The Source - June 19, 2019

Eastern Region:
Most shippers are done for the season, leaving just a handful with scant inventories, insufficient volume and questionable quality. Those who are done have transitioned to stone fruit, imported fruit, etc. Most, if not all, demand has transitioned to the Northwest.

Washington:
In comparison with larger fruit (100ct and larger), smaller sized apples continue to be less available. Retail demand has eased with their transition to stone fruit, cherries, etc. With schools closed, or in the process of closing, for summer, demand has slowed for many. Please be aware that as we make our way through the summer months, we will see certain sizes and grades become unavailable with certain shippers. Naturally, this will progress into certain varieties not being available for the remainder of summer and into new harvest.

With that said, there are still ‘spot deals’ to take advantage of — especially on bigger fruit (100ct and larger). Please continue to look for ‘Spot Buy’ emails or let us know what you are looking for and we will find it.

California (FOB-L.A.):
Chilean Granny Smith – 80ct XFCY (available now)
Chilean Braeburn – 70-90ct XFCY (available now)
Chilean Pink Lady – 70-90ct XFCY (available now)
*Fresh harvest (not C.A.)

When possible, send Apple/Pear orders earlier rather than later. The more time shippers have to pack product — before load dates — the better chance we have of receiving the requested product. It is essential that some size/grade/variety substitutions be allowed (especially on smaller sizes).

Central Mexico (Guanajuato) volume continues to increase with this trend likely continuing through the beginning of August as long as the weather stays good. Volume on the bigger sizes is starting to get better as the season gets into full swing. Domestic volume from all growing regions will start to decrease this week and should be wrapped up by the 4th of July. Peruvian volumes remain unchanged this week from both the North and the South. Bigger sizing from all regions in Peru remain low due to weather. Markets remain slow on both coasts due to all regions having good volume, but this should change at the end of next week with less domestic supply in play.

The market on California fruit remains steady with very good demand. California growers are taking advantage of escalated prices and harvesting the historically small crop. With lower inventory levels in the US, the industry will continue to see higher prices on all sizes and grades without any relief in sight.

Unfortunately, there is no relief in the near future as field prices continue to increase in Mexico. As of this morning, we are seeing fruit on the market in the $80 range. Mexican growers are harvesting the last pickings of this old crop, late season fruit. In an effort to avoid a gap in supply, growers met with APEAM today. They are requesting an inspector to perform dry matter testing on the new crop fruit. It is possible that the “Loca” acreage that meets the US standards will be harvested earlier than initially planned.

There is no telling where this market will go next week. We are expecting the next few weeks to be difficult and extremely short on supply. The pipeline is depleted and will take time to bulk inventories back up.

Alerts:
With field pricing at a record high this week, the industry is in a demand exceeds supply situation.

Pepper supply is coming from Georgia, South Carolina and North Carolina. Supply is steady, but not over abundant. Hot weather reduced the Georgia crop significantly and from late May through June, Georgia is the largest producer of bell pepper. South Carolina has experienced the same type of weather as Georgia and is working on a reduced crop. North Carolina is just starting this week and should be in good volume by next week. Bell Pepper pricing took a big jump over the past week but has leveled. Quality is spotty from shipper to shipper. Some parts of Georgia received a lot of rain last week and other parts did not receive near as much which has caused bruising and decay with some shippers.

Transitions:
Bell Pepper is Transitioning from Georgia to North Carolina,

Green Bell Pepper- Good supplies of green bell pepper being harvested in Thermal, CA. Both retail and choice grade continue to be packed. Quality of green bell pepper from this district remains good. Green bell pepper supply currently meets demand but the market has risen with higher demand. Green bell pepper harvest has also started in Fresno, CA with mostly large retail size. Green bell pepper from Mexico is also available to load in McAllen, TX.

Red Bell Pepper- Light supplies of Red bell pepper continue out of Coachella/ Thermal and Fresno will begin in a small way. Market has strengthened with prices escalating from limited supplies and increased demand. More retail grade than choice grade on domestic product and quality is good. Steady production expected in Thermal through the week. Light supplies of red hothouse bell pepper continue to be harvested in Baja California. Red bell pepper also available to load in McAllen, TX.

Yellow Bell Pepper- Limited supplies of Yellow Bell pepper continue to arrive in Nogales this week from Mexico. The hot house crossing through Nogales is mostly being packed in choice grade. Market on yellow bell peppers has strengthened with demand exceeding supply. Yellow bell pepper continues to be harvested in the Coachella valley this week where production is expected to be steady through the week. Yellow hot house bells are also available to load in McAllen, TX.

This item will be in lighter supplies. As with raspberries, we are waiting for full summer weather to kick in to help bring on numbers. Shippers are holding orders for regular customers. The market is steady and looks to remain firm with higher undertones towards the weekend.

This commodity will tighten up further into the week as added market pressure comes from the later start of the Northwest blueberry season. The Central Valley blueberry season is winding down and the market has risen to reflect these lower numbers. Quality has been good. The Northwest season is expected to begin the first week of July; although, some shippers are reporting organics have already started in a small way.

Transitions:
Blueberries will start in the Pacific Northwest the first week of July

Raspberries will be in light supplies as shippers wait for the Watsonville and Santa Maria areas to heat up after recent cool weather slowed harvests this past weekend. The market is firm and looks to remain steady with possibly higher pricing towards the weekend.

Strawberries remain snug after cooler weather and good demand over the past few days. Most shippers are seeing improved quality, although there are some lingering effects from the heat a few weeks back. Availability should ease up a bit as we move out of peak demand from Monday/Tuesday loading. Temperatures are looking to slowly warm into the weekend, but not enough to bring on much additional volume. Look for pricing to remain steady with slightly higher overtones towards the end of the week.

The broccoli market has started to pick up as some fields were damaged by the recent heat wave experienced in the Salinas Valley. This recent heat wave has impacted yields as the hot temps experienced last week effect overall quality and supplies. Quality is fair with slight purpling, some mechanical damage and occasional yellow cast.

The Brussels sprouts market continues to come off as rain gaps are closing and a little more supply is in the pipeline. The recent warm weather has brought on yields. The quality has been impacted by rain and cold weather with sizing tending to run smaller due to colder weather. Look for the Brussels sprouts market to continue to adjust going into next week.

The carrot market continues to remain steady. The quality is good and supplies are adequate to meet current demand. We see no change in the carrot market going into next week.

Carrots are in good supply out of the Bakersfield area with the exception of rainbow varieties, these will be gapping until the first week of July. The market is steady. Texas is crossing Mexican jumbos into the U.S. and supplies are tight due to extensive rains in Mexican growing regions and the market is stronger.

Alerts:
Mexican Jumbo carrots are increasing in price due to rain shortages

The cauliflower market has picked up with the recent heat wave in the Salinas Valley. The heat drastically reduced yields and estimates look to remain tight over the next couple of weeks. Overall, the quality is good with minor bruising and yellow cast with weights in the 25 to 28-pound level. Look for the market to continue to adjust going into next week.

This commodity is softer in the marketplace. Part of the reason is because schools are out and production in Salinas has eased up demand for southern California production. Expect better availability of this commodity next week and continued lowered pricing. Demand is average. Production in Santa Maria and Oxnard has been getting stronger compared to past weeks. Production in Mexico is light, overall. Some defects being reported include bowing, leafy tops, growth crack and mechanical.

With the California season done, there is not much to report out of that region (except poor quality).

As Washington continues to ramp up, we are starting to see shippers transition out of the Chelan variety and into Bing. This is not a ‘gap’ necessarily; there are still cherries available, but the volume will take a small dip and rebound mid-to-late next week.

Over the past couple of weeks, WA has experienced temps on the warmer side. With this warm trend continuing (High: 87-90°F / Low: 50-55°F) and no rain in the forecast, shippers are anticipating product to come on 1-2 weeks earlier than originally forecasted.

At the retail level, Independence Day ads are in full swing and Export volumes, to the Pacific Rim, are steady with strong demand.

Jalapenos- Moderate supply of Jalapeno still available to load in Nogales, AZ from Mexico. Jalapeno is being harvested from the Mexican state of Sonora where the quality is fair. Mostly medium to large size are available from the Sonora region. Market on jalapeno has maintained in the mid-teens. Jalapenos from Mexico are also available to load in McAllen, Texas.

Pasilla- Light supply of Pasilla peppers available to load in Nogales, AZ from Sonora, Mexico. Pasilla from Sonora is expected to finish this week. Quality on Pasilla from Sonora is mostly Fair. Size on the pepper is mostly medium. Market on Pasilla is Higher/steady. Pasilla pepper also being harvested in Baja California. Quality from Baja is good. Pasilla from Mexico also available to load in McAllen, Texas.

Anaheim- Moderate supply of Anaheim available to load from Baja California. Quality from Baja is mostly good. Market for Anaheim is in the mid-teens and is expected to stay there through the week. Anaheim from Mexico also available to load in McAllen, Texas.

Serrano – Moderate supplies of Serrano peppers available to load in Los Angeles, from Mexico. Supplies are expected to remain steady through the week. Supplies currently meet demand. Price on Serrano pepper is currently in the high teens and is expected to remain the same through the week. Serrano supplies also crossing through McAllen, Texas.

Tomatillo – Husk tomatillos are available to load in Los Angeles, from Mexico. Quality on husk variety is good. Good supplies on husk tomatillos is expected to continue through the week. The tomatillo market has increased slightly on both husked and peeled. Both Husked and Peeled tomatillos are increasing in the teens. Both varieties of tomatillos also available to load in McAllen, TX.

The cilantro market has reacted to the recent heat wave and gone up due to lower yields. The cilantro quality is good with an occasional yellow leaf. Look for the cilantro market to be volatile going into next week.

Lemon supplies continue to remain tight on 165’s and smaller. Market prices continue to climb weekly, looking at mid $30’s on choice and fancy fruit. Shippers are doing their best to improve quality and extend shelf life. Most of the condition issues have been addressed and California's second pick brings strong quality lemons. To be cautious, a faster rotation of inventories is recommended.

Limes supplies continue to improve weekly, we’re seeing more crossings from the border. Plenty of promotional opportunities coming up for 4th of July pull. Supplies continue to peak on the 175’s and smaller, with markets in the low teens to single digits. Supplies continue to remain light on large sizes 110’s – 150’s, markets are in the mid to low teens.

Late season Navels are winding down, only a few a more weeks left. Valencia supplies continue to improve weekly, especially on the 113’s and smaller. Markets on both varieties will be in the $14-$16 range depending on grade and size. Quality is looking great! On Specialty Citrus, the Delite Mandarins are starting dwindle down on supplies. Bloods, Golden Nuggets, and Ojai Pixies have a few more weeks left, with quality looking fair. Grapefruit supplies are looking plentiful through the summer, plenty of opportunities to push volume.

Georgia is winding down for the season on cucumbers with a few shippers continuing for another week. North and South Carolina are shipping light volume. Both states have short seasons and will finish this week. Virginia and New Jersey have started and will continue through July with moderate volume. Western North Carolina will start around the first of July. Supplies in all regions have declined on super selects and carton 24's. Most shippers are packing a high percentage of selects, keeping pricing in check. We expect supplies to get tighter through the week and pricing to rise across the board. Quality is still holding up in most regions which is surprising with the heat and rain the Southeast has received.

Transitions:
Cucumbers are transitioning up the coast from Georgia and the Carolina's to New Jersey.

The cucumber market is increasing and could remain high due to crop from Sonora finishing up and cucumber crossing into McAllen is delayed. Mexican cucumbers are available to load in San Diego from the Baja growing district where the quality is also good. A strong market is anticipated to continue as “local” farms across country are behind schedule due to earlier spring weather conditions.

Georgia is by far the biggest supplier of eggplant at the moment with South Carolina packing some supply and North Carolina starting late this week. Quality is excellent and volume exceeds demand by a wide margin. Shippers are struggling to keep up with supply. Georgia will continue with good volume through the end of June.

Peak Seasons:
Eggplant is in peak season

With the Sinaloa districting finishing, moderate supplies of eggplant are also being harvested in Thermal, CA. Mostly 12ct and 16ct being packed. Eggplant supplies from Thermal are expected to increase. The eggplant market is currently steady due to limited supplies. Eggplant quality from California is good.

Both Mexico and Coachella are in full production with plenty of availability. Quality has been good in all areas. Sizes have been heavier on the medium large, but all sizes are available. Demand has been consistent. We are still seeing a split market between both areas. Mexico's production has been heavy and shippers have been getting very aggressive moving volume out of Nogales. Coachella harvest has been steady, but growers are holding their prices firm. For a hot deal, look to load in Nogales for the next 7-10 days. New domestic harvest will start in the California Central Valley by the second week of July. Volumes will be light at first, but will ramp up quickly. We expect good availability, quality and prices moving forward.

Transitions:
New domestic harvest will start in the California Central Valley by the second week of July.

Red grapes are in excellent supply in both growing regions. Mexico and Coachella are in full production. Overall quality has been solid. More smaller fruit is being harvested, but all sizes are available. Demand has been steady. Markets remain split between Mexican and domestic harvest. With heavy volumes on medium / large grapes in Mexico, aggressive deals are being offered in Nogales to move product. Coachella has been consistent in harvest and continue to hold their prices firm. If you are looking for the best value, load in Nogales. New domestic harvest will start in California's Central Valley by the second week of July. We expect excellent quality and availability moving forward.

Transitions:
New domestic harvest will start in California's Central Valley by the second week of July.

Green onion supply continues to be plentiful with the recent nice weather in Mexico and Salinas. The cooler weather in March is causing occasional leaf minor and mechanical damage. The green onion market will continue to stay steady going into next week.

The kale market remains steady as supplies stay plentiful. Quality is fair with full bunches and an occasional yellow leaf being reported due to the recent heat wave.

Demand is exceeding supply as extremely warm temperatures in all growing regions this past week caused damage to crops. Yields are lowered as growers deal with internal burn. Common defects being reported include big vein, misshapen heads, insect damage, puffiness and mechanical. Supplies will be extremely light all week and escalated pricing is in effect on all lettuce items. The overall quality will be fair for the week. Weights on cello wrap will range from 36-40 pounds.

All Tender Leaf has been affected by the last week's heat wave in the Salinas Valley. Curly parsley, spinach and arugula have reacted to the recent hot weather and has become much tighter due to lower yields caused by this recent heat wave. Quality is fair with yellowing and bruising of the tender leaves. Look for these items to remain strong going into next week.

Very good supply on larger fruit (9's/J9's) with very light offerings on smaller fruit (15's). Domestic fruit has been consistent on quality and production has increased. West side district will ramp up around the 28th of June. New crop desert specialty melons are available out of Yuma.

There is a good supply on larger fruit this week. Small fruit (8's) will remain tight for the next few weeks. A good volume of Mexican as well as domestic fruit is on the market. Mexico new crop fruit out of Caborca is arriving in good numbers as production increases. The Market is steady with a fairly light demand.

Good supplies of watermelon are still available to load in Nogales, AZ. Mostly 2/3 bins continue to be packed. Quality of the watermelon crop from Sonora, MX is mostly fair to good. Good supplies of seedless watermelon continue to be available to load out of Nogales, AZ through the week. The seedless watermelon market remains low as summer demand continues light.

Yellow onion markets continue to rise as supplies in both New Mexico and the California Valley remain limited. Red and white onions are holding steady. Uvalde, TX and the California desert regions have finished for the season. Expect markets to continue to rise through the week as yellow onion demand continues to be active. The New Mexico region will exhibit good quality with some flaky skins on the fresh run onions. California onion yields are down as growers cull out mold from rains experienced in May, depleting the overall volume. Expect volatile markets as we head into July.

The pear market remains steady. Green Bosc are done in Washington, but Green D’Anjous should be available through July (subbing sizes may be required).

For most shippers, Half Carton Red Anjou pears (Euro pack) are the prevalent pack this time of year (30s through 55s) and are available through mid-July.

Imported: Chilean and Argentinean Bartletts are available to load in Los Angeles and the East Coast. Also, Chilean Packems (70-120ct) are available.

CALIFORNIA BARTLETT pears are expected to start after July 4th—more specifically, the week of 6/15 or 6/22. CALIFORNIA BOSC pears are expected to follow CA Barts—week of Aug 12th.

Pineapple supplies will be tight through mid-September. This is typical for this time of year due to a condition called Naturally Differentiated Flowering (NDF). NDF occurs when weather patterns of low light or cool temperatures trigger ethylene product of the pineapple plant which leads to a disrupted supply of fruit resulting in lower yields per acre. Typically the summer demand during July – September tends to be soft and the entire industry is forecasted to experience similar supply issues until they improve. Members will be held to their six week averages. To help facilitate orders it is extremely important to place orders well in advance. Suppliers will do their best to help offer sub sizes if they are unable to fulfill orders in full. Markets remain steady $12-$14 depending on the size.

Supplies on larger size 40-70 count remain limited and will become increasingly tighter as we progress through the remainder of the Idaho Burbank season. Expect pricing to continue to inch up over the next 6-8 weeks. 10oz #2's have also become snug as they fall into that same size profile. More demand is shifting to the 80 count potato and markets are expected to begin inching up on that size as well. Burbank quality is good with some lots showing shoulder bruise and occasional hollow heart. Washington, Colorado, and Wisconsin continue to ship Norkotah's. Markets are showing strength in Wisconsin with only fair quality. Washington has good supplies on larger sizing at this time.

Colored potato markets continue to rise as demand is active and supplies are light. Very minimal supplies remain in Idaho with one supplier and a couple of others sourcing out of California (with advanced lead time) to supplement orders. California continues to produce all three colors out of the Bakersfield region. Stockton looks to start up in July. Demand is very active and markets are rising. Arizona is winding down for the season with high demand and selling out quickly. Florida is also winding down with sporadic availability. Texas and North Carolina will start up in July followed by Minnesota and Wisconsin in early August. Expect high markets and limited supplies as we transition through these regions.

Squash supplies are spread out all over the place. Georgia is winding down for the season, but still packing for the rest of the week with quality being not the best. The Carolina's are producing small volume spread across the state and Virginia and New Jersey are producing good volume. In the Midwest, Michigan and Ohio are a week to 10 days late and should start the first week of July. There are a few different shipping points up the East Coast packing squash, but none have heavy volume. Logistics are tough this time of year with product spread out from Georgia to New Jersey and soon spreading west. Pricing is trending higher and will remain steady through the end of the month.

Alerts:
Supplies are very spread out and tight

Transitions:
Squash is transitioning from Georgia to all regions up the coast.

Both Italian and yellow straight-neck squash are being harvested in Santa Maria, Fresno and Baja California. There are better supplies on Italian squash than Yellow S/N from all three districts. The market on soft squash could increase due to hotter temperatures in the growing region. Quality from Santa Maria, Fresno and Baja California is good on Italian squash and fair on Yellow S/N.

It is the perfect time to promote stone fruit! The fruit is in excellent condition, sugar levels are high and it eats very well. There are several varieties of apricots, peaches, nectarines and plums currently being harvested. The weather has been ideal in the Central Valley and production numbers are on the rise. Demand seems lower this year and shippers are hungry for business. Aggressive prices are being offered on specific sizes and varieties, but all sizes are readily available. We are entering into the peak production period over the next 4-6 weeks. We expect excellent supplies and quality.

Peak Seasons:
We are entering into peak season and will be for the next 4-6 weeks.

Eastern tomato production has improved with better weather conditions. Between Florida and South Carolina, production sizing has evened out as fields begin to rotate. Recent rains are still showing some quality issues, however, post rain reports are surprisingly favorable overall. The market is mostly steady with some relief to Roma tomatoes where acreage is limited to a few small operations in Quincy this time of year. Production will start to expand in July as more regional programs begin in Alabama, Arkansas, North Carolina, Tennessee and Virginia.

Grape tomato size is improving, moving past the larger sized fruit harvested in previous weeks. As weather has improved, so has the puckouts helping to ease the pressure of an upward market. As transition progresses to smaller programs in the North, Western supply becomes more of a factor, however, it is yet to be determined how subtle or drastic the impact of the 17.56% Mexico duty set by the US Dept. of Commerce for tomato imports will be to the dynamic of the market in the weeks ahead.

Transitions:
Quincy, Florida will finish crown picks this week and be done around June 26th.
South Carolina will finish around July 4th
Arkansas is getting started in a small way this week with volume building into July.
Tennessee is expected to start harvesting roma tomatoes the week of July 1st followed by Mature Greens the week of July 7th.
Alabama is forecasted to begin harvesting July 1st.
Virginia will begin with grape and cherry tomato harvests around June 24th , followed by Mature Greens near July 7th.

Mexico tomato prices are steady from last week. Nogales is finishing the remainder of their season while new crops in Eastern Mexico and Baja are underway and have begun to establish the Western market in the US for the short term. The supply of round tomatoes in the West will mostly be Vine Ripe varieties with very limited domestic Mature Greens through June until California’s Central Valley breaks ground near July.

Amidst economical penalties, there has been no significant change in prices from last week outside of the incremental influences occurring during transition. Tomatoes remain in the low to mid double digits as typical for this time of year. Roma tomato FOBs are easier this week as some of the pressure from poor weather has subsided, helping to give a small boost in supply.

Mainland Mexico is slowly improving Grape tomato harvests while Baja continues to produce better quality. Duties are set at 17.56% of the value of tomatoes crossing into the US directly affecting the cost of goods. The added costs for importers will ultimately be reflected in what the consumer pays and is pressuring Mexico to keep prices low in order to continue the flow of tomatoes into the US. It is too soon to determine how both supply and demand will be impacted, but it is expected that imports will be reduced at some point in the future.

Transitions:
Nogales will finish July 1st
San Diego/Otay Mesa will be in production through Oct. 15th, with lighter supplies expected during August and September.
California is currently a week behind. Volume will increase next week with heavy volume at the start of July tapering down though October.
McAllen has smaller summer programs out of Mexico where Nuevo Leon and San Luis Potosi will harvest until November