The Source - September 19, 2018

We continue to have plenty of supplies of apples all across the country. We have apples from New York to California to full swing Washington and many other states. Most varieties are available as well as all sizes and grades. The overall quality is excellent with good pressure test and sugar levels. Most suppliers in Washington have started harvesting red delicious this week. Look for the market to remain stable with offers to move lower grade fruit and volume.

Northern Baja (Ensenada) weather remains unchanged, and volume is still down due to seasonality. Southern Baja (Constitucion) weather is starting to heat up which is causing some seeding, and spreading in the tips. Volume is on its way up due to the heat, large sized product is still limited from both regions in Mexico. The weather in both regions in Peru (Ica/Trujillo) has not changed from last week, and volume is about the same. We should see volume increase in the next 2-3 weeks with more fields opening up in the southern region. Large sized product remains short in supply, but this should change in the next 2-3 weeks with more fields opening in the south. Markets are becoming lower to steady on the West Coast with more volume from Southern Baja, East Coast markets are lower to steady with more sea shipments arriving.

California- Growers were in clean-up mode last week and are done for the season. There is a limited supply of California fruit available with reports of great quality. California season will start up again in January and run through August.

Michoacan Mexico- Good supplies available in all loading locations. Harvesting has increased this week. Fruit quality is good but will arrive green in color, take longer to ripen and have a lighter flavor profile. Peaking on 48’s and smaller. Growing areas have experienced harvesting delays due to rain. Mexico’s fall crop, the “Aventejada” variety is estimated with good volume. (Oct.-June, Fall crop harvest). Mexico will increase in volume through September as the Fall harvest crop begins. October will bring increased supplies. The market is in the $30-$40 range.

Michigan, Ohio, New Jersey and Canada are all shipping bell pepper now. Volume is starting to go down. Quality is still good on most product with some issues starting to show up. Most of the smaller deals in the mid-Atlantic and mountains of Tennessee were knocked out by rain from hurricane Florence causing more demand in larger regions. South Carolina has started light volume and Georgia will begin next week as the northern regions start to wind up there seasons.

Alerts:
There are steady supplies of bell pepper but demand is better and movement is good.

Green Bell Peppers – Most of the peppers on the west coast are still coming from the Coastal California growing areas, where volume has now slowed due to lower nighttime temperatures. The quality of the peppers remains good. Supplies are lighter. Prices are firming up. Shipping areas include Fresno, Gilroy, and Oxnard. Green bell peppers from Mexico are also available to load in McAllen, TX.

Red Bell Peppers – Growers have made the full transition to the coastal areas, and volume is peaking. Supplies from the coast are expected to be available through September. 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 is lower, as volume has increased. 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. Higher volume is currently being produced in Coastal California. Yellow bells will mostly be from the coast through September, with volume decreasing towards the end of the month. Few Hothouse yellow bells are crossing through Nogales from Jalisco, Mexico. The market is low along with pricing. Supply exceeds demand. 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.

Supplies continue to be a challenge as we finish the domestic harvest season. Due to the warm weather earlier in the summer, much of the fruit ripened earlier than expected and crops as a whole were 3-4 weeks ahead of schedule. Unfortunately, this leaves the industry in a supply shortage now at the tail end of the season. We can expect to see supplies remain limited and quality to be marginal until we transition into Mexico production. We expect Mexico to begin with light harvest over the next 2-3 weeks and slowly ramp up as we approach November. This week, we are seeing softer berries and red cell in most of the fruit available in Salinas, Watsonville and Santa Maria. Supplies are limited, and markets are steady and firm. Coverage will be a challenge until we get into Mexico harvest. We expect supplies to be short through October.

Alerts:
Supplies will remain limited and quality will be a challenge for the next 2-3 weeks.

Transitions:
Mexico is expected to start in the next 3 weeks and will gradually ramp up in November.

We currently have a split market. Import blueberry supplies continue to improve on the east coast with most of the Peruvian fruit being loaded in Manfredi, PA and limited volume of Argentinian fruit in Miami. The quality is being reported as good. Market prices are coming down very slowly, this week we are seeing a small decrease across the board. We expect supplies to continue to improve as we move forward. As for the last of the domestic harvest, we are seeing very little fruit left in Michigan (maybe one more week left) and we are on the tail end of what is left in the Pacific Northwest on the west coast. Quality is fair, and market prices are higher. Mexico and Baja harvest is just getting going with light volume. Overall, we expect supplies to continue to improve on the east coast and remain limited on the west coast for the next several weeks. Markets on the west coast remain firm

Alerts:
We are seeing a split market between west coast and east coast. Import fruit on the east coast is increasing, where as supplies are limited on the west coast and prices are higher.

Transitions:
Domestic harvest is coming to an end. Peruvian arrivals are increasing on the east coast. We expect to see Argentina pick up production in the next 2 weeks. Baja, Mexico is just starting.

We are seeing a second “late season” peak in production that is expected to last over the next 1-2 weeks coming from the Salinas, Watsonville and Santa Maria growing regions. Quality is being reported as good, but we have seen some soft berries with occasional decay. With the cooler weather at night, we expect this to improve. This will be the last wave of fruit from these growing regions before we phase out and transition into Mexican production by November. Market prices have been steady, but we may see some flex on spot buy opportunities over the next week.

Supplies have been limited for the last several weeks. This week not much has changed; supplies continue to be light in Salinas, Watsonville and Santa Maria. Market prices have been higher and firm. Quality in the Salinas / Watsonville areas has been fair. We have seen reports of soft fruit and shortened shelf life, but the weather has been ideal and we expect things to improve moving forward. In Santa Maria, shippers are breaking into new crop (fall harvest). Quality is being reported as much stronger in this area, but supplies are still light. Market prices are the same in either location. We do not expect any major issues with coverage, but same day additions or orders will be a challenge. Looking out over the next several weeks, I expect to see supplies improve in Santa Maria and remain light in Salinas / Watsonville. Additionally, we will see some light harvest out of Oxnard with certain shippers. I expect quality to continue to be solid in the new growing regions and gradually improve in Salinas / Watsonville (barring any major weather events). Salinas and Watsonville are expected to have production last through late November. We will see an overlap with Santa Maria, Oxnard and eventually Mexico by December.

Transitions:
Santa Maria is ramping up slowly and Oxnard is just scratching the surface. We expect to see better availability out of both locations in the next 3 weeks.

The broccoli market has adjusted lower as the gap has narrowed in the Salinas Valley and Santa Maria areas. Fields that were slated for harvest next week have been brought forward and will be harvested this week. Quality is good with slight purpling, some mechanical damage, and occasional yellow bead. Look for supplies to continue to increase into next week. Demand out here on the West Coast may pick up as Maine received their first frost and The Carolina's have been experiencing rough weather this week.

The Brussels Sprouts market has started to pick up with fewer supplies coming out of Oxnard. This has created more demand in Santa Maria and the Salinas Valley. Quality is seeing less insect damage, black spotting and decay. Supplies and quality look to be steady going into next week.

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 come off as more supplies have come on. 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 improve as shippers are a little ahead of schedule.

This market is steady, overall. Moderate to good supplies will exist on this commodity for the rest of the week. Demand was expected to be stronger, but demand simply fell off. Supplies continue to be heaviest to large sizing, twenty-four counts in particular. Production in Salinas continues to have moderate production, plenty to meet demand. The Oxnard/ Santa Maria region will have moderate to good supplies for the rest of the week. Slight bowing has been reported but minimally. The weight is ranging 48-55 pounds.

Jalapeño – Supplies are available from Baja California, in San Diego and Los Angeles. Consistent supplies of Jalapeno being harvested out of Santa Maria, CA. The quality of the peppers is mostly good out of both regions. The market is active, and pricing is slightly higher. There was a dip in production as growers moved to new fields in both regions but currently supplies meet demand. Jalapenos are also available to load in McAllen, TX.

Pasilla – Moderate supplies available from Baja, in San Diego and L.A. Santa Maria is also in production. Supplies from both districts meet demand. The quality has been good out of Santa Maria, and mostly good from Mexico. The market is steady along with pricing. Pasilla are also available to load in McAllen, TX.

Anaheim – Good supplies available from Baja, in San Diego and L.A. Santa Maria is also harvesting peppers. The quality of the peppers from Santa Maria has been good, the quality from Mexico has improved. Anaheim supplies meet demand. The market is steady along with pricing. Anaheim peppers are also available to load in McAllen, TX.

Tomatillo – Lighter supplies available on both husked and peeled tomatillos. The market remains higher on the peeled pack. Most Baja fruit will be going directly to the L.A market. Santa Maria is also harvesting tomatillos, with much lighter volume than the Baja crop. Quality is fair to good from both growing areas. The market overall is stronger. Pricing is higher. Tomatillos also available to load in McAllen, TX.

Serrano – Light supplies are still available from Baja, in San Diego and L.A. There is also serrano pepper available to load in Santa Maria. Volume is expected to remain steady throughout the summer, the quality of the peppers has been good from both growing areas. Demand is strong. Pricing remains higher. 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.

As supplies increase out of district three as well as weaker demand for lemons, we are feeling the market finally ease up. The quality out of district 3 is excellent. Although we have had arrival issues with brown spotting to soft rot with some Chilean lots upon arrival. There are still lemons from Australia out west too. The market continues to find its lower level.

Plenty of rain and thunderstorms 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 still limited on larger fruit. The market this week is in the $20 range.

The Valencia season is closing in a hurry with the navel season still a couple of weeks away. Small size fruit such as 113ct and 138ct have been extremely limited. Chilean navels are a good viable substitute. Also subbing into larger sizes. Quality is still fair at best with the remaining valencia crop. The market is extremely active with prices going higher each week.

Cucumbers are in extremely tight supply, Michigan and Ohio are starting to wind up their season earlier than normal. New Jersey and the northeast have had a very wet summer hurting their fall crop. North Carolina, Tennessee and Virginia suffered through Hurricane Florence and in all likelihood are done. Georgia is starting light supplies and should have steady volume by the first of October, but for the next two weeks, supplies will be very tight.

Alerts:
Very tight supplies

Transitions:
Cucumbers are starting to transition to Georgia.

Cucumber supplies still available out of Baja, California. Better supplies of cucumber being seen this week. Production should remain consistent through September and into October. The quality of the fruit is mostly good. Baja cucumbers are showing strong demand from both west coast and east coast. Pricing remains steady/ high. Shipping areas are San Diego and Los Angeles. Light supplies of cucumbers are also available to load in McAllen, TX.

Light supplies of eggplant are available causing the market to climb. Michigan, Ohio and New Jersey are all still shipping eggplant, but supplies are dwindling as the season starts to wind down, some quality issues are starting to arise. South Carolina and Georgia have started producing light supplies. Most growers are still waiting on crops to get ready for harvest. We expect supplies to stay tight until the first of October when more grower start to harvest.

Alerts:
Very light supplies.

Transitions:
Eggplant is transitioning to South Carolina and Georgia.

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 September. Eggplant supply meets demand. Pricing remains steady on fancy and choice grade.

The green grape market remains consistent. Fruit is excellent quality, with good sizing, and strong stems. We have seen very little issues from anyone. The green grape market shows no signs of doing anything drastic for the foreseeable future. Expect to continue to see strong fruit with good pricing.

The red grape market is starting to see new varieties including Krissys, Scarlettes, and Magentas. The cheaper Flames we have been seeing are finishing up, and we are seeing the market tick up a dollar or two moving into the new varieties. Fruit remains excellent quality, with great color, and strong stems.

The Green Onion market has continued to increase. Sizing is still trending to the smaller sizing. The hot weather in Mexico and labor issues have caused product to be snug. The heat has been causing some occasional leaf minor and some mechanical damage. The Green Onions are also not growing as fast due to the heat in Mexico. 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.

Good supplies exist with most shippers on this commodity. The quality continues to be good. There are slight issues of puffiness, mechanical and slight insect damage but the overall quality continues to be above average. Multiple shippers are flexing on volume type orders so please be aware. The weights on palletized are ranging from 40-45 pounds with a few suppliers at thirty-eight pounds. Demand is steady at best. Expect steady supplies for the rest of the week.

This market is steady on romaine as well as all leaf items. Romaine hearts are steady as well. Demand is moderate at best. There have been some defects that have been seen upon arrivals. These defects include mechanical, slight fringe burn, cupping, and some insect damage. The overall quality is fair with some lots being harvested having better quality. Suppliers are doing their best to get not only quality but decent weights. This has been the difficulties suppliers are up against right now. Green and red leaf, as well as butter and romaine, will have moderate supplies for the rest of the week.

The Tender Leaf market has started to settle 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.

Not too many changes this week other than the weather. We are seeing temps in the 80s to 90s this week. This week we are seeing a good supply of small fruit and large fruit as well. Overall quality is good with brix/sugar levels in the 12-14 range. We will transition from California to Arizona come October. Late November we will start seeing offshore fruit come into play.

Not too many changes on the weather in the San Joaquin Valley. Temps are in the 80s-90s this week. There is plenty of fruit available with a steady supply of small and large fruit. Overall quality is good, and brix/sugar levels are in the range of 10-12. We will be transitioning to the growing region of Arizona come October. Offshore fruit will come into play in November and run through May.

There are watermelons available in different areas of the central valley. Production continues to be mostly out of Manteca. Volume has decreased considerably throughout Central California as we move into September. Seedless watermelons are also available to load in Nogales, from Mexico. Watermelon production from Sonora, Mexico ( Nogales ) is expected to increase considerably in early October. Demand is steady. Pricing remains higher.

Onion harvest is in full swing out of all growing areas which are keeping the markets steady at lower levels. Quality is good and will get better as they transition into storage varieties. All sizes and colors are available. Look for the market to stay fairly steady at current levels for at least for the next the month.

Washington is finally ramped up with several varieties of pears with plenty of supplies. California is still into their harvest as well, although there have been some lots from California with some bruising and scarring. Quality out of Washington is excellent with little soft spots, good sugar level, and decent pressure tests. The market is really competitive out of both Washington and California. Other states have also begun their seasonal harvesting of pears.

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.

Harvest is in full swing out of all growing areas. Potato sizing is large and with good retail demand, has shippers packing a lot of large cartons in the 40 - 60 count range. Look for these condition to continue through harvest. The first fields of Burbanks are being harvested and will be sent straight to the storages to go through the sweat process which takes around four weeks. Sizing on the early fields are medium/large with moderate misshapen potatoes. Idaho is pulling the markets down in all of the other growing areas. Heavy discounts are being made on load volume of 40-60 count potato. Overall quality is looking good.

Color potato market is steady on most colors and sizes. Red, gold, and white are heavier to the A sizes. Quality is good with occasional skinning showing up if some of the finished packs.

Zucchini supplies are very tight. Yellow squash is tight but not as hard to find as zucchini. Michigan, Ohio and New Jersey are all producing but winding down quickly as the season comes to an early end. The mid-Atlantic states have been hit hard by hurricane Florence and are likely out for the season. South Carolina, Georgia and north Florida are all starting production, but volume is still low. More production will start in the southern states next week, but supplies won't peak until the first week of October.

Alerts:
Zucchini supply is very tight, yellow squash supply is tight but not as hard to find as green squash.

Transitions:
Squash is in Transition from northern growing regions 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. Cooler than normal nighttime temperatures in the region have slowed down sizing and production. Volume is lower, and pricing remains high. Rain in the Sonora, Mexico growing region has pushed back squash production for about 7-10 days. Light supplies of squash from Mexico are currently available to load in McAllen, TX.

The Stone Fruit market is starting to finish up. Fruit remains large due to high temperatures, with very little smaller sized fruit available. Peaches and Nectarines are winding down by the end of September, but supply and quality will remain consistent until the end of this month.

With Michigan finishing up and Quincy not yet in full production, that leaves Tennessee and Virginia carrying the bulk of the demand on eastern tomatoes. Hurricane Florence's damaging forces managed to avoid Tennessee but put down significant rain in Virginia, Although the weather has been dry there for the last few days, the grape tomato crops suffered. Even with Quincy now picking grape tomatoes, this will not be enough to meet increasing demand. There are much lighter supplies on Roma tomatoes as well as the growing regions move southward and demand from the west increases. Round tomatoes remain in steady supply with good quality, having not experienced the damaging winds of Hurricane Florence.

California continues to remain the largest producer of gas green tomatoes for the season, and with the weather finally cooperating, the volume is steady, and the quality continues to be good. San Joaquin Valley is past its weather-related quality issues allowing for good volume on rounds and Romas in that region. Although, several days of heavy rains in Mexico have dramatically affected that Roma tomato supply. With Mexico being the major driver of the Roma tomato market, we should be seeing increased pricing and light supply in the coming days. Limited Roma supplies in the east at this time only exacerbate the situation. Cherry and grape tomatoes as well are seeing increased demand from the east. With Mexican growers transitioning to Fall plantings on these items and experiencing heavy rains at the same time, supplies are becoming lighter, and markets are trending upwards.