The Source - December 31, 2015

Washington - red delicious are steady and most shippers are peaking on 72/80/88s. 113 and smaller reds remain limited. Golden delicious are steady and are still producing mostly Wash-Extra 100/113s. Most suppliers don't have much larger than an 88-size. 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 and continue to peak on 100/113s. Most Gala shippers don't have much available on 88's or larger. Fujis are steady and continue to peak on extra-fancy 80/88/100's. Honeycrisp are steady to higher and the market is strong due to light supplies. Honeycrisp are still peaking on 64/72s. Lower grade Honeycrisp remain relatively cheap but supplies are limited. 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.

Mexican supplies of asparagus remain extremely limited due to cold temperatures in the current Baja growing region. Caborca is still not ready and looks to be 2 to 3 weeks away. The Markets remain active and higher than normal levels. Quality has been fair with spreading of the tips and dehydration with some arrivals. Peruvian supplies have improved and there is better value off the East Coast and the market has adjusted to lower levels.

Alerts:
Mexican Asparagus is still limited in supply and commanding higher price levels

Transitions:
Caborca is still 2 to 3 weeks away from harvesting and product.

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. CA availability is extremely low due to cold weather interrupting quality and production. FL and MX production are higher but still limited availability as they struggle to keep up with current good demand.

We are beginning to see a split market in the broccoli patch. Bunch broccoli out of the Santa Maria region has dropped in price with better availability although they are still limited on broccoli crowns. The desert regions continue to suffer under the cold snap of the last few weeks with no improvement in supply of either bunch or crown broccoli. Although there are relative bargains to be found in the Santa Maria deal the overall outlook on broccoli continues to be demand exceeds supply.

Alerts:
Broccoli market split.

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:
Extreme Cold Weather in Salinas and limited supplies from Mexico. This is causing the elevated markets.

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 market is demand exceeds supply as yields in the desert growing regions continue to be poor. Cold weather and light plantings are maintaining this market at current levels. We are beginning to see an improvement in supply out of the Santa Maria region. That being said, the cauliflower market will only adjust once supplies out of the desert (our principal winter growing region) begin to improve.

The celery market is softening as light demand and slightly improved supply are being felt in the Oxnard deal. However, the cooler than normal weather currently in the Southern California region is helping maintain this market by holding back growth in the field. Sizing is also shifting due to the cooler weather with more of the 30 & 36 count celery showing up at harvest.

Alerts:
Celery supplies beginning to improve.

The Chilean cherry deal remains about steady with adequate supplies of the 9-10.5 row. We expect this market to become more erratic as we move through the month of January. We are hearing supplies will be less consistent then they have been and expect to see an early finish to this deal (end of January).

Alerts:
Early finish to the Chilean cherry deal.

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:
Extreme Markets and Supplies. Labor and Cold weather in the growing regions

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.

Lime supplies continue to be good and steady, with a good range of sizes available.

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 seedless grape market is about steady with light supplies and good demand. The Peruvian deal is finishing with only light supplies of Chilean fruit coming in. This market will continue to be strong until the last week of January at which time we expect much better volume coming into the ports.

Late vessels and light supplies on the imports have left the red seedless grape market in an extreme demand exceeds supply situation. We anticipate this market to continue in this vein through most of the month of January.

Alerts:
Red seedless grape market in extreme demand exceeds supply situation.

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:
Extreme Markets & Supplies. Lack of labor combined with extremely colder temperatures.

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.

Low temperatures again are plaguing the Yuma region for this commodity. This market is stronger. Escalated pricing is in effect. Crews again will be delayed in harvesting until mid-morning. Shorter hours and lack of labor will continue for the entire week. The high temperatures for the rest of the week in Yuma will not exceed 65-66 degrees and the lows will be in the 40s. Yuma lettuce is reported to have 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 32-38 pounds. Expect marginal quality with all suppliers for this commodity for the rest of this week, at a minimum.

Alerts:
Ice again causing delays in harvesting. Marginal quality will continue with lettuce from all suppliers.

Ice continues to plague all leaf items. Harvesting delays continue for all growers. Expect truck delays. Short days and lack of labor will continue for the rest of this week, at a minimum. 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 is having frigid temperatures as well. Early forecasts indicate Yuma temperatures will be in the mid 60s while the lows will be in the 40s all of next week.

Alerts:
Frigid temperatures continue in Yuma, causing delays in harvesting, and marginal quality on 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.

The overall size profile out of all growing areas are peaking on Jumbo and smaller on both Yellow and Red Onions. Washington growing area was affect more than Idaho. Extended high heat during the growing season was the main cause for smaller sizing. Quality of some of the lots of onions that went into storages have been affected by this high heat and are not holding up like they are use to and are already affecting the packs outs and arrivals. Expect the quality issues to slowly be more prevalent industry wide over next couple of months. Issues include internal transparency layers and light decay showing up in the packs. Large size onions will continue to get a premium as supplies wind down for the season. Pricing looks to increase as we get into the new year.

Washington - Bartletts are steady on all sizes but and the market remains strong with light availability. 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 - Very cold temperatures this week, with the highs in the low teens is making hard to haul bulk potatoes from storages to the packing houses. Temperatures need to be in the high teens or low twenties for growers to haul bulk potatoes. This and the short holiday weeks is causing supplies to tighten up. Forecast is calling for a slight warming trend with highs hitting in the low twenties the front part of next week. All shippers are sold out on supplies into Wednesday of next week. Look for the market to firm up slightly on all sizes. Quality is being reported as good. Shippers are starting to transition from Norkotah storage potatoes as being the main variety to Burbanks. A few growers will still be packing Norkotahs for another month or so.
Washington, Colorado and Wisconsin all have light to moderate demand with a steady market. Quality is still being reported as good.

Alerts:
Idaho -Very cold Temperatures is causing supplies to tighten up

Bakersfield, California - reds, golds, and whites are steady on all sizes and all colors continue to peaking on As. Premium and 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.

The market on peaches, nectarines and plums is about steady. We are seeing light but improving supplies on mostly 50 - 70 series tray pack and volume fills. We expect to see this market continue in this manner until the month of February when volumes ramp up.

Rounds - The market is steady / higher. Florida continues to struggle with supplies as warm weather, along with rains, hit the area. Production and yields continue to come up short. Out west, rains and colder temps also affecting yields and production. Demand continues to be high, and should continue through the week, at a minimum. Quality Good / Fair.
Roma - The market is steady / higher. As with the rounds, the weather continues to create havoc with supplies in all regions. Demand exceeds supplies in the east and west. Rains and cold temps in mexico affecting yields in all regions. Quality is Good / Fair.
Cherry - The market is higher. Weather continues to create struggles with supplies across the board. The east with rain and warm temps and the west with rain and cold temps, affecting supplies. Demand continues to be strong. Quality is Good / Fair.
Grape - The market is higher. Demand very high in all regions. Supplies and yields continue to come up short in the east and west, due to weather conditions. Quality is Good / Fair.

Rounds - The market is steady / higher. Weather continues to slow up production and affect overall yields. Rains and colder temps in the west, with rains and warmer temps back east. Demand continues to be strong in all regions. Quality is Good / Fair.
Roma - The market is steady / higher. Like the rounds, Roma supplies continue to come up short due to weather. The rains and colder temps affecting all aspects of production and yield. Demand still strong, and should continue through the week, at a minimum. Quality is Good / Fair.
Cherry - The market is higher. Rains and cold temps continue to hamper supplies. Back east, rains and warmer weather also creating havoc with supplies. Demand continues to be very strong. Quality is Good / Fair.
Grape - The market is higher. Weather still a struggle with rains and colder temps out west. Demand exceeds supplies in all regions. Quality is Good / Fair.