The Source - September 5, 2018

We are in full harvesting mode for new crop apples in several states across the country. The first weeks of harvesting have produced supplies heavily weighted in the bigger sizes. Small fruit such as 125ct or smaller are getting more difficult to fill. There are still some storage crop available in the smaller sizes, but that will dry up quickly. California has small Galas if your transportation can work loading in that region. In Washington, we have started Galas, Ginger Golds, Honeycrisps, with Red Delicious starting in a light way next week. The markets have held firm at current levels. Red Delicious apples have firmed up from the lower levels deals of the past. The quality is excellent with good sugar levels and pressure testing of 14 or higher.

Due to the continuing rain in Central Mexico, we should see their season end this weekend. In Northern Baja, the weather has not changed, volume and quality remain the same. Southern Baja is still scheduled to start up next week or the following week. The weather in both regions in Peru has remained cool which is still slowing down production on the bigger sizes. Markets are steady and trying to get better this week with less production from Central Mexico, and Peru. Larger sizing is short in all regions.

California crop fruit continues to taper off as the season winds down. There will be some deals on what is left of California fruit as shippers are in clean-up mode and focusing on Mexican growing region. We continue to see good quality on what is left in California.

Peru continues to bring in large fruit (48s and larger) and is significantly cheaper than California and Mexican fruit.

Weather in the Michoacán growing region has had temps in the 70s to upper 80s and will remain the same this week. Seeing rain and thunderstorms as they are in the middle of their rainy season. The Flora Loca crop has ramped up, and we are seeing a steady supply of fruit on all sizes. Maturity levels are being met, and the market has softened. Fruit quality is good but will arrive green in color, take longer to ripen and have a lighter flavor profile. Avocados are peaking on 48s and smaller.

Chilean fruit will come into play as California and Peru wind down. We should see a good supply of Chilean fruit going into October.

The mid-west is in peak pepper production for the next two weeks. The northeast has had a bad stretch of weather this summer, but bell pepper quality has fared better than most other commodities. Demand, in general, is weak after the holiday pull, so there are ample supplies to fill orders. Canadian shippers also have good supplies and are supplying a lot of northeast customers with a variety of products. California growers are in heavy production also, keeping mid-western producers from shipping to western states.

Availability has quickly declined over the last week as production dropped off in Salinas, Watsonville and the Pacific Northwest. The Northern California season was initially late this year, reaching peak harvest early August. When peak production finally did hit, the hot weather pushed that fruit on quickly. Volumes were much higher than expected and we are now in the transitional gap period. Santa Maria and Baja production is light and sporadic. Oxnard is fairly steady, but light volume. Luckily, Central Mexico is starting to scratch the surface early this year, and we expect to see some fruit available by mid-September. Volumes will be light and quality may not be exceptional with the early season varieties, but we are hoping to bridge the supply gap. We will see supplies improve from Mexico as we enter the winter harvest periods. Market prices are higher and firm. I expect limited supplies for the next 3-4 weeks.

Alerts:
Supplies are very limited and prices are higher.

Transitions:
Mexican harvest is expected to start with light volume this month to help bridge the transitional gap.

Not much changes this week on the blues. Import availability is improving out of the Manfredi, PA area. Quality is good. However, market prices are much higher and firm. Domestic supplies remain limited as very little production is left in the Pacific Northwest and Michigan. We can expect to see storage fruit this week. Michigan production has passed its peak and is in seasonal decline of fresh volumes around the state. Oregon and Washington continue with light production, but quality has been marginal. They are in late season varieties, and most shippers expect to wrap up production over the next 1-2 weeks. British Columbia is in the last of its late-season varieties and will be done soon. Peruvian fruit is the first to hit the US. We expect to see supplies gradually improve as we start September and significant volume arrive by late September. We will see peak arrivals from October to November. We will eventually see an overlap of Argentina and Chile imports as we transition into all import fruit by Late September. This week expect higher prices and lighter supplies.

Alerts:
Transition between domestic and import means lighter supplies, storage fruit and higher prices.

Transitions:
Peru is arriving now, we expect Argentina, Chile and Mexico to get started over the next 6 weeks.

Supplies have been fairly steady, but light over the last two weeks. However, we do expect to see production ramp up week over week moving forward. We will see a transition between the northern growing regions to the southern regions and Mexico. Salinas, Watsonville and Santa Maria will phase out as Oxnard, Baja, and Mexico startup. We will see more fruit become available in the McAllen, TX shipping points by late September. Quality has been reported as very good. Markets have been steady, but with increased supplies expected, we will see opportunity buys become available.

Transitions:
Oxnard, Baja and Mexico harvest will get started mid to late September and gradually ramp up.

As an industry, supplies have definitely become more limited. Speaking with a wide range of shippers throughout Salinas, Watsonville and Santa Maria, I am getting a variety of feedback. Some are claiming to be completely sold out for the week, whereas others expect to have limited availability spread throughout the week. As a whole, the feedback I received indicates lighter production in the Salinas / Watsonville areas and limited availability in the Santa Maria regions. Summer harvest is winding down, and Fall harvest is just getting started. This is causing a transitional gap in production that is expected to last for the next 3-4 weeks until Oxnard and Mexico start up in the front part of October. Quality has continued to be challenging over the last couple weeks, but we are starting to see improvements this week. Additionally, the new fall harvest crop should some also bring better quality. Market prices have jumped up a couple of dollars over the last week and are expected to remain firm.

Alerts:
Markets are higher, supplies are lighter and demand is strong.

Transitions:
Santa Maria is slowly ramping up with new fall harvest.

The broccoli market has adjusted higher due to the current gap in the Salinas Valley and Santa Maria areas. Fields that were slated for harvest this week or next were either harvested or disked weeks ago. Quality is fair with slight purpling, some mechanical damage, and occasional yellow bead. Look for supplies to continue to be tight through the next couple of weeks.

The Brussels Sprouts market continues to be steady. Supplies in Salinas continues to improve steadily. Quality now is seeing less insect damage, black spotting and decay. Supplies and quality look to be steady going into next week.

Conventional fresh and processed carrots continue the Summer Season in the Cuyama/Lancaster area which will run towards the end of November, early December and will transition into the Fall season back in the Bakersfield area. The past weeks of 100+ degree weather slowed the growth on carrots but don’t expect any shortages or quality problems as we move forward just larger sizing.

The market is steady.

Cauliflower market continues to be strong in the Salinas and Santa Maria areas as there has been more demand recently. 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 remain strong into next week.

Good supplies continue on large sizing, but all sizes are available. This market is steady in both northern and southern California to start the week. Shippers are flexing. This market is expected to get stronger by the end of the week so early ordering to start the week may be beneficial. School business is expected to pick up by next week. Slight bowing and mechanical have been reported, but overall quality continues to be strong. The weight is ranging 55-60 pounds. Michigan production is starting to slow down.

The Cilantro market has started to retreat lower as there signs of more supply in the pipeline. The cilantro fields that have gone through the heat are starting to pass, and growers are breaking into new fields. Look for the cilantro market to continue to ease and look for the cilantro quality to improve.

The current lemon supply situation is still extremely limited. Although with the help of offshore fruit and the beginning of district three lemons out of the Coachella Valley has helped tremendously. The last of the Chilean vessels are on the water heading this way. The market has reached its peak and demand has fallen off a bit as well. Quality is still fair at best out of the Oxnard growing region. The Chilean fruit, as well as the district three fruit quality, is far better.

Transitions:
We are slowly transitioning to the Coachella, CA and Yuma, AZ growing regions.

Weather remains the same in the growing region of Veracruz Mexico with rain and thunderstorms. Temps are in the 80s to 90s this week. We continue to see good volume on both small and large size fruit. The market this week is steady, and overall quality is fair to good. Market price remains in the $15-$20 range.

We continue to see an extreme shortage of supplies with small Valencia oranges. The 113 count and 138 count sizes are extremely limited. The market for all sizes is much higher than normal prices. The demand for small oranges is going strong with school business taking the charge. There is more availability of 88 count and larger if there are opportunities to sub sizing. We are still 4-6 weeks away from new crop navel season to start. The quality of the remaining valencia crop is fair at best with soft rot, decay, and mold.

Alerts:
We continue to see elevated markets and extremely limited supplies of small oranges.

Cucumber supplies are very light, and the market is reacting. The northeast has been receiving steady rain for the past month, not only is the weather hurting quality and production, it has kept farmers from planting cucumbers intended for fall production. Michigan and Ohio are experiencing reduced yields because of cooler weather, some rain has slowed harvest, and the mid-west is starting to wind down for the season on cucumbers. North Carolina has two regions producing now, the western mountains which have received above average rainfall and the eastern part of the state where production is good but not enough to supply all the demand.

Alerts:
Very Light Supplies. Poor Quality.

There are steady supplies of eggplant with good movement keeping the market steady. Most supplies are coming from the Midwest and Canada with New Jersey adding some production but a wet summer has hurt their crop and New Jersey is traditionally a big supplier of eggplant. Canadian shippers are supplying a lot of northeastern business while Michigan and Ohio are taking care of the Midwest and Southern states. The Midwest is seeing good production on less acreage than has been planted in previous years. Shippers are reporting good movement and a steady market. Some southern states will start shipping very light volume this week with a few growers in South Carolina and Georgia starting.

Alerts:
Mid-west quality is good, eastern quality is only fair.

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

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

The Green Onion market has slowly been coming off. Sizing is still trending to the smaller sizing. The hot weather in Mexico has been causing some occasional leaf minor and some mechanical damage. Look for the green onion market to continue adjusting as we go 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 is good with good color, full bunches, and only an occasional yellow leaf being reported.

This market is steady, and shippers are looking for orders. Demand is off. Flexing is occurring with multiple suppliers. The quality is strong. Aside from some puffiness and misshapen heads inspection reports have the quality to be good with multiple suppliers. Weights on palletized are ranging from 42-47 pounds. Expect moderate to good supplies for the entire week, pending on the shipper. School business is off for now but expected to pick up shortly.

Good supplies are expected throughout this week for romaine as well as all leaf items. There will be no harvesting on Labor day, so shipping on Tuesday may be slower than normal, but by Wednesday, things should be normal again. Demand is fairly flat at this point. Romaine and romaine heart production should be good for the entire week. Green and red leaf, as well as butter, will have good supplies as well. Slight fringe burn, and mechanical have been reported, but overall the quality continues to be above average with most suppliers.

Supplies on spring mix, arugula, baby spinach, and cello spinach have all been affected due to the recent warm weather in the Salinas Valley. This recent warm weather has pulled a lot of the Tender leaf forward causing a gap. This gap is slowly narrowing as there is a slight increase in supplies this week. The recent warmer weather has caused some quality issues such as minimal yellowing and bruising of the tender leaves. This market will continue to level out as supplies have started to increase.

Weather in the San Joaquin Valley will be in the 90s -100s until Wednesday then taper off into the low 90s going into the weekend. Some small fruit(12s &15s) available but will be limited going into the weekend. The market is steady this week, and overall quality is good. Brix/sugar levels are in the range of 12-16. Market price is in the range of $5-$6.

Weather in the San Joaquin Valley growing region will be in the 90s to 100s early in the week and drop down a bit into the 90s going into the weekend. Small fruit has been tight (6s and 8s) but are available now as growers have broken into new fields. Expect small fruit to become limited going into the weekend. Plenty of larger fruit available (4s and 5s) with volume deals as well. Brix/sugar levels are in the 10-14 range, and overall quality is good. The market is steady and holding at $5-$7.

Idaho, Washington, and Colorado are in the middle of harvest. Onion market is steady on all Colors and sizes. Quality is very nice. Look for these market condition to continue through this month.

Pear supplies are plentiful out of both Washington and California. There is a range of sizes with deals on volume orders. We also have different varieties as well. Such as Bartletts, Bosc, Seckel, Comice, Danjou, and Red / Crimson pears. The markets are competitive with opportunities to promote. The quality is excellent with good sugar levels and pressure tests.

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.

New crop harvest is in full swing out of Idaho, Washington, and Colorado. Wisconsin harvest has been hindered by rain this week. The forecast is calling for clearing as we get closer to the weekend which will help dry out the fields. The market is close to seasonal averages with a weak undertone. There is a good mix of sizing from field to field with some peaking on 70 count and larger and others peaking 80 count and smaller. This is typical out of all growing areas. Quality is good with the occasional skinning showing up in a few packs. Looks for the markets to stay fairly steady until the crop is 100 % into storage sometime in October.

Red, White and Gold potato market is steady off the West Coast with supplies coming out of Stockton, California, Tri-Cities, and Mount Vernon, Washington. California supplies will wind down by the end of the Month, but with the Northwest going we should not see much change in the markets this month. Demand is moderate. Wet weather has hindered harvest in the Big Lake, Minnesota, and Wisconsin growing regions. Supplies are also winding down out of the Minnesota area which has the markets firming and few rain-related quality issues showing ups in the packs. A few growers in the North Dakota growing area have started packing and shipping with most growers going to storage. Weather is calling for more rain tomorrow then clearing for 5 to 7 days which will steady the market.

Alerts:
Rain has hindered harvest in the Minnesota and Wisconsin growing areas

Squash is in production in many locations but none have much volume, there are light supplies of zucchini, better supplies of yellow squash. The Midwestern states are starting to wind down for the season with some fields finishing, and the later fields are not producing the volume expected. The northeast and mid-Atlantic states have had a very wet summer, and many growers could not get as many acres planted as they normally do and some of the later fields were damaged from too much rain. Light volume is staring in some southern states. Eastern North Carolina, South Carolina, and Georgia have all started producing with volume to pick up slightly over the next week to 10 days.

Alerts:
Very tight supplies of zucchini.

Transitions:
Squash is at the beginning of a transition period to the South.

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.

The eastern marketplace remains strong while supply shrinks between Spring and Fall plantings. Supplies will begin to rebound this month with farms beginning to harvest new crops helping to curb the increase in the market over the past couple of weeks. Significant rains continue to pose challenges to harvest operations showing up in yields, quality and size. Larger fruit is at a premium with smaller fruit selling at best value. Similarly, Roma tomatoes remain short this week. Demand for Roma tomatoes remains strong with less coming from Mexico. Eastern growing operations include farms in Alabama, Tennessee, Virginia/Maryland, Michigan, and recently new crops in North Carolina. Grape and cherry tomatoes remain strong between harvests. Quality is mixed between grower lots from poor weather exposure. As the weather improves so too will quality and availability.

The market is steady at this time after strengthening over the past couple of weeks due to diminishing supply. At this time, California remains the largest producer of gas green tomatoes for the season where markets have risen for the short term. A shortage in the east during most of August has focused demand on California farms. Additionally, the central valley has experienced a heat wave reducing the number of blooms to harvest. Round and Roma tomatoes are fewer in supply and soft from heat exposure. Vine Ripe and Roma tomatoes are crossing from Baja in lighter volumes while operations transition is causing import prices to firm up. Grape and Cherry tomato supplies remain short during Mexico transition encouraging a stronger market this week as well. Quality is mixed between suppliers.