The Source - August 15, 2016

Washington - Red delicious are steady to higher on all sizes and grades with only light availability of the fancy-grade. Most shippers continue to peak on extra-fancy 72-88s but supplies are light due to strong demand. Expect the market to remain strong through the balance of the storage season. Earli Golds & Ginger Golds are steady to higher and supplies are light. The remaining fruit is still peaking on Wash-Extra 88/100/113s. Supplies of lower-grade fruit are esp limited. Granny Smith are steady to higher on most sizes and continue to peak on 88-113s. New-crop Galas are still limited due to strong demand but supplies are improving as more shippers get started. The Galas are peaking on higher grade 100/88/113s. One supplier has started packing Honey Crisp and one will start tomorrow. The quality for C.A. reds, goldens, and granny-smith has been good. The new-crop Gala quality has also been good.
California - Galas are steady and they are still peaking on smaller fruit but supplies are light due to light packing. The quality has been good.
Chile - Chilean Pinks Ladys are steady but only 70s are available. Chilean Fujis are also steady and peaking on 80-size. The import quality has been good.

Transitions:
Washington has one shipper going with Honey Crisp now and one will start packing tomorrow.

New York and Michigan will start packing Ginger Golds and Paula Reds next week. Expect supplies to be light.

Volume from Peru is lower. Central Mexico is almost done while Northern Baja Mexico has just started.

California harvest volumes have decline significantly. Southern groves are cleaned up, northern groves are declining quickly. Many shippers expect to be done with California fruit by next week and all expect to be done by first week of September. Crop is still skewed towards smaller fruit, with good supplies of 60s and smaller fruit.

Mexico's has been harvesting steadily and supplies are good on 60s and 48s have better availability.

Bell pepper's are now coming out of the Central and Southern San Joaquin Valley. Better supply on Green and Yellow bells than Red bells. Red bells are becoming short and
reds are still showing the effects of the heat with some condition defects, quality is expected to improve as we move forward. Extreme high temps have dropped in California.
Red bells are availability has become better.

Production is trending down and supply is tightening. Demand has been steady but getting stronger. Quality is good overall but there have been a few reports of overripe and red cell.

Domestic production is slowing down out of the Pacific Northwest and the Upper Midwest. Rain events and warm weather over the past few weeks have affected production in both regions - quality and availability. Volume is winding down out of both areas. Availability is less than previous weeks and markets continue to strengthen. Overall, quality has been fair to good. We have seen some shrivel, wet and mold in lots that were previously exposed to weather, etc. and seeing good fruit in other lots.

Alerts:
Domestic production is coming off and supplies are continuing to tighten up.

Transitions:
Peru, Argentina and Uruguay blueberries should begin to hit US ports with light volume by the end of August. Some growers are already picking fruit and have mentioned airfreighting some blueberries even earlier than expected, possibly end of this week.

Production is expected to start coming off this week and will continue to decline until the Central Mexican deal picks up at the end of September. Supplies will become more limited than in recent weeks and demand is remaining very good. Quality has been good overall.

Alerts:
Demand remains strong and supply is becoming more tight as the crop starts to decline this week.

Production has slowed down in Salinas and Watsonville. Cooler weather is reducing the harvest estimates and lack of labor is slowing down the harvesting of ripe fruit. Berries are running smaller, 18-28 berries per 1 pound clamshell. Therefore, it is taking more berries to fill each clamshell and pickers are covering more ground to do so as well. Quality has been good overall but we have received some reports of light bruising and overripe fruit as well. The marine layer has been leaving additional moisture on the plants and fruit which is also resulting in some wetness in the packs and subsequent quality concerns.

It is imperative that the cold chain be maintained from loading until end user delivery, berries should be held at 32-34 degrees continuously. Any exposure to warmer temps will accelerate decay and increase severity of bruising. Expectations of quality must also be adjusted as we are late in the summer season and fruit will not be as strong as you are used to. Order for quick turns and do not get long on berries.

Alerts:
Demand is very good, supplies are becoming tighter and overall availability is less than any time in the recent weeks.

Transitions:
Santa Maria has just begun packing their new (summer planted) fall crop. Volume is limited out of the area so far. Sizing is in the high teens to low twenties. Fruit is firm with some white shoulders and green tips and salmon (overall lighter color.) Grower/shippers are charging a premium for the new crop berries.

Broccoli supplies from all growing regions continue to be abundant. This has kept the market at such low levels. Quality has been really good with an occasional arrival issue here and there.

Supplies are slowly getting better. But this has not affected the market in any way. It remains strong at current price levels. Quality has been excellent from both Oxnard and the Salinas Valley. Nice green color with little defects.

The Bakersfield crop is in full production. Growth is good and producing good percentage of Jumbo size and supplies are good. Supply of baby peeled carrots are good.

Cauliflower supplies from both growing regions to start the week are steady. There are talks of lighter supplies as the week progresses. This will trend the market higher. But for now the market is steady. Quality is really nice with white color and little yellow discoloration or bruising.

Good quality and steady supplies continue to be the story with this commodity. Michigan, Southern California as well as Salinas continues to produce high quality product. Shippers are expected to be very competitive all week with flexing occurring throughout the industry. Large sizing continues to have the best availability, but small sizing is readily available as well.

Pablano - Good quality and condition expected to continue.

Tomatillo - Good supply of tomatillo shipping from California. Good color and fresh husk . Good quality over all on tomatillos.

Jalapeno- good quality on new crop pepper, mostly large sizing with good color.

Quality and Condition are good overall. , California supply has remained steady.

The cilantro market is still trending strong with limited supplies form all growing regions. Quality is fair to good depending on growing region. Better quality is being reported out of the Salinas growing region but the acreage can't meet demand.

Alerts:
The cilantro market continues to be strong with limited supplies and fair quality.

The Ventura crop is our main supplier of domestic fruit. Demand is strong and continues to build. We are seeing 140s/165s/200s/235s supplies getting very tight. Chilean fruit is available in good supplies.

The larger 110ct and 150ct are less expensive than the smaller sizes. Demand is good on all sizes across the board. Limes are peaking on the 150ct now. Quality is good overall with some leaf shading (yellow color) showing up. The overall supplies are lower than previous weeks and the trend looks to continue in this direction for the next few weeks. The market is steady on the limes and prices look to possibly increase later this week.

Shippers have good supplies of Valencias and peaking on 88s/113s/138s. Demand for 113s and 138s is high and increasing as school demand continues to ramp up. These smaller sizes are beginning to get tight and market is firming up on them.

Good quality and condition on cucumbers coming out of Northern Baja coast. All sizes are being packed in 1 1/9 bushel boxes. Also 24's-36's-42's being packed. With rain's in Baja, California availability has dropped slightly which has perked the market up slightly. Demand is starting to become stronger.

Quality and condition on eggplant has become better coming out of Fresno. Minimal cosmetic issue's like scaring being shown. Showing green calyx on all size's. Volume has increase on all sizing.

Green grapes remain consistent. We have multiple varieties to choose from with a wide range of size. Quality has been reported as excellent on all the new varieties. With the warm weather this week, we expect to see production slow down by the weekend. However, market prices have been very steady and I do not expect to see much change.

We continue to have consistent supplies of new variety red grapes. The Flame variety has phased out and Scarlet Royal variety is now the main harvest with some Crimsons and Magentas in the mix. Quality has been very strong and sizes are peaking in the large range. Market prices have jumped up a bit and are expected to stay firm all week. The weather has started to warm up again and shippers are expecting production to slow down by the weekend. This will keep inventories to a minimum and market prices level.

Alerts:
Warm weather will slow down production by the weekend. Market prices are up and will remain firm.

The heat in the growing region of Mexico is taking its toll on supplies of both iced and iceless. The heat will obviously affect the quality. This will bring on more yellow to brown discoloration. The market is trending higher because of these factors.

Alerts:
Heat in Mexico is causing quality issue which in turn is affecting supplies. The market is active.

Steady supplies of kale are still the theme here. Quality has been excellent with minimal dehydration and yellowing. The market is steady from all growing regions.

Although schools have begun across the nation, this commodity remains flat in the marketplace. Shippers are expecting stronger markets possibly y the end of the week. For now, deals continue to be available. Pricing is very competitive. The weights continue to average 42-48 pounds on palletized. Processors are expected to ramp up their business in the next week or two. This will be a direct cause for a stronger market to be seen.

Although markets were expected to increase with the emergence of schools opening, business continues to be flat. Very warm temperatures this past week may hinder quality in the next few weeks. For now, however the quality is good and plentiful on romaine and all leaf items. The weights on romaine continue to average 34-38 pounds. All other leaf items are also having strong reports on good weights as well. Expect processors to begin to purchase larger acreage of raw material by the start of next week.

The supplies are holding steady but demand has weakened. The market is lower on the larger sizes and steady at the low levels on the smaller ones. Many of the growers are packing 9ct through 15ct with a few packing 18ct. 9ct supplies are not as plentiful as the 12ct or 15ct. Quality out of the West Side is excellent with good sugar levels.

Growers are harvesting steady supplies of honeydews currently. Demand has weakened a bit from earlier levels which is causing the market to be slightly lower to steady than it was last week. Weather has been favorable for high quality honeydews out of the West Side and they are arriving in excellent condition.

Seedless Watermelon supply has dropped. Extreme heat in the last few months brought most of the crop to harvest. The current availability is limited and offering medium to smaller sizes. Mostly 60 size fruit being offered.

Supplies are winding quickly in the New Mexico Onion growing areas as most shippers will finish up this week. Quality is good to fair. Market is steady. California is winding down quickly with some shippers finishing this week and the rest will finish up at the end of this month. Quality is still being reported as good out of both growing areas. Market are steady. Idaho and Washington are building supplies quickly and have taken over as the main shipping areas. Quality and sizing is good. Market is steady but soft.

California - Bartlett pears are steady on all sizes and they continue to peak on 100/110/90s . Wraps are still more limited than tight-fills and most suppliers don't have any fruit smaller than a 120-size. The quality has been good. Crimson pears are steady and continue to peak on half carton 45/40s but supplies are short. Bosc are available in limited quantities and they are peaking on smaller fruit. The quality has been good.
Washington - Bartlett pears are steady to slightly lower and are now peaking on 90/100/110s. The market is steady to lower on most sizes and the availability is improving as more suppliers get in. The quality is good.

Supplies are light from the tropics and are going to be so through August and possibly into September.

All growing areas are packing and shipping new crop Norkotah potatoes which have good size and quality except for the Colorado growing area. Colorado will get into better size as they move into their later fields in the next 10days. Wisconsin was fighting for size until this week as they switch into field with good size potatoes. Market is steady out all growing areas. Idaho has about half of their packing sheds going on new crop this week with the balance coming back on line by the end of this month. Look for the market to stay steady until the all the potatoes are in their storages.

Stockton California - reds, whites, and golds remain steady and all colors continue to peak on A size. Baker and premium whites and gold A size are short. The quality has been good for all colors.
Muleshoe Texas - red potatoes are steady but supplies are very light and most suppliers are cleaning up for the season. The quality has been good.
Minnesota - red and gold potatoes are steady to slightly lower with good availability. The quality and color have been good.
Wisconsin - the red potato market is steady and the availability is improving as they now have more A-size. A couple suppliers have golds now as well. The quality is good.
Washington - eastern red potatoes are steady and are peaking on A-size. Some suppliers have finished with golds. The quality is good.
Delaware - They have good availability on red, white, and gold A and B size with some premiums and bakers as well. The quality has been good.

Production on both Italian and yellow squash are being offered in volume. Sizing is mostly larger due to warm weather. Quality is mostly good and improving, minimal scarring and certain lots. Quality will continue to improve as weather gets cooler. Demand has picked up.

Smaller sized stone fruit availability is becoming more limited. As the weather continues to stay warm, the fruit continues to grow. Nectarines and peaches continue to be available in large size tray packs, but volume fill fruit is very limited. Harvest is also being pushed forward by the warm weather with some varieties coming on as much as 2 weeks early. If the weather does not cool down, we may seem the domestic peach and nectarine season come to an early end. Plums are also being affected by the warm weather with all fruit peaking on the large to extra large range, making smaller fruit (VF 60's and 70's) virtually non existent. Market prices have started to climb and are expected to remain firm.

Alerts:
Smaller sized fruit is very limited. Market prices are climbing.

Light national demand spanning the month of August so far, has been met with softer markets as segmented growing regions in the east out supply the summer marketplace. North Carolina, Maryland, Virginia, Tennessee, Alabama, and Michigan are all in play and the market is steady overall. Roma supplies are plentiful and quality varies by growing area as shippers struggle to move product. Not much change to the cherry tomato market this week and grape tomatoes remain steady as well as the eastern shore is backed up with supplies. With students returning to school in the next 2 weeks we may see prices firm up as availability shrinks to meet new national demand.

Supply is consistent with demand in the west. California hit a small gap in production during the middle of last week, but low demand has allowed shippers to gear up without prices being affected overall. Roma tomatoes continue to be available in abundance and the market is steady. Strong crossings out of Mexico keep the cherry market steady. Grape tomatoes continue to oversaturated the west driving prices down last week. There are still plenty available and quality varies by shipper as packers struggle to move product to meet lagging demand. National demand is expected to pick up by the end of the month as school programs return to session.