The Source - December 23, 2015

Washington - red delicious are steady and most shippers are peaking on 72/80/88s. 113 and smaller red supplies are still short. Washingtons red delicious volume is down by 30% from last year so expect a season-long strong market. Golden delicious are steady and are still producing mostly Wash-Extra 100/113s. Supplies of the larger Goldens remain very short! Washington's golden delicious volume is down by 25% from last year so expect them to stay strong for the entire season. The Granny-smith market is steady on all sizes and they are peaking on 88/100/113s. Most Granny shippers don't have much larger than an 88 and they have limited supplies of 125's and smaller. Galas are steady on all sizes. Most Gala shippers are still peaking on 100/113s and don't have much available on 88's or larger. Fujis are steady and are peaking on extra-fancy 80/88/100's. Honeycrisp are steady to higher and the market is strong due to light supplies. Honeycrisp are peaking on 64/72s. Lower grade Honeycrisp are still relatively cheaper but supplies are short. Jonagolds and Braeburns are both steady and continue to peak on 72/80/88's. The quality for all varieties has been good.
Michigan - Red delicious are steady on all sizes and are peaking on 80/88s. Most Michigan packers are limited on 125/138 reds. McIntosh are steady and they are heavier to 125/138s. Galas are steady on all sizes and are peaking on 125/138s. Golden delicious are steady and they are still peaking on 125/138s. Jonathans are steady on all sizes and they are still peaking on 150/138/125s. Jonathans are the best deal in Michigan right now. Fujis are steady and they are peaking on 125/138s. Jonagolds, Braeburns, Red Romes, and Ida-reds, and are all still available.
New York - Red delicious, Macs, Galas, Cameos, Romes, Crispins, and Golden delicious are all steady. Empire and Red Rome volume is good and some shippers will flex on certain sizes and grades. The quality has been good on all varieties.

Extremely limited supplies of Mexican and Peruvian asparagus on both the East and West Coasts. Quality is fair at best with spreading and some slimy decay upon arrival. Look for the market to keep the same high prices for the next 4 weeks. Colder weather in Mexico is holding off the new crop out of Caborca. And there are limited supplies coming from Peru.

Alerts:
Extremely Limited Supplies and Active Markets

Transitions:
2 to 3 weeks away from transitioning out of Baja to Caborca Mexico

Mexican shipments dipping some this week as they shut down for the holiday. Supply and demand should hold fairly steady until Super Bowl ramp up begins in early January. We are seeing heavier volumes coming on the peak sizes of 36s/ 40s followed by 48s, and the availability on the smaller sizes 60s/70s lighting even more and continues to be an issue for most shippers. This new crop fruit is lower in maturity and will take longer to ripen and not darken as much when ripen. Ripe fruit could still be green in color as the skin isn't mature enough for it to darken. Color is not an indication of ripeness, pressure is.

Green Bells – modest improvement in supply,the market is somewhat easier than it has been.Production is increasing a little at a time.
Red, Gold and Orange – Limited supplies will continue, We are waiting for new crop from Sinaloa district to start. Market is demand exceed supply.

The CA blackberry crop continues to decline in volume and should end major production in the next week or so. Mexico has been ramping up production but we are now seeing availability tighten some over recent weeks and markets are coming up as well. MX is sending less fruit to the US than in previous weeks since their demand and national market have improved. With the majority of production coming through Mexico, all loading areas are shorter in supply than in previous weeks. Some quality issues with soft fruit, red cell and juicing have been reported in both CA and MX fruit. We are expecting about a 2 week period of inconsistent availability and quality out of all loading areas.

Chile and Peru are shipping more blueberries as other areas of South America are declining toward the end of their seasonal production. Mexico is still shipping good volumes as well. Demand has increased over recent weeks and supplies are more limited on both coasts.

The raspberry crop continues to decline in production volume out of all California growing districts as central Mexico is still ramping up production. Quality has improved in both growing regions. Demand is good and supply is tightening compared to availability over recent weeks.

Demand exceeds supply on the west coast as Santa Maria has now ended major production for the current crop and Oxnard continues to be challenged with colder than normal temperatures. Production is falling well below harvest estimates and Oxnard cannot keep up with the current demand for CA fruit. The evening low temperatures have been dropping into the low 30s over the previous week which lowered the harvest estimates due to growth being slowed down. Growers will be skipping harvest days to let fruit color up and schedules will be intermittently changed to allow fruit to grow. Sizing remains small and quality reports show light color, white shoulder, bruising and some insect damage. FL strawberries remain small which is keeping the pack outs below estimate. Fruit is elongated, "torpedo" shaped and may not work for all end users. Weather has been hot, well above normal for this time of year. Very warm nights are keeping the fruit from sizing up and also increasing quality issues of soft and mushy berries. MX strawberries began to ramp up in volume over the last weeks, however, they are still small in size and experiencing some quality issues after recent rain in Central MX. Growers are keeping more of the fruit in MX rather than shipping to the US. Overall, market is firming up as demand has picked up and supply has decreased.

Alerts:
Demand exceeds supply for CA fruit and both MX and FL are in lighter supplies over previous weeks as holiday demand has picked up and production has been challenged by weather in all growing regions.

The broccoli market has moderated slightly due to lighter demand. Prices remain strong but supply is adequate to cover current demand. Broccoli florets continue to be an issue as the raw product available is not conducive to making florets. With a hard freeze predicted in the desert regions we see this market remaining about steady for the coming week.

The Brussel Sprout market is still strong with variable supplies. Baja Mexico has started harvesting but in Limited numbers. As we get past the holidays there should be better supplies. Quality is still fair with some black spotting. Sizing is also small to medium due to the cold weather in the growing regions.

Alerts:
Sizing is still small to medium with limited supplies

Transitions:
Transitioning to Baja Mexico but sizing is small

Cooler weather in Bakersfield has slowed growth and reduced tonnage from fields. The percentage of jumbo size carrots is lower than normal and market is firm.

No change for the cauliflower market. This market has eased slightly but only due to lighter demand. The high prices and the end of the holiday pull are having an effect but supplies are still very short. The extended cold weather in the desert means we will likely see this market continue on it's record pace well into next year.

Demand for celery is adjusting to the post holiday "norm". Supplies continue to be light with some shippers quoting sold out demand exceeds on a daily basis. At the same time we are seeing better availability on large celery with some suppliers. We expect the celery market to ease off slightly to a slightly lower level over the next few weeks but by no means are we forecasting a "crash to the bottom".

The cherry market is steady with good supplies of the larger 9 to 10 row. Quality is generally reported as excellent. Slightly more erratic supplies are predicted for the month of January and could mean a strengthening in this market over the next few weeks.

Jalapenos – Improved supplies out of Nogales as season is well underway. Quality and sizing is good. Increased supply has improved pricing.

Anaheim – Market remains steady. Overall quality is much improved. Production is increasing.

Poblano – Quality is generally good, sizing in the medium, large range. Supplies have increased.

Tomatillo – Has increased in supply, adequate for present demand. Quality is good, and are sizing medium and large.

Cilantro Supplies are very limited from both Oxnard and Mexico. Cold temperatures and lack of labor to harvest for the holidays are attributing to this problem. Quality is marginal with yellowing and black slimy leaves mixed in from lot to lot. The long-term out look is for the next 2 to 4 weeks in order to get back to normal supplies.

Alerts:
Limited Availability and Active Markets

Demand remains very good. The Desert crop is 50% harvested. We have started the small Central Valley crop. Both areas are producing a larger proportion of fancy grade and is peaking on 140s and larger fruit, which is in good availability, but still leaving us in a in tight supplies on 165s and smaller fruit. Expect tight supplies on smaller fruit to continue through January.

Alerts:
We remain very tight supply on the smaller sized fruit 165s/200s/235s. Expect tight supplies on these sizes to go through January.

The lime market is steady on all sizes. Previous rains caused the size profile to go towards larger sizes but the crop has now found equilibrium across the range of sizes. The overall quality is very good on the new crop. Demand decent going into the Christmas holiday.

Shippers are going into holiday mode, trying to adjust picking and packing to match the anticipated holiday business. Cold weather in the growing areas is helping toughening up the skin and bring on more natural color to the Navels and we are seeing very short gas times and in many cases no gas at all on the fruit. Navel crop is peaking on 88s/113s/72s. Cara Cara Navels and Blood oranges have also started, another great seasonal varietal for the winter.

Limited volume continues to keep market up. Crossing through Nogales are still limited due to cold weather.Production expected to increase gradually . Euro cukes are at very low levels with load volume deals being offered. Persian Cucumbers are now being offered with limited supplies.

Quality is improving as more product is being offered.Modest improvement in supplies.

The green seedless grape market is steady. Supplies are light but adequate to meet the light demand we are currently experiencing. We see no reason this will change other than possibly a "spill over" effect as orders for red seedless go wanting; we could see demand for green's improve. Quality is generally reported as very good.

The red seedless grape market is stronger as supplies tighten up. The domestic storage fruit is all but gone with the Chilean fruit still a good 3 weeks away from enough volume to make up the difference. Quality is generally good but arrivals at the port are running late and volumes on the water are still light. We are projecting a very strong demand exceeds supply situation for most of the month of January.

Alerts:
Market spiking as supplies dry up

The market is active and limited supplies as we approach the holidays. Also the cold weather in Mexico hasn't helped growing conditions putting a strain on supplies as well. Quality is fair with arrivals showing some slimy decay to yellowing of the tops. we will see supplies and the market to remain like this for the next 2 weeks.

Alerts:
Extremely Limited Supplies and Active Markets

Kale is in good supplies out of Yuma and Oxnard. The market is steady with aggressive prices with some shippers. Good green color and healthy looking product. We will see this trend through the weekend.

Cold weather is in the forecast in Yuma with freezing temperatures expected this weekend. This market is softer. Crews are expected to be delayed in harvesting until mid-morning. Pricing in the industry will continue to vary. Yields and quality will be large issues growers will be dealing with. Escalated pricing continues to be in effect. Yuma lettuce is reported to have seeder, light weights, small and irregular head size, puffiness, blister, peel and insect damage. These defects are industry wide. The weights on palletized lettuce are ranging from 32-41 pounds. Expect marginal quality for the rest of this year on this commodity.

Alerts:
Ice delays expected in the Yuma region.

Cold temperatures are expected in Yuma throughout this week with freezing temperatures expected this weekend. Truck delays are inevitable. Production will be limited. Some suppliers will stop harvesting this Wednesday and not begin to harvest again until the following Monday. Yields and quality will suffer. Blister and epidermal peel will be seen on all leaf items. Supplies on romaine are steady, as demand is off. Other defects expected to be seen include seeder, light weights, small and irregular head size, puffiness, and insect damage. These defects are industry wide. Green and red leaf and butter are steady. These commodities are having the same issues as romaine. This is industry wide. There will continue to be gaps in pricing within the marketplace.

Alerts:
Freezing temperatures expected in Yuma this weekend.

Cantaloupe supplies are fairly light but adequate for the current demand. Offshore melons continue to trickle in on the west coast and supplies will build slowly. The quality is very good overall. The peak size is 9ct and 6ct with very few 12ct and even less 15ct. The 18ct sizes will not be available for several more days. The large size fruit trend will continue throughout December. We are experiencing decent demand on the cantaloupes that are arriving. Supplies will be lighter than normal for the month of December and the peak size will be 9ct to 6ct. The current market is steady on all sizes.

Transitions:
Cantaloupes are starting to arrive from Honduras

Demand is good on all sizes. The peak size for the offshore is 5ct while the small amount of Mexican dews are peaking on 6ct . Offshore dews are arriving on the west coast in low volume and some lots have spotting and occasional stem decay. Mexican dews continue to ship out of Nogales AZ however many growers have finished and the volume is very light. Some lots of the offshore dews have been arriving with superficial spots caused by previous rains in Guatemala. The Mexican dews are very nice. The market is steady on all dews.

Seedless watermelon supplies continue to be very short with higher pricing and demand exceed supply. Production is transitioning from northern to southern Mexico. Conditions will remain this way at least until the end of the month.

Idaho/Oregon - Light demand the middle of this week, due to the Holiday, has the market all color and sizes steady. Current storages supplies look to be at manageable levels this year which should keep the market at current to higher levels as we get into the New Year. Quality is generally good, many lots excellent, some reports of a few storages having above average shrink. Shippers are running these lots now as time will only make the pack outs worse. The lots with issues are being discounted, so be careful on what you are buying. The next area to come into play is Mexico, which will be sometime in February.
Washington - Light demand is keeping this market steady. Quality is being reported as good out of this growing area. Sizing is peaking on Jumbo's and smaller. Export demand could pick up after the first of the year which could affect the markets.

Washington - Bartletts are steady on all sizes but and the market remains strong. Bartletts continue to peak on 110/120s and the large sizes are short. Bosc are steady and continue to peak on US#1 90/100/110s. Fancy bosc are limited on all sizes. D'anjou pears are steady and continue to peak on US#1 90/100s while all sizes of the fancy grade are short. Red pears are steady on all sizes and are still producing mostly half carton 45/50s and full carton 90/100s. The quality on Bartlett pears has varied. The D'anjou, Bosc, and red pear quality is good.

Supplies are beginning a seasonal drop in volume as we move into the new year. Look to see larger sizes tighten up and smaller sizes hold fairly steady in supplies.

Idaho - Demand has backed off as we get closer to the Holiday. Market is steady on all sizes and varieties. As we get into the New Year supplies of Norkotah potatoes will wind down quickly. Leaving Burbanks as the main variety for the balance of the year. Quality is being reported as good. Trucks are limited as they want to stay home for the Holidays.
Washington/Wisconsin - Light demand is keeping the market steady. Good mix of sizes are being packed out of these areas. Quality is good.
Colorado - Light demand has the markets holding steady. Good size potatoes are being packed. Quality is good.

Bakersfield, California - reds, golds, and whites are steady on all sizes. All colors continue to peak on size A. Premium/Baker size reds and golds remain limited. The California whites are new-crop now. The quality on all colors has been good.
Western Washington - reds and golds are steady and they continue to peak on A size. The quality has been good on all sizes and colors.
Idaho - all sizes of reds and golds are steady. All colors continue to peak on A-size and the quality has been good.
Wisconsin - Reds and golds are steady on all sizes and both are still peaking on A-size. There is still some flex for volume of red Bs. Premium and baker reds, premium and baker golds, and gold Cs are all still short. The quality has been good.
North Dakota - Golds and reds are steady on all sizes and both colors continue to peak on size A. Premium and baker size potatoes remain limited in both colors. The quality has been good.

Transitions:
South Florida will start packing approximately February 1.

Good availability in hard squash. Spaghetti , Butternut , Acorn, volume on Kabocha is being offered. More product being offered on all varieties every week.

Italian and yellow squash continue to have a strong market with still very limited production. Cold weather continues. Quality remains fair from lot to lot.

Peaches, nectarines and apricots are all available in very limited quantities. Sizing is mostly small with quality being reported as generally good. We will not see good "promotable" volume until the end of January.

Rounds - The market is higher. Production in Florida continues to come up short. Weather conditions and lighter supplies continue to increase the market price. Demand continues to be strong. Quality Good / Fair.
Roma - The market is higher. Supplies still tight in the east, and demand continues to be strong. Out west supplies a little better, but will continue to fluctuate due to weather conditions. Quality Good / Fair.
Cherry - The market is higher. Production and yields continue to be lower out in the east. Out west, rains and colder temps continue to slow things up. Demand is high. Quality Good / Fair.
Grape - The market is higher. Demand very high, with very limited supplies. Market continues to jump daily. Quality Good / Fair.

Rounds - The market is higher. Weather in the west continues to deal with rains and colder temps, slowing up production and lowering yields. East also very limited in supplies, with market on the rise. Demand high in all regions. Quality Good / Fair.
Roma - The market is steady. Supplies a little better, however, they will continue to fluctuate due to weather conditions. Demand continues to be strong in all regions. Quality Good / Fair.
Cherry - The market is higher. Weather continues to be a struggle out west, with rains and colder temps. In the east, prices continue to increase due to supplies. Demand strong/higher. Quality Good / Fair.
Grape - The market is higher. Weather still a struggle out west. Market continues to jump daily. Very limited in supplies back east, with stong demand, and little supplies available. Quality is Good / Fair.