The Source - September 27, 2017

California – Granny Smith apples are steady to lower on 100s and smaller with very few of the larger sizes. They are starting to clean up already and could be finished by the end of the week. Fuji apples have started and are also heavier to the smaller fruit. The quality has been good for both.

Washington – Red Delicious are steady on all sizes and grades with only light supplies available. The strong and active red delicious market remains because the new-crop supplies are light and most shippers have only packed one shift while the C.A. supplies are cleaning up quickly. 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 while 88 size and larger remain short. Golden delicious are clean and haven't yielded many of the lower grades, but a lot of the fruit is green versus yellow. Granny Smith are lower on the smaller fruit with only fair availability as the suppliers haven't had enough time to pack and the demand is strong. Most packers have only light supplies of 88's and larger. Galas are lower on all sizes but especially 100s and smaller since they are peaking on113/125/138s. Washington's hot summer has caused lighter colored fruit at least in the early harvest. Fujis are more prevalent, but like most other Washington variety's right now, the shippers haven't had enough to pack any volume so supplies are still short. The fruit they do have is peaking on 88/100s. 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, but they are mostly cleaned up. Expect Jonathans in a couple of weeks. The quality has been good.

Michigan – Michigan continues to pack Galas, Honeycrisp, McIntosh, Jonathans, Jonamacs, And Golden Delicious. Red delicious have started now as well. Galas are steady due to strong demand, and the fruit is heavy to the smaller sizes with 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 steady and are peaking in the 88/100 range. Red delicious are also steady and are peaking on 100/113s. The quality has been good for all.

Pennsylvania – Gingergolds and Galas are steady and still peaking on 100/113s. The quality has been good.

New York – McIntosh and Gingergolds are steady, and both are still peaking on 88/100s. Galas have started but supplies are very limited, and the fruit is large. Red delicious have started, and they are also large with mostly 88s and larger. Cortlands and Macouns have started, and they are also large with mostly 100 size and larger. The quality is good.

Northern Baja (Ensenada) has better volume this week due to excellent growing weather. We will see volume start to decline from this region in the next 2-3 weeks due to seasonality. Southern Baja has started with light volume, and we will continue to see better volume for the next 4-6 weeks. Southern Peru (ICA) has begun to ramp up their volume with the weather getting warmer. Markets are overall lower due to higher prices in the market place for the last 2 weeks.

We continue to see better volume being harvested out of Mexico as the maturity of the fruit improves. Supply lines in the states are starting to improve, and we see market prices to begin to step down on all sizes. Size is still peaking of 60s and 70s, with 48s also showing improvement. 40s and larger sizes are still very limited.

The northern growing regions are still packing good volume of green bell pepper and will for the next two weeks. Shippers in South Carolina and Georgia have started over the past week, and more will start in the next two weeks. A flat green bell pepper market has persisted for the last three weeks, and with the lack of demand at the end of the month, we expect the market to stay flat into the first week of October. All producing areas have good quality and buyers have many good choices on where to load bell peppers.

Transitions:
Green bell pepper is starting to transition to the southeast.

Peak Seasons:
Green bell pepper is in peak season.

Blackberries continue to remain very limited. The domestic production has been greatly impacted by the heat a couple of weeks back, and it wiped out a large portion of the crops. Harvest in Salinas, Watsonville and Santa Maria is very limited. Quality is fair with soft and overripe fruit being reported. Market prices have been steady and firm. Central Mexico production has started with light numbers. The majority of this fruit is being sold out of McAllen, TX this week. Harvest is expected to improve week over week. Quality is being reported as very good. Market prices this week are steady but lower than domestic. As availability improves, we can expect to see more of the Mexican product be transferred to the west coast to help bridge the gap with domestic fruit.

Alerts:
Domestic supplies remain very limited with fair quality.

Transitions:
Central Mexico started with light harvest and will increase production week over week moving forward.

Blueberries supplies have been limited recently. The Pacific Northwest continues to trend down. Oregon and Washington have finished with fresh harvest, and British Colombia has very little fruit remaining. The majority of remaining domestic product will be storage crop and will come to an end quickly. Quality has been fair with soft fruit being reported. Market prices have been steady. Import fruit availability is improving as more fruit arrives this week. The majority of the arrivals are being shipped out of east coast locations with limited volume of fruit is being transferred to west coast distribution centers. As more fruit becomes available, we will have more loading options; including delivery. The import fruit is currently coming from Peru and Argentina. Quality is being reported as strong, and market prices are firm. Peak arrivals will land between mid-October to early November. Central Mexico production is expected to start mid-October.

Alerts:
Domestic supplies are very limited and quality is fair.

Transitions:
Peru and Argentina are increasing production with more fruit expected to arrive later this week. Central Mexico is expected to start mid October.

Peak Seasons:
Peru and Argentina arrivals are expected to peak mid October to early November.

Not much change on raspberries this week. Salinas, Watsonville and Santa Maria areas will be consistent, with supplies gradually improving. Quality has been fair but is improving as the weather has been more favorable over the last week. Markets have been steady. Central Mexico production has started and will continue to ramp up as we begin October. Quality in this area is being reported as excellent. Most of this fruit is being sold out of Texas this week, but we will see better availability on the west coast as harvest improves.

Transitions:
Central Mexico harvest is increasing this week with better supplies expected next week.

Strawberries will be in good supplies. We are at the beginning of the transition period, and we will have several areas in production. Salinas and Watsonville areas will continue to have good volume. The weather has cooled down, and quality has improved, but we still see reports of occasional soft fruit. Maintaining a continuous cold chain is important to the longevity of this fruit. Markets are lower, and volume buys are available. Santa Maria continues with consistent harvest; quality is slightly better than Salinas with a little bigger size (depending on variety). Markets in Santa Maria have been consistent. Oxnard just started last week with light harvest and is gradually increasing week over week. Quality is being reported as very nice with good color and size. Supplies are still limited, and markets have been firm. We expect better supplies and more aggressive markets as harvest increases in October.

Florida is on schedule to start in the front part of November. Despite Hurricane Irma, no major damage has been reported. The fields are drying up, and planting schedules are on time.

Alerts:
Salinas and Watsonville quality is improving, but occasional soft fruit is still being reported.

Transitions:
Oxnard harvest is gradually increasing week over week. Florida is scheduled to start in November.

Broccoli supplies remain extremely limited out of the Salinas and Santa Maria growing region although supplies out of Mexico seem to be a different story. The market out of Mexico is significantly different. The market in Salinas and Santa Maria is mainly due to the heat-related quality issues such as hollow core and brown bead. Mexico is receiving rain in their growing region, and the quality is showing damage from the weather. Therefore the much cheaper market. Look for this trend for the next two weeks.

Alerts:
Extremely limited supplies for the next two weeks due to a supply gap caused by the previous heat in the Salinas and Santa Maria growing regions. The market is extremely active.

Brussels sprout supplies look to increase this week and should increase over the next two weeks. The market is trending lower but at a sluggish pace. Quality has much improved as we see slim to no worm damage. Jumbo sized sprouts are limited.

Carrots continue to be tight through the fall season. We are still seeing the effects of the high summer heat on sizing. Orders are being covered with no problems for the most part.

The cauliflower market is trending much higher due to a lack of supplies. The heat from previous weather patterns has brought acreage so far forward that it has created a supply gap. Quality is suspect as some lots have shown sun scald and cream to yellow color. We will see this type of supply and market situation for the next 2 to 3 weeks.

Alerts:
Extremely limited supplies from previous weather patterns have caused a supply gap. We will see much higher markets for the next 2 to 3 weeks.

This market is steady for now but expect supplies to be less next week. This market will start to get active. Flexing is minimal, unlike past weeks. Large sizing, twenty-four counts, in particular, has much less availability compared to past weeks. Oxnard is expected to begin production at the end of October. Michigan production is starting to wind down as well as Salinas. Production in Santa Maria is steady. Slight bowing and seeder has been seen but minimally in northern as well as southern California.

Transitions:
Oxnard will begin production at the end of October

Cilantro supplies are much-improved from all growing regions. As a result, the market has finally settled to normal levels. Quality is much improved with only sporadic arrival issues with yellowing and brown spotting.

The Oxnard/Ventura crop is 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 quality levels are improving slowly. Tropical Storm Franklin and other storms since have caused a lot of damage to the new crop lime supply and quality. Previous rains and heavy winds caused quality to suffer from stylar, skin breakdown, and wind scarring being prevalent in many growers orchards. The size curve is on the small end with the most volume in 230/250's and very few if any 110/150's. Supplies have improved while demand has remained steady, so the current market is 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 the week, and a few expect to be complete by the end of next week. 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 to the first part of November. We will see a gap in California oranges.

Alerts:
Demand far exceeds supplies.

Cucumbers are heading south in more ways than one. With very high markets where supers were approaching 30 dollars and selects 20, it was bound to fall. The transition to the southeast has begun with shippers in North Carolina and Georgia starting over the past week, and more will start in the next two weeks. Most growers in Michigan, Ohio, New Jersey and New York will finish the season next week. Quality reports vary from shipper to shipper, most of the northern regions have pretty good quality, North Carolina has struggled to make good arrival and Georgia cucumbers are lighter in color except for pole-grown cucumbers.

Alerts:
Some quality issue are showing in North Carolina.

Transitions:
Cucumbers are starting to transition to the Southeast.

Eastern eggplant continues the steady path it's maintained for over a month. Shippers in the northern growing region of the country are starting to wind down for the season, and the southeast is getting started. Demand for eggplant has been good all summer keeping the market higher than the traditional average. The transition to the southeast is going to be fairly seamless. Growers in Michigan, Ohio and New Jersey will continue as long as quality and weather hold up. Quality in South Carolina and Georgia is decent; there is some scaring on early product due to hurricane Irma, those issues will clear up as the season progresses.

Alerts:
Some scaring issues in the southeast.

Transitions:
Eggplant is starting to transition to the southeast.

Peak Seasons:
Eggplant is moving into peak availability.

Rain and winds that hit the San Joaquin Valley a couple of weeks ago are affecting this week. An already short production estimate was made even shorter by this. Markets have reacted by firming up a bit already this week. Most greens are showing great size with minimal ambering.

Much like the green grapes, the weather has had effects on red grapes. The cooler weather a few weeks ago brought on some nice color and size. The market for red grapes also firmed up this week. Quality and sizing remain very nice.

As the supply pipeline fills back up, the market continues to find lower levels. There are better supplies of iced green onions versus iceless. Quality has only slightly improved as we are continuing to see yellow to brown tops as well as mechanical damage of the tops too.

Kale supplies continue to be abundant. The market is relatively competitive. Quality is excellent with dark green color, full cartons, and minimal yellowing or dehydration.

The lettuce market has hit the gap that has been anticipated. All suppliers are short for the entire week of production and light supplies are expected all of next week as well. Santa Maria and Salinas continue to be the main growing regions this commodity is being produced from. Weights on wrap lettuce have been reported at 41-45 pounds with multiple suppliers. Mechanical, puffiness and slight insects are the main defects with this commodity. Demand exceeds supplies. Huron will begin production in about three weeks.

Transitions:
Huron will begin production in the middle of October.

This market is stronger on romaine as well as all leaf items. The demand and scarcity of product is not as extreme as lettuce, but expect all leaf items to steadily increase in price for this week as well as next. Romaine, in particular, has finally slowed down in production as yields have suffered due to warm temperatures in the growing regions. Demand has also increased. Defects include fringe and tip burn along with insect damage. This is a direct cause from past as well as current heats. Romaine hearts are active as well. Red and green leaf, as well as butter, have the same defects as romaine.

Cantaloupes are moving along pretty good at the moment. Enough demand is warranting an increasing market right now. Quality is very good overall now. We had some bad lot's in the not so distant past due to those extremely hot streaks we had. The desert is set to start lightly during the first week of October and build volume from there. Offshore supplies are set to start the first week or two of November. The market is higher.

Transitions:
The desert is set to start the first week of October and build volume from there. Offshore supplies are set to start the first week or two of November.

Honeydews are continuing to see a little more demand and an increasing market. The supply of honeydews is turning 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 middle of October and Mexico towards the end of September to the first part of October. Once again the market is higher.

Transitions:
Mexican supplies are expected to be available within the next few weeks. Desert supplies towards the middle of October. Offshore supplies are slated to arrive towards the end of November.

Onion market has stabilized as growers have been able to get back into their fields from last week rains. All grower/shippers are watching the weather as they have just started harvest on the storage onions. Any more weather that stops harvest could affect supplies going into storage. Stay tuned. The forecast is calling for good harvest weather for the next 7 to 10 days. Quality so far is still being reported as good out of all growing areas (Idaho, Washington, Utah, Colorado). The market should slowly adjust downward on all color and sizes as harvest continues. The biggest issues are transportation or lack of trucks being available in the Northwest. Rates going into the southeast are running 20 to 40% higher than normal.

Alerts:
Transportation very limited

Stockton, California – Bartlett pears are steady on all sizes, but most of the 135s and smaller have cleaned up. Supplies are generally in shorter supply now that we are into mountain pears only. Red pears are steady and continue to peak on 45/50 half cartons, but some shippers have finished, so supplies are lighter. Bosc pears are still peaking on 100/110s, and the market continues to fall slowly. The quality of all varieties has been good.

Washington – Bartlett pears are steady to slightly lower on 90s and larger with 100s and smaller remaining steady. The better availability is still in, the smaller fruit. Red Bartletts/Red Sensations are steady on all sizes and continue to peak on 45/50 half cartons. The D'anjou and Bosc pear markets are lower. Larger Bosc and D'anjous are higher and more scarce while the smaller sizes are more plentiful and cheaper. The quality for all has been good.

New York – Bartlett pears are finished, and they have started packing a few 4/5 bushel Bosc. The quality is reported as good.

Peak Seasons:
Washington is in the peak of its Bartlett pear season.

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

Idaho growers are at their peak of harvesting and shipping Norkotah Variety potatoes. The current fields they are harvesting are peaking on 70 count and larger. Smaller potatoes (80 - 120 count) have lighter supplies and good demand. Market across the board are priced at the same levels from 40 to 120 count and #2's. This typical at times during Harvest. We should see the market adjust down slightly more as we continue with all areas being in full harvest. Colorado and Washington are peaking on 70 count with the curve on the larger side. Wisconsin is peaking on 80 count with a good mix on either side. Markets out of these areas have adjusted downward due to pressure from Idaho. Few growers in Idaho will start to dig the first of Burbank variety potatoes later this week or the start of next week which most if not all will end up in storages. We will not see consistent supplies of Burbanks until November. Few shippers are discounting 40 and 50 count due to light demand. Quality is good for the most part with a couple of lots showing up with issues with immaturity. Immaturity is when the netting has not set onto the potato.
Transportation or lack of transportation is the biggest issue happening in the potato world.

Alerts:
Transportation or lack of trucks is the main issue.

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 to lower due to higher production. All continue to peak on A size number-ones with only light availability of #2s. The quality is good.

Bakersfield, California – red, white, and gold potatoes are steady to lower due to Washington's production increase. All colors are still peaking on As but are limited on #2s. The quality is good.

Idaho – reds and Golds are mostly steady, but we have a couple more shippers getting into the deal so expect some small changes. The quality is good.

Wisconsin – red potatoes supplies are steady, and the market moved back down to where it was last week. Gold potato supplies are limited right now. The quality has been good.

Minnesota – they are finishing up their season on both red and golds.

North Dakota – after a slow start last week they are up and running hard with good availability on both golds and reds. The markets for both are lower than Minnesota was last week. The quality is good.

Squash supplies are multiplying; northern growing regions have had a warmer September than August and squash production has increased. More growing regions are starting their fall deals from Virginia, the Carolinas and Georgia. The squash market has gotten considerably lower over the past week with less demand and many more options for buyers to choose from. Quality in all regions is good with most shippers, the growers in the south had a few issues with early product that was damaged by hurricane Irma. Mostly scarring that has grown out after the first few cuttings.

Transitions:
Squash is transitioning to the southeast.

Peak Seasons:
Squash is in peak availability.

Nectarines have all but wrapped up. Small amounts are left with a couple of shippers, but harvest is over for the season. Peaches will continue through September with one or two shippers going into October. Plums will continue well into October for most of our shippers. Kiwi has begun in light volumes in California. Expect more harvests to start next week and the following week.

Transitions:
California kiwi will be starting over the next two weeks.

Regional programs in the east are past their peak with yields slowing as the season changes. Mature greens are selling at a premium in the east firming up a couple of dollars from last week. With more romas and grape tomatoes crossing Pharr Texas, domestic prices have come down dollars this week to compete against Mexican imports. Cherry tomatoes remain 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 3 to 6 weeks until central Florida recoups from Hurricane Irma in November. Mainland Mexico is expected to begin Winter crops after that injecting imports into the supply chain beginning in mid-December helping supply.

Extreme heat in California continues the weather trend 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 Pharr and Otay Mesa helping supply. Grape tomato supply has increased from Mexico helping markets to come off in both the east and west. Cherry tomatoes remain the tight item while plantings transition 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.