The Source - September 7, 2017

California – Gala apples are steady on most sizes and they are cleaning up. The fruit is still peaking on 100/113s. Granny Smith apples are steady on all sizes with light availability. 88 and larger Grannys remain very short while 100s and smaller are more available. The quality has been good for both.

Washington – Red Delicious are higher on most sizes and grades and the market remain very active with strong demand. Most red suppliers are still peaking on 80/88s. Gingergolds and Gold Supremes are finished for the season. A couple shippers have started packing some Golden Delicious but only light supplies since its so early and much of the fruit is still green. The high temperatures in Washington are not helping with the color. The available goldens are peaking on 88s than 100s and then 113/125s in the higher grades. New-crop Gala supplies are increasing esp. the smaller sizes as they are peaking on 100/113s. Much of the early fruit is lower in color and the high temperatures in Washington aren't helping the Galas color up. Fujis are extremely short very with only a few large sizes available. There are a few Honeycrisp out there but they are very expensive and are peaking on 64/72/80/88s in the premium grade. The quality of all varieties has been good.

Idaho – they still have a few Galas and they are heavy to extra-fancy 100/113s. The quality is good.

Michigan – Paula Reds and Gingergolds are already finished for the season. They are now starting to pack Galas, McIntosh, and Golden Delicious and expect to have more normal sizing this year. The quality is reported as good.

New York – they have started packing a few McIntosh but supplies are limited and they are peaking on 88/100s. Paula Reds are finished for the season and Gingergolds are almost finished. Galas will start at the end of this week or beginning of next. The quality is good.

Alerts:
Granny-smith apples are still in a demand exceeds supplies situation in Washington and California.

Transitions:
Michigan will start packing Honeycrisp the week of 9/11. They will start with red delicious and Jonathans the week of 9/18.

Washington is scheduled to start packing a few new-crop granny-smith, Fujis, Braeburns, and Jonagolds, next week but the heat has been hampering their color not to mention the starch/sugar ratios so there could be delays.

Pennsylvania -- They will start packing light volume of Galas, Honeycrisp, and Gingergolds at the end of this week.

Peak Seasons:
Washington is just getting into the peak of its Gala apple season.

Central Mexico is just about done with production due to seasonality. Northern Baja (Ensenada) is having good weather and decent production. Ensenada does not have enough production to fill orders on the west coast. Northern Peru (Trujillo) is starting to close some fields due to seasonality. Volume has decreased significantly, and this trend will continue in the region. Southern Peru (ICA) is having very good growing weather, and production has increased. With warmer days in the next couple of weeks, production should increase. All markets are higher due to 2 regions closing fields, and the potential threat of Hurricane Irma. Larger sizes are still in short supply from all regions.

Alerts:
Due to Hurricane Irma, inbounds will be delayed from Peru starting Friday 9/8.

The weather last week in the growing area has even lighter supplies coming into the U.S. the front part of this week. This has caused the markets to firm in an already demand exceed supply situation. Sizing is still peaking on 60s with limited supplies of #2's. The forecast is calling for the possibility of more rain moving into the growing areas again this weekend. We will see slight relief as supplies increase from imports from Chile later this month. Mexico's new main crop is expected to start late-September if maturity level of the fruit is there to harvest. Supplies of Mexico main crop will increase quickly in October. This will cause the market to drop. Stay tuned.

Alerts:
Demand exceed supplies

All major producing regions across the mid-west and northeast continue to pack good quality bell pepper but demand is starting to increase. All the producing region have had below average temperatures for most of the month of August and it has slowed production from fields, on a good note, it has also made for good quality. With FOB's in the single digits for over 2 weeks, demand was bound to pick up. Most of the regions will continue to harvest into the first of October as long as the weather stays above freezing but yields will continue to decrease as the season starts to wind down. Western North Carolina continues their summer deal although there is not a lot of overall acreage. Quality continues to be good.

Peak Seasons:
Green Bell Pepper is in peak availability.

Orange Bell Peppers – light supply being harvested in Fresno. Light supply of HH orange bell peppers being brought from Canada.

Yellow Bell Peppers – light supply being harvested in Fresno. Yellow bell peppers showing good quality and condition.

Green Bell Peppers – good volume of green bell peppers being harvested in the Fresno growing area. Green bell peppers are showing good quality and condition on all sizes.

Red Bell Peppers – good volume of red bell peppers being harvested in the Fresno growing area. Red bell peppers showing good quality and condition on all sizes.

Yellow and Orange supply showing good demand with light supply driving the market up.

Green and red bell peppers supply meet or exceeds demand keeping a lower steady market.

Blackberry supplies will be light but should remain fairly consistent for the next 2 weeks. Blackberries appreciate the warmer temps as it typically flushes production and increases the flavor of the berries. However, with such high temps, we expect to see soft fruit and higher culls. However, the heat did not affect production nearly as severe as strawberries and raspberries. Market prices have firmed up slightly. New harvest is expected to start in Mexico by late September.

Alerts:
Supplies are lighter. Expect some soft berries due to heat.

Transitions:
Mexico is excepted to start harvest by late September.

Blueberry supplies remain limited as we approach the end of the Pacific Northwest season. Some shippers are filling orders with storage crop and others continue to have light supplies of fresh harvest. We expect this area to finish with all harvest over the next 2 weeks. Supplies will drop quickly week over week starting next week. Quality on the remaining fruit seems to be holding steady with occasional soft berries being reported. Markets have been steady and firm.

The import season has started with harvest in Peru. We were expecting some arrivals on the east coast this week, but due to Hurricane Irma, these arrivals may be delayed. Argentina is expected to start in late September. Central Mexico is expected to start in October and ramp by the end of the month. Chile is scheduled to start in November and go through March.

Alerts:
Supplies will become increasingly limited over the next 2 weeks as the PNW season comes to an end.

Transitions:
Peruvian fruit will be arriving shortly. Argentina will start this month. Mexico is expected to start by October.

Raspberry supplies will be very limited for the next 2 weeks. The record high heat all growing regions experienced over the weekend has slowed production. When temps get into the high 80s, Raspberry plants start to hold onto the fruit. When trying to pick, the actual berry will not release from the receptacle. This can cause mechanical damage at the time of harvest; slowing production. It usually takes several days after it cools down for the fruit to begin releasing. However, with temps into the 100s, we expect vegetative damage as well which will further set back recovery time for production. Moving forward, we expect some quality challenges with soft fruit. Due to the limited supplies, market prices have increased and will remain firm for the remainder of the season. New harvest is expected to start in Central Mexico by the end of September.

Alerts:
Supplies will be limited and quality will be a challenge as we recover from the recent weather.

Transitions:
New Central Mexico harvest is expected to start by the end of September.

Strawberry supplies will be very limited for the next 2 weeks. All growing regions experienced unfavorable weather over the last several days and the aftermath has resulted in major crop loss, lower production, and quality challenges. Record high temps immediately followed by light showers makes for very poor growing conditions. Initially, a majority of the crop was lost to the heat, literally cooking the fruit on the vine. Then, the showers following the heat has and will continue to have an impact on the remaining fruit. Over the next 2 weeks, we can expect to see small sized fruit with moderate bruising and occasional soft berries. Due to the limited availability, market prices have increased and will remain firm until the crops recover and production increases.

Alerts:
Quality will be effected by the recent weather in all growing regions.

The broccoli market is reacting as supplies decrease due to the extremely hot weather we had in the Salinas Valley and Santa Maria growing regions. This is putting pressure on the supplies from Santa Maria and Mexico. This creating an upward trend to the whole market. We will start to see dehydration, yellowing, and flowering of the beads due to the heat.

The brussels sprout market has reached its peak. Although quality remains suspect as we continue to see worm damage in most lots. But the overall market has felt some relief. Supplies are looking to improve in 2 weeks. Until then we will struggle with elevated markets and poor quality.

In California growing area we are still seeing slowed size growth of the carrots. The heat has stunted the growth is the current growing area and very few jumbo size carrots are being produced. Good demand for the jumbo sized carrot and less production of them, the market for them continues to be firm and rising. We currently don't expect and shortages or quality issues as we move forward. Supplies on value added and baby peeled are still good.

Alerts:
Limited supplies of Jumbo Carrots

As the heat wave has passed through the Salinas and Santa Maria growing regions it has put pressure on supplies. As a result, the market is trending higher and looks to continue this through next week. The extreme heat has shut down normal growth patterns of cauliflower. We will see yellowing of the leaves, yellow to cream color, and brown to black spotting.

This market remains flat. Supplies continue to exceed demand with most shippers. The warm weather California has had may affect quality in the future for this commodity, but overall quality is good for now. Large sizing has the best availability, twenty-four counts in particular. Slight bowing and seeder has been seen but minimally. Michigan continues to have production as well. Expect steady markets for the rest of the week.

Good supply of Jalapeno/ Anaheim/ Pasilla being harvested in Fresno and Santa Maria. Good quality and condition being reported on these commodities. Tomatillos are being harvested out of Baja California. A limited supply of tomatillos due to light rain over the past few days.

Steady demand keeping a steady market.

The extreme heat has further caused quality issues for cilantro. As a result, supplies will remain limited and the markets will remain at current levels. You will see increased brown spotting and fringe burn coupled with increased yellowing. The long term outlook is three more weeks in this type of supply and market situation.

The District 2 lemon crop is nearing the end of its season. As we move into the last of the storage fruit sizing has swung downward at pack-out. We are seeing a large percentage of 165's and smaller with very little of the larger sizes available. This has created extreme pressure on what is already a very strong market. Quality is only fair at best with more fruit showing trouble (brown spotting, mold) upon arrival. We see no relief in this market until early October when the District 3 fruit ramps up.

Alerts:
Lemon sizing shifting heavily to the smaller fruit at pack-out.

Limes are struggling with quality. Tropical Storm Franklin caused a lot of damage to the lime supply and quality. Previous rains and heavy winds caused days of zero harvest and on top of that quality will suffer for weeks due to stylar, skin breakdown, and wind scarring. The situation will not improve much for the next few weeks. Growers had just recently started in new blocks and are now finding all of the defects listed above. The size curve is on the small end with the most volume in 23/250's and very few 110/15's. The market is steady to lower due to lower demand.

The Valencia Orange crop is dwindling in supply. The recent extreme heat in California has severely impacted what little fruit was left for the end of the Valencia season. Poor quality leading to poor yields coupled with an earlier than normal finish is driving this market into an extreme demand exceeds position. We see a worsening supply situation until early October when the new navel season begins.

Alerts:
Extreme heat in the California Valencia Orange growing regions exacerbating an already historically tight market.

Supers and carton 24ct cucumbers are getting tighter. Michigan, Ohio, New York and New Jersey have had below normal temperatures slowing production in general and decreasing pack outs on number one product. A tropical storm moving through the Baja peninsula has almost stopped imports from Mexico increasing demand for eastern product. Select cucumbers have not reacted yet, quality issues continue to some degree. Color and appearance continue to be good but some lots have a short shelf life. Western North Carolina is still producing very light volume from their summer deal and the eastern part of the state started light volume of their fall crop over the weekend. Georgia will be starting light volume in about ten days providing storms in the Atlantic do not spoil the seasonal transition.

Alerts:
Number one product is tight and some quality issues persist.

Transitions:
cucumber are at the very beginning of a transition to the mid-Atlantic and southern states.

Supply on cucumber out of Baja California is very light. Light rain over the past week has slowed down production by 20%. With transition in between fields, we should continue to see light supply from Baja for the next 10 to 14 days. With the recent Hurricane that hit Texas, there is strong demand to the cucumber market pushing Market upward.

So far the cooler temperatures are not affecting eggplant production, and along with low demand for this time of year, the eggplant market remains steady. Buyers are getting some good buys on eggplant with multiple regions to choose from. The midwest and northeast are still in good production and Georgia shippers will start the third week of September. Michigan, Ohio, New Jersey and Canada will continue for 3 to 4 weeks weather permitting.

Peak Seasons:
Eggplant are in peak availability.

16ct Eggplant- 16ct eggplants are showing good quality and condition with good volume on this size. Product is being harvested out of Fresno and Baja California.

18ct Eggplant- There is a current shortage on 18ct eggplant out of Fresno and Baja California. With volume ramping up and sizing a priority mostly 16ct and 24ct at this time.

24ct Eggplant- 24ct eggplants are showing good quality and condition with good volume on this size. Product is being harvested out of Fresno and Baja California.

Eggplant is showing good demand keeping a steady market.

Green grapes are looking really good in all areas. We have great quality, good supplies, great size, great color, and great taste. It's a good time to load up on the different varieties being harvested right now. The market has a range from the low teens to low twenties with a lot of choices of size from our shippers. The lowest prices grapes have come up a notch or two. The market is steady to slightly higher.

Red grapes are enjoying the same exact environment as the green grapes. Red grapes are looking really good in all areas. We have great quality, good supplies, great size, great color and great taste. It's a good time to load up on the different varieties being harvested right now. The market has a range from the low teens to low twenties with a lot of choices of size from our shippers. The bottom of the market has come up a little over earlier in the week. The market is steady to slightly higher.

We are still seeing limited supplies of green onions from Mexico. Especially jumbo size green onions that remain nonexistent. Supplies have been mostly in the small and medium range. Quality remains fair with yellow to brown tops. We are still 3 weeks away from normal supplies.

The kale supplies remain plentiful. The market is competitive from most suppliers. It has yet to be seen if the heat has brought about a lesser quality product. But typically from the heat, you will see increased yellowing and dehydration. Currently, the quality is really nice with the existing supplies.

The lettuce market is firm. Very high temperatures in all the growing regions have been the story this past week. The quality has remained good, overall. Weights on wrap lettuce have been reported at 42-46 pounds by multiple suppliers. Aside from some mechanical as well as slight insects on the plant, good overall quality continues. Demand appears to be getting stronger. Pricing continues to be competitive. The effects of the heat to this commodity will not likely be seen until the weekend to the middle of next week. Inevitably yields for the month of September are eventually going to go down due to heat damage.

Warm weather in California has affected yields in the marketplace for all leaf items. Temperatures reached 105-110 degrees for multiple days. Fringe and tip burn has been reported as well as insects damage on romaine. Strong winds have also caused romaine hearts to be twisted. Red and green leaf, as well as butter, have the same defects as romaine. Wax cartons are being used by multiple shippers so that the product can be hydro cooled. Markets are expected to be active all week.

Cantaloupes are in an increasing market. The scenario is turning over due to high temperatures in the growing areas that are curtailing harvests, slowing growth, and a pick up in demand due to schools being in session across the country. Quality may suffer due to the high temperatures, so look for soft melons and sun scalding to show up in certain lots. The market is higher.

Honeydews are starting to see a little more demand and a little bit of an increasing market. The supply of honeydews is turning ever so slightly lower due to high temperatures in the growing areas that are curtailing harvests and slowing growth. A pick up in demand due to schools being in session across the country has helped demand although the hurricane coming will cut demand for the southeast so we shall see. The market is steady to slightly higher.

Good availability on watermelon out of California. Mostly 36s and 45s being packed at this time. The market has remained steady around .26 to .28 cents and should remain the same going into next week. Good quality and conditions being reported.

Supplies starting out of Nogales in light volume at .26 and .28 cents

Pacific Northwest (Idaho and Washington) are the main shipping points. The market has strengthened on Jumbo yellow onions with limited supplies of Colossal and Super Colossal. Look for supplies of bigger size onions to increase over the next couple of weeks as supplies increase. The red onion market is steady with moderate supplies. White onion market is firm at high levels which should start to weaken as more supplies come on line. Quality is being reported as good. Occasional light greening is showing up in some packs of yellow and white onions. The Pacific Northwest has been seeing day time highs in the mid to high 90's with some days seeing triple digits last week into the front part of this week. The long range forecast is calling for a slight cooling trend with day time highs in the mid 80's by the end of this week.

Stockton, California – Bartlett pears are slightly lower on 90s and larger while 100s and smaller are steady. The Bartletts are peaking on 90/100s now and some suppliers are limited on 120s and smaller. Red pears are steady and are continue to peak on 45/50 half cartons. Bosc pears are peaking on 100/110s and the market is slowly coming off but supplies remain short. The quality for all varieties has been good.

Washington – Bartlett pears are steady on all sizes and continue to peak on smaller. Red Bartletts/Red Sensations are steady on all sizes but supplies are light. The quality has been good for both.

New York – they are still packing Bartlett pears mostly in 4/5 bushels. The quality has been good.

Transitions:
Washington should start to pack a few D'anjou pears by the end of this week and a few Bosc pears on 9/13.

Demand continues to be good and supplies have not increased. We are still looking at another week to 10 days before supplies start to return to more steady levels.

Potato market is softening out of all growing regions as more supplies come on line. The biggest change in the market is on large cartons (70 - 40 count) with the smaller-sized potatoes adjusting slightly. Look for this week to continue for the next couples of weeks till demand catches up with supplies or pricing hit bottom and growers go straight storage. Quality is looking good with occasional skinning showing up in the pack. Norkotah potato is the main variety being packed. Few sheds will start to field run Burbank variety potatoes near the end of this month.

Eastern Washington – red and gold potatoes are steady and continue to peak on A size. Cs remain limited in both colors. The quality has been good.
Western Washington – they have started packing reds, whites, and golds but this is their first week so the availability is limited.
Stockton, California – the reds are steady to higher on all sizes and continue to peak on A size, but supplies are limited as this is their last week. Whites and golds are steady on all sizes but supplies are light supplies are short for both. We expect Stockton to pack and ship through this week and then finish for the season. The quality is good.
Bakersfield, California – they have limited supplies of reds, whites, and golds and the markets for all colors are steady. The quality has been good.
Idaho – reds are steady on all sizes and remain heavy to A size while Bs are short. Golds are steady and the availability for both As and Bs are good. The quality is good.
Wisconsin – the red market is steady all sizes. Supplies are still behind demand and they have had some immaturity in the field, so expect the market to remain strong in the short-term. The gold market is steady with good availability. The quality has been good for both colors.
Minnesota – reds are steady and are still peaking on A-size. Their supplies are also behind demand and will keep the red market elevated. Gold potatoes are steady and also heavier to A size. The quality has been good.

Peak Seasons:
Minnesota and Wisconsin are in the peak of their gold and red potato seasons.

With below average temperatures persisting from Michigan, Ohio, New Jersey, and New England squash supplies have remained tight in the east. Better supply in California has kept the market from going higher than it has. The midwest and the northeast should continue for 2 to 3 more weeks. The Carolinas and Georgia should start some new supplies over the next week to 10 days. The wild card here is one hurricane and another developing in the Atlantic as we get closer to the weekend. Quality remains good in all producing areas.

Alerts:
Keep your eyes on the Tropics, these storms could change everything, Squash would be the first commodity affected.

Transitions:
Squash will start to transition to the mid-Atlantic and south this week.

With the warm weather these past few days there has been more medium size Italian and yellow squash than fancy being harvested. Brand new fields out of Santa Maria being harvested showing good quality and condition. Good demand on both Italian and yellow squash keeping a steady market.

Stone fruit appears to have done well through last week's extreme, unseasonable weather. Harvest was affected by both high heat then rain all within a 48 hour period. Peaches, plums, and pluots should be in good supply through September and into the front part of October. Some shippers will be ending harvest of nectarines in the next 10 days while some will have supplies through September. Peaches and nectarines are in the $18-22 range. Plums $17-24. Kiwi continues to be in short supply until California starts later this month. 1 layer tray packs are around $20 with volume fill in the $32-34 range.

Alerts:
Import kiwi will continue to be in short supply until California starts in late September/early October.

The round tomato market continues its climb this week with Hurricane Irma expected to make landfall on Florida as soon as Saturday. Depending on the path of the storm, there is a potential to hit growing areas in North Florida moving up the eastern shore having a direct impact on supply. In the mean time AL, NC, MI, and VA are all in production helping eastern supply and expected to continue into late September when operations transition back down south. Mature green tomatoes have more availability amongst smaller sized fruit creating traditional step pricing with larger blooms selling for the most money. Roma tomatoes remain limited as expected for this time of year, however, supply continues to improve in eastern growing regions to helping to level out pricing. Grape tomatoes quality is very good out of Virginia and quotes are on the high end against a shortage of supply out of the west. As a result, there has been another jump in the marketplace by $2 to $3 this week. Typically for August growers reduce the crop since local programs meet local demand. Typically supply improves by mid-September with more to harvest according to plan. Similarly, cherry tomatoes are short in the west strengthening eastern market as well and will remain stronger until later this month depending on the impact of Hurricane Irma.

California continues to work through extreme heat conditions reducing hours of operation amongst picking schedules affecting yields for coming weeks. Tropical storm systems over Baja and central Mexico have supply in question also pressing prices upward slightly until damages are assessed next week. Mature greens are steady to higher at this time and quality is fair. Sizing is on the smaller side as a result of hot weather causing larger fruit to sell at a premium. Roma production is steady in California with imports crossing McAllen and Otay Mesa helping supply. Grape tomatoes are strengthening with less available as a result of coastal weather systems. Additionally, cherry plantings are transitioning between fields shortening supply with demand driving price upward temporarily for the next couple of weeks until supply improves again in a few weeks.