The Source - October 31, 2018

So the focus as we finish this week is the overall crop out of Washington. As an industry, the crop will be at least 10 to 15 million cartons down from last year. There are some percentages as high as 25% down from last year which has caused a significant jump in the market out of Washington. The markets from other growing regions have taken notice. Although they are steady as we finish the week, they will trend higher as their season progresses. Basically, the reasoning is that most apple varieties are alternate bearing. Which means one year the yields are up and the next year the yields drop significantly. They have had lighter blossoms this year as well which has generated larger fruit. We have seen the smaller size fruit in particular 125ct and smaller take a quick turn. They are extremely limited in most varieties. The will remain through the whole season. There is availability of small fruit from other states but that will quickly turn as well. Quality remains excellent with all varieties with good sugar levels and decent pressure testing.

Alerts:
The smaller size fruit in all varieties is extremely limited as suppliers are not risking opening up controlled atmosphere rooms to run bins in order to cover orders. Subbing into larger sizes will be the theme this year.

Not much change in production or weather from Southern Baja (Constitucion) this week, demand has slowed down. The weather in Northern Peru (Trujillo) continues to be cool, and the warming trend continues in the South (Ica). Overall production in Peru is about the same as last week, and demand on the east is still good. Markets in the west are down due to good production, and overall demand being down. Markets in the east are steady to lower due to similar container volume arriving this week.

Weather in the growing region of Michoacán Mexico continues to get hit with rain and thunderstorms and temps in the 80s. Mexican growers want to increase the cost in the field substantially which the packers are resisting. Growers have chosen to strike as of Monday, today Tuesday and possibly the rest of the week. Keep in mind Mexico is taking three days off starting Thursday the 1st of November for their annual Day of the Dead holiday. There is no resolution as of yet as packers and growers continue to hold meetings. We know there is a lot of fruit on the trees with the Flora Loca crop finishing up and the Aventajada crop in full swing. Mexico is peaking on size 48s followed by 60s and seeing less volume on smaller fruit. Since May, Mexico has seen a good amount of rain. The rain has brought on larger sized fruit. With this current strike, we can expect higher prices and limited supplies on all sizes. Current market price ranges from $25-$30 depending on size. Chilean fruit is available but with volume decreasing weekly as their season tapers off.

Bell pepper supply is slightly better with better production in Georgia and light supplies in Florida starting this past week. The first product coming from Florida is mostly smaller pepper with low yields and in general only fair quality. Georgia has started some fields that were planted very late because of wet conditions, those fields are producing better quality pepper, most of the early fields have been left behind due to poor quality. The effects of Hurricane Michael will be felt for the remainder of the season with less supply.

Alerts:
Supplies continues to be tight.

Transitions:
Florida is starting very light supplies but the main supply is still in Georgia.

Green Bell Peppers – Green bell pepper volume has stabilized. Supplies out of Fresno should end this week. Grower/Shippers now harvesting moderate to good volume out of the Coachella Valley. More choice and medium grade being packed at this time with few larger size. The quality of the peppers being reported as good. Currently, supply meets demand. Price should remain steady through the remainder of the week in the teens for a choice grade pepper and low to mid 20’s on #1 pepper. Light supplies available through Nogales. Green bell peppers from Mexico are also available to load in McAllen, TX.

Red Bell Peppers – Light 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 with good volume expected by Mid- November. Hothouse Red bells are also available to load out of San Diego, from Baja growing district. Volume out of Baja has started to decrease as we move out of October and into November. Few hothouse red bells are crossing through Nogales From Jalisco, Mexico. The quality of the peppers in all districts remains good. Pricing has remained steady on #1 and choice grade peppers. Supply meets demand. 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 higher along with pricing but remaining steady. Demand is steady along with supplies. The quality of the pepper remains good. Shipping districts out of California is San Diego. Hothouse yellow bells from Mexico are also available to load in McAllen, TX and Nogales, AZ.

We are seeing a definite divide in supplies and price on blackberries. Due to the domestic harvest finishing up and the limited production in Mexico, supplies in California remain very limited this week. However, the fruit that is being harvested, is getting transferred to McAllen and sold at a much cheaper price than CA. As we wait for the effects of the storms from last week to wear off and production to increase, we can expect to see this split market. If loading in McAllen is an option, you will have the best chance of getting covered in full at a better price point. We expect supplies to improve over the next 2 weeks.

Alerts:
Supplies are still limited due to the storms in Mexico last week. Availability is better in Texas than California. We are seeing split markets.

Blueberry supplies are finally beginning to improve. On the east coast, we are seeing consistent arrivals of Peruvian and Argentinean fruit with good availability in Miami. Quality is being reported as good. Market prices have started to decline this week with good supplies expected for the weekend. We can expect to see more aggressive prices moving forward. On the west coast, air arrivals and transfers of import fruit are coming in on a regular basis. Although the volume is not as high as the east coast, we do expect to see better supplies and lower markets moving forward. Additionally, Central Mexico production is slowly ramping up. Most of this fruit is being sold out of McAllen with some transfers to California. Market prices are higher but will decline as production picks up over the next 2 weeks. Chilean production is expected for late November.

Consistent supplies, quality, and markets on raspberries. We have both Domestic and Mexican production currently. The domestic harvest will start to wind down, but Mexico will continue to improve. As we transition loading locations to Oxnard and Yuma, we do not foresee any disruption in supplies. McAllen is also an option for loading at this time. Market prices have been steady and will continue to be flat until we see our first peak in Mexico over the next 3 weeks.

We have several areas in production at the moment. Salinas / Watsonville will continue to harvest through November or until our first major rain/freeze. The quality in this area is fair as we are approaching the end of the season. Market prices are lower than the other loading locations because of quality and the industry is transitioning south. I expect to see some aggressive spot buy opportunities in this area to help blow through some product over the next 2 weeks. Santa Maria continues with consistent harvest, but we will see volume start to trend down over the next 2 weeks as most shippers focus on moving production toward Oxnard. In Oxnard, we will see an increase in production over the next 3-4 weeks. Shippers are breaking into new crop and we expect quality to remain solid, barring any major weather events. Market prices in both Santa Maria and Oxnard seem to be in line and are slightly higher than Salinas/Watsonville. Finally, Mexico will slowly ramp up over the next 2 weeks. Most of this product will be sold out of McAllen, Yuma or transferred to the east coast. Market prices will be in line with Oxnard and quality is expected to be good. Florida production will start late November.

Transitions:
Domestic harvest will transition to Oxnard over the next 2 weeks. Salinas / Watsonville will trend down. Mexico will ramp up slowly. Florida will start late November.

The broccoli market continues to be tight. The colder nights have slowed the growing process in the Salinas Valley and Santa Maria areas. The crowns and bunch market are both higher this week. 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 come off 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. Look for Brussels Sprouts to be plentiful going into next week.

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 continues to stay steady. 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 stay steady going into next week.

This market is very active. Supplies will be on the moderate to light side throughout this week in Salinas as well as southern California. Small sizing has the least production, thirty-six counts in particular but thus far all orders are being filled to its entirety. Shippers are no longer flexing on any size. Aside from slight brittleness and leafy branches, the overall quality continues to be good. The weights continue to average between 46-52 pounds.

Jalapeño – Light supplies still available from Baja California, in San Diego and Los Angeles from Santa Maria. light supplies of Jalapeno being harvested from both growing regions. The quality of the pepper is fair at best out of both regions. Nogales still receiving very light numbers this week. The market is high and along with pricing, and should remain high for the next 2 week until Nogales starts to see better numbers. 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 from Sonora, Mexico. Good quality being seen in Pasilla from the Sonora growing region but supplies not yet consistent. Pasilla are also available to load in McAllen, TX.

Anaheim – Light 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 out of these districts lacking size. Anaheim demand currently exceeds supply. The market is higher along with pricing and should remain high for the next few weeks until Nogales starts with better volume from the Sonora region. Anaheim peppers are also available to load in McAllen, TX.

Tomatillo – Very low supplies low 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 Fair from tomatillo being harvested in Santa Maria. Tomatillo shipper out of Nogales expected to start Mid-November with better numbers. Tomatillos are also available to load in McAllen, TX.

Serrano –Light 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 has started to receive 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 continues to remain steady 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.

Quality has much improved over the last few weeks. Supplies are steady with the majority of the fruit sizing in the 165 count, 200 count, and 235 count. The bigger sizes such as 140 count and larger are still struggling to increase in supplies. The market has found a steady level out of both the Oxnard and Coachella growing regions.

Rain and thunderstorms continue to hit the growing region of Veracruz, Mexico. Overall quality is fair. This constant rainfall softens the skin and can bruise easily of harvested after heavy rainstorms. With the "Day of the Dead" being celebrated in Mexico, there will be no harvest Thursday - Sunday. Market price ranges from $11-$15 depending on size. The market is steady.

We have embarked on the navel season and supplies have ramped up significantly. The markets have lowered and there are volume deals to move excess fruit. We are also back in the luxury of having a full range of sizes from 56 count to 138 count. Quality has definitely improved with the new crop. Although the fruit will have decent sugar levels but high acidity levels too. So that extremely tart taste will be present.

Georgia is still producing decent supplies of cucumbers, fields are getting older and there are some scaring issues due to windy conditions. Cooler weather and shorter days are producing much better color, but yields are dropping. Florida has been harvesting for almost 2 weeks but with light volume, more shippers are starting this week. The market has been steady for the past week, more supplies are starting to show up from Mexico putting some pressure on the eastern market.

Alerts:
Supplies are improving with Florida picking up production.

Transitions:
Cucumbers are transitioning to Florida

Light supplies of cucumber available in San Diego from Baja California. Moderate supplies should remain consistent throughout the week. Volume will start to decrease moving through November on every cucumber size. The quality of the fruit is still being reported as good. More Nogales shippers have started receiving cucumber from the Hermosillo, Sonora growing district. Volume should continue at a steady pace from the Sonora, Mexico area as we end the month of October and increase as we move into November. Market and pricing dropping as supplies increase from the Sonora, Mexico. Cucumber supplies meet demand. Cucumber shipping areas include San Diego and Nogales. Light supplies of cucumbers are also available to load in McAllen, TX.

Eggplant supplies are tight but steady, cooler weather is slowing production. Georgia is the main supplier in the east with light supplies coming from South Carolina and North Florida. Quality and demand are very good keeping the market strong on number 1 product. Growers are packing heavier to choice so there is a wide range in pricing. Florida will start in about 10 days so supplies should stay tight for a couple more weeks.

Eggplant- Light volume of eggplant coming out of Fresno. More choice grade fruit currently being packed. Quality being reported fair due to light scaring and miss-shape but still solid. Volume decreasing rapidly due to colder weather in the area. Eggplant out of Fresno expected to finish as soon as next week. Small Fall crops out of Coachella being harvested at this time where quality is being reported as good. Eggplant demand currently meets supply. With Californian crop finishing up, market and pricing could begin to trend up.

We continue to see excellent quality and supplies of green grapes. There are several varieties currently being harvested. All sizes are available. Market prices have remained flat with plenty of promotional opportunities and spot buys available.

We continue to see excellent quality and supplies of red grapes. There are several varieties currently being harvested. All sizes are available. Market prices have remained flat with plenty of promotional opportunities and spot buys available.

The Green Onion market continues 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. The green onion market will continue to stay strong going the next few weeks.

The kale market continues to stay steady in the Salinas Valley. Quality continues to be good with good color, full bunches, and only an occasional yellow leaf being reported.

Huron production is expected to continue for another few weeks. Production in Salinas is winding down as demand has exceeded supplies in the marketplace. The quality in Huron continues to be the best overall but light weights, puffy, mechanical and ribbing have been reported upon arrivals from all the growing regions. The weights are ranging from 34- 38 pounds in the growing areas mentioned earlier. Yuma will have light production on Friday with weights expected to be 32- 34 pounds. Suppliers are doing their best to extend the Salinas deal through the first to second week in November, but supplies are dwindling. Light supplies and strong active markets are expected over the next few weeks.

Transitions:
Yuma will begin production in a light way starting the end of this week.

Romaine continues to gain strength with all suppliers. This will continue for the next few weeks minimum. Demand exceeds supplies. Romaine hearts are also very light in availability with all shippers. Common defects with romaine and romaine hearts include twisting, mechanical, insect damage and dehydration. The weights are averaging 33-36 pounds on cartons. Supplies are better on green and red leaf but demand is light, overall. Butter supplies will be sufficient to meet demand throughout the week. Yuma is expected to begin harvesting the second week in November for all leaf items.

Transitions:
Yuma is expected to begin leaf production in a few weeks.

The Tender Leaf market continues to remain steady on spring mix, arugula, baby spinach, and cello spinach. 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.

The Westside is pretty much done the season. Crews are harvesting this week and then our primary source for fruit will be Arizona. There is fruit in Maricopa and Yuma. Temps this week in the desert will be in the 80s with no rain in the forecast. Fruit is showing some discoloration due to the recent rain in Arizona. Quality is fair to good and eats well. Brix levels are in the 9% range and limited supplies this week on all sizes. The desert will taper off at the end of November and Offshore fruit will arrive in December. The current market is steady to higher and ranges from $$10-$13.

The Westside is pretty much done the season. Crews are harvesting this week and then our primary source for fruit will be Arizona. There is fruit in Maricopa and Yuma. Temps this week in the desert will be in the 80s with no rain in the forecast. Fruit is showing some discoloration due to the recent rain in Arizona. Quality is fair to good and eats well. Brix levels are in the 9% range and limited supplies this week on all sizes. The desert will taper off at the end of November and Offshore fruit will arrive in December. The current market is steady to higher and ranges from $$10-$12.

Seedless watermelons are available to load in Nogales, from Sonora, Mexico. Watermelon is currently being harvested in the Hermosillo, Sonora growing area. Demand on watermelon has increased over the past couple of weeks. Pricing is steady and should remain steady through the week in both carton and bins.

Markets continue with little change on all colors out of all shipping points. Supplies continue to peak on Jumbo and larger with limited but adequate supplies of mediums. Quality is excellent. Transportation is starting to tighten as we enter the holiday season.

We have steady supplies of pear from Washington. California is still harvesting as well but their season looks to finish over the next couple weeks. There are multiple varieties available such as Bartletts, Green Danjou, Golden Russet, Bosc, Comice, Seckle, Forelle, and Red Pears. The overall quality is really nice with good sugar levels, decent pressure tests, and little bruising or soft skin.

We continue to see a steady supply of pineapples from all growing regions. We have had little delays or issues loading at each port of call. There is also a full range of sizes. Quality has been really good with sugar levels in the 12 to 15 range with an occasional arrival showing over-ripeness. The market is steady as well.

Demand is moderate on 70 count and larger with good demand on 80 count and smaller out of all shipping points. Thanksgiving holiday demand has started and will increase quickly over the next week and a half. Quality is looking good with very few issues being reported upon arrival. Idaho is mainly packing the Norkotah variety with very few Burbanks being packed. This will continue through the first of the year. Transportation is starting tightening as we enter the holiday season which will continue through the first of the New Year.

Alerts:
Transportation starting to tighten up as we enter the Thanksgiving holiday pull.

The market is steady on Red, White and Golds with moderate demand. Demand will start increase for the holiday as we get into November. Wisconsin and North Dakota are peaking on A size Reds with very limited supplies of B's and C's. Quality is fair to good depending on the lot out of Wisconsin and North Dakota. Washington, Colorado, and Idaho have great quality being packed. Transportation is starting to tighten up as we enter the holiday season.

Alerts:
Transportation starting to tighten up as we enter the Holiday Season. This will continue through the New Year.

Peak Seasons:
We are just starting to enter peak season

Cooler weather in Georgia is slowing production but Florida growers are more than filling the void. Georgia still has a number of shippers with steady volume, Florida growers are starting more supplies this week in the central and southern part of the state. Quality is good in both regions, cooler temperatures and shorter days have produced better color and more shelf life. Expect supplies to be good through the weekend.

Transitions:
Squash is transitioning to Florida

Peak Seasons:
Squash is coming into peak availability.

Zucchini and Yellow S/N – Supplies of Italian squash out of Santa Maria has come to an end. Majority of Italian and Yellow S/N out of the West coast is being Harvested out of Sonora, Mexico. Steady supplies of Italian and yellow s/n from this district. Quality on both Italian and Yellow S/N being reported as good. Market on Italian squash is steady while Yellow S/N market is sluggish. Deal’s being offered on #1 and #2 labels on Yellow S/N. Squash supplies currently exceed demand. Grey squash also available through Nogales. Squash supplies from Mexico are also available to load in McAllen, TX.

The domestic season is winding down. Nectarines are done for the season. Peaches are very limited with only a few sizes available. Black plums are still available, but supplies are trending down. Red plums continue to be in good shape and we expect supplies to last another 3-4 weeks. Quality on the remaining fruit seems to be strong. Markets have been steady and will continue to be flat as we finish up over the next month.

Smaller operations have finished for the season in the Quincy, Florida/Georgia, growing districts. The Palmetto/Ruskin crop has started harvesting this week helping to ease the recent rising market tone, however, yields are typically light at the beginning of the season and may remain light through the first half of November providing the landscape for double-digit tomato prices through Thanksgiving. Round tomatoes are steady and projected to slowly improve through the beginning of November. Roma tomatoes remain extremely limited in the east with nearly all demand remaining on California and Mexico until Florida comes into promotable volume in the second half of November. Grape and Cherry tomato volumes are increasing in central Florida helping to curb the recent rising markets stabilizing price this week. Quality is mostly good and supply is expected to continue improving through the rest of the month.

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. In addition, Hurricane Willa last week brought heavy rain from Sinaloa eastward through Laredo Texas which may affect markets in McAllen for the next several weeks.

California is near the end of their summer crops and winding down for the season. Round tomato prices in California have begun to ease as Florida begins their winter season, however, supplies continue to contract as they near the end of the season. There is currently decent production of Roma tomatoes, but the demand is particularly heavy due to limited crossings from Mexico. Mexico has endured weeks of rain and currently assessing damage from Hurricane systems Rosa, Sergio, and now Willa, reducing crossings at the border.

Baja is beginning to recover and both Roma and grape varieties are improving this week crossings should increase as we move into November. 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.