The Source - October 4, 2017

California – Granny Smith apples are cleaning up but there are still a few hanging around. Fuji's are already finished. We expect Pink Ladies to start at the end of next week. The quality has been good.

Washington – Red Delicious are steady on all sizes and grades with only light supplies available. The strong and active red delicious market remains because the new-crop supplies are light and most shippers have only packed a few shifts. Golden Delicious are steady to lower with much better availability on 100 size and smaller. The new-crop Goldens are clean and peaking on Premium grade 100/113s while 88 size and larger remain short. Lower grade Goldens remain limited. Granny Smiths are steady to lower on the smaller fruit with better availability. Most packers still only have light supplies of 88's and larger. Galas are steady to slightly lower on 100s and smaller as they continue to peak on 113/125/138s. Fujis supplies have improved as more shippers have started packing. Fujis are peaking on 88/100s. Honeycrisps are steady to slightly lower with more higher grade fruit ranging from 64s to 100s. The quality of all varieties has been good.

Idaho – they still have a few Galas and have started packing Jonathans. Both varieties are heavier to the smaller sizes. The quality has been good.

Michigan – Michigan continues to pack Galas, Honeycrisps, McIntoshes, Jonathans, Jonamacs, Golden Delicious, Red Delicious, and Cortlands. There are also light supplies of Empires. Most varieties have excellent quality and better than normal color so markets are holding steady. Galas are steady due to strong demand, and the fruit is heavy to the smaller sizes with excellent color. McIntoshes are steady and peaking on 88/100's. Jonamacs are also heavy to smaller fruit, but supplies are limited. Honeycrisps are large and peaking in the 64-88 range with a few smaller sizes. Jonathans are smaller and have good red color this year but are also more limited. Golden Delicious are steady and peaking in the 88/100 range. Cortlands are steady and are peaking in the 88/100 range. Red Delicious are also steady and are peaking on 88/100s now with not much small fruit. The quality has been good for all.

Pennsylvania – they continue packing Galas and Honeycrisps, and they have started Fujis, red delicious, and Golden Delicious. All markets are steady, but the demand has been strong, so the supplies clean up quickly. Honeycrisps are peaking on 56/64s, reds are peaking on 88/100s, while the rest are heavier to 100/113s. The quality has been good.

New York – they continue packing Cortlands, Galas, McIntoshes, Honeycrisps, Macouns, Red Delicious, and they have started a few Fujis, Snap Dragons, and Empires. Most varieties are large and peaking on 88/100s. There are a few small Galas, Macs, and Empires. The quality is good for all.

Alerts:
Large Granny Smiths are still limited in Washington.

Northern Baja (Ensenada) is starting to wind down due to seasonality, they should have production for another two weeks. Southern Baja has excellent growing weather which has increased production. Northern Peru (Trujillo) is finishing up their field transition, and volume should pick up next week. Southern Peru (ICA) is having warmer days, and cool nights which is helping production, and helping produce more of the bigger sizes. Overall markets are lower with more production from both regions.

We continue to see improving volume being harvested out of Mexico as the maturity of the fruit improves. Supply lines in the states are also improving, and we see market prices stepping down on all sizes. Size is still peaking of 60s and 70s followed by 48s. The larger fruit, 40/36s/32s are still very limited.

Cheap green bell pepper is persistent on the east coast with good supplies coming from Michigan east to New Jersey and south to Georgia. Canadian bell pepper is also putting a lot of pressure on the pepper market in the northeast. Quality in all regions is very good. The weather has been good throughout the east coast with some cooler temperatures in the northern growing regions. Rain is forecast starting Wednesday in Michigan and moving east through the rest of the week bringing cooler weather with it. Look for the market to continue at reasonable levels through the weekend.

Transitions:
Green Bell Pepper is transitioning to the southeast

Peak Seasons:
Green Bell Pepper is in peak season.

Green Bell Pepper volume in Hollister, Gilroy, and Oxnard remains steady and consistent. Volume is expected to steadily decrease in the coming weeks, as we wind down in Coastal California. In late October, early November, peppers will transition to the Coachella Valley. Quality is mostly good, and demand is steady.

Colored Bell Pepper volume is steady, and will also wind down in the coming weeks in coastal California. The transition to the Coachella Valley may cause a spike on the market, as colored bells need more time to mature on the vine. There is a light supply of greenhouse colored peppers in Nogales, from Mexico. Volume from Mexico will increase in the coming weeks, with most fruit being packed in 11 lb cases. Overall, quality is mostly good; demand remains fairly strong.

Blackberry supplies remain very limited this week. Salinas, Watsonville and Santa Maria have all suffered the same loss due to hot weather that wiped out a large portion of the remaining crops. The fruit that is being harvested is very light in volume and quality is marginal. Unfortunately, options are very limited currently. Although shippers are doing their best to pack only the best of what is available, the quality issues are prevalent. Central Mexico has been harvesting light numbers over the last week. As we move forward over the next two weeks and production increases, we can expect to see quality and supplies improve quickly. Currently, the majority of this fruit is being shipped to McAllen, TX with very limited volumes being transferred to Los Angeles. We have the option of sourcing product in both locations. We expect the Mexican fruit to fill the pipeline through all major distribution areas in the next 2-3 weeks.

Alerts:
Supplies are limited. Domestic quality is fair.

Transitions:
Central Mexico harvest is improving. Better supplies and quality expected over the next two weeks.

Blueberry supplies will be limited all this week. The domestic season is done with very little fruit left in storage. Quality of this fruit is marginal, and most shippers are utilizing import fruit to fill orders. Argentina and Peru are in production, but arrivals were delayed early this week because of rain. Quality has been reported as strong. Firm berries and good color. Market prices have been high and firm as supplies have been limited. We expect more arrivals later this week with fruit available in multiple locations on the east and west coasts. Mexican production is just getting started with very light volume. Quality is solid. Market prices have been high and firm. Again, we expect this area to gradually increase production over the next two weeks. Fruit will be available to load in McAllen, TX and on the west coast.

Alerts:
Supplies remain limited this week.

Transitions:
Argentina, Peru and Mexico are increasing production. Better supplies are expected next week.

Raspberries will be in good supplies this week. We continue to have steady harvest in the Salinas, Watsonville and Santa Maria areas. Quality has been good, with occasional soft berries being reported. Market prices have been steady. Central Mexico started to scratch at harvest last week and will be gradually increasing as we move forward. The quality is being reported as strong. Most of this product is being shipped out of McAllen, TX and availability is limited. We expect harvest to increase and product fill the pipeline over the next two weeks. Overall, we can expect good supplies with improved quality moving forward.

Transitions:
Central Mexico production has started and will continue to improve moving forward. Quality is being reported as strong.

Strawberry supplies will continue to be consistent this week. We have multiple growing regions in production. Salinas and Watsonville will continue to be in production through the end of November, but quality has been marginal recently. We expect things to improve as the weather cools down. Market prices have been steady. Santa Maria production has been consistent and is expected to ramp up moving forward. Quality is stronger, and size is larger than the Salinas fruit. Market prices are a little higher, but you will get a firmer berry. Oxnard has started with light volume but is increasing week over week. This is the highest market currently, but the best quality. The fruit is firm with good color and size.

Transitions:
Santa Maria and Oxnard harvest is ramping up with better quality.

Broccoli supplies are still limited but look to increase next week. The market is starting to trend lower as a result. But the market is still extremely high. Quality is still a problem with pin rot (holes in the individual beads), yellowing, and hollow core. Look for supplies to increase and the market to trend lower into next week.

Brussels sprout supplies are about one to two weeks away from increasing to normal levels. The market is still much higher than normal and is steady at those levels. Quality is much better as the worm damage has disappeared as suppliers have transitioned to newer acreage. The size profile will be much better in the coming weeks.

Carrot demand continues to be steady. Adverse weather conditions earlier in September are not having an impact on quality or supplies. Markets remain steady.

Cauliflower supplies are increasing at a slow pace. The market has reached its peak. Shippers are looking to move supplies as demand has halted. Quality is still showing the brown to black spotting and also yellow to cream color of the cauliflower.

Demand is moderate, but supplies continue to exceed. Although large sizing, twenty-four counts, in particular, has lessened in availability compared to past weeks, there is plenty to fill all orders. The market was expected to come out stronger to start the week, but demand never happened. Oxnard is expected to begin production at the end of October. Michigan weather is ideal, and good production continues out of this region. Production in Santa Maria and Salinas is steady. Slight bowing and seeder has been seen but minimally in northern as well as southern California. Overall quality in all the growing regions is good.

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. Jalapeño and Serrano peppers are the varieties most immediately being affected

Cilantro supplies vary from shipper to shipper. There are better supplies out of Santa Maria and Oxnard. The Salinas Valley is struggling with supplies, and their market has firmed up. Your better value is out of Oxnard and Santa Maria. Quality is still suspect with arrivals showing brown to black spotting, yellowing of the leaves, and the occasional slimy black decay.

The Oxnard/Ventura crop is nearing its seasonal end. Fruit out of this district is peaking on 165's and smaller. The Desert crop has begun with limited volume that will slowly build through October. Fruit from this district is peaking on 140s/115s, heavier to the fancy grade. Imported fruit from Chile and Mexico is in good supplies.

Rains over the weekend and Monday slowed down harvest and shipment to the states. Harvest has begun again and will see supplies start to return by the end of the week. Quality still is an issue, seeing stylar and wind scarring in many lots coming in for the orchards.

California Valencia crop is near to its seasonal end. Most shippers have already finished, and the few left packing are down to almost nothing, leaving a very limited supply available that in most part will be clean out by the end of this week. Navel crop is not expected to begin until toward the end of October to the first part of November. We will see a gap in California oranges.

Alerts:
Demand far exceeds supplies.

There is wide-ranging quality on cucumbers in all regions, there are plenty of good lots available but maneuvering your way around different packing sheds can be tricky. Quality issues range from pale color, scaring and soft ends, the good news is there are plenty of choices for buyers to choose from. Michigan, Ohio, New Jersey, North Carolina and Georgia among others are in good production of cucumbers. With cooler temperatures coming all across the mid-Atlantic and northeast, look for the transition to the south to start in earnest soon.

Alerts:
There is a wide range of quality along with good lots so maneuvering around to get good quality can be tricky.

Transitions:
Cucumbers are transitioning to the southeast.

Peak Seasons:
cucumbers are in peak availability now.

Cucumber volume from Baja remains steady. Quality out of Baja remains mostly good. Cucumber volume has slowly increased out of Nogales, from Mexico. The market has adjusted down and may continue to do so as volume increases from the Northern Sonora growing region. Quality out of Nogales is fair to good. Some fruit from the early crop is coming in light in color, with strong overall condition. Cucumbers will be a promotable commodity with overlapping seasons from Baja and Nogales producing heavily

Eggplant is rolling steadily along in the marketplace with good demand and quality. "Eggs" have been the surprise of the summer, with steady demand and good pricing on an item that tends to lose interest in the summer. Michigan, New Jersey, South Carolina and Georgia are all shipping good supplies of quality eggplant, although some of the northern regions will start to wind down over the next two weeks. There is a wide range of pricing between fancy and choice eggplant, with hurricane Irma, the southern regions are packing a higher percentage of choice product. Expect those pack outs to go back to normal as the season progresses.

Transitions:
Eggplant is transitioning to the Southeast

Peak Seasons:
Eggplant is coming into peak season.

Eggplant production out of Fresno remains light. This should be the case through the end of the harvest. Quality out of Fresno remains mostly good. Nogales, from Mexico, is still light volume. The volume is expected to increase slightly over the next 7-10 days. Production is heavy to smaller fruit in both growing areas (24 count and smaller). Western market remains steady, quality out of Nogales is excellent

Green grapes continue to be very nice. We are past the weather-related issues we saw last week and are into some very nice fruit. Berry size is very good, and texture is firm. Markets reacted a little stronger. Expect this to continue through October.

Red grapes are also past the weather issues seen in September. Slip skin can be seen in some grapes that were not covered during the rains last month. Most of our shippers are past this problem. Fruit quality is still very good with good berry sizes and firm texture. The market continues to be steady and expects the same for most of October.

Supplies have increased on iced although supplies of iceless green onions have been a struggle. They continue to deal with the quality of the tops of green onions. This has made it difficult to pack iceless. You would think the same quality on the iced product, but we haven't seen many arrival issues. Quality issues such as yellow to brown tops, as well as mechanical damage are the main reasons. The market has finally leveled out.

We continue to see ample supplies of kale. The market does vary from supplier to supplier and loading location. Quality has been excellent with dark green color, minimal yellowing, and dehydration.

Demand exceeds supplies on this commodity, and this will be ongoing throughout the week with all shippers. Production gaps are both north and south. Huron will not begin production until the second to third week in October pending weather conditions. Weights on wrap lettuce have been reported at 36-40 pounds which is a decrease on weights in comparison to past weeks. Slight tip burn, mechanical, puffiness, ribbing, and slight insects are the main defects with this commodity. The markets will be active all week.

Transitions:
Huron will begin production 2-3 weeks from now.

Romaine is much more active than all the other leaf items. This market is up. Romaine is expected to get stronger throughout the week, and raw material for value-added items, like chop romaine, will be very tight in availability. Green leaf is up with multiple suppliers but this item along with red leaf and butter will be much more readily available this week compared to romaine. Defects on romaine include slight mechanical, pink ribbing and insect. These defects can be seen for green and red leaf as well as butter, but overall inspection reports show an above average grading for these commodities. In other words, the defects are minimal, for now. Romaine hearts continue to be stronger in the marketplace. Huron is expected to begin production in 2-3 weeks.

Transitions:
Production in Huron will begin in 2-3 weeks.

Cantaloupes continue in full swing in California. As noted last week the desert regions will be starting in late October. Quality remains very good. We seem to be past most of the issues that were a result of the high heat in September. The market remains steady.

Honeydews also seem to be past the quality issues from the high heat in September. Quality looks very nice, and supplies are good. The market is steady.

Watermelon volume remains light in California. The crop is expected to wind down slowly. Quality remains mostly good. New crop watermelon in Nogales, out of Mexico is also light in volume. The Mexican watermelon supplies are expected to increase heavily in the next seven days. 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

The market is slightly weaker on jumbos Yellows and smaller with colossal and super colossal getting a premium due to limited supplies. Red and White onions markets are steady with moderate supplies and demand. The Idaho growing areas received some rain over the weekend. The weather has only helped to keep the markets up during harvest. The forecast is calling for clear weather for the next 7 to 10 days. Transportation is very limited with some rates up 30 to 40%. I recommend staying ahead on ordering your onion needs due to the limited transportation. Quality is still being reported as good.

Alerts:
Transportation still very limited all across the Northwest

Stockton, California – Bartlett pears are steady on all sizes with 120s and larger available. There is some price-flex in the for volume in most sizes. California should continue shipping mountain fruit through this month. Red pears are steady and continue to peak on 45/50 half cartons, but supplies are light. Bosc pears are still peaking on 100/110s, and the market continues to fall slowly as Washington volume is coming on. The quality has been good for all.

Washington – Bartlett pears are steady on all sizes, and they continue to peak on small fruit. Most suppliers are peaking on 110/120s. Red Bartletts/Red Sensations are steady on all sizes and continue to peak on 45/50 half cartons. Larger Bosc and D'anjous are steadier due to lighter supplies while the smaller fruit is lower with better availability. The Bosc haven't been small like the D'anjou's. The quality for all has been good.

New York – they continue to pack bushel, bin, and tote Bosc and the market is steady. The quality is reported as good.

Peak Seasons:
Washington is into the peak of its Bartlett and red pear seasons.

We are seeing good supplies coming in for the tropics. Expect good supplies as we move through October and into November.

All growing areas are still in full harvest keeping the markets soft with good supplies of 40 through 80 count. Demand is good for retail, which has the growers putting their 90 count and smaller into the retail bags. This is keeping supply on the smaller sizes limited. Mother Nature dropped some light to moderate rain/snow across the Northwest over the weekend. This has only slow harvest slightly but worthy of keeping an eye on. An early freeze could change supplies and increase the market for the balance of the 2017/2018 storage season. Transportation is very limited.

Alerts:
Transportation is very limited.

Eastern Washington – red and gold potatoes remain steady and both are still peaking on A size. The quality has been good.

Western Washington – reds, whites, and golds are all steady with good availability. All continue to peak on A size number-ones. The quality is good.

Bakersfield, California – red, white, and gold potatoes are steady on all sizes, and the availability is good for all. All are peaking on As with good quality.

Idaho – red potatoes are lower on A size while B size are higher. Gold potatoes are steady on all sizes. The quality is good for both colors.

Wisconsin – red potatoes supplies are slightly lower this week while golds are steady. The quality has been good.

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

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

A squash turnaround is coming with rain and cooler temperatures coming to the mid-west and northeast, supplies are getting tighter. After three weeks of declining prices and buyers having many loading choices to pick from, supplies are going to get tighter. After hurricane Irma, yields in the Southeast have been down, but nobody noticed with all the other producing areas in good supply. With cooler weather in the mid-Atlantic and rain in Michigan and Ohio coming this weekend, expect a quick turnaround in pricing and availability.

Alerts:
Supplies are getting tighter

Transitions:
Squash is transitioning to the southeast

Peak Seasons:
Squash is moving out of peak availability.

The summer squash crop in Santa Maria is almost finished. Supplies are down; quality is mostly fair in Santa Maria. This has impacted demand, and the focus on the west coast has shifted to Mexican product. Squash volume in Nogales, from Mexico, has increased significantly in the last few days. The market has adjusted down; demand remains steady in Nogales, as customers are looking for new crop squash because of quality concerns with the California crop. Quality is mostly good on zucchini, yellow squash, and gray squash

Nectarines have finished for the season. You can find a few cartons here and there, but that is about it. Peaches should continue for the next 7-10 days. Plums will be available for most of October. Apple pears continue going strong. Pomegranates and persimmons are in now so look to these to replace the items with harvest ending. California kiwi has started lightly. We should be up to full production in the next two weeks.

Fall harvests are steadily underway with light supplies from NC, SC, TN, and VA. Supplies are limited, and with the usual Quincy Florida crop missing from the lineup for this time of year, we expect the market to receive considerable upward pressure mid-month as regional programs mentioned move past their peak and wind down. Northern Florida is not producing any significant volume with much of the crop diseased from White fly and related heat issues before any damage caused by Hurricane Irma. Supply is forecasted to contract further into November shifting much of the emphasis on imports from Mexico. For the next two weeks, not much change is expected, and markets look to be steady. A recent flush of fruit has caused markets to slide with all categories improving this week. There are also Romas and grapes increasing through Texas crossings helping to keep eastern shippers competitive. Grape tomatoes have nearly halved in price over the last 10 to 12 days, and a wide mix of quality is available. Cherry tomatoes remain the tightest item with little to be had in the West allowing Eastern growers to command a premium for what is available. This demand exceeds supply scenario is expected to remain the tone through mid-December.

Ca, Baja, and Mexico is steady in the Western market with prices slightly softer than last week. Downward pressure from a sudden supply flush has markets easier this week with the expectation of similar treading markets for next week. Round and Roma quality remains fair from the extreme heat all summer. Grape supply continues to increase week after week with more imports crossing Texas helping markets return to reasonable. There are not many cherry tomatoes in production, so the price is a reflection of supply with most coming from Eastern operations.