The Source - September 4, 2019

Eastern Region

New York
Paula Reds, Jersey Macs, Ginger Golds, and Jonamacs are available with very light volume to which many shippers are not able to commit to loading volume this week. ‘Late’ Reds (Jonamac, McIntosh, and Gala) starting early to mid-September.

Michigan/Pennsylvania
Although light in volume, Paula Reds and Ginger Golds have started and shippers have limited volume until the coming weeks. Look for McIntosh, Gala, Jonamac, Golden Del., and Honeycrisp to start early to mid-September.

Western Region:

Washington
With new crop, Golden Delicious. apples not starting until the week of September 9, shippers continue to gap on Golden Delicious—with a few shippers able to sub into Ginger Golds/Gold Supreme. Many shippers are reaching and have reached the end of their stored product (Golden Del., Fuji, and some with Red Del.). Royal Gala apples are improving this week and orchards seem to be yielding to smaller sizes in the Yakima area, which means more foodservice sizes available (113ct, 125ct, 138ct, and 150ct).

Now that Labor Day has come to pass, schools are back in session and apple volumes have increased across the nation. Until we see more new crop offerings in the coming weeks, flexibility on subbing sizes/grades/varieties is essential—especially on smaller, foodservice sizes (113ct, 125ct, and 138ct). Know that some orders may require an extra pickup location due to some shippers not having the full line-up of varieties.

California
CA Gala apples are coming to an end, but CA Granny Smith apples are available—in a light way—with Fuji’s available mid-September.

Alerts:
Golden Delicious and Fuji apples continue to gap for many shippers.

Central Mexico (Guanajuato) production is done for the season. Baja, Mexico volume has increased this week with better weather and should continue to increase in the next couple of weeks. Weather in both Peruvian regions (Ica/Trujillo) has started to become warmer, and production is better this week. We should see this trend continue into next week as spring starts in 2 1/2 weeks. The larger sizes should get better as we get closer to spring in Peru. Markets on both coasts are still active, especially on the larger sizes.

The California crop is pretty much done for the season and finishing strong. The late-season fruit that is still in the market place is moving and holding at a premium.
Avocado trees go through an "Alternate Bearing Cycle". Meaning they produce a heavy amount of fruit one year and produce less volume the following year. 2019 was an off-year and we anticipate a much larger crop in 2020.

Alerts:
With California and Peru done for the season, the industry will lean heavily on Mexico to feed and support the growing demand.

There have been some speculations that the market would rise and /or gap mid- August through September. Reason being, the industry would be transitioning from 3 origins feeding and supporting the US demand, to Mexico being the sole supplier of fruit. Mexico has ramped up harvest volumes the past 2 weeks, and with all 3 origins still in the pipeline, there are high inventories in the US this week. Current US demand has been a bit softer. However, we are entering a lower demand period so we anticipate market conditions to be stable and trend lower into the Fall season.
Weather forecast for the growing region of Michoacan, Mexico calls for mild to intense rains throughout the summer. With steady rain week in and week out, the fruit has been sizing up on the trees. It has also caused the size curve to shift to 48’s and larger. Smaller fruit, especially 70’s have been limited as growers are seeing less in the daily pack-outs. Expect sub-options and a stronger market on small fruit for the next few weeks.

The bell pepper supply is very good with product being harvested in Michigan, Ohio, Pennsylvania, New Jersey, and Western North Carolina. Rain in the mid-west has slowed harvest somewhat but there are plenty of supplies to fill orders. Pricing has been on a steady decline for the past 2 weeks. Quality has been good for the most part, with occasional bad lots mostly due to rain in the mid-west. Eastern shippers are dealing with much warmer temperatures and some rain over the last 10 days causing some sporadic issues. Demand has been slow and Canada is also shipping produce to the states putting more pressure on the market.

Peak Seasons:
Bell Pepper is in peak season

• Green Bell Pepper- Good supplies of green bell pepper continue to be harvested in the California growing area. Mostly choice grade continues to be packed. Light supplies of large and extra-large retail grade bell pepper are being packed. Quality on green bell pepper from these areas is good. Green bell pepper supply meets demand. Green bell pepper harvest has also started in the Hollister and Oxnard growing area. Light supplies of green pepper being harvested in Baja California.
• Red Bell Pepper- Good supplies of red bell pepper is being harvested in Bakersfield and Fresno. Mostly choice grade currently being packed from these districts. New crop on red bell pepper being harvested in Oxnard and Hollister. Supplies from Oxnard and Hollister are expected to increase as we move forward in the month of September. Market on red bell pepper continues to be steady. Light supplies of Red bell pepper also available to load in Nogales, AZ and McAllen, TX.
• Yellow Bell Pepper- Moderate supplies of yellow bell pepper are being harvested in the California growing areas. Majority of yellow bell is being packed into choice grade. Moderate supplies of choice grade yellow bells are expected to continue through the week. Market on yellow bell peppers is also expected to remain steady. Mexican Yellow Hothouse bell pepper is also crossing into San Diego and Nogales, AZ. Quality on hothouse yellow bell pepper is good.

Blackberries are showing up out of Mexico in better numbers as shippers are transferring fruit in to bolster lighter supplies of local Central Coast product. Quality has been generally good with the occasional red cell being reported. The market should remain steady with lower undertones as we see more availability start coming out of Mexico.

Blueberries are winding down out of the Pacific North West with Oregon and Washington virtually finished. British Columbia continues to produce although they are well past peak season. Michigan will continue to produce their later varieties well into October. Mexico is beginning to cross greater numbers through the McAllen TX area. Offshore imports from Argentina and Peru are beginning to arrive in Philly and Miami area and will increase in the following weeks. Look for the market to vary from growing region to growing region according to quality and crop age. Michigan, Mexico and the Imports are commanding a premium due to superior quality.

Transitions:
Mexico is beginning , Offshore imports are also beginning to arrive. PNW is finishing out .

Raspberries are still coming from the Central Coast with supplies starting to show up out of Mexico in a more significant way. Quality has been good with some occasional leakers being found in older lots. Look for the market to remain steady with higher undertones moving into the weekend

Strawberries continue to be on the short side coming out of Salinas, Watsonville, Santa Maria, and the Lompoc area. Quality is just fair out of both areas with some fruit coming out of the south slightly better than in recent weeks. We are still seeing some excessive bruising with limited shelf life in both areas. Look for the market to remain firm as shippers are experiencing strong demand with schools back in attendance and retail business is brisk.

Alerts:
There is the potential for labor issues to arise during the next few weeks as Growers allocate finite numbers of workers between daily harvesting and annual new bed preparation for winter. This could cause delays in loading at some facilities .

Transitions:
The transition into the Santa Maria area is complete for most shippers

Broccoli supplies continue to get tight as we are currently gapping in supplies and lower yields due to the recent heat. Quality is fair with slight purpling, some mechanical damage and occasional yellow cast.

The brussels sprouts market continues to come off as fields are starting to come forward. There is still slight internal decay, causing lower yields. Look for the Brussels sprouts market to continue to adjust going into next week.

The California carrot market is steady to higher with lighter supplies on all cello carrots. The major players are expressing the inability to take on any new business for the next several weeks when they move into new growing areas. The jumbo carrot category is the most affected on both 25lbers and 50lbers as well. Mexico is still producing good quality jumbo carrots crossing into the US through McAllen TX. Look for the market to increase slightly and remain that way through next week.

Cauliflower supplies are tightening a bit as fields are starting to come into a gap. The quality is good with minor bruising and yellow cast with weights in the 25 to 28-pound level. Look for the market to continue to adjust going into next week.

As the holiday has passed, this market has remained steady, overall. Most shippers are expecting moderate to good supplies throughout this week in both large and small sizing. Demand is fair at best. Salinas and Santa Maria/Oxnard will continue to be the main growing regions for this commodity. All sizing is readily available. Shippers continue to flex on big orders, mainly in large sizing. The quality continues to be good. Minor defects reported include mechanical, bowing and insect damage. The weights are averaging fifty-one to fifty-four pounds per case.

• Jalapenos- Good supplies of Jalapeno are available to load in Los Angeles from Mexico and California. Jalapeno are being harvested in Baja California where the quality is good. Domestic jalapeno peppers are also being harvested in Santa Maria, CA. Mostly medium to large size are available from Santa Maria. Market on jalapenos has maintained in teens for the week. Jalapenos from Mexico are also available to load in McAllen, Texas.
• Pasilla- Good supply of Pasilla peppers available to load in Los Angeles from Mexico. Pasilla is being harvested in Baja California. Quality on Pasilla from this region is mostly good. Size on the pepper is mostly medium to large. Pasilla peppers also being harvested in Santa Maria, California. Market on Pasilla is Lower/steady. Pasilla from Mexico also available to load in McAllen, Texas.
• Anaheim- Good supply of Anaheim available to load from Baja, California and Santa Maria. Quality from Baja and Santa Maria is mostly good. The market for Anaheim is in the mid-teens and is expected to stay there through the week. Anaheim from Mexico also available to load in McAllen, Texas.
• Serrano – Good supplies of Serrano peppers available to load in Los Angeles, from Mexico. Supplies are expected to remain steady throughout the week. Supplies currently meet demand. Price on Serrano pepper is in the mid-teens and is expected to remain the same through the week. Serrano supplies also crossing through McAllen, Texas.
• Tomatillo – Husk tomatillos are available to load in Los Angeles, from Mexico. Quality of husk variety is good. Good supplies on husk tomatillos are expected to continue through the week. The tomatillo market has remained steady on both husked and peeled. Both Husked and Peeled tomatillos have remained steady in the teens. Both varieties of tomatillos also available to load in McAllen, TX.

The cilantro market continues to slowly come off as fields are starting to come forward. The cilantro quality is fair with an occasional yellow leaf. Look for the cilantro market to continue to adjust going into next week.

Supplies have been pretty steady for most of the summer months but more recently we have seen a shift in supplies on 140’s and larger. Suppliers are doing their best to cover orders from day to day. Current supplies are being harvested from District 2 (Southern California Region) and are winding down with suppliers maximizing fruit availability and it’s fresh utilization. We should be starting District 3 (California Desert/Arizona Region) by mid-September. In the meantime, we do have to load import lemons to provide relief from domestic supplies.

Alerts:
A shift in small size fruit is causing limited supplies on large size fruit. Current growing regions are winding down and supplies should improve in a few weeks. We do have options to load Chilean product.

Supplies continue to get tighter each week and markets are rising quickly as well. Due to the drought condition in the growing regions, the industry is getting light packouts and minimal crossings. The outlook moving forward depends on the weather in Mexico, without any rain we won’t see improvement until the next 4-6 weeks. However, even if conditions do improve, there has already been severe bloom loss over the past several weeks and the new bloom set will take approximately 100 days to harvest. With that said, many trees are too far gone to be saved. The weather patterns are not expected to change in the near future and we expect a very active market through the end of the year. Please know that we are looking to find other options and continue to source limes from other growing regions. Current markets have risen weekly and are expected to moving forward until supplies improve.

Demand for small Valencia’s continues to be very strong and the markets are rising weekly. Supplies remain limited and we expect demand/supply to be a challenge moving forward. Our suppliers are doing their best to keep up with the high demand but they are taking it day by day on availability on pack-outs from the fields. Flexibility on loading dates and the ability to sub into another size will help all of us fulfill orders during this time period. Please continue to prebook orders in advance to help strategize and prepare in case we run into inventory issues. As a relief option, we do have the choice of loading Import navels to help offset and complete orders in full. We’ve been hearing positive feedback on the quality. The outlook moving forward will continue to get tighter through September until we transition to domestic navels in late October/early November.

Alerts:
Domestic small size Valencia's will continue to remain very tight moving forward. It's advised to prebook orders in advance. Please keep in mind we do have options to use Chilean Navels.

Cumber supplies are good, number one product is in good demand and supplies are light. The largest supply should be coming from the mid-west but cool temperature over the last 2 weeks have slowed production considerably. Eastern supply in New Jersey, Pennsylvania, and Virginia is traditionally light this time of year. Eastern North Carolina has started light volume for the fall deal. Pricing on super selects has gotten higher over the past week, selects and carton 24's has remained steady.

Transitions:
Cucumbers are starting to transition back south for the fall, North Caroling started harvesting their fall crop.

West coast cucumber market is expected remains steady the first part of the week. There are good supplies currently crossing into San Diego and Nogales this week. Quality from both districts is good. West coast cucumbers are currently being harvested out of Baja California and crossing through San Diego. Mexican cucumber also being harvested in Durango, MX and crossing through Nogales, AZ. Supplies are currently exceeding demand on both retail and foodservice quality. Quality crossing into Arizona and California are good. Light supplies of Mexican cucumbers are expected to continue through McAllen with good quality.

Eggplant supplies are very good, but the demand is very light. Michigan, Ohio and New Jersey are all in good supply of eggplant. The quality in the mid-west is considerably better. Because eggplant is so heat tolerant, growers in the southeast can plant and harvest much sooner than they can on a crop such as a bell pepper. So light supplies are starting in North and South Carolina and Georgia will start light supplies this weekend. Pricing has been declining over the past week and eggplant is selling at very reasonable levels.

Transitions:
Eggplant is starting to Transition back south for the fall.

Peak Seasons:
Eggplant is in peak season

Moderate supplies of eggplant are expected to be available to load in Los Angeles through the week. Eggplant continues to be harvested in Bakersfield and Fresno. Mostly choice grade eggplant is expected to be packed through the week from these districts. New crop eggplant being harvested in Oxnard and Hollister. Good supplies of fancy grade eggplant expected to be packed from the new crop. Quality on domestic eggplant is currently good on retail grade and good on choice grade. Light supplies of eggplant have also started to cross through Nogales where quality is also good.

Domestic green grape supplies are steady this week, but there is some talk about availability becoming thin as we move forward. Several shippers have mentioned the domestic green grape harvest is expected to taper off earlier than normal this year. This is due to the wave of fruit that was brought on early by the heat. Although we do not expect to see this occur until later in the month, it is important to have it on our radar now. We will continue to monitor and update as we move forward.
For this week, we have several varieties available. Ivory, Great Green and Valley Pearl are the most popular. The quality has been good, but we are seeing an occasional issue with soft berries. Demand has been steady. Market prices have been flat with volume buy opportunities available. Again, if supplies lighten up or quality diminishes, things could change quickly. We will be watching greens closely as we move forward.

Alerts:
Green grape supplies could change quickly. Shippers expect the domestic season to taper off earlier than normal this year.

Domestic red grape supplies remain steady. We have several varieties currently in production. Scarlet Royal, Krissy, and Magenta are the main players. Sizes have been on the larger side with plenty of Large, XL and Jumbos available. The M/L size profile has been light due to the vines yielding big fruit. Quality has been very nice on all varieties. Big berries, crunchy and high sugar levels. Demand slowed a bit last week due to the holiday, but we expect it to pick up again this week. Market prices have been fairly flat. However, there is plenty of fruit available and shippers are willing to make aggressive deals when necessary. We expect production and quality to remain strong moving forward for the month of September.

Alerts:
Demand is expected to increase this week. Markets have been flat, but might try to hold firm.

The green onion supply continues to be plentiful with the recent nice weather in Mexico and Salinas. The cooler weather recently is causing occasional leaf minor. The market will continue to stay steady going into next week.

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

Iceberg was expected to be stronger at the start of the week but demand is average at best. Growers are expecting good supplies throughout this week. The weather has been very good in the growing regions and this has accelerated the growth of this commodity. Salinas and Santa Maria continue to be the main growing areas for this commodity. Mexico will have light production due to erratic weather. Growers continue to report above-average yields out of California. Minimal defects include misshapen heads, insect damage and mechanical. The overall quality is above average good. Weights on this commodity are reported at 41-45 pounds.

Romaine is steady, overall. Some suppliers have much lighter in availability compared to others, and this has created a gap in pricing in the industry for this commodity. Overall, school business has picked up slightly on value-added products using this item. Expect supplies to be moderate for the rest of this week as demand has fallen slightly on carton business in the marketplace. The quality continues to be above average. Minor defects include mechanical, tip burn, internal burn, and slight insect damage. Weights are reported between thirty-five to forty- three pounds per case. Romaine hearts are in better supplies this week. Green and red leaf, as well as butter, will have good availability all week. The quality will be above average, overall. Expect windburn, tip burn and insect damage, slightly. The weights on green and red leaf range from twenty-two to twenty-five pounds per case.

Tender Leaf supplies continue to be plentiful as the weather in the Salinas Valley continues to spur growth and produce better yields. Curly parsley, spinach, and arugula have reacted to the recent warm weather and supplies look to be in good shape going into next week. Quality is good with occasional yellowing and bruising of the tender leaves.

The melon market has been pretty flat for the majority of the Westside deal. Currently, the demand has outpaced the harvest due to a strong retail pull for the holiday. Growers have gotten ahead of the fields and pretty much cleaned up on all sizes for both cantaloupes and honeydews. Supplies will be tight for the week. We anticipate better supplies going into the weekend. Weather report for the San Joaquin Valley calls for temps in the upper 90’s to low 100’s. Those are optimal growing temps for melons and should help bring the fields up to par.

Alerts:
Demand has outpaced the harvest due to a strong holiday pull. Supplies will be limited for the week.

Watermelon is currently being harvested in Visalia and Modesto California. The seedless watermelon market is steady with steady demand. Watermelon quality from both districts in California is good. Cooler weather in the California growing districts is expected through the week.

Northwest onion in Idaho/Oregon and Washington are in good supply and exhibiting excellent quality. Super colossal and colossal yellow are the tightest items but also improving in supply as we move into September. Markets continue to slide on all colors and sizes. New Mexico has some supplies of yellow and red left with one supplier looking to move the product out to finish up for the season. The California Valley is done for the season. We expect good supplies and quality for the month of September.

Washington:
New crop, Washington Bartlett pears are available (mid to high 20’s) along with new crop Green D’Anjou pears with volumes increasing with each, passing week.

California:
Aggressive prices continue on CA-Bartlett pears (low teens) with load volume available. As many shippers transition from the ‘river district’ (older fruit) to the ‘mountain district’ (newer fruit), be attentive to which fruit is loading on your order. BOSC PEARS are softening on price, but much higher and lesser volume than Bartletts. ASIAN PEARS are available; 10ct-24ct available to load in the San Joaquin Valley. We should see smaller sizes by the end of next week (66ct-96ct, 3-layer).

Transitions:
CA-Bartletts are transitioning out of 'river district' (older) fruit and into 'mountain district' (new crop).

Pineapple supplies have improved out of both coasts on crowned sizes, the crownless situation is still snug and looking to improve by the second week of September. Markets remain steady and demand continues to remain strong as schools have started back up. Quality has improved and we’re hearing positive feedback.

Idaho potato markets are slowly declining as supplies improve and demand is low. East Coast demand is low with Hurricane Dorian in the picture this week. 60 count and smaller are improving in supplies while 40 count and 50 count sizes remain limited. Overall Idaho markets are sliding as suppliers look to move cartons. #2 grade 10-ounce and 6-ounce remain limited as Norkotah quality are producing high volume #1 grade potatoes.

Suppliers will be subbing into carton counts for #2's to fulfill orders. Typically a 50 count to 70 count will be used for 10oz #2's and 90 count to 100 count will be used for 6oz #2's. Some minor quality issues in the new crop Norkotahs may be seen in the way of skinning, white mold, wet potatoes (wet boxes), and soft potatoes. Washington remains limited on larger sizes with the smaller 90 count through 120 count declining in price. Colorado continues to struggle but expecting better supply in the next couple of weeks. Wisconsin has just started up russets and limited in volume for the larger size 40 count through 70 count.

Alerts:
Idaho markets are declining. Larger size 40 count and 50 count as well as #2 grade remains limited.

Color potato markets are easing as we move into September. Production is improving industry-wide with more regions starting to kick in. California continues to produce all three colors out of Stockton, CA with good quality; #2 grade remains limited. Washington is producing red and yellow with the Mt Vernon region just getting underway with excellent quality and color. Idaho is also shipping out red and yellow with more suppliers coming into the picture. Wisconsin is improving in supplies while Minnesota has flattened out this week due to rain slowing down production. North Dakota will begin shipping soon. Expect markets to continue to slide as the new regions increase in production and volume increases on color potatoes.

Alerts:
Markets declining as new regions start up and volume increases. #2 grade limited.

Transitions:
Mt. Vernon Washington has started up with limited supply. North Dakota to start soon.

Squash supplies are steady, the mid-west has been unseasonably cool slowing production. The region should be one of the largest suppers this time of year. New Jersey, Connecticut, Pennsylvania, and Virginia are also harvesting steady supplies, North Carolina and South Carolina have stared light supplies for the fall and Georgia will start this week. Quality is good in all regions, the cooler temperatures in the mid-west have slowed production but helped quality.

Transitions:
Squash is in transition back south for the fall.

Good supplies on both Italian and Yellow S/N squash continue to be harvested in the Santa Maria, Baja, and Fresno growing area. Consistent steady volume is expected to continue from all three districts. The market on both Italian and yellow squash are steady and quality from both California and Baja growing districts are good. Light supplies continue to cross through McAllen, TX this week.

The domestic season on stone fruit is starting to wind down. As we move forward, we will see availability on specific varieties and sizes become more and more limited. Nectarines are first in line to phase out. Both white and yellow flesh is getting lighter. We will see only larger Tray Pack sizes be available as we finish up harvest. Smaller VF fruit will be hard to come by.
We expect peaches to gradually phase out over the month of September with limited availability on sizes. Peaches should finish by October. Plums and Pluots are currently in good supplies and we expect fruit to be available through October. Demand has definitely picked up with schools back in session. Markets are becoming firmer as availability becomes lighter. Planning ahead on demand is highly recommended.

Alerts:
Domestic stone fruit will start to phase out moving forward. Availability will become limited, size selections will be restricted and markets may firm up.

Weather conditions continue to disrupt supply. Tropical Storm Dorian has weakened in the last couple of days and should spare Florida and Georgia, preserving the majority of its rainfall for the North Carolina coast later in the week. Currently, it looks to be skirting the tomato growing regions of North Carolina and staying farther to the East.
Although harvests are scattered over several growing regions, summer programs remain light and demand is strong lifting the market. Round tomatoes are being harvested early because of the hot weather in the region bringing forth a flush of fruit. Quality is mixed overall and mostly fair. Mature greens out of North Carolina are in a small gap from a heat-induced bloom drop 6 weeks ago. Virginia has finished harvesting for the short term coming back into volume the first week of September with new plantings. Alabama and Tennessee will remain in production until the first frost of the season.
Like rounds, Roma tomato volumes are light but better supply from the west is helping to ease the market causing fobs to come off a few dollars from last week. Grape and Cherry tomatoes are steady. Virginia has light supply and North Carolina is also harvesting, but like rounds and romas, there is not enough supply from any one area to meet demand forcing buyers to look west. Quality is fair and with more rain in the forecast picking schedules may be reduced this week.

Another Heatwave hit the San Juaquin Valley last week with temperatures exceeding 105 degrees in some growing areas. The heat brought on a flush of fruit and more than likely caused a bloom drop that could potentially affect production in mid-October. Quality challenges continue from excessive heat and tired plants. There is not much change in the market as a result of the growing conditions. Mature greens are steady, and quality remains fair to poor. Roma tomatoes are similar in CA and most imports from Mexico are only slightly better as Baja farms continue to work their way into new plantings.
The newly agreed upon suspension agreement draft has eased concerns of a shortage of tomatoes coming from Mexico helping to steady supply as growers in Mexico continue to work through the transition and recent rains. Grape and cherry tomatoes have improved slightly from the past couple of weeks but are mostly steady now while supply is still limited. It will still be a couple of weeks before harvests are expected to improve, and the hope is for better markets when Mexico begins harvesting in greater volume mid to late September.