The Source - October 9, 2019

Eastern Region:

The Midwest and East Coast continue to go strong on a large assortment of apples. Gala, Honeycrisp, Macs, Jonathan, Cortland, Golden Delicious, Fuji, Red Delicious, Jonagold, Honeycrisp, and Empire are available in abundance with Cortland and Rome apples expected later this week. Quality is fantastic—in all areas—with some parts of MI/NY/PA dealing with isolated showers. Parts of NY have been dry (no rain) which has caused some fruit to overripe and drop (can’t harvest the fruit once it hits the ground).

Many shippers continue to maintain current price levels; putting the pressure on Northwest shippers to compete and get below EC prices in order to attract business.

Western Region:

Washington

With approximately 50% of the state’s total apple crop harvested, this has truly been a vintage Washington apple crop. With extremely normal “all season” growing conditions, that included exceptional spring cell division—after bloom—to optimum summer heat and cold units, shippers have been thrilled with the size, condition, and overall fruit color. Golden, Gala, HoneyCrisp, and Red delicious are now in storage while shippers begin harvest on Fuji, Granny, and Pink Lady. The abnormally hot weather conditions, that have dogged the industry for the last few seasons, didn’t materialize this season, resulting in normal picking periods at optimum maturity. With cooler weather on the horizon (Highs of 55°F and Lows of 25-30°F), shippers are cautiously optimistic about the remaining harvests of the three, main varieties—Fuji, Granny, and Pink Lady—will take place with no issues. Quality is strong across the board.

With the Midwest and East Coast in full swing on new crop, Northwestern shippers are feeling the need to aggressively price some commodities in an attempt to attract Midwest/EC customers to mitigate freight costs. We will continue to see softer prices as we await new crop harvest on Pink Lady, Braeburn, Lady Alice, Jazz, Envy, and Granny Smith—to name a few.

California
Granny Smith apples are still available with a few shippers quoting Pink Lady apples.

Asparagus volume, and the demand from Southern Baja, Mexico is about the same as last week. We should see asparagus in this region until the beginning of November, then Sonora will start up. Both regions in Peru (Ica/Trujillo) have steady volume which should continue into late November. We should see fields starting to close during the middle of December in anticipation of the Mexican Caborca season starting up. Volume remains good on the larger sizes and this trend should continue through December. Markets on both coasts are steady with good movement on all sizes.

Avocado market remains steady this week with moderate demand. Size curve is leaning heavily on smaller fruit (60's and smaller). This recent trend has triggered a higher market and demand on large fruit (48's and larger). With the amount of rain hitting the growing region of Michoacan, Mexico, fruit will show lenticel spotting. Lenticel spotting dissolves as the fruit ripens and does no damage to the fruit.
Chilean fruit has hit the market but with light volume.

Bell Pepper demand has picked up in the last week. Supply has decreased in the mid-west where growers are just about done for the season. The northeast and mid-Atlantic are well past their peak but will continue packing for another week or two, weather permitting. The southeast has started, some shippers are packing a steady volume of good quality pepper, but many have not started for the season. More shippers in the southeast will crank up for the season this weekend or the first of next week. Temperatures are well above normal during the growing season in the southeast have had an effect on the fall crop. Yields will be down and growers are packing suntan peppers at the beginning of the season instead of the end as they usually do.

Transitions:
Bell Pepper is transitioning to the southeast.

Supplies of Green Bell Pepper continue to be harvested in the Oxnard, Hollister, and Stockton California area. Both retail and choice grade continue to be packed from these districts. Quality of green bell pepper from these areas remain good. Green bell pepper supplies currently meet demand. Moderate supplies of green pepper continue to be harvested in Baja California, where quality is good.

Good supplies of red bell pepper continue to be harvested in the Hollister and Oxnard growing district. All pack styles are being packed from these districts. Supplies from Oxnard and Hollister are expected to remain steady through the week. Good supplies of Mexican Hot House bell pepper continue to cross into San Diego, CA and Nogales, AZ. Market on red bell pepper remains steady and expected to remain steady through the week. Moderate supplies of Red bell pepper continue available to load in McAllen, TX.

Good supplies of yellow bell pepper are available to load in Los Angeles, CA. Supplies of Yellow bell peppers continue to be harvested in the California and are expected to continue through the week. Good supplies of Yellow Mexican Hot House Bell pepper continue to cross through San Diego, CA and Nogales, AZ. The Market on yellow bell peppers is lower and should remain steady for the week. Moderate supplies of Mexican Yellow Hot house bell pepper are also available to load in McAllen, TX.

Blackberries are in short supplies with the Central California season coming to an end and Mexico being impeded by rain and inclement weather. Look for the market to remain firm with higher undertones. Expect these shortages to remain through next week.

Alerts:
Very light numbers will exist into next week

Blueberries will remain in steady supplies out of the West Coast ports of Los Angeles, and the East Coast ports of Philadelphia and Miami. The off shore product is coming from Peru and Uruguay. Mexican product is being brought in through the McAllen, Texas area and distributed to the major strawberry shipping centers both East and West as well. Quality is outstanding on all imported fruit at this point in time. Look for the market to remain firm.

This commodity is in fairly good supplies coming mostly out of Mexico and being transferred into the major berry distribution centers on the west coast. The Market is firm with higher undertones. There have been some temporary shortages due to crossings being delayed and transfer logistics failing to perform. Look for availability to increase as we move into next week and we see better numbers coming out of Mexico.

Strawberries are in a two-tiered market situation with Salinas and Watsonville reaching the end of their growth cycle and asking for less money. The Newcro strawberries in Santa Maria and Oxnard are better quality and as such are commanding a premium. Look for the markets to stay steady as we move into the weekend with demand good in both areas

Transitions:
Strawberries have been going in Santa Maria for some time now and reaching a plateau. Oxnard is just beginning to produce steady numbers

Peak Seasons:
Salinas /Watsonville are moving out of production over the next few weeks

The Broccoli market has started to pick up as supplies and yields have started to decrease. Quality has slightly improved with slight purpling, some mechanical damage, and occasional yellow cast. Look for Broccoli to remain active going into next week.

The brussels sprouts market continues to stay steady. There is still some internal decay, causing slightly lower yields. Look for the Brussels sprouts market to continue to stay steady going into next week.

Carrots continue to be steady on all whole peeled, table, and cello pack varieties. Quality is good coming out of the Kern CA district. Mexican Jumbo carrots are also steady with very good quality coming up through the McAllen and Laredo Texas areas. Look for markets to remain firm through next week.

The cauliflower market has jumped as all shippers are experiencing a gap. Cauliflower is scarce and most suppliers are seeing lower yields and even skipping a few days of harvest to size up the cauliflower. The quality is fair with bruising and yellow cast with weights in the 25 to 28-pound level. Look for the market to continue to adjust going into next week.

Alerts:
Supplies will continue to be tight as Cauliflower fields are not sizing up.

Demand has picked up slightly for this commodity, and this has allowed some shippers to be more aggressive in pricing while others have remained steady. Overall, moderate to good supplies are expected throughout this week. All sizing continues to be available. A few shippers continue to slightly flex on large sizing, twenty-four counts in particular. Santa Maria, as well as Salinas, continues to be the major growing region for this commodity. Mexico has had production as well. The quality continues to be above average. Insects, slight bowing and occasional muddiness has been reported, but minimally. The weights are averaging 52-56 pounds.

Jalapenos- Good supplies of Jalapeno continue to be available to load in Los Angeles from Mexico and California. Jalapeno is being harvested in Baja California where the quality is fair to good. Domestic jalapeno being harvested in Santa Maria, CA is mostly medium to large size. Jalapeno being harvested in Baja, California Mexico is also medium to large size. Market on jalapeno has remained in the teens. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Good supply of Pasilla peppers available to load in Los Angeles from Mexico. Pasilla is being harvested in Baja California. Quality on Pasilla from this region is mostly good. Size on the pepper is mostly medium to large. Pasilla peppers also being harvested in Santa Maria, California. Market on Pasilla is steady. Pasilla from Mexico also available to load in McAllen, Texas.

Anaheim- Good supply of Anaheim continues to be available to load in Los Angeles from Baja California and Santa Maria. Quality from Baja and Santa Maria are mostly good. Market on Anaheim pepper continues to remain in the mid-teens and is expected to remain the same throughout the week. Anaheim from Mexico also available to load in McAllen, Texas.

Serrano – Good supplies of Serrano peppers available to load in Los Angeles, from Mexico. Supplies are expected to remain steady throughout the week. Supplies currently meet demand. Serrano supplies also crossing through McAllen, Texas.

Tomatillo – Husk tomatillos are available to load in Los Angeles, from Mexico. Quality of husk variety is good. Good supplies on husk tomatillos are expected to continue. Market on both peeled and husk tomatillo is steady. Both husk and peeled tomatillo are available to load in McAllen, TX

The cilantro market continues to stay steady as there are plenty of supplies. The cilantro quality is good with an occasional yellow leaf. Look for the cilantro market to continue to stay steady going into next week.

Domestic supplies on 140’s and larger continue to remain snug. We’ve seen a high demand for domestic supplies, and import supplies seem to be winding down out of both coasts. More orders continue to be booked out of the District 3 (Coachella/Mecca/Yuma) area as supplies continue to improve weekly. The Central Valley and coastal districts are winding down for the season. We’ll start to see more of the Yuma area come on towards the end of the month. Current markets remain steady with good quality.

Supplies continue to be limited and although prices have softened up they will continue to rise again into the months ahead. The industry will continue to get light packouts and minimal crossings. This week's supplies on the small sizes have slightly improved with markets slightly backing off. Quality is looking fair across the board.

Small size Valencia demand continues to be very strong and quality remains fair. Markets will stay firm until we transition to California Navels. California Navels are expected to start at the end of the month and we have been hearing positive feedback on the upcoming supply and quality. Specialty citrus grapefruit is improving out of the southern California districts, and CA Mandarins will be starting next week. Please reach out if you need any advance pricing.

Cucumber supply is getting tighter around the country on super selects, select supply is still steady. The mid-west is finished for the season, the northeast and mid-Atlantic are over their peak, and the heat in the south has damaged the crop. Cucumbers in the south are packing a higher percentage of selects than normal and lower overall yields. Quality is good in most regions, color is good in the north and surprisingly not bad in the south with all the heat. With cooler temperatures in the mid-Atlantic and northeast expect production to slow more. The South is marginally cooler, which will help quality and may prolong the season. Growers in the south are ahead on their crop and could end the season in late October, 2 weeks earlier than normal.

Cucumbers continue to be harvested in Baja California. Supplies from this district are decreasing and are expected to finish by November. Quality from Baja continues to be good on all pack styles. Cucumbers are also being harvested in Sonora, Mexico and are crossing through Nogales. Quality from the Sonora district is good and stronger supplies are expected as soon as next week. The market on West Coast cucumber is currently steady and expected to remain steady throughout the week. Light supplies of Cucumber continue to be harvested in Durango, Mexico and are also crossing through Nogales. Quality from Durango is mostly Fair. Light supplies of Mexican cucumbers continue to cross through McAllen.

Eggplant supply is very good. The mid-west is finished for the season, New Jersey and Pennsylvania have passed their peak and should finish in the next 10 days. North Carolina, South Carolina and Georgia are in peak season. Quality in the north is starting to slide downward as they come to the end of their season. Quality in the South is very good. Some growers in Georgia still have not started for the season and others who have started are not up to peak volume yet. Expect supplies to stay good even as shippers in the north finish for the season.

Transitions:
Eggplant has transitioned to the southeast.

Peak Seasons:
Eggplant is in peak season.

Good supplies of eggplant are available to load in Los Angeles, CA. Domestic eggplant mostly being harvested in the Oxnard and Hollister growing districts. All pack styles currently being packed. Quality on domestic eggplant is mostly good. Light supplies of eggplant continue to be available to load in Nogales, AZ.

No change week over week on the green grapes. Supplies remain fairly steady this week. However, prices are firm and shippers expect availability to become increasingly limited as we move forward. Growers are already breaking into late-season varieties that would typically be used as storage fruit. As we look further down the road, this will have an effect on availability as we approach transition in late November. Quality has been fair. We are seeing more reports of darker color and occasional soft berry. This is typical for this time of year and varieties being harvested. As we break into new blocks, we can expect better quality. Spot buy opportunities and promotional volumes will become scarce. I expect market prices to gradually increase moving forward.

Alerts:
Quality is fair on green grapes. Supplies will become increasingly limited.

Red grapes have remained very steady. No changes week over week. We are seeing excellent supply this week. We expect good availability through transition with a possible overlap between domestic and Chilean fruit. Quality has been very strong. Sizes are on the larger side with a good crunch and sweet flavor. We have several varieties to choose from and demand has been good. Markets have been flat. Depending on each shipper's inventory and commitments, there are varying levels of aggressive prices being offered. Overall, there are plenty of opportunities for spot buys and promotions. Let us know how we can help.

Transitions:
Import season is expected to start late November to early December.

The green onion market continues to stay steady. The warmer weather recently is causing occasional leaf minor and is causing a slight gap. The market will continue to stay steady going into next week.

The kale market continues to remain steady as supplies continue to stay plentiful. Quality is good with full bunches and an occasional yellow leaf being reported due to the recent warm weather.

This market is extremely active with all shippers. Demand exceeds supplies. Yields are being reported lower than expected. Sclerotinia and botrytis are being reported as diseases in the fields. The heat in the growing regions has caused defects as well. Reports upon arrivals show seeder, misshapen heads, brown butts, puffiness, mildew, and mechanical. Weights are ranging from 35-41 pounds on liner. Huron is still expected to begin production in the third week in October. Shippers are going to attempt to harvest lettuce late into October in Salinas if supplies lasts. Yuma will start production in early November. Expect active markets all week and possible escalation on value-added products by the end of this week.

Transitions:
Huron will begin lettuce production the third week in October. Yuma will begin in early November.

Demand exceeds supplies on romaine, industry-wide. High temperatures in the growing regions have caused damage to the crop and hence, lower yields. Supplies will be limited all week. Common defects include fringe burn, insect damage, mechanical and mildew. Green and red leaf are experiencing the same issues but the product is not as tight in availability as romaine. Green and red leaf are averaging weights of 20-22 pounds in both northern and southern California. Expect this market to be active for the entire week. Value-added romaine product is expected to be escalated by the middle of next week as supplies become more limited. Yuma is expected to begin harvesting by the end of October to early November.

Transitions:
Yuma will begin production in late October to early November.

Tender Leaf market continues to stay steady as supplies have adjusted back to normal. Curly parsley, spinach, and arugula are now at a steady supply going into next week. Quality is good with occasional yellowing and bruising of the tender leaves.

The melon market continues to get stronger. Currently, there is some overlap. We have California, Arizona, and Mexico all going. We anticipate a strong market for the month of October.
California- Production continues to taper off. Growers will go another week or two of harvest and be done for the season. With limited options, the fruit is holding at a premium. Until this market is steady, expect daily price increases.
The Desert- Very light offerings out of Maricopa. The fruit is limited and is also holding at a premium. It will be another week or two before production is up to par. Abnormal weather conditions have set back and or slowed the harvest.
Mexico- Production has started this week on honeydews. Seeing mostly 6 count fruit. Mexican honeydews will be available through the spring. Cantaloupes will ramp up next week and will be available into early November.

Alerts:
Melon market continues to get stronger. Currently, there is some overlap with California, Arizona and Mexico all going. We anticipate a strong market for the month of October.

Transitions:
As California is finishing up the season, we transition into desert and Mexican fruit.

Few watermelons are still being harvested in Visalia and Modesto California. Watermelon from these districts is expected to finish this week. Quality from California is fair. Better supplies of watermelon continue to be harvested in Sonora, Mexico. The seedless watermelon market is currently steady. Watermelon quality from Sonora is good. Better supplies from the Sonora district are expected.

Onion market remains steady to slightly lower as supplies and quality are good. Cold temps will slow harvests a bit but storage supplies are plentiful. Idaho/Oregon continues to exhibit excellent quality in yellow, reds and whites. Size profile continues to lean to the jumbo size yellow with super colossal and colossal sizes on the lighter side. Washington has very good supplies and quality while Utah and Colorado are also producing at this time. Markets will remain stable as we head into next week.

Alerts:
Cold temps curtailing harvests. Storage supplies remain plentiful.

Washington:

Northwestern Bartletts are peaking on larger sizes, but foodservice sizes are available. Many shippers will transition to Anjou's over the next few weeks as Bartlett's tend to “turn” faster around this time of year.

Some shippers have reported an acreage reduction of 10-15% on Green Anjou and a 30-40% reduction on Bosc with regard to this year’s harvest. Prices remain much higher on Anjou and Bosc vs. Bartlett ($6-$8 spread). Red pears (Starkrimson) are coming into volume. ½ carton and full (40#) are available. Special varieties—such as Seckel, Forelle, Comice, and Asian—are also available. Quality is excellent.

California:

The California pear season is winding down with some shippers done for the season and some selling from storage inventory (Bartletts). This time of year, be wary of quality as Bartletts tend to ripen quicker which will reduce shelf life.
ASIAN PEARS are available; 10ct-24ct (1 and 2-layer) available to load in the San Joaquin Valley. Smaller sizes (66ct-96ct, 3-layer) are sporadic in availability, so please inquire about availability.

Pineapple supplies continue to improve out of both coasts on all sizes weekly, Markets remain steady and demand continues to remain strong. We have plenty of opportunities to push the product out. Please reach out for any special volume or prices. Quality has improved and we’re hearing positive feedback.

Growers in the Northwest are working around the clock to get potatoes harvested as weather forecasts for the Northwest call for rain, snow, and freezing temperatures. Typical harvesting for potatoes is done at this time but has been delayed due to rain and cold temps over the past several weeks. As this storm passes through, growers will look to resume digging next week with every attempt to be done with harvests by the end of next week. Overall, the potato markets are making a swing upwards as most fresh run product is going straight to cellars in order to build up inventories for the long storage season. Expect to see lighter supplies and higher markets as we push through the next couple of weeks. Washington, Colorado, and Wisconsin are also moving up in markets with this cold weather and increasing demand.

Alerts:
Rain, snow, and freezing temps will curtail harvests. Markets will rise with lighter supply and increased demand.

Rain and cold temperatures in the current growing regions are slowing harvests. Idaho, Washington, North Dakota, and Wisconsin are pushing to get harvests done as the weather is creating challenges to dig fields. As the cold and rain sweep through over the next few days harvesting will come to a halt. Growers will look to resume once the weather warms up and make every effort to harvest what they can. Markets on red potatoes will begin to rise as they are in the lightest supply to this point. Yellow potatoes are in good supply as most crops have been harvested with whites in steady supply. Markets overall will start to push upwards and we will know where we stand over the next several weeks as growers push to finish harvest and put all color potatoes into storage.

Alerts:
Rain and cold temps curtailing harvests; markets to increase on red potatoes

Squash supplies have gotten very tight on both colors of squash. Most regions like the mid-west and northeast have finished for the season. Smaller pockets like the mountains of North Carolina and Tennessee have gotten cool enough temperatures that production has come to a halt. Eastern North Carolina, South Carolina, and Georgia have seen production go down due to heat, squash plants have stopped producing any real volume. Temperatures in the southeast have cooled somewhat but not enough to help and in a lot of cases it is too late, most growers are way ahead of schedule and will finish for the season much earlier than normal. Some squash in north Florida has started but there is not enough acreage planted to make a big impact. Central Florida is about two weeks from starting steady supplies.

Alerts:
Supplies have gotten very tight.

Supplies of Italian and Yellow S/N squash are decreasing at all three California growing districts. Lower volume of soft squash is expected from California districts as we move into Mid-October. Production of soft squash from California is expected to finish within 2 to 3 weeks at most. Quality from this district is mostly fair. Better supplies of Italian and Yellow S/N squash continue to cross through Nogales, AZ this week from Sonora, Mexico. Quality from Sonora is good on all pack styles. Light supplies of both varieties of soft squash continue to cross through McAllen, TX.

Other than plums, the domestic stone fruit season is practically done. Nectarine harvest has finished for the season and peaches are very limited. Only a handful of sizes are left and options will become increasingly limited as we move forward. Plums are expected to last into November unless we see severe weather changes. Both red and black varieties are available. However, the late-season black plum varieties can be a little different than the early season varieties. The skin and flesh colors can be pale compared to what one would expect. The overall quality is strong on the plums and demand has been consistent. Markets have firmed up and I expect prices to gradually increase as volume lessens. We expect import fruit to start arriving in late November.

Alerts:
Nectarines are done. Peaches are limited. Plums are steady.

Transitions:
Import season is expected to start in late November.

Eastern regional programs have begun their seasonal Fall transition. Growing operations are wrapping up in Tennessee, Virginia and North Carolina, and moving back to Florida. As such, overall volumes are light while harvest overlap. Round supplies are limited, and sizing is small from heat exposure during earlier phase of growing cycle. While Quincy Florida provides light supply for the rest of October, The Palmetto/Ruskin deal preps to break ground before Halloween bringing Eastern supply into heavier volume. Similarly, roma availability has contracted though the start of transition and supply will be light until central Florida begins harvesting again near the end of October. The grape tomato market has been mixed in recent days. Bulk packs have experienced as much as a $7 dollar spread, often reflecting quality and condition as growers push to clear their coolers following their final harvests. Quincy will have light volume in October until Ruskin picks up closer to November.

Overall volume in California has started to turn down as farms move past their peaks of the season and begin winding down. Sizing and quality vary by grower and operations are forecasted to fade in the coming weeks wrapping up by the end of the month. Volume is building in Mexico where crops are also beginning to transition to Fall plantings. As California winds down through October, Mexico crossings will continue to build, so that supply is continuous while foreign and domestic operations overlap. Recent rains in Mexico may slow yields initially with a stronger supply expected before November. Grape and cherry tomatoes have improved slightly from the past couple of weeks but are mostly steady now while supply continues to build through October.