has everything into their storages. Quality is being reported as good out of all areas.

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

We have good supplies of pineapples from all ports of entry. Quality is really good with decent sugar levels in the 12 to 14 brix range. There has been an occasional overripe arrival, but overall quality is really nice. The market is favorable and steady.

Markets are starting to firm as growers finish with harvest. Sizing is still peaking on 60 count with limited supplies of 80 count and smaller. Growers Idaho Falls South have all their potatoes into the storages with growers North of Idaho Falls hoping to get everything out of the ground by the start of next week. First of freezing temperatures hit Wisconsin, Colorado, and Idaho over the weekend with coldest hitting Monday which got down into the low 20's. This has growers on edge in both Idaho and Wisconsin. A few growers in Wisconsin have reported damage and are saying they are going to walk by parts of fields due to the freezing temperatures. We will keep you posted as we get more information. Quality is being reported as good out of all areas.

Alerts:
Wet and cold weather slowing harvest in Idaho and Wisconsin.

Supplies of Red and Golds out of Dakota's and Wisconsin are limited due to snow and rain keeping growers our of their fields. This wet weather has been going on for the last few weeks and now freezing temperatures have moved in. The forecast is calling for temperatures to improve as this week moves on. Some growers still have up to 30% of their crop in the ground. Labor is still spread out between the Sugar beat and potato harvest. Supplies that are available are peaking heavy to A size with very few B size and smaller. Quality is still being reported as good. Idaho and Washington are packing good supplies of Red, White and Golds. Supplies are peaking on A size with moderate supplies of B's and size. The market is steady with light to moderate demand.

Alerts:
Wet and Cold weather delaying harvest in Dakota's and Wisconsin. Some Growers in these areas still have 20-30% of their crop in the ground.

Squash is starting to transition to Florida, Georgia still has good supplies, but hurricane Michael is causing some quality issues on yellow squash. The storm destroyed a few fields in the western part of the state and the eastern part of the state there was enough wind to cause scarring and lower yields. After the Michael passed through temperatures dipped into the mid 50's slowing production. Production is starting to rebound this week and quality will get better. Florida growers started last week, and more are starting this week, the transition will start in earnest next week.

Alerts:
Supplies of yellow squash have tightened up.

Transitions:
Squash is starting to transition to central Florida.

Zucchini and Yellow S/N – Good supply of Italian squash still being harvested in Santa Maria. Quality of Italian squash remains good. Yellow S/N squash out of this growing area is finishing up. Italian and Yellow S/N are also crossing through Nogales where there is currently more volume on Yellow squash than Italian. Squash market has stabilized. Supplies currently exceed demand. Growers in the Sonora, Mexico growing region still waiting to asses potential damages from the rains of Tropical Storm Sergio that rolled through last week. Some shipper’s currently reporting wind damage on both commodities. Quality issues are expected for the next two weeks. Grey squash is also available through Nogales. Squash supplies from Mexico are also available to load in McAllen, TX.

Peaches and nectarines are just about done. There are a couple of options left for large size fruit, but we expect those supplies to finish up quickly. We continue to have decent supplies of both Black and Red plums. We expect supplies of both to last into November, then taper off to just red plums by the end of November. Markets have been flat and demand has been consistent. We still have opportunity buys available on plums.

As Florida begins clean up following Hurricane Michael, crop assessments remain in progress. For the most part, the Quincy growing district is finished for the year. There are a few shippers who will go into the fields and salvage what they can. However, the bulk of the crop was devastated by the storm. There are a few hundred acres that were not destroyed. However, they will not produce enough volume to impact the market in a meaningful way. The Ruskin/Palmetto crop is expected to start the week by the week of October 28th. However, yields are typically light at the beginning of the season and may remain light through the first half of November. At this time, there is little concern for winter programs in the central part of the state being compromised. Tennessee has finished harvesting crown picks last week and will continue harvesting second and third pickings until their first frost. Tennessee is continuing to recover from previous rains and quality is fair from this area and Alabama and Michigan programs have finished for the year. All items continue to slowly strengthen this week by as much as $1-$3. It is likely that October will show a much stronger market with demand shifting entirely to the west.

Tropical storm Sergio was not a significant wind event but a slow-moving storm that brought torrential rains over widespread areas over southern Baja and western Mexico. New crops are expected to start out of these regions this week. However, it is not clear how strong the yields will be considering the amount of moisture and heat in the area over the past several weeks. Grape tomatoes may be the item slower to recover with a bulk of grape tomato harvests coming out of Vizcaino, Baja where Sergio made landfall. California is near the end of their summer crops and winding down for the season. The central valley continues to produce tomatoes while crossings from Mexico have been reduced from hurricane weather systems, Rosa and Sergio. Round tomatoes have jumped up $3 in California while supplies shorten further from heat-related issues. There is currently decent production of Roma tomatoes, but the demand is particularly heavy due to limited crossings from Mexico and those supplies are sold out for the week. Mexico has endured weeks of rain and currently assessing damage from Hurricane systems Rosa and Sergio, keeping what limited production there is south of the border. Both Baja and the east are in very short supply on Roma, grape and cherry tomatoes at this time and the market is expected to stay active on these items heading into the beginning of November until farming operations can recover.