The Source - September 26, 2018

The apple season is in full force. Multiple states are harvesting several varieties. Pressure tests are 14 plus as well as good sugar levels with all varieties. New crop Red Delicious and Fuji apples have started harvesting in Washington. So supplies will only increase. Although the market has firmed up on all grades and sizes. The rest of the varieties from all states are steady at current market levels. There are also deals for volume orders. Overall quality is excellent from all growing regions.

Northern Baja (Ensenada) volume, and weather are about the same as last week. This region should be wrapped up in about 10 days. Southern Baja (Constitucion) is very warm this week, and the heat wave will continue for the next 10 days. Volume is heavy, but quality is fair from this region with a high percentage of seeding, and spreading in the tips due to the heat. The weather in both regions in Peru (Ica/Trujillo) is about the same as last week, and volume continues to increase with more fields opening in the southern region. We're finally seeing an increase in the bigger sizes. Markets are lower on the West Coast with more volume from Southern Baja, and East Coast markets are lower with more sea arrivals.

Weather this week calls for rain and thunderstorms with temps in the 80s. New crop "Aventejada" is ready but Mexico will not harvest until the "Flora Loca" crop is finishing up in mid to late October. Fruit is peaking heavily on 48s and plenty of 40s and 36s as well. Shippers are reporting that smaller fruit has been limited and hard to come by. Still plenty of Peruvian fruit available. Last arrivals are set to land the first week of October . Fruit is 36size and larger.

Green bell pepper is starting to transition to the southeast, Michigan, Ohio and New Jersey are still shipping steady supplies but their volume will start to decline quickly. All those regions have been getting some rain and quality issues are starting to show up. South Carolina is shipping light volume from the southern part of the state so the product is in a region that was not affected by hurricane Florence. The mountains of North Carolina and Tennessee are starting to wind down for the season, shipping mostly smaller and off grade pepper. Georgia started with very light volume this week but most growers are still 1 to 2 week away from harvest.

Alerts:
Very light supplies Starting in South Carolina and Georgia.

Transitions:
Bell pepper is starting to transition to the Southeast.

Peak Seasons:
Bell pepper is not in peak season.

Green Bell Peppers – California bell pepper still mostly coming out of coastal growing areas. Green bell pepper volume has remained steady. The quality of the peppers remains good. Supplies are moderate. Currently supplies meet demand and, prices remain steady. Shipping areas include Fresno, Gilroy, and Oxnard. Green bell peppers from Mexico are also available to load in McAllen, TX.

Red Bell Peppers – 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 crossing through Nogales From Jalisco ,Mexico. The quality of the peppers in all districts remains good. Pricing has firmed up on #1 pack red bell pepper. Lighter volume on Large, X-large bushel and 15lb pack . Grower’s are packing more choice grade fruit. 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. Yellow bells will mostly be from the coast through September, with volume decreasing as we close the month of September. Few Hothouse yellow bells crossing through Nogales from Jalisco, Mexico. The market is firming up, Pricing is higher. Supply meets 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.

No change this week on Blackberries. 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. Mexico has started with light harvest, but this fruit is limited and being sold out of McAllen, TX only. We expect to see supplies slowly ramp up as we approach November and that fruit help fill the pipeline for California loading locations. We expect supplies to be short through October.

Transitions:
Mexico is just starting to scratch the surface this week with very little fruit available in McAllen, TX only.

Blueberry supplies have become very limited this week. The import fruit that was expected to arrive from Peru and Argentina has been delayed, leaving the east coast empty on available blues. Although arrivals are expected to land later this week, it will take a couple arrivals to fill the pipeline. I expect supplies to remain limited and market prices to be higher all next week. On the west coast, we are struggling with what is left from the Pacific Northwest. Quality has been fair and supplies are limited. We do expect some Mexican fruit to start ramping up over the next 2 weeks, but supplies will remain limited next week. Again, prices are higher. Order fulfilment will be a struggle until we get back on our feet with supplies. I expect this to last the next 3 weeks.

Alerts:
Supplies are limited and prices are higher. We expect this to be the case for the next 2-3 weeks.

Transitions:
Mexico is just starting and will ramp up over the next 2-3 weeks. Peru and Argentina are sending fruit, but arrivals have been delayed. We expect east coast supplies to improve over the next week.

Raspberry availability and market prices have been consistent. We do not expect to see any major disruption in the supply chain as we transition from domestic to Mexican production. In Salinas, Watsonville and Santa Maria we are seeing good late season production. Quality has been good and market prices are steady. We expect Mexico to get started over the next 2-3 weeks and gradually ramp up as we start November.

Transitions:
Mexico will start in the next 2-3 weeks.

Strawberry supplies have improved this week as Santa Maria and Oxnard production numbers have jumped up and we continue to see consistent harvest in Salinas and Watsonville. We expect supplies to remain strong in both areas for the next 2 weeks, barring any major weather events. We are seeing a split market this week; which is typical for this time of year. New harvest in Santa Maria and Oxnard is usually a couple dollars higher than that of Salinas and Watsonville. I expect this will be the case moving forward unless either area gets hit with rain. Quality seems to have improved in Salinas / Watsonville, but reports are saying new crop down south is stronger. We expect the transition to continue to play out as normal this year. Salinas and Watsonville will slowly begin to decrease harvest over the next 2 months, where as Santa Maria and Oxnard will continue to improve. Additionally, by November, we expect to see Mexico ramp up fresh harvest. In regard to weather, we have seen mild and dry days in all areas recently. However, there is some indication of a possible storm system building that could bring some light rain to the northern California growing regions over the next 7 days. As of now this is a long shot, but if this does continue to develop, we may see some interruption in harvest and quality next week.

Alerts:
Possible light showers in the forecast for early next week may cause some disruptions in harvest.

The broccoli market has adjusted higher as the colder nights have slowed the growing process in the Salinas Valley and Santa Maria areas. Quality is good with slight purpling, some mechanical damage, and occasional yellow cast. Look for supplies to continue to remain tight going into next week. Demand out here on the West Coast has picked up as Maine received their first frost and The Carolina's have been experiencing rough weather.

The Brussels Sprouts market has started to come off a bit as production is currently under way in Salinas, Santa Cruz and Watsonville areas. Oxnard is currently out and will be back in with product in mid-October. The temps have been relatively mild, which the Brussels Sprouts like, so fields are at budget if not slightly ahead of schedule. Quality has been affected by insect pressure particularly the Diamondback Moth and will be an ongoing battle this season. Look for supplies to tighten up 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 stay competitive.

The market on this commodity remains steady with most suppliers. A few shippers are flexing on large sizing but be assured all packs are available. Supplies continue, moderate to good out of northern as well as southern California. Demand is light, overall. Good inventories continue on large sizing, twenty-four counts in particular. Slight bowing has been reported but minimally. The weight is ranging 48-55 pounds. Expect steady sup[plies for the rest of the week.

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 remains steady along with pricing. New fields being harvest in both Baja California and Santa Maria growing area’s. Few jalapeno also being harvested in Fresno. 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 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 – Moderate supplies available on both husked and peeled tomatillos as we close the month of September. The market remains steady on both peeled and husk tomatillo. Santa Maria and Baja California harvesting light volume of tomatillos. Currently tomatillo supplies on both peeled and husk meet demand . Quality is fair to good from both growing areas. The market remains steady along with pricing. Tomatillos also available to load in McAllen, TX

Serrano – Supplies are still available from Baja, in San Diego and L.A. There is also serrano pepper available to load in Santa Maria. Volume on Serrano is steady and consistent. The quality of the pepper has been good from both growing areas. Currently supplies meet demand. Pricing remains steady. 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.

Supplies continue to increase from district 3 forcing the market to trend lower. Also the lack of demand at the higher price levels have forced suppliers to get in line on market orders to stimulate demand. Quality of fruit from district 3 is really nice with minimal scarring or brown spotting. Look for this market to continue to decrease to lower levels.

Weather remains the same. Forecast calls for rain and thunderstorms this week in the Veracruz growing region of Mexico. These current weather conditions continue to set back the harvest. Plenty of small fruit(200ct-230ct) available and still limited on larger fruit(150ct-175ct). The market this week is in the $20 range. Over all quality is fair.

The Valencia orange crop is about 3 weeks away from finishing up. We will then transition to the navels. Which seems so far away by the scarceness of 113ct and 138ct oranges. Supplies are extremely limited. Although there are plenty of 88ct size or larger fruit if that is an option for you. Quality is still fair at best with soft rot, mild, and decay. The market continues to climb with the scarcity of supplies.

Cucumber supply is tight, all the northern regions are finishing up early and the temperatures have been so unseasonably hot in the south that cucumber plants are not producing the yields typical of this time of year. Michigan, Ohio and New Jersey are about done, New York State is still shipping but the volume is winding down. Eastern North Carolina should be harvesting but that region was wiped out by hurricane Florence. Markets have been very high and demand is starting to slow down, more supplies from Mexico are starting to show up and some buyers will move in that direction. More grower in Georgia will start harvesting next week.

Alerts:
Light supplies

Transitions:
Cucumbers are in Transition from northern growing regions to the southeast.

Peak Seasons:
Cucumbers are not in peak seasons.

Cucumber supplies still available out of Baja, California. Better supplies on cucumber being packed this week. Production should remain consistent through September and into October. The quality of the fruit is mostly good. Baja cucumber showing strong demand from both west coast and east coast. Pricing remains steady/ high. Few shippers have started receiving minimal volume of cucumber in Nogales. Volume is expected to increase in the upcoming week’s. Shipping areas are San Diego and Los Angeles. Light supplies of cucumbers are also available to load in McAllen, TX.

Supplies are starting to pick up in the southeast while the Midwest is will finish this week. Canada is still shipping good quality eggplant to the northeast but demand for eggplant is keeping up with supply and the market is staying strong. Georgia and North Florida will start more production as more shippers begin harvesting for the season.

Alerts:
Eggplant supplies are getting better but demand is keeping up with supply.

Transitions:
Eggplant is transitioning to the southeast.

Peak Seasons:
Eggplant is not in peak season.

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 and into October. Eggplant demand exceeds supply . Pricing remains steady on fancy and choice grade.

The green grape market remains consistent. 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. Fruit is excellent quality, with good sizing, and strong stems.

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

The Green Onion market continues to remain snug. 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.

Supplies have tightened up considerably since last week. This market is active with all shippers. Expect light supplies for the next few weeks. Some issue on this commodity include puffiness, insect damage, light weights and mechanical. Shippers are no longer flexing like in past weeks. The weights on palletized are ranging from 36-43 pounds. As you can see, pending on the lot, there is a wide degree of weights. Demand is strong overall. Huron is expected to begin the third week in November.

Transitions:
Huron is expected to begin the third week in November.

Although lettuce has become much stronger in the marketplace, romaine remains steady. Good supplies from multiple shippers continue to be available. A few shippers are flexing on volume type orders so promote this commodity as much as possible. Green leaf much stronger, with supplies expected to be light due to a gap of seven days with many suppliers. Romaine hearts are firming up but available. Defects being reported on leaf items include mechanical, slight fringe burn, cupping, and some insect damage. The overall quality is fair although some suppliers are in better shape. Red leaf and butter are steady, overall.

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.

Weather this week will be in the 90s-100s. Over all quality is good with 9s being the only size that's limited this week. Rix/sugar levels are in the 12-14 range. Come October we will transition down to Arizona. In November we will start to see offshore fruit arrive.

last weeks forecast was a high of 90 all week. This week temps will reach the 100s. There is plenty of fruit available this week on all sizes and the market price is on the $5-$6 range. Overall quality has been good with sugar/brix levels in the 10-12 range. Come October we will transition to Arizona. We will have fruit available in both California and Arizona until shippers decide to pull the plug on the California crop.

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 the end of 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

Yellow, Red and White Onion markets are steady at low levels out of all growing areas. Medium Yellow are the only size, that is limited with a firm market. Sizing is peaking on Jumbo and larger. Quality is looking very nice with no issues being reported upon arrivals. Washington is about a week away from having everything into storage. Idaho is hoping to get their crop in by the middle to end of October.

As we continue with harvesting in both Washington and California, supplies have increased. As well as several varieties in Washington to. Other states are following with their respective local growing regions. The markets vary depending on size and grade. Overall quality is really nice with minimal soft spots or that typical bruising of pears. Decent sugar levels coupled with good pressure testing makes for strong fruit that travels across country.

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.

Potato carton market continues to look for the bottom on 40 through 80 count as most growing areas are peaking on 70 count and larger. 90 count and smaller are going into retail bags which is keeping the market on these sizes steady. Idaho, Colorado and Wisconsin are still in the middle of harvest with only Washington seeing the light at the end of the tunnel. Quality is looking good. Transportation is limited.

Color potato market on Red, White and Golds is steady with light to moderate demand out of all growing areas (Washington, Idaho, North Dakota, and Wisconsin). Quality is good. Sizing is peaking on A size. Look for markets to stay at current levels into the middle of next month.

Squash supplies remain very tight, temperatures have been unseasonably hot and squash plants are not yielding the way they should. Yellow squash tolerates the heat beater than zucchini so availability is slightly better on yellow. all the northern regions are finishing up for the season, North Carolina, although not a huge producer this time of year, has been wiped out by hurricane Florence. South Carolina, Georgia and North Florida are all harvesting but not getting the production typical of this time of year. Production will pick up in the south as soon as the region get some cooler nights. More supply is showing up from Mexico and some buyers are starting to move in that direction.

Alerts:
Squash supplies are very tight in the east

Transitions:
Squash is in transition from Northern Growing regions to the south.

Peak Seasons:
Squash is not in peak season.

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. Volume currently meets demand, and pricing remains steady. In Nogales, rain in the Sonora growing region has pushed back squash production for about 7-10 days . Light supplies of squash from Mexico are also available to load in McAllen, TX.

The Stone Fruit market remains steady as we head into the fall. Fruit remains large due to high temperatures, with very little smaller sized fruit available. Peaches and Nectarines will start winding down by the end of September, but supply and quality will remain consistent until the end of this month. We have 3 more weeks of black plums, and then red plums will run all through October.

Post Hurricane Florence, growers are left assessing crop damage in the Carolinas and finishing what's left of the crop for the season. Round tomatoes are steady with health production in Tennessee and new crops in North Florida, however The storm has pressured Virginia to finish early as well. the grape and cherry tomato categories have transitioned to small operations in Georgia, and northern Florida where company is reported as excellent. Supply remains tight but new operations are helping to ease the market as harvest increase within new plantings as we move into October. Roma tomatoes are typically not a strong eastern crop this time of year with much of the emphasis on Mexico for imports which have fallen off recently from severe weather reducing exports to the US. Romas are very limited and strengthening into October as supply continues to shrink while operations transition.

California's central valley is expecting triple digit temperatures this week followed by a cold front that is expected to bring rain as soon as this weekend. Rounds are steady at this time with plenty of availability but harvests may curtail if weather systems bring enough rain to influence farms to wrap up production. There is decent production on romas as well, but the demand is particularly heavy due to limited crossings from Mexico and those supplies are sold out for the week. Mexico has been experiencing several consecutive days of rain and is keeping what limited production there is on their side of the border. Additionally, Baja and the east are in very short supply on roma, grape and cherry tomatoes at this time and the market is expected to stay active on these items headed into the first week of October until farming operations can recover.