The Source - October 3, 2018

There continues to be plenty of supplies of apples from all growing regions. The markets are also competitive on most varieties from all growing regions as well. Depending on the grade you are looking for, smaller sized apples are plentiful to a certain degree. For the most part, the storage crop is all finished with a few shippers still packing the remaining bins from this past year's harvest. Most states have plenty of supplies, so your local apple source will benefit you on the freight side of things. Although the Red Delicious market has firmed up as the storage crop is finished. Most shippers are coming up short on smaller sizes. But there are other red varieties to pick up the slack. The overall quality is excellent from all growing regions with good sugar content and pressure testing in the 14 plus range.

Southern Baja (Constitucion) continues to be warm this week, and the weather should start to improve going into next week. Volume is good, quality continues to be fair from this region with a high percentage of seeding, and spreading in the tips due to the heat. The weather in both regions in Peru (Ica/Trujillo) is about the same as last week, and volume continues to increase with more fields opening in the southern region. We're finally seeing an increase in the bigger sizes. Markets are lower on the West Coast with more volume from Southern Baja, and East Coast markets are lower with more sea arrivals this week.

Forecast in Michoacán Mexico calls for rain and thunderstorms this week with temps in the low 80s. Currently harvesting the "Flora Loca" crop and reports of good volume on all sizes but 70s. The 70ct remain a bit tight this week. Harvest on the "Flor Loca" crop will finish up at the end of this month as the "Aventajada" crop ramps up the beginning of November. We will see Mexico peak in November into December. Current market price this week is in the $30.00-$35.00 range. Overall quality is fair.
Peruvian fruit is available as the season for them is tapering off. Volume will decrease weekly.
Chilean fruit is available and will run into the end of November.

The bell pepper supply is good in the Midwest, and the southeast is starting more supply. Michigan and Ohio are still packing pepper and will continue for ten days to 2 weeks. Quality is still good, but not as classy as new product from the southeast. New Jersey has started some new fields with light supplies of fair product. Jersey's quality is only fair after a hard wet growing season and shippers are keeping product close to home. The southeast is getting more volume this week with more growers starting to harvest. Quality is very good with mostly larger sizes. The market is steady with a weaker undertone.

Alerts:
Supplies are good in Midwest and southeast is getting more supply.

Transitions:
Bell Pepper is transitioning to the southeast.

Green Bell Peppers – California bell pepper still mostly coming out of coastal growing areas. Green bell pepper volume has remained steady. The quality of the peppers remains good. Supplies are moderate. Currently, supplies meet demand and, prices remain steady. Shipping areas include Fresno, Gilroy, and Oxnard. Green bell peppers from Mexico are also available to load in McAllen, TX.

Red Bell Peppers – Good supply of red bells being harvested at this time. Supply meets demand. 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, Oxnard, and Gilroy. 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. Volume on yellow bell pepper has decreased as we enter the month of October. Few Hothouse yellow bells are crossing through Nogales from Jalisco, Mexico. The market is firming up, and pricing is higher. Demand exceeds supplies. The quality of the peppers remains good. Shipping districts are San Diego, Fresno, Oxnard, and Gilroy. Hothouse yellow bells from Mexico are also available to load in McAllen, TX and Nogales, AZ.

Blackberries have been very limited recently. The domestic production has tapered off quickly, and supplies are snug in all California areas. Mexico has just started to scratch the surface with only a handful of shippers bringing that fruit into McAllen, TX. Because this is the only fruit available from Mexico at this time, we will see aggressive prices to help move the product out of Texas. We expect Mexican production to slowly ramp up over the next 2-3 weeks and more shippers will start to bring fruit over the border. We will see Mexican fruit available to load in California by the end of the month. Prices on the remaining domestic fruit has been higher. Quality is fair.

Alerts:
Domestic supplies remain very limited in all California loading locations.

Transitions:
Mexico is just getting started with limited availability loading in McAllen, TX. Supplies will improve by the end of October.

Blueberry supplies are extremely limited this week. With the cooler weather in the South American growing regions, most shippers have opted not to harvest or send any containers to the US. This combined with the delayed and limited arrivals that were on the water, we are left in a "demand exceeds supply" situation. This is an industry-wide issue. Although shippers on the west coast are relying on storage blues from the Pacific Northwest to help fill demand, there is simply not enough fruit. Supplies will not improve until we see import fruit arrivals from Peru and Argentina on the east coast and Mexico pick up harvest for the west coast. Speaking with shippers, they are hesitant to put a hard date on when they expect supplies to increase. They are depending on the import production to ramp up, and thus far, supplies have been far less than expected. Once we have consistent containers on the water, we will need to wait for the pipeline to be filled before we see any real promotable volumes. We can expect to be in this position for another 2-3 weeks. Market prices are higher.

Alerts:
Supplies remain very limited and market prices are higher.

Transitions:
South America and Mexico are slow to increase production. We expect improvements over the next 2-3 weeks.

Raspberry supplies have been steady. Quality continues to hold strong, and markets have been flat. We continue to see harvest in Salinas, Watsonville and Santa Maria. We will see this supply gradually taper off as Mexico gets started (as early as next week). We do not foresee any disruption in supply through the transition. We expect Mexico to be the primary area of production by the end of this month. We will see the Mexican fruit first become available out of McAllen, TX and slowly fill the pipeline for California as harvest increases.

Transitions:
Mexico harvest will start over the next 2 weeks and gradually increase as we move forward.

The rain has come! How much this will affect harvest is still up in the air. As of this morning (Wednesday 10/3), the rainfall is heavier in the southern growing areas of Santa Maria and Oxnard. Harvest is on hold with crews standing by waiting for the rain to stop. Shippers are expecting supplies to become limited going into the weekend. Quality will be effected over the next week as growers pick through the rain damaged fruit down south. We expect market prices to jump in Santa Maria and Oxnard. Up north in Salinas / Watsonville, we are seeing light rain this morning. Harvest has not stopped, but we will have to wait and see if the storm blows through. At this point, I do not expect any major supply issues in the northern growing regions. Quality may be better in Salinas / Watsonville over the next week if Santa Maria and Oxnard continue to get hit hard. Market prices are expected to climb slightly.

Alerts:
The rain has come! Harvest will be effected more down south, but we may see some limited supplies across the board. Quality may be a challenge.

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

The Brussels Sprouts market has remained steady in Salinas, Santa Cruz, and Watsonville areas. Oxnard is currently out and will be back in with product in mid-October. 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 remains 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 continues to stay steady as supplies have been consistent. Overall, the quality has been good. The quality reports have shown weights in the 25 to 28-pound level, little yellow cast to cream color, medium consistent diameter and clean jackets. Look for this market to continue to stay competitive.

The market has stayed unchanged with most suppliers. Some shippers are flexing on large sizing in the Oxnard Santa Maria region, so please be aware. Supplies continue to be moderate in Salinas with all orders being filled to its entirety. Although other items have increased in demand for school business, this commodity has remained on the steady side. Expect this to continue for the rest of the week. The quality overall is good with only occasional bowing being reported. The weight is ranging 47-55 pounds. Expect steady supplies for the rest of the week.

Jalapeño – Supplies are available from Baja California, in San Diego and Los Angeles. Low supplies of Jalapeno being harvested out of Santa Maria, CA due to recent rains in the area. Tropical storm Rosa made landfall in Baja California this week and damage on crop is pending. The quality of the peppers is fair out of both regions. The market is higher along with pricing. Few jalapenos also being harvested in Fresno. Currently, supplies meet demand. Jalapenos are also available to load in McAllen, TX.

Pasilla – Moderate supplies of Pasilla available from Baja, in San Diego and L.A. Santa Maria due to recent rains in Santa Maria. Tropical storm Rosa made landfall in Baja California this week and damage on crop is pending. Supplies from both districts dropped, and demand could exceed supply. The quality has been fair out of Santa Maria, Baja, Mexico. The market is higher along with pricing. Pasilla are also available to load in McAllen, TX.

Anaheim – Moderate supplies available from Baja, in San Diego and L.A. Santa Maria is also harvesting peppers. Supplies have dropped due to recent rain in Santa Maria, and Tropical Storm Rosa making landfall in Baja California. The quality of the peppers from Santa Maria has been good, the quality from Mexico is pending damage if any from the storm. Anaheim supplies meet demand. The market is steady along with pricing. Anaheim peppers are also available to load in McAllen, TX.

Tomatillo – Moderate supplies available on both husked and peeled tomatillos entering the month of October. The market is higher on both peeled and husk tomatillo. Santa Maria and Baja California harvesting light volume of tomatillos due to rain in Santa Maria and tropical storm Rosa making landfall in Baja California. Currently, tomatillo demand exceeds supplies on both peeled and husk tomatillo. Quality is fair to good 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. There is also serrano pepper available to load in Santa Maria. Volume on Serrano is lower. The quality of the pepper has been good from both growing areas. Demand could exceed supply. Pricing has risen. Serrano peppers are also available to load in McAllen, TX.

The Cilantro market continues to stay steady with good demand. The cilantro fields have also experienced some heat resulting in lower yields. Look for the cilantro market to continue to stay steady going into next week.

The lemon market continues to decrease and is trying to find a steady level. We have good supplies coming from district three, Yuma AZ and Coachella. Quality has improved drastically on domestic fruit with little scarring, brown spots, or soft rot. Also, there are good supplies on all sizes choice or fancy.

We continue to see rain and thunderstorms in the forecast this week in the Veracruz growing region of Mexico. The weather has set back the harvest, but we continue to see good quality fruit. Plenty of small fruit available and seeing better volume on larger fruit (150,175) this week. Reports of overall quality being better this week. Market price this week ranges from $15-$20 depending on size.

The Valencia orange crop is limping along with limited supplies on all sizes. The market remains firm at higher levels. Quality is fair at best with fruit arriving with decay, soft rot, mold, and scarring. The navel crop can't come soon enough, but initial reports are the week of October 14th. There will be plenty of supplies of navel oranges by the end of October as supplies get deeper into their harvesting schedules.

Cucumber supplies continue to be tight, there are supplies coming from various regions like North Carolina, South Carolina, Virginia, South Georgia, and North Florida but none of these regions has much supply for one reason or another. South Carolina and Virginia aren't big producers. Unbelievably North Carolina is shipping cucumbers after hurricane Florence, not so unbelievable. Shelf life is poor. South Carolina and Georgia have been so hot that plants just are not producing. Volume should be decreasing in the mid-Atlantic with the season starting to wind down, Georgia should have more volume next week with more shippers starting to harvest. The market is actually a little weaker than last week due mainly to supplies being in more hands and demand down.

Alerts:
Light supplies, market is a little lower.

Transitions:
Cucumbers are in transition to the Southeast.

Cucumber supplies are still available out of Baja, California. Production will slow down this week due to Tropical storm Rosa making landfall in Baja, California. The quality of the fruit is mostly good. Baja cucumber is showing strong demand from both west coast and east coast. Pricing remains steady. Few shippers have started receiving minimal volume of cucumber in Nogales. Volume is expected to increase in the upcoming week’s. Shipping areas are San Diego and Los Angeles. Light supplies of cucumbers are also available to load in McAllen, TX.

Eggplant supplies are better in the Southeast, Georgia and South Carolina are in better production, most other regions have finished for the season with the exception of some small regional deals. Quality in the Southeast has been very good, and demand is strong keeping the market on a steady pace. Eggplant will be coming into peak season over the next week to 10 days.

Alerts:
Supplies getting better, Quality excellent.

Transitions:
Eggplant is transitioning to the Southeast.

Peak Seasons:
Eggplant is coming into peak season.

Eggplant continues to come out of Fresno. Quality remains good. Growers are packing both fancy and choice grade. Volume is expected to be consistent through October. Eggplant demand exceeds supply. Pricing remains steady on fancy and choice grade.

The domestic grape production out of the central valley has been very strong. Shippers are seeing excellent yields and quality. Supplies of green grapes remain heavy. Fruit is firm with good size and strong stems. Market conditions have been flat with promotional volumes and opportunities available. We do not expect any major shifts in supply or markets over the next 2-3 weeks.

Much like the green grapes, reds have been very consistent with excellent availability and quality. Growers are harvesting new varieties, so we did see the market jump up slightly last week and into this week, but things have leveled off with steady prices. Depending on variety and size, we may see slight fluctuations between shipper, but overall we will continue to have plenty of promotable volumes and aggressive buys.

The Green Onion market continues to remain extremely tight. The wet weather in Mexico and labor issues have caused product to be 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. Look for the green onion market 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 a bit softer to start the week. Some shippers have flexed in pricing while others have stayed firm. There is a pricing gap in the marketplace depending on the supplier. Demand is moderate. Some quality issues that have come up upon arrivals include some puffiness, light weights, and mechanical. The reports have been minimal, however. Weights on palletized have been ranging from 36-42 pounds. Huron will begin production approximately the third week in October, and this will go until the third week in November. Expect some early lettuce in Yuma the first week to the second week in November.

Transitions:
Huron will begin production the third week in October. Yume will have some lettuce in Yuma the first to second week in November.

This market is stronger on romaine as well as all leaf items to start the week. Expect moderate to light supplies this week both north and south. Romaine hearts have tightened up as well. Expect light supplies all week as well. Green leaf continues to be very light in availability, and this will continue throughout the week. Overall, the quality has been good on romaine as well as all leaf items with most suppliers. Slight twisting and mechanical has been reported, but on minimally. Red leaf and butter have good quality being reported. The weights on romaine have been 33-36 pounds while green leaf has been 19-22 pounds.

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.

Forecast for the San Joaquin Valley calls for some showers this week with temps in the 80s. It is the tail end of the California season, and the market is active on both cantaloupes and honeydews. We are seeing cooler nights/mornings in the San Joaquin Valley growing region. Reports show that growers are seeing less fruit as they harvest what seems to be the last few weeks of the California crop. We can expect to see a limited supply of fruit until Arizona gets going mid-October. Overall quality is good with sugar/brix levels in the range from 12-14. Current market price is in the $10 range and will go up daily.

Transitions:
The desert will be starting up at the end of this month weather permitting. The forecast calls for showers this week in the Maricopa growing region of Arizona with temperatures in the upper 80s to 90s. This could delay the harvest, affect quality and cause the market rise as California is winding down. That being said, California will finish up this month and Arizona will ramp up mid-October.

The forecast calls for some rain in the San Joaquin Valley growing region this week with temps in the 80s. It is the tail end of the California season, and the market is active on both cantaloupes and honeydews. We are seeing cooler nights/mornings in the San Joaquin Valley growing region. Reports show that growers are seeing less fruit as they harvest what seems to be the last few weeks of the California crop. We can expect to see a limited supply of fruit until Arizona gets going mid-October. Overall quality is good, and brix(sugar) levels are average to good. Current market price on honeydews is on the $10 range and going up daily. All sizes are tight so shippers will be looking to sub sizes on all orders.

Transitions:
The desert will be starting up at the end of this month, weather permitting. The forecast calls for showers this week in the Maricopa growing region of Arizona with temperatures in the upper 80s to 90s. This could delay the harvest, affect quality, and cause the market rise as California is winding down. That being said, California will finish up this month and Arizona will ramp up mid-October.

There are watermelons available in different areas of the central valley. Volume has decreased considerably throughout Central California as we enter October. Seedless watermelons are also available to load in Nogales, from Mexico. Watermelon production from Sonora, Mexico ( Nogales ) has increased in early October. Demand is steady. Pricing remains steady.

Idaho market is steady with good supplies of all colors and sizes. Harvest is in full swing. Quality is very nice. Washington market has firmed slightly on Jumbo Yellows as harvest has finished or will be in the coming days. Export demand is good. Quality is very nice. Look for the supplies and the market to stay steady at current levels for the next couples weeks or until harvest is finished

There are several states across the US harvesting pears currently. The markets across the stats are competitive. California will finish up their supplies by the end of this month. We have good supplies also from Washington. Varieties such as Bartletts, Comice, Red Anjou, Bosc, and Green Anjou's are available. Quality is really nice with good sugar content and pressure tests.

Pineapples remain tight and will continue to be for the remainder of this month. All orders that are being placed the Wednesday before the week of loading are being covered, but week of orders and order add-ons can sometimes be difficult to fulfill. Quality remains good overall, although we have seen instances of fruit arriving either under-ripe and in some cases, slightly overripe. Please make sure your QA team are thoroughly inspecting all fruit upon arrival.

Potato market looks to have found the bottom as growers start to focus on filling their storages instead of running them for the fresh market. Sheds across the valley are only running limited hours. Supplies are still peaking on 70 count and larger with most of the smaller potatoes going into the retail bags as that market is strong. Look for this to continue until harvest is finished later this month. Wisconsin harvest has been interrupted due to wet weather. This wet weather pattern looks to continue for the next 7 to 10 days with the heaviest tonight and tomorrow. Colorado looks to see rain as this week moves on from tropical storm Rosa which will cause interruptions in harvest. Washington is for the most part done with their harvest. Idaho is running mainly Norkotah's variety with a few sheds running field run Burbank's. The field run Burbanks will finish up the middle of this month with storage supplies not coming available till late November early December. Quality has been good with limited issues upon arrival.

Alerts:
Heavy rains in the Wisconsin area will cause harvest interruptions with rain in the forecast for the next 7 to 10 days Colorado harvest could be interrupted later this week with rains from tropical storm Rosa.

Red potato market is steady to lower on A size out of all growing areas with limited supplies on B and C size. Wisconsin, Canada, and North Dakota are currently in lots that are only producing 5-6 % B size which should be close to 15-20 %. Golds and whites supplies are moderate on all sizes with a steady market. Quality is still very nice with little to no issues upon arrivals. Wet weather has slowed down harvest in Wisconsin growing areas. Rains from tropical storm Rosa will affect harvest in Colorado later this week.

Most of the northern regions of the country have finished for the season. New Jersey has bounced back with some good weather and some light supplies. There are small deals in the mid-Atlantic, but most will wind up by next week. South Carolina, Georgia and North Florida are all packing squash. Zucchini production is down due to plants not producing in unseasonably warm weather. Yellow squash has not been affected near as much. The zucchini market has stayed strong over the past week while yellow squash has gotten cheaper.

Alerts:
Good supplies of yellow squash. Zucchini is still in tight supply.

Transitions:
Squash is in transition to the Southeast.

Zucchini and Yellow S/N – Good supply of Italian and Yellow S/N still coming out of the Santa Maria growing area. The quality remains good. Volume currently meets demand, and pricing is slowly dropping. Italian, Yellow S/N, and Grey squash available through Nogales. Squash supplies from Mexico are also available to load in McAllen, TX.

We are approaching the end of the domestic stone fruit season. As we move forward through October, we can expect to see supplies of peaches and nectarines to taper off quickly. Fruit is still available at this point, but sizes are on the larger side. Quality is being reported as good, but again, we will see availability become more scarce as we move forward. Plums, however, are still in good supply. We expect red plums to be available through October, then gradually taper off. Markets have been steady, but as supplies become lighter on peaches and nectarines, we may see a small increase. Plums should remain steady for the next 2-3 weeks.

Alerts:
Peaches and Nectarines will quickly taper off as we move through October.

Post-Hurricane Florence, growers are left assessing crop damage in the Carolinas and finishing what's left of the crop for the season. Round tomatoes are steady with healthy production in Alabama and Tennessee and new crops in North Florida. However, the storm has pressured Virginia to finish early. Roma tomatoes are in light supply from mostly the Tennessee region where prices are firming up as crossings are reduced from Mexico in the west. Roma tomatoes are typically not a strong eastern crop this time of year with much of the emphasis on Mexico for imports which have fallen off recently from severe weather reducing exports to the US. Romas are very limited and strengthening as supply continues to shrink while operations transition. The grape and cherry tomato categories have transitioned to small operations in Georgia, and northern Florida where quality is reported as excellent, however, there has been a dip in supply due to hurricane damage n Virginia. Supply remains tight, but new operations will begin helping to ease the market as harvest increase within new plantings as we move into October.

California's central valley continues to produce tomatoes while crossings from Mexico are reduced from hurricane weather systems Rosa last week and Sergio churning off the coast. Round tomatoes are firm whiles supply shorten further from heat-related issues. There is decent production on Romas as well, 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 Rosa 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 headed into the first week of October until farming operations can recover.