The Source - September 20, 2017

California – Granny Smith apples are lower on all sizes and still heavy to 100 size and smaller with only light supplies of 88s and larger. Supplies are cleaning up as the season is ending a little early. The quality has been good.

Washington – Red Delicious are steady on all sizes and grades, but the market remains very active with strong demand. C.A. supplies are disappearing quickly. A couple of suppliers have started packing their early new-crop red delicious. Golden Delicious are steady to lower with much better availability on 100 size and smaller. The new-crop Goldens are peaking on Premium grade 100/113s, but 88s and larger are very limited. The fruit is clean and hasn't yielded many of the lower grades, but most of the fruit is greener than normal. Granny Smith are coming on quickly in Washington, and they are also peaking on smaller fruit. Most packers have light supplies of 88's with more volume in each consecutive size down to a 138. Galas are steady, but supplies are coming on quickly. The heat in Washington has caused lighter colored fruit, and they are still peaking on 113/125/138s. There are very light supplies of new-crop Fujis, but a few shippers have started. The Fuji sizes are more evenly spread out but are also on the smaller side. Honeycrisp 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 early Gala apples, and they are still heavy to extra-fancy 100/113s. The quality is good.

Michigan – Galas are steady and heavy to the smaller sizes but have excellent color. McIntosh are steady and peaking on 88/100's. Jonamacs are also heavy to smaller fruit, but supplies are limited. Honeycrisp 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 just getting started. The quality has been good for all.

Pennsylvania – Gingergolds and Galas are both steady and are still peaking on small fruit. The quality has been good.

New York – McIntosh and Gingergolds are steady, and they are still peaking on 88/100s. Galas have started but supplies are very limited, and they are also larger. The quality is good.

Northern Baja (Ensenada) volume is decreasing due to seasonality, with volume decreasing every week market has remained strong from this region. Northern Peru (Trujillo) has less volume due to field transition. Southern Peru (ICA) is having great growing weather and is increasing their volume every week. The challenge Peru is having is airspace due to Hurricane Irma last week (Miami airport was shut down for 5 days). The market is higher this week due to both factors, we should see a market adjustment once the airspace loosens up.

We are seeing better volume being harvested out of Mexico as the maturity of the fruit improves. This doesn't have an immediate impact but will start to help fill the supply pipeline in the coming weeks.

Steady moving green pepper would be moving even better if shippers could get enough trucks to haul product away. The relief effort from recent hurricanes in Texas and Florida has taken a lot of trucks away from hauling produce. We have seen continually tightening truck market for the last few weeks. Buyers are changing their buying habits based on where they can find trucks and the eastern pepper growing regions seem to be the hardest hit. Bell pepper shippers in Michigan, Ohio and New Jersey will continue shipping product until mid-October as long as the weather holds out. We expect the southeastern growers to start around the first of October with light volume.

Peak Seasons:
Bell Pepper is in peak availability.

Green Bell Pepper volume is down due to heat and rain in the active growing areas ( Oxnard, Hollister and Gilroy, CA. ). The plants have handled the heat better than expected with the biggest consequence being lower production. Quality and condition are still mostly good. Demand exceeds supply with a range in pricing.

Colored Bell Pepper volume is also down. Quality is mostly good, with a few condition issues appearing as colored bells are on the vine longer than green bells. Demand exceeds and markets may advance

Blackberries are extremely limited this week. Although it may sound repetitive, the weather is the biggest culprit. The heat wave last week wiped out a large portion of the remaining fruit in the Salinas / Watsonville areas (see pictures below). All shippers are very limited on supplies and this will continue to be the case until Mexico begins. Mexico is expected to slowly start harvest next week with light volume of fruit crossing into Texas. However, we will not see enough fruit to really offset the shortages until production ramps up in October. I expect supplies to be limited and market prices to be high and firm for the next 2-3 weeks.

Alerts:
Supplies will be very limited for the next two weeks. Quality is fair and markets will be expensive.

Transitions:
Mexico will start by October and will start to increase production slowly.

Blueberry supplies remain limited this week. The Pacific Northwest supplies are coming to an end and the import fruit is slowly trickling in. With very little fresh harvest remaining out of Oregon and Washington, the PNW is expected to be done by the end of the month and quality is fair. Most of the import fruit is landing on the east coast, but we will see numbers start to increase and more product be dispersed to different loading locations as we move into October. Import quality is good. Mexico production is also expected to start by October and slowly ramp up. Market prices have been very high and firm and will remain that way until import fruit becomes readily available.

Alerts:
Supplies will continue to be limited this week with very little fruit remaining in the Pacific Northwest. The quality is fair.

Transitions:
Uruguay, Peru and Argentina are now slowly bringing in fruit. Supplies will continue to improve over the next 2 weeks. Mexico is expected to start in October.

Raspberry supplies will remain consistent this week. The crops in Salinas / Watsonville areas have recovered better than expected from the heat and production has started to increase. In addition, we have production continuing in Santa Maria. Mexico is just getting started and will ramp up harvest as we enter October. Quality overall is fair but will improve as the weather will be favorable in all growing regions over the next week. Market prices have been steady and firm. We expect this to be the case through next week, then see a slight decline as Mexico production picks up next month.

Transitions:
Mexico harvest is just getting started and will ramp up as we start October.

Strawberry supplies will be consistent moving forward with some transitional regions coming on. The biggest challenge has been quality. Salinas and Watsonville have been slowly recovering from the weather-related issues that hit hard last week. Shippers are expecting to see quality gradually improve starting this weekend and into next week. The weather forecast calls for daytime highs in the 70's and nighttime lows in the 50's which will help firm up fruit and promote growth. Santa Maria fall crop has been steady. Sizing is a little larger, but the overall quality has been similar to Watsonville. Again, with the upcoming weather, we expect better quality starting next week. The newest region to start is Oxnard. Harvest was very light this week but will increase production moving forward. Quality is expected to be much nicer with firmer berries and good color. Sizes will start between 18-22 ct. All markets have been steady to firm. Oxnard fruit may be slightly higher to start. I expect to see markets start to decline as all areas increase production and quality improves.

Transitions:
Oxnard is starting this week with light volume. Will increase moving forward.

The broccoli market continues to steam roll ahead with extremely limited supplies for the next 2 to 3 weeks. The previous weather is the culprit, which pushed acreage forward causing this supply gap. Quality has suffered with arrivals showing hallow core and brown bead, coupled with increased yellow discoloration.

Alerts:
Extremely limited supplies due to a result of previous weather factors and the market is extremely volatile.

Brussels sprout supplies are slowly increasing. Although demand is at an all-time high. Which is keeping the market at the much higher than normal prices. Quality has improved although we still are seeing a few arrivals with worm damaged. We will see supplies increase over the next two weeks with some decline in the market.

Carrots sizing continues to be a struggle and yields are still down as a result of the high heat recently. Pricing continues firm but steady.

The cauliflower market is heading to higher levels. The previous weather has finally caused a decrease in supplies. We will see this market to trend higher well into next week. The quality of cauliflower has suffered with sun scald, to brown & black spotting, and cream color.

Alerts:
Supplies are trending lower with the previous weather which is causing a spike in the market.

This market has begun the week steady and this will likely continue throughout the week. Shippers are flexing on large sizing. Good supplies on all sizing is available. Oxnard is expected to begin production at the end of October. Gaps are expected to be seen in two to three weeks as Michigan will begin to wind down as well as Salinas' production have smaller quantities available. Slight bowing and seeder has been seen but minimally in northern as well as southern California. Michigan continues to have production, heavier to large sizing.

Transitions:
Oxnard will begin production the last week in October.

Northern Baja had a tropical storm a few weeks ago, leading to a reduction in volume as well as creating some quality issues with the chili peppers. The crop is rapidly winding down and will end much sooner than expected. Santa Maria is also down in production. Record high temperatures have affected production with minimal damage on the quality of the fruit. Demand exceeds on all chili varieties and the market is steady with the possibility of advancing

Cilantro supplies have finally increased to a normal level. The market has adjusted accordingly. Although we are still seeing sporadic quality from the Oxnard region. We are still seeing some yellowing and brown to black spotting. But quality is improving.

The Oxnard/Ventura crop will be finishing the season in the coming weeks. Fruit out of this district is peaking on 165's and smaller. The Desert crop has begun with very 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.

Limes are still struggling with quality. Tropical Storm Franklin and other storms since have caused a lot of damage to the lime supply and quality. Previous rains and heavy winds caused quality to suffer with stylar, skin breakdown, and wind scarring being prevalent in many growers orchards. The situation will not improve much for the next several weeks. The size curve is on the small end with the most volume in 230/250's and very few if any 110/150's. Demand is lower which is causing the market to be steady to lower.

California Valencia crop is near to its seasonal end. Many shippers have already finished for the season, and others expect to be done by the end of September. Demand continues to greatly exceed supplies on 88s and smaller sized fruit on both grades. California Navel crop is not expected to begin until toward the end of October.

Alerts:
Demand far exceeding supplies as we near the end of the California Valencia season.

High priced cucumbers have been an issue for many buyers. Michigan, Ohio and New York are winding down and production has really dropped off. North Carolina is shipping from both the western and central part of the state, although the western part of the state is starting to wind down for the season. Georgia is starting very light volume and with the effects of hurricane Irma, quality is going to be marginal early on. Most of the shippers in the northern tier of the country have a week to ten days left in their season, North Carolina is typically a short deal and Georgia is going to have light volume the first week of October, so we expect a high-priced cucumber market for the next 2 weeks.

Alerts:
Cucumber Prices are very high and quality is only fair.

Transitions:
We are starting to transition to the Southeast.

Peak Seasons:
cucumbers are moving out of peak season.

Cucumber supplies are steadily increasing out of Baja California. The crop is protected in a greenhouse environment and escaped heavy damage from the Tropical Storm. Quality remains mostly good. There is also a new crop beginning out of Nogales, from Northern Mexico in the state of Sonora. Supply out of Nogales will steadily increase in the next 14-21 days. Market remains very strong but could stabilize with more supply available

The eggplant transition is starting. Michigan, Ohio and New Jersey will continue to ship eggplant for the next 2 weeks but with cooler weather over the past few weeks production has slowed and now we are starting to see the seasonal wind-down. Quality has been decent for the past week but supplies have been tighter and a few shippers in South Carolina and Georgia have started light volume this week so buyers will start to shift their business in that direction. The market has been increasing slightly for the past 2 weeks, we expect that to level off at current prices until more volume starts in the southeast around the first of October.

Transitions:
Eggplant is transitioning from Michigan, Ohio, and New Jersey to the Southeast.

Eggplant volume is low in Fresno and will remain that way throughout the remainder of the season. Production is mostly to a 24 ct size, bigger fruit is more scarce. Nogales is also starting to produce eggplant from Northern Mexico in the state of Sonora. Production out of Mexico will increase steadily in the next 14-21 days. The market is mostly steady with the chance of advancement.

Green grapes continue to have great quality and good supplies. All sizes are readily available. The market is from the low to mid-teens to the lower twenties Quality remains excellent.

Red grape quality and supplies continue to be very good. All sizes are readily available from numerous shippers. The market is from the low to mid-teens on smaller sizes to the low twenties on jumbo sizing. Overall the market is steady.

Green onion supplies remain extremely tight as the current heat in Mexicali and San Luis Mexico hampers supplies and quality. We are seeing yellow to brown tops and mechanical damage from packing. We will continue to see this trend for the next 3 weeks.

Alerts:
Green onion supplies remain extremely limited and the market is steady at much higher than normal prices.

Even though we have had difficulties with the weather, kale seems to have held up the best. We continue to have ample supplies and the markets have remained relatively competitive.

The lettuce market is steady in Santa Maria and some shippers in Salinas are heavier than others in availability. There is a slight gap in the marketplace. Expect , overall strong supplies available for this commodity. Good quality continues to be reported. Weights on wrap lettuce have been reported at 42-47 pounds with multiple suppliers. Aside from some mechanical and slight insects on the plant, good overall quality continues. Supplies far exceed demand. Please remember with all this lettuce being available, a gap in production is imminent in a few weeks.

Transitions:
Mid October is expected for Huron to begin production.

Plenty of supplies continue to surface on romaine as well as all leaf items. Expect steady supplies for the entire week. Demand is off. Reports continue on quality. The big issues include fringe and tip burn along with insect damage. This is a direct cause from past as well as current heats. Romaine hearts continue to have twisting with a few suppliers. Red and green leaf, as well as butter, have the same defects as romaine. Expect competitive markets throughout the week.

Transitions:
Mid October Huron will begin to have some production on leaf items.

Cantaloupes couldn't hold the upward momentum they had been building. The market is mainly supply driven because demand has been a bit off lately due in part to the past hurricanes on the east coast. Supplies picked up while demand didn't increase enough to raise prices. We are nearing the start of the season in the desert which is slated to start during the first week or two of October. The market is steady to lower.

Transitions:
The desert will start during the first week or two of October.

Honeydews are seeing a little more demand and a little bit of an increasing market. The supply of honeydews is turning ever so slightly lower due to the normal ups and downs in their supply during this time of the year. Quality has remained excellent throughout the various weather pattern with an occasional lot coming in with sugar spots from the previous extreme temps. Demand remains fairly steady which is causing an uptick in the market with some growers. We have the desert starting dews towards the end of October and Mexico towards the end of September. The market is steady to slightly higher.

Transitions:
the desert will have dews towards the end of October and Mexico towards the end of September.

Watermelon supply is slowly decreasing in California. There is a new crop starting in Nogales from Northern Mexico, supplies will increase steadily in the next 14-21 days. Demand is very strong, the market remains steady and could advance slightly. The current market is .26 - .28 cents per pound. Quality is mostly good

Rain Sunday night/ Monday in the Idaho growing areas has all shipper out of their fields till they dry out later this week. Long range forecast does not have any rain but is calling for cool temperatures topping out in the mid to high 60's. Very good demand and light supplies are causing a firm Onion market out of all growing areas. Red onions are the hardest to come by. Quality is being reported as good on all colors. Transportation is very limited. Look for the onion market to stabilize over the next week or so and resume regular trading levels till harvest is finished the start of November.

Alerts:
Rain in the Idaho growing areas Sunday/Monday has supplies in a demand exceeds situation.Transportation in the Northwest is very limited.

Stockton, California – Bartlett pears are steady on all sizes, but the fruit is getting bigger now that the river pears have finished and the mountain pears are all that is left. Supplies of 120s and smaller are limited. Red pears are steady and continue to peak on 45/50 half cartons, but supplies are lighter as some suppliers have finished. Bosc pears are still peaking on 100/110s, and the market continues to come off slowly. The quality of all varieties has been good.

Washington – Bartlett pears are steady on the larger sizes with limited supplies while 100s and smaller are steady to lower with good availability. Red Bartletts/Red Sensations are steady on all, and they are peaking on 45/50 half cartons. D'anjou and Bosc pears are available, and supplies are more limited but expect the markets to drop as more shippers begin packing. Both the D'anjou and Bosc pears are heavier to small fruit. The quality for Bartletts, red pears, D'anjous, and Bosc are good.

New York – Bartlett pears are steady on all sizes with 4/5s bushel being their main size. The quality has been good.

Alerts:
We expect larger fruit to remain limited this year for all varietys.

Supplies beginning to return from the tropics. Looking at good supplies as we move through October.

Russet harvest out of all growing areas is going at full speed which has pricing declining on all sizes and packs. Look for the markets to slowly stabilize at lower levels which are normal for this time of the year. Quality is good. Norkotah's is the only variety being harvest out of Idaho currently. 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 and they are also all peaking on A size. The availability is improving but is still relatively light especially #2s. The quality is good.

Bakersfield, California – red, white, and gold potatoes are mostly steady with some lower. Availability is improving and the quality is good.

Idaho – reds are steady with good color and they continue to peak on A size. Golds are steady and are split evenly between A and B size. The quality is good.

Wisconsin – red potatoes are slightly higher than last week but steady as the production has stabilized. Gold potatoes are slightly higher due to lighter supplies. The quality has been good.

Minnesota – reds are steady to slightly lower and are still peaking on A-size. Gold potatoes are steady and are still heavier to A size, but supplies are low as the end of the season approaches. The quality has been good.

North Dakota – red potatoes are steady and volume is building as their production increases. The quality is good.

Peak Seasons:
Wisconsin and Mount Vernon, Washington are both in the peak of their colored potato seasons.

Tight supplies continue, for now, late-season fields in the northeast are not producing good volume and southeastern shippers are being held back by Hurricane Irma. The northern tier of the country experienced temperatures well below normal for the month of August and now shippers are winding down for the season, this combination has kept the squash market at higher levels than anyone predicted. Growers in North Carolina have started on limited acreage. Growers in South Carolina, Georgia and North Florida were beat up by Hurricane Irma but are getting started with light volume, getting in better volume this weekend.

Transitions:
Squash business is starting to transition to the southeast.

Squash production in Santa Maria is rapidly decreasing. The combination of heat and rain has proven to be a real problem for the crop. Growers have reportedly thrown away 60 percent of the fruit being harvested, due to quality and condition problems. The market has increased sharply over the past 10 days. There is a new crop starting out of Nogales from Northern Mexico. There is still very light supply out of Nogales, which should steadily increase in the next 10-14 days. Quality is mostly good, the market is very strong.

Nectarines have finished up for the season with most shippers working through the last of their harvest. Expect nectarines to be over by the end of the week. Peaches will go a few more weeks with larger sizes being prevalent. Plums will continue into October with good supplies and sizing. Kiwi supplies remain tight with prices still high. Expect this to continue until California comes in with volume in late September/early October. Pomegranates and persimmons are starting to come in now. Look to these items along with apple pears to offer your customers. We also have some growers with pineapple quince.

Peak Seasons:
Nectarine season will be ending this week. We may be able to find some small supplies left next week.

With hurricanes Harvey, Franklin, and Irma behind us, growers work to continue harvests and salvage crops. Residual rain systems have reduced some harvests in the past week shortening supply. As picking schedules resume, XL size mature greens are limited and selling at a premium. Roma tomatoes are also growing limited further with many regional programs meeting local demand but will wrap up within the next week or two as we get into the fall season and the weather cools, transitioning crops further south. Cherry and grape tomatoes are also limited with rain interrupting picking schedules forcing prices upward. As overall supply remains limited and transitional crops in Northern Florida scheduled for October are rumored to be a loss, active markets can be expected further come October with the brunt of National demand placed solely on the West. California and Baja are projected to continue the next 6 to 10 weeks until central Florida recoups from Hurricane Irma in November. Mainland Mexico is expected to begin thereafter injecting imports into the supply chain beginning in December helping supply.

California continues to work through extream heat conditions reducing hours of operation amongst picking schedules affecting yields for coming weeks. With a rising market in the east, western shippers can expect to see strength in their pricing, as well as national demand, increase the closer we get to October. Unfortunately, there is less planted acreage this year with some growers scheduled to finish in early October. Growers currently have already suffered some bloom drop allowing Mexico to sell above the minimum. Mature greens are higher at this time and quality is fair. Sizing is on the smaller side as a result of hot weather causing larger fruit to sell at a premium. Roma production is steady in California with imports crossing McAllen and Otay Mesa helping supply. Grape tomatoes are strengthening with less available as a result of coastal weather systems. Additionally, cherry plantings are transitioning between fields shortening supply with demand driving price upward. Going into October with much of Florida out of the picture, California and Baja may be the only growing regions with fruit to offer. Elevated markets are expected through Mid December until mainland Mexico begins imports and Florida gets back on track.