The Source - October 25, 2017

California – Granny Smiths are still cleaning up with small fruit. Pink Ladies are steady on all sizes and they are heavier to smaller fruit. The quality has been good.

Washington – Red Delicious are steady to lower on all sizes as more shippers get started. The red sizing is normal with an 80/88/100 peak. Golden Delicious are steady with good availability. They are peaking on Premium grade 100/113s with only light supplies of 88s and larger. Granny Smiths are steady to slightly lower on all sizes with mostly smaller fruit. 88 size and larger Granny-smith are short and remain premium priced. Galas are steady on all sizes and are now peaking on 100/113s. Fujis are steady to lower and are still peaking on 88/100s. Honeycrisps are steady and still have a predominance of higher grade fruit. Honeycrisp are still peaking on 56/64/72/80s. Jonagolds are steady and still producing mostly 70/80/88s. Braeburns are steady with only light supplies available. The quality of all varieties has been good.

Idaho – Galas are steady and are still cleaning up. Jonathans are steady and peaking on 100 size and smaller. Jonagolds are also steady and heavier to 80/88s. Golden delicious are reasonably priced and peaking on 125/138s. They have also started packing red delicious and the early fruit is heaviest to 100/113/88s. The quality has been good.

Michigan – Michigan continues to pack Galas, Honeycrisps, McIntosh, Jonathans, Jonamacs, Golden Delicious, Red Delicious, Cortlands, Empires, Fujis, red Romes, Ida Reds, and Jonagolds. Most varieties have excellent quality and better than normal color. Michigan has excellent color this year so they holding strong on most markets. However the harvest is finished so are seeing some price-flex on red delicious, golden delicious, Galas, and a few others. The quality has been good for all.

Pennsylvania -- Galas, Fujis, red delicious, and Golden Delicious are all steady with a sluggish demand. Red delicious are still peaking on 88/100s, while the golds, Galas, and Fujis are heavier to 100/113s. The quality has been good for all.

New York – they continue packing Cortlands, Galas, McIntosh, Honeycrisp, Red Delicious, Fujis, Snap Dragons, Golden delicious, Jonagolds, Red Romes, Macouns, Pink ladys, Staymen Winesaps, and Empires. Most varieties are large and peaking on 88/100s with not much availability of 125s and smaller. There are a few small McIntosh. The quality has been good for all.

Alerts:
Washington is still very short on large Granny-smith and it looks like this will be season-long.

Peak Seasons:
Pennsylvania continues in the peak of its Golden delicious, Gala, and Fuji seasons.

New York is in the peak of its McIntosh, Gala, Golden delicious, Macoun, and red delicious seasons.

Idaho continues in the peak of its Golden delicious and Gala seasons.

Michigan continues in the peak of its red delicious, Golden delicious, McIntosh, Honeycrisp, Fuji, Jonathan, and Empire seasons.

Washington continues in the peak of its red delicious, Golden delicious, Gala, Jonagold, Fuji, Honeycrisp, and Granny-smith seasons.

Northern Baja (Ensenada) has finished with their summer season. Southern Baja is still having warm weather which has not impacted the volume from this region. Quality remains good, and we should see production continue for another 2 weeks. Southern Peru (ICA) is in full swing with excellent growing weather, which has helped increase the volume of larger sized asparagus. Northern Peru (Trujillo) is experiencing cloudy weather which has slowed production. Overall markets are sluggish but we should see a turn at the end of this week into next week with promotions starting for the holidays.

Mexico's shipments to the US have stabilized and look to continue at a good rate. We are still expecting an increase in volume in November. Markets have also stabilized after the slight firming of the market last week.

The bell pepper market is rising quickly due to all the northern growing regions finishing for the season, leaving the southeast as the only east coast supply. Due to the weather issues this fall the southern pepper growers have a slightly reduced crop and now that most of the business is concentrated there supplies are tightening. There is no pressure from California since they are transitioning regions and cooler weather is forecast across the south through the weekend so expect supplies to stay tight. There were a few quality issues last week but product this week is fresh and with cooler temperatures, quality should rebound.

Alerts:
Supply is getting very tight

Peak Seasons:
Bell Pepper is moving out of peak season.

Orange Bell Peppers – light supply being harvested in Fresno. Showing good quality and condition.

Yellow Bell Peppers – light supply being harvested in Fresno. Yellow bell peppers are showing good quality and condition. With lighter supply and increasing demand, we could see a slight increase in the Yellow Bell Market.

Green Bell Peppers –Very lighter supply of green bell peppers being harvested in the Fresno growing area. Green bell peppers are showing good quality and condition on all sizes. With lighter supply and increasing demand, we could see a slight increase in the Green Bell Market.

Red Bell Peppers – Light supply of red bell peppers being harvested in the Fresno growing area. Red bell peppers are showing good quality and condition on all sizes.

Alerts:
With Bell pepper transitioning to Coachella. This should cause a shortage on Green and all colored bells.

Blackberry supplies continue to be a challenge this week as Mexico's increased harvest was pushed back due to weather. Domestic harvest is very light as we finish the season, leaving Mexico as the primary source of blackberries to fill demand. Unfortunately, with the weather delays, supplies have been limited again this week. However, weather forecasts call for much improved growing conditions and all shippers are expecting better supplies from Mexico starting next week. Quality has been fair with some red cell and soft fruit being reported. Again, this has been weather related and we expect to see improved quality moving forward. Market prices have been steady with more aggressive prices being offered in Texas.

There are several areas producing Blueberries. Mexico was delayed due to rain, but harvest is expected to increase moving forward with better supplies available on the west coast by next week. Uruguay experienced a hail storm in addition to increased insect pressure, this has decreased yields and delayed arrivals. Argentina and Peru have been consistent with good quality. We expect to see continued supplies for the next 3-4 weeks. Most of this fruit is being distributed from the east coast. Chilean fruit will start to arrive in the U.S by mid November. Overall, the import blueberry season will continue to improve in volume and quality. Market prices have been very split between the east and west coasts. Due to the limited availability of Mexican fruit and the additional costs of transferring fruit to the west coast, prices have been higher and firm. On the east coast, however, more fruit is available and loading direct will get you more aggressive pricing.

Transitions:
Mexico is expected to increase harvest with better availability on the west coast next week.

Peak Seasons:
Peru and Argentina are currently in peak season. Most of this fruit is available on the east coast.

Raspberry availability has been consistent, but we may see slightly lighter supplies as a result of the recent heat. Domestic harvest in Watsonville and Santa Maria is declining, but with the hot weather, we can expect to see even less production through the weekend. Luckily, Mexico is harvesting increased volumes of good quality fruit and we expect this product to carry us through any supply challenges for the next week. Quality as a whole has been solid and market prices have been steady. More aggressive offers are available loading in McAllen, TX.

Although the front part of the week started off with good supplies and good quality, the heat wave in the California growing regions is having a big effect on supplies as we head into the weekend and next week. Temperatures peaked between 97-100 degrees for multiple days in a row; slowing harvest, decreasing volumes and causing delays at the cooler. The later part of the week will bring cooler temps, but we expect to see some quality challenges as we look toward next week. As a result of the heat, we can expect to see some occasional overripe fruit with the possibility of soft berries which can bruise easily. The cold chain will be very important during weather events such as this. Market prices have been consistent with a few spot buy opportunities in the beginning of the week, however with the heat and decreased availability, I expect to see a jump in price next week.

Mexico is slowly ramping up production with most of this fruit being distributed out of McAllen, TX. Florida is still 3-4 weeks away from starting.

Alerts:
Decreased supplies and soft fruit is expected for next week as a result of this week's heat wave.

Transitions:
Mexico production started this week and is expected to improve over the next 2-3 weeks. Florida is expected to start in 3-4 weeks.

We continue to battle supplies and quality as an industry. We are seeing hollow stem in Mexico, pin rot in Santa Maria, and in Salinas we have heat damage. Also this week we are experiencing a extreme heat wave. We will see these types of quality issues until we transition to Yuma. The market has firmed up and looks to trend higher as the week progresses.

We are finally seeing some relief in the market as supplies are increasing steadily. Quality is excellent with a full spectrum of sizes, vibrant green color, and minimal to no insect damage.

The high summer heat impact on jumbo carrots continues. Most shippers are not anticipating much relief until the new crop comes in mid-November to early December. 12 week averages have been implemented on both 25 pound and 50 pound carrots. The jumbos are used for processing many of the other carrot items hence the shortage.

Alerts:
12 week averages have been implemented for both 25 pound and 50 pound jumbo carrots.

The cauliflower market is on the rise again. Supplies will be extremely limited all the way through Thanksgiving. The transition to Yuma typically isn't in full swing until December. So as a result we will see sizing switch from mostly 12 count to the smaller 16 count pack. Quality is also suffering again with yellow to cream color, decay, and black to brown spotting.

Alerts:
We are experiencing extremely limited supplies as a result of the Salinas acreage finishing the season. The market is trending much higher.

This market continues to gain strength with all sizing. Expect to see pricing increase as we head into the month of November. Oxnard is in full production but supplies are only moderate. Michigan production is all but finished up. Production in Santa Maria and Salinas is moderate to light. Demand is up. The overall quality is good with only slight bowing in both northern and southern California.

Chili pepper volume remains light out of our growing areas. Baja will be mostly done in the next few weeks, and Santa Maria is also struggling to produce any real volume. This will continue to be the case until we transition to Northern Mexico in late October or early November. Demand remains strong; with supplies down, the market is getting stronger. Very light volume on Anaheim peppers to nearly non existent. Mostly #2 Anaheim available at this time. We should start to see better quality on Anaheim from California in the next 10 days.

Alerts:
All Hot Pepper varieties are in short supply. Anaheim's is the shortest commodity in the hot Peppers.

The cilantro market is trending much higher. We are about to finish the season in Salinas. This is coupled by the extreme heat in all growing regions of California. We will see the heat related quality issues moving forward such as brown to yellow leaves, decay in the bunches, to dehydration.

Alerts:
We are experiencing extreme heat in all growing regions which has drastically decreased supplies. The market will be trending much higher.

The Oxnard/Ventura crop is nearing its seasonal end. Fruit out of this district is peaking on 165's and smaller. The Desert crop is improving in supplies build in availability as we move into November. Fruit from this district is peaking on 140s/115s, heavier to the fancy grade. Imported fruit from Chile is starting to clean up as their season nears its end. Mexico is in good supplies.

Limes are currently experiencing good quality. We have been through a cycle where quality had suffered due to all of the extreme weather in the growing areas. The supplies have increased in a small way while demand has been steady. We have a steady and even size curve where all sizes are now readily available. The market is lower to steady.

Navel crop is just beginning with very limited volume to start off for the week. A small rain storm at the end of last week curtailed harvest and set back this weeks start in packing. Volume will build slowly over the next 3 to 4 weeks as more shippers start and more fruit colors and becomes ready to pick. Demand will exceed supplies until all shippers are up to full production and the supply line begins to fill.

Alerts:
Demand continues to exceed available supplies.

Cucumber supplies got considerably tighter over the weekend with less supply in the mid-Atlantis and northeast. Now with cooler weather moving across the south look for supplies to tighten even more. Most supply is coming from Georgia but a few shippers started in Florida this past week in light supply. More growers will start the first of November but expect tight supplies until then. Quality has been hit and miss but actually should get better with cooler temperatures, the few cucumber in Florida have been light in color.

Alerts:
Cucumber supplies are tight and will likely get even tighter.

Peak Seasons:
Cucumbers are out od peak supply.

Cucumber volume from Baja remains steady. Quality out of Baja remains mostly good. Cucumber volume has increased out of Nogales, from Sonora, Mexico. The market has adjusted down and may continue to do so as volume increases from the Northern Sonora growing region. Nogales quality is good. Cucumbers will be a promotable commodity with overlapping seasons from Baja and Nogales producing heavily.

It happens most years in late October when all the northern growing regions finish for the season and the southeast is over it's peak. Supplies tightened up over the weekend significantly and with cooler weather moving in eggplant production will slow to a craw. Quality has been excellent and demand is much more than supply can handle. Florida growers will start shipping the first week of November with light supplies, we expect the market to stay strong for at least two more weeks.

Alerts:
Very Tight Eggplant Supply

Peak Seasons:
Eggplant is out of Peak season.

Eggplant production out of Fresno remains light. We should remain to see light supply until the end of the California Eggplant Season. Quality out of Fresno remains mostly good. Nogales, from Mexico, is still light volume. Production is heavy to smaller fruit in both growing areas (24 count and smaller). The Western market remains steady. Quality from Fresno and Nogales are good to Excellent at this time.

Alerts:
Supplies winding down in Fresno. Nogales and Coachella with light supplies. Demand exceeds supply.

Supplies of green grapes continue steady. All shippers are reporting good quality along with steady pricing. Expect more of the same for the remainder of the week.

Red grapes will continue along with great quality. Prices are steady. Many varieties available right now. Expect more of the same barring some type of weather impact.

Green onion supplies are plentiful. The market is finally at competitive levels on both iced and iceless green onions. Jumbo sized green onions are also now available. The quality is much improved with nice green tops and consistent sizing.

The kale market remains steady. Although prices may vary depending on if you load in Salinas, Santa Maria, or Oxnard. Quality remains excellent with dark green color, full bunches, minimal yellowing and dehydration.

This market has softened with all suppliers. Demand has fallen off. Huron's production has picked up with multiple suppliers. Production in Salinas and Santa Maria has been steady for the week. Weights in both areas has averaged 42-46 pounds. Defects that have been seen include tip burn, mechanical, puffiness, ribbing, and slight insect damage. All defects have been minimal and for now, the quality overall is good with multiple suppliers. Escalated pricing on value added items has stopped as of Tuesday's shipping. Production in Yuma will begin approximately the first week in November.

Transitions:
Yuma is expected to harvest lettuce the first week in November.

Romaine is softer in the marketplace with most suppliers. All other leaf items has remained steady, overall. Good quality exists with only slight mechanical insect and ribbing reported on romaine as well as green and red leaf as well as butter. Very warm weather in northern and southern California will be in the growing regions throughout this week. We will likely see defects more apparent by the middle of next week. Romaine hearts continue to be stronger and expect firm pricing by the end of this week on this commodity.

As we enter this week the extreme heat in the Salinas Valley is significantly decreasing quality raw product. Spring mix, baby spinach, arugula, and other components will see fringe burn as well as in finished packs we will see possible dehydration. Bruising or the black creases in the tender leaves will also be prevalent. We will not see any relief until we transition to Yuma.

Alerts:
Supplies are still limited and with the extreme heat in the Salinas Valley we will see this trend until we transition to Yuma.

Cantaloupes are in short supply. Growers are finished in the San Joaquin Valley. The desert growing region has been light so far due to a reported white fly problem. Quality across the board has been very good and looks to remain so throughout their short season which ends during the middle of November. Offshore melons are set to arrive on the east coast sometime in the first and second week in November and on the west coast the first week of December. The market is higher.

Transitions:
Cantaloupes are finished in the San Joaquin Valley. The desert is where supplies are coming from. Offshore melons are set to arrive on the east coast the first and second week of November with west coast supplies arriving the first week of December.

Honeydews are finished in the San Joaquin Valley. The California and Arizona desert growing areas along with Mexico are supplying the market with honeydews. Quality is excellent and supplies are short right now due to white fly damage in the desert areas. Offshore supplies are set to arrive on the east coast during the first and second week of November and arrivals on the west coast are the first week of December. The market is higher.

Transitions:
The San Joaquin Valley is finished. The desert region and Mexico are supplying the market. Offshore supplies are set to arrive on the east coast during the first and second week of November and arrivals on the west coast are the first week of December.

Volume on new crop watermelon in Nogales crossing from Mexico has increased. More Nogales shippers have started to received steady volume on this commodity. This should have an impact on the market. Demand is very strong, mostly due to a lack of supply from older fields in competing districts. Quality on Mexican watermelons is mostly good to excellent.

Onion market continues to be fairly steady on all sizes and colors. Quality is still being reported as good out of all areas. Look for the markets to stay fairly steady on Jumbo's and smaller. Larger onions will be coming and going in waves as the shippers switch lots throughout the season. The unusual weather these final weeks of harvest in Idaho could make for an interesting finish to the season. The onions went through rain, then a freeze a week ago, followed by rain again over the weekend. 2017/2018 Northwest onion harvest is almost complete out of all growing areas. Mexico has all its onions in the ground and is being reported as being around 15% more than last year. Only time and weather will tell the real story. Texas is in the process of being planted and should finish up in the next couple of weeks. Transportation is still very limited and demanding a premium. I don't see transportation getting better anytime soon.

Alerts:
Transportation still very limted

Stockton, California – Bartlett pears are steady on all sizes with 100s and larger now. There is still some price-flex for volume in most sizes. Red pears are steady and continue to peak on 45/50 half cartons, but supplies are very light now. Bosc pears are speaking on 100/110s. The Bosc is steady now on all sizes. The quality has been good for all.

Washington – Bartlett pears are steady on all sizes and continue to peak on small fruit. Red Bartletts/Red Sensations are also steady on all sizes and continue to peak on 45/50 half cartons. Bosc and D'anjous are steady on all sizes with mostly US#1 grade fruit, the fancy grade is very limited. Bosc are peaking on 80/90s and the D'anjous are producing mostly 80/90/100s. The quality for all has been good.

New York – they still have fruit left but supplies are light.

Peak Seasons:
Washington continues in the peak of its Bosc, Bartlett, red pear, and D'anjou pear seasons.

We continue to see good supplies coming in for the tropics. Expect good supplies as we move through November. Size is peaking on 5ct/6ct with the smaller sizes limited.

Potato markets continue to firm on 80 count and smaller with 70 count and larger steady to slightly weaker. The markets out of other areas are being driven by Idaho. Idaho's size profile looks to be better then first anticipated in both varieties (Norkotah and Burbanks). Washington size profile is looking to be peaking on 70 count. Colorado and Wisconsin size profile is being reported as peaking on 80 count. Only time will tell the real story. Now that almost all supplies are undercover look, for the markets to find a steady trading point as we go through the holiday season. Quality is being reported as good. Transportation is still very limited and looks to be into the new year.

Alerts:
Transportation is still very limited with no relief in sight

Eastern Washington – red and gold potatoes remain steady, but supplies are light and what they do have is mainly A size. The quality is good.

Western Washington – reds, whites, and golds are steady with good availability. All are peaking on number-one A size and the quality has been good.

Bakersfield, California – red, white, and gold potatoes are steady on all sizes. The availability has been good, but transportation from Washington has been tough. All colors have been good quality.

Idaho – red and gold potatoes are steady to with good availability. Both are heavy to A size and have had good quality.

Wisconsin – red potatoes are slightly higher this week while golds are steady, the availability for both is good. Trucks are slightly easier here. The quality has been good.

North Dakota – reds and golds are steady with good availability. Transportation has been the toughest thing to find up there. The quality is good.

Peak Seasons:
North Dakota, Wisconsin, Idaho, and western Washington continue in the peak of their red and gold potato seasons.

After a few weeks of light supplies on squash, growers in Florida have started shipping. With the above normal temperatures Florida has experienced the past month squash production is ahead of what was projected after hurricane Irma. Last week with light supplies in the southeast and heavy supplies in Nogales, many buyers started loading in the west taking pressure off the southeast shippers. Now with production picking up in Florida the market is a little cheaper. Quality has been good in the southeast and very good on the newer fields in Florida. Temperatures in Georgia and Florida are forecast to be cooler this week so production will slow down this weekend.

Transitions:
Squash is Transitioning to Florida.

Italian, Yellow S/N and Grey squash are currently being Harvested in Sonora Mexico and crossing through Nogales. Heavy supply crossing through Nogales has exceeded demand. Good quality and condition are being reported on these three squash commodities.

Peaches and nectarines are almost finished for the season. Small amounts available here and there. Plums continue on and should be available for the next few weeks before harvest winds down for the season. Quality remains good. Pomegranates, persimmons, apple pears and kiwi are all in full harvest now.

Peak Seasons:
Peaches and nectarines are finished for the season. Plums will have a few more weeks. Pomegranates, persimmons, apple pears and kiwi are all available now.

The eastern seasonal slowdown has just about finished local programs with North Carolina still producing in a light way. Northern Florida is harvesting and absorbing much of the demand lost to operations that have finished in Alabama, Tennessee, and Michigan. Low demand for tomatoes is helping to keep the market relatively flat as speculation for escalated markets looms in the coming days. Round tomatoes are steady with some upward pressure as demand increases against limited supply. Roma tomatoes are up $1 to $2 with the sharpest increase to prices this week occurring in the bite size category. Grape and Cherry tomatoes have finished in VA putting all of the National demand on Northern Florida and Mexico. Pricing is expected to continue an upward trend this month and November is still a bit of an unknown. Though we have not experienced the market reacting as quickly as expected following post Irma reports, largely due to Mexico helping to meet US National demand in recent weeks, there is still the consensus of a potential supply gap through November and possibly early December.

Alerts:
Virginia has finished for the season putting elevated demand on Northern Florida for Grape and Cherry tomatoes where acreage has been reduced from storm damage caused by Hurricane Irma. Markets have risen nearly $5 already with concern for supply as November approaches. Mexico imports will be a big help meeting National demand however supply is light at this time as well.

Pricing is still reasonable for the season out of California although the quality is showing multiple months of summer heat and is considered secondary compared to Eastern counterparts. As western crops come to an end this month, demand will shift back towards Florida where acreage is roughly half of what is normally available. California roma tomatoes have already began their seasonal decline, however supply is steady with increasing crossings from Mexico into Texas. While California fruit quality has been reported fair at best, Mexico has began in recent weeks shipping good quality tomatoes helping overall supply as California growers wrap up. Grape and cherry tomato production remains light against rising demand pressing prices upward. Over the next week to 10 days, domestic yields will diminish further to a halt continuing the upward pressure in the market that has set in this week with the speculation of elevated pricing until December when winter programs start.