The Source - October 20, 2016

Washington - red delicious are steady but the smaller sizes remain limited while 88's and larger remain steady. Most packers 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. Small Golden delicious supplies remain very short, in fact most shippers don't have any availability of 125's or smaller. New-crop Granny-smith are steady and they are peaking on 88's and larger. 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. Honey Crisp are steady on all sizes and the fruit 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. Pink Lady's are steady but supplies are limited. 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. Some varietys are average in size and some are heavier to small fruit. 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 fair with more lower grade fruit.

Weather is still warm in Northern Baja - volume is good, market is steady and sizing is good.

The weather in both Peruvian growing regions (ICA/Trujillo) is still good, volume is lighter at the end of the week due to some seeding issues in the field. Market is slightly higher.

Mexico has been harvesting now for 4 days and the first of this fruit is hitting the Texas boarder Thursday and Friday and to the forward shipping point across the country this weekend and Monday, but the industry is still short of the needed supplies to fill the demand. This will be hard green fruit hitting these warehouses, preconditioned and ripe fruit you will need to expect another 3 days for preconditioned fruit and 5 days for ripe fruit. It will take time for inventories to fill as the pipeline is clean and these first arrivals will not go very far in filling the industry demand. It will be a slow process, and will take 2 to 3 weeks to fully fill the supply chain.

Alerts:
Mexico is harvesting, but US inventories are so low that it will take a minimum of 3 weeks of harvest to catch up with demand.

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 in from Mexico last week.

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 on the import product. A few shippers are still selling storage blues from the domestic crop and all are suspect for quality issues.

Alerts:
Supplies are still somewhat limited on the west coast with good availability on the east coast and eastern 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.

The strawberry situation in CA continues to deteriorate as we move throughout the week. The northern growing regions of Salinas and Watsonville received the most rain and the late season fruit has not responded well. Growers have stripped rained-on fruit this week but the fruit that was left on the plants is showing severe water damage and decay as well. The intention was to strip early in the week and return for fresh harvests by Thursday or Friday. Field inspections today will not allow for a fresh harvest until this weekend or possibly Monday 10/24. Santa Maria is in slightly better shape but will not get much production after stripping earlier this week. This area did not receive as much rainfall so was able to return to fields sooner and strip poor quality fruit. Now, it’s up to the plants and some favorable weather to recover with sizing and get fruit to color up to be harvested. Production will be a fraction of what is has been for the balance of this week, around 35-50% and that is before the fruit makes it to the coolers for quality inspections. This area is expecting a warming trend through Friday as temps will exceed 90 degrees. While this will bring fruit on, it will present more challenges with quality after the rain and could limit labor/production due to the warm temperatures as well. Oxnard received a minimal amount of rain over the past weekend but is now beginning a warming trend into the weekend where high temps will reach into the 90s coupled with the returning Santa Ana winds blowing out from the desert to the coast. Winds are expected to reach 40-50 mph at times. The hot weather with this strong wind will likely reduce production due to quality concerns and limit labor through Friday. Most of the inspections from this week are listing fruit fair at best with some better fruit being picked in Oxnard. Sizing is small across the board, mid 20s to low 30s per 1 pound clamshell.

Alerts:
Demand is exceeding supply.

Transitions:
Oxnard production has begun but will be limited through this weekend due to the hot temperatures and very strong Santa Ana winds.

Florida production is 3-4 weeks away and Central Mexico production is 2-3 weeks away - both areas start is dependent on weather going forward.

The broccoli market is trending lower as demand has fallen off. Supplies remain steady so if the is any demand for the end of the week it will firm up. Quality is really nice with little yellowing. The warm temperatures scheduled for the end of the week I would suggest switching to iced product.

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

Good supplies have created an aggressive market for Brussel Sprouts. Some shippers are offering deals for volume. 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.

As I figured the weather has brought on supplies. The market is trending lower and some suppliers will be looking for volume deals. Quality is really nice with little bruising.

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

This market has started to firm up. Michigan is just about finished in production. The quality is fair. Good availability continue in northern and southern California. Large sizing, twenty-four counts has tightened up with a few shippers. Good quality is being reported in California. Oxnard is scheduled to begin production at the end of October. Production in Salinas will continue until the third week of November.

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

Pablano - Good quality and condition expecting in Nogales

Tomatillo- Current conditions have improved on Tomatillo, sizing is somewhat limited.

Jalapeno- good quality on new crop pepper, mostly large sizing with good color.

Anaheim- good quality,condition and size are expected to continue as Mexico improves production.

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 is picking up in volume and will continue to increase through the month, but will not reach good volume until mid November. Mexican fruit is available and supplies are good.

Limes continue 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 the larger sizes and steady on the smaller ones.

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.The Valencia's are showing some weakness of quality, which is typical for this time of year after a long hot summer.

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. Quality is good.

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 markets have been surprising steady this week. There was talk of prices jumping up as supplies slowly begin to wind down, but that did not happen this week. Domestic green grape supplies are expected to last until mid December, but supplies will get tighter and tighter out of California as we move forward. I do expect the markets to become more active and prices to gradually climb as some of the smaller growers finish their programs over the next month. Quality has been strong and sizes have been on in the XL - Jumbo range. I do not expect any drastic changes in the near future.

Red grapes have remained very consistent in supplies, quality and price. However, as we move into the winter months, things will begin to change. We expect domestic supplies of red grapes to last through December, but supplies will start to lighten up in the next few weeks. Market prices on the large and extra large have increased by a dollar this week and I expect it to jump up again by the end of next week. The M/L sizes have remained steady as there are a few varieties available on smaller grapes. I do not expect any drastic or sudden changes, prices will gradually climb as supplies phase out.

Supplies from Mexico are steady without any disruptions from crossings to finish the week. 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.

Huron production is upon us. Aside from some slight misshapen heads, the lettuce is very clean. Weights are averaging 40-42 pounds. Production in Salinas and Santa Maria continue. Rain followed by warm temperatures will cause for some quality issues, mildew being one of them. 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. Yuma will start first week in November.

This market is steady, overall. Romaine as well as all leaf items continue to have quality issues throughout California. Mildew is an issue caused from past rains and current high temperatures. 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 28-33 pounds. Red, green and butter leaf have had lighter weights reported.

Transitions:
Yuma will have leaf production approximately the second week of November.

Demand is steady right now. Supplies on 9ct are very short while other sizes are steady to increasing. The Westside is basically finished now for the season. The desert started a little over two weeks ago and supplies are filling in the northern areas ending. The market is higher on all sizes. The quality is excellent in the desert.

Supplies of honeydews are steady and we can expect adequate supplies and good quality to be the pattern for a while longer with a moderate range of up and down movement. The desert started over two weeks ago and supplies are filling in the decline of production from the Westside. The Westside is basically done packing for the season. Mexico is getting closer to exporting honeydews up to us. The market is currently steady on all sizes. Quality is excellent in the desert.

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.

Onions are being shipped out of Idaho, Washington, Utah and Colorado. Ideal growing conditions this year made for great quality onions going into the storages. Yellow onion sizing peaked on large Jumbo/Colossal with red and white onions peaking on Jumbo. All colors will have some mediums in the storages but will be getting a premium throughout the season. Market is low but steady with some deals available on Super/Colossal yellow onions. This sounds like it will be the trend for most of the season. Look for the market to stay steady till after the first of the year. Idaho and Washington are 95% to 100% done with their harvest. Rain the last couple days in the Idaho growing areas have delay the growers from getting into these fields that have not be harvested. Forecast is calling for clear weather into the weekend.

California - they are still shipping a few Bartlett, Bosc, and red pears but supplies are light. The quality has been fair.
Washington - Bartlett pears are steady and continue to peak on US#1 80/90/100s. D'anjou pears are 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 US#1 35/40 half cartons. The quality for all varieties pears has been good.

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

All growing areas are 90 to 100% done with the potato harvest which are shipping out of Idaho, Washington, Colorado and Wisconsin. Rain the last couple days in the Idaho and Washington growing areas has delayed the growers that have not finished with harvest. These growers should be able to get back into their fields later this week. If the weather stays nice growers will finish harvest by the end of this month with a few maybe going into the first week of November. This years Ideal growing conditions in the potato growing regions has an excellent quality crop going into the storages. Potatoes peaked on the larger sizing 60/70 count due to the nice weather. The quality coming out of the storages is excellent. Market is steady but low. Look for the market to firm up slightly once all the potatoes are in storage.

Bakersfield California - all colors are steady and all are still peaking on A-size. The quality has been good. Remember to plan ahead so the shippers can transfer product down.
Idaho - reds and golds are steady but carton supplies remain limited as the shippers 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 remain heavy to A size. Whites are short due to weather. The quality has been good.
North Dakota - golds and reds are steady on all sizes and are still peaking on As. The quality has been good.
Wisconsin - reds and golds are steady on all sizes and both colors are peaking on A-size. 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.

We are at the tail end of the domestic stone fruit season. Peaches are now done and we are left with only limited amounts of red and black plums. Kingsburg has the best volume and selection of late season varieties. Quality permitting, they expect to have fruit until mid November. Market prices have been on the high side and firm. Quality has been strong up to this point with no foreseeable issues in the near future. I will continue to update on supply and quality conditions as they can change quickly.

Alerts:
Peaches are done. Only limited amounts of red and black plums remain.

Rounds - The market is steady. Supplies are pretty much steady for this week. Florida has started in a small way, but, not enough volume to ease demand. The Mexican vine ripe supply has tightened up in the west, creating an uptick in the market. Supplies should start to steadily increase, as guys are back in th fields. Wide range in quality from poor to good.
Roma - The market is steady. Supplies have increased a bit this week, as buyers pulled back a bit due to the higher prices. Baja Mexico is breaking new fields this week, so, more supplies are crossing in McAllen and a few in Nogales. Gassed Roma's from Central California continue to be in light supplies. Wide range in quality, in all areas.
Cherry - The market is higher. Supplies continue to be a struggle in all areas. East has very few, and the West continues to sell out daily. Look for the market to continue to be strong through the week, at a minimum. Range in quality.
Grape - The market is higher. Supplies also continue to be very short in the East and West. Demand still very strong in all areas. Look for the market to continue to be stronger, with lighter supplies.

Rounds - The market is steady. The Mexican vine ripe supply has tightened up in the west, creating an uptick in the market. Supplies should start to steadily increase, as guys are back in the fields. Volume is pretty much steady for this week. Florida has started in a small way, but, not enough volume to ease demand. Wide range in quality from poor to good.
Roma - The market is steady. Supplies have increased a bit this week, as buyers pulled back a bit due to the higher prices. Baja Mexico is breaking new fields this week, so, more supplies are crossing in McAllen and a few in Nogales. Gassed Roma's from Central California continue to be in light supplies. Wide range in quality, in all areas.
Cherry - The market is higher. Supplies continue to be a struggle in all areas. East has very few, and the West continues to sell out daily. Look for the market to continue to be strong through the week, at a minimum. Range in quality.
Grape - The market is higher. Supplies also continue to be very short in the East and West. Demand still very strong in all areas. Look for the market to continue to be stronger, with lighter supplies.