The Source - December 28, 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.

Both the Peruvian and Mexican supplies of asparagus remain extremely limited due to cold temperatures in both growing regions. The Markets remain active and higher than normal levels. Quality has been fair with spreading of the tips and dehydration with some arrivals. Look for the same aspects for this week.

Alerts:
Supplies continue to be extremely limited and Markets are still Active

Transitions:
Unusually Colder Temperatures are continuing to push off the transition to Caborca. Still 2 to 3 weeks out.

Mexican shipments dipped last week as they shut down for the holiday. Shipments will start to pick up over the next few weeks leading into the Super Bowl period. We are still 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.

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. Increased holiday demand along with decreased shipping hours and decreased transfers have caused some shortages at the coolers.

The raspberry crop continues to decline in production volume out of Oxnard, California growing district 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. Oxnard continues to be challenged with colder day and night time temperatures. Production is falling well below harvest estimates and the Oxnard growing region cannot keep up with the current demand for CA fruit. The evening low temperatures have been dropping into the low 30s over the previous weeks 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 in California and supplies have also tightened up in FL and from MX as holiday demand increased and production volume has decreased with volatile weather in all growing regions.

Light demand for broccoli during last week's shortened holiday pull seemed to indicate an easing in the market. We see this as only temporary as labor shortages in Mexico due to the holiday and the hard freeze in the desert have significantly tightened up supplies for this week. Despite another holiday shortened pull this week the labor and weather issues will carry well into the first week of the new year. Consequently, we expect to see this market continue to be demand exceeds supply for the next several weeks.

Alerts:
Broccoli market demand exceeds supply.

The supplies remain limited and as a result it has kept this market at higher levels. the sizing of the Brussel Sprouts remain small to medium with all shippers. Jumbo sizes are non existent. Availability form both the Salinas Valley and Mexico continue to be limited and we will see this situation last for the rest of the week.

Alerts:
Supplies continue to remain limited and sizing is small to medium

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.

The cauliflower marked is demand exceeds with no let up in sight. Supplies continue to be too short to meet even the light demand brought on by the historic prices of recent weeks. With only light plantings and much lower than normal temperatures in the desert, this market looks to continue it's record setting pace.

The celery market is feeling the drop in demand as the holiday season ends. With only slightly improved supplies and lighter demand this market is adjusting downward. That being said, supplies are still limited and current demand will be enough to keep this market from crashing. Although lower in price we are still seeing extremely good markets across all sizes.

The cherry market is about steady with adequate supplies to meet light demand. Sizing continues to run heavily to the 9-10 row fruit with quality reported as good.

Cilantro supplies this week will be limited due to much colder weather in the growing regions. Also we will be dealing with labor issues in Mexico due to the holiday. Quality has been fair with yellowing and some black slimy decay in certain lots upon arrival. Market levels have increased due to lack of supplies and we will continue to see this trend through this week.

Alerts:
Limited Availability and Active Markets

Demand remains very good. The Desert crop is 70% harvested and looks to finish ahead of schedule. The small Central Valley crop is 30% harvested. 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 and maybe longer.

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

The lime market continues to be 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 is decent going into the New Year holiday.

Shippers are still in holiday mode, trying to adjust picking and packing to match the anticipated business. Cold weather in the growing areas is helping toughening up the skin and bring on more natural color to the Navels and shipper no longer having to gas 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.

The green grape market has been steady with adequate supplies to meet light demand. This is changing as unmet demand for red grapes is spilling over into the green market. Inventories are cleaning up and incoming shipments are limited in volume. This market should remain strong into the middle of January.

Alerts:
Market improving

The red seedless grape market is demand exceeds supply. Supplies have cleaned up on both the East and West Coasts. We are currently gapping in supplies due to late vessel arrivals. With shipments still coming in by container rather than the larger bulk shipments this scenario is likely to repeat itself well into the second to third week of January. We expect this market to continue to be tight and steady at the current high prices until then.

Alerts:
Late vessel arrivals causing gap in supplies

The overall green onion situation is a very serious one. Extremely limited supplies due to lack of labor, much colder temperatures, and less hours in the day to harvest. Iced and Iceless supplies are limited. The market is reacting quickly and has risen to much higher levels. Quality is fair with some lots arriving with brown to yellow tops.

Alerts:
Extremely Limited supplies of Iced and Iceless causing the Market to reach high levels.

Kale supplies remain stable. The market has continued to be aggressive at lower levels. Good quality from all packs with minimal yellowing and nice green color.

As expected, freezing temperatures hit the Yuma region this past weekend, and these frigid temperatures have continued to start the week. This market is stronger with most suppliers. Escalated pricing continues to be in effect. Crews again are expected to be delayed in harvesting until mid-morning. The high temperatures for the rest of the week in Yuma will not exceed 65-66 degrees and the lows will range from 37-42 degrees. 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 32-40 pounds. Expect marginal quality with all suppliers for this commodity.

Alerts:
Freezing temperatures causing delays in harvesting.

As expected, freezing temperatures hit the Yuma growing region this past weekend . Expect truck delays throughout the week. Many suppliers stopped harvesting last Wednesday so inventory supplies were minimal to begin the week. Blister and epidermal peel will be seen on romaine. Supplies are steady, overall. 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. The southern California region experienced freezing temperatures as well this past weekend.

Alerts:
Freezing temperatures causing problems for all leaf items.

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. Honduran grown lopes have been arriving in Florida since last week and the Guatemalan supplies are tapering off.

Transitions:
Honduran grown lopes have been arriving since last week. Guatemalan supplies are tapering off now.

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 continue to arrive on the west coast in low volume and some lots have spotting and occasional stem decay. Honduran grown honeydews will begin to arrive in Florida the first week or two of January. 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.

Transitions:
Honduran grown honeydews will begin arriving in Florida during the first week or two of January.

Idaho/Oregon - Good to moderate demand and a short New Years week, has most shippers already sold out for the week. Market on all sizes of yellow, are slowly starting to firm up slightly which is typical for this time of the year. Red onions are holding steady at higher levels on all sizes. We could see the Red onion market start to firm up the middle to end of January. 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. Then next area to come into play will be Mexico, which will be sometime in February.
Washington - Demand is moderate with good supplies is keeping the market steady on all colors and sizes. We could see the market out of this growing area start to firm up as we get into January due to Export demand picking up. Quality is being reported as good.

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 - is getting hit with very cold temperatures through the balance of this week. Lows are in single digit temperatures and the highs in the low to mid teens. Our potato Suppliers that don't have on-site storages won't be able to pack because the temperatures will be too cold to haul bulk potatoes from storages. Temperatures need to be close to 20 degrees to haul. So we need to get all orders for today through next week in front of our suppliers as soon as possible to ensure timely coverage. Over all demand is moderate with a steady market on all sizes and varieties. Quality is being reported as good. Trucks are limited as they want to stay home for the holidays.
Washington/Wisconsin - Moderate carton demand is keeping the market steady. Both growing areas have a good mix of sizes. Quality is good.
Colorado - still packing out of storage potatoes that have good size in them. Peaking on 70 count potatoes. Demand is moderate and will slow down quickly as we get closer to the New Year. Quality is good.

Alerts:
Idaho getting hit with very cold temperatures, which could halt bulk potatoes being haul to packing sheds.

Bakersfield, California - Sizing is peaking on A-size on all colors with Premium, Baker reds and gold potatoes being very limited. The market on red, gold and white potatoes are steady on all sizes. Quality is good.
Idaho/Western Washington - Red and gold potato have a steady market and are also peaking on A-size. Quality is good.
Wisconsin/North Dakota - Market is steady on all sizes and colors. Supplies are limited on premium and baker gold and red potatoes. Quality is good.

The market on peaches and nectarines remains strong with limited supplies. Quality is generally reported as good with sizing running heavily to the 50 and 60 series tray pack and volume fill fruit.

Rounds - The market is higher. Weather conditions continue to be a struggle with production and yields. Florida supplies still looking to be short this week. Out west, rains and cold weather continues to create havoc with supplies. Demand still strong. Quality is Good / Fair.
Roma - The market is steady. Weather patterns continue to lighten up supplies across all regions. Demand continues to be high. West continues to deal with rain and very cold weather, which is fluctuating supplies considerably. Quality is Good / Fair.
Cherry - The market is higher. Weather still an issue across the country. Yields and production continue to come up short. West coast working through rains and colder temps. Demand continues to be strong. Quality is Good / Fair.
Grape - The market is higher. Demand very high in all regions. Supplies continue to be lower this week, due to weather conditions. Quality is Good / Fair.

Rounds - The market is higher. Rains and colder than normal temps continue to slow up production and lower yields. Demand continues to be strong. East also dealing with weather conditions, which is slowing things up, limiting supplies. Quality is Good / Fair.
Roma - The market is steady. Weather out west continues to fluctuate supplies. Rain and cold temps delaying harvest times. Demand still strong. Quality is Good / Fair.
Cherry - The market is higher. Rains and cold temps continue to hamper supplies. Demand continues to be strong in all regions. Quality is Good / Fair.
Grape - The market is higher. Weather still a struggle with rains and colder temps. Market continues to rise daily, with demand very strong. Supplies continue to look light this week. Quality is Good / Fair.