Weather Update A weak high pressure system out west brings gradual warming to the West Coast into the weekend. The exiting low pressure system will continue to bring gusty winds to Southern California and the Desert southwest over the next couple of days as temperatures warm to seasonal averages. An approaching low will bring a cool down early next week. Seasonal temperatures and decreasing shower activity are on tap in Central Mexico into early next week with increasing moisture expected to the north due to a cold front passing through Baja. The Southeast coast is bracing for Major Hurricane Matthew expected to reach Category 4 strength before reaching the Southeast Florida coast late Thursday. This dangerous storm is expected to move up the coast into Georgia and the Carolina s into the weekend. There remains quite a bit of uncertainty in the exact track this system will take however a strong storm surge, devastating winds and tremendous rains will impact the Southeast coast over the next few days at a minimum. There are many crops in the line of fire with this system and crop loss is a virtual certainty given the size and strength of this storm. Market Alerts Berries (Blueberries): Demand is exceeding supply. Hurricane Matthew is also bringing severe weather to south Florida affecting import operations at all ports and airports in the region. Citrus (Lemons): California lemons are extremely short. Citrus (Oranges): Small Valencia s, 113s/138s, supplies are limited in availability. The Source - Page 1
The Source Truckin Along California trucks remain steady again this week and should stay that way for the near future. Washington and Idaho potato trucks remain steady as well. The National Average for diesel remained steady and is currently at 2.389 per gallon. A difference of.103 from this time last year. California prices are steady as well and are currently at 2.766 per gallon. Crude oil is up slightly and is at 49.75 per barrel. Transitions & Temperatures Berries (Blackberries): Central Mexican production is increasing and more fruit is crossing into the US. Berries (Blueberries): Chilean imports have begun recently and will help add to the supplies of blueberries coming from South America. Berries (Raspberries): Central Mexico continues to increase production volume. Berries (Strawberries): Oxnard strawberry production has begun and will continue to increase over the coming weeks. Broccoli: We will be transitioning from Salinas to Yuma the week of November 21st. Cauliflower: We will be transitioning from Salinas to Yuma the week of November 21st. Celery: Oxnard will begin production the last week in October. Salinas will finish production approximately the third week in November. Lettuce Iceberg: Huron is expected to begin production on lettuce October 17th. The temps in this region will range from 80-91 degrees over the next for weeks. Yuma will begin production in early November. Lettuce Leaf: Yuma is expecting to begin production in the first to second week in November. Melon (Cantaloupe): The desert has started in a very small way this week. Melon (Honeydew): The desert started this week in a light way. The Source - Page 2
Apples Washington - Red delicious are steady on the smaller sizes and steady to lower on 88 s and larger. Most shippers continue to peak on extra-fancy 64-88s. Most suppliers still have only light availability of 125s and smaller. The Golden delicious market remains steady but strong due to lighter volume this year. Small Golden delicious are especially short. New-crop Granny-smith are steady but supplies are limited. The Gala market is steady on larger fruit with good availability and steady but firm on the smaller fruit. Galas are peaking on 80/88/100/72s so expect the smaller sizes to remain short. Honey Crisp are steady to slightly lower on most sizes and grades but the fruit remains large and is still peaking on 48/56/64s. Fuji s are steady on the small fruit due to light supplies and steady to lower on 88s and larger with good supplies. The quality for red delicious, golden delicious, granny-smith, Galas, Fujis, and Honey Crisp has been good. California - Granny-Smith are steady on all sizes but the availability is down as the end of the season is near. The quality has been good. Idaho - They are steady on Gala s and Jonathans and are peaking on Washington extra-fancy 88/100/113 s for both. Michigan - McIntosh, Golden delicious, Jonamacs, Jonathans, Galas, Cortlands, Empires, Honey Crisp, and red delicious are available now and all are steady to slightly lower. Most varieties are heavier to larger fruit although some have good availability of the smaller sizes. The quality has been good. New York - McIntosh, Cortlands, Empires, Jonamacs, Galas, Ginger Golds, and Honeycrisp are the main varieties now and the markets are steady. The sizing has been smaller than other areas with more 100/125/138 size fruit. The quality has been good. Asparagus Peruvian asparagus volume is steady, while the volume out of Mexico is up. are still protesting current regulations in place in terms of harvesting and grower returns/payment. There are still on going talks with the growers. The current shortages, will become that much shorter. Avocado inventories in the US are running out. Expect availability for next week to be very limited to none. Bell Peppers (Eastern) The green bell pepper market is steady. Michigan and Ohio will just about finish by the end of the week, New Jersey will continue to ship as long as the weather holds out, their volume is winding down quickly. Western North Carolina is still shipping steady supplies. South Carolina will have good supplies this month and Georgia is starting with light volume, the bigger volume will come next week. Early reports from the southern shippers indicate a smaller crop with a lower percentage of jumbo pepper. Bell Peppers (Western) Green bells out of the California Central Valley are winding down in volume and will soon transition to Southern California. Supply is lightening and showing stronger pricing. Red bells out of Fresno are now in better supply and are showing good overall quality and condition. These will also transition to southern California. Yellow bells showing better availability with quality and condition still showing some trouble. Berries (Blackberries) California production is declining out of the northern districts but Mexico is increasing production volumes steadily. Quality issues have occurred with wet, leaky blackberries. Most cases due to age of fruit or missed rotation of older lots. Avocado (Mexican) The Mexican growers dispute and harvest disruption still has not been resolved. Very little harvest to no harvest has gone on since last Wednesday. A select few growers The Source - Page 3
Berries (Blueberries) Demand is exceeding supply. Imported volumes from South America and Mexico have not yet increased enough to meet the current demand. Hurricane Matthew is also bringing severe weather to south Florida affecting import operations at all ports and airports in the region. Many facilities are closed for the next day or two until the weather has passed. This will affect the amount of blueberries in the supply lines into next week. Quality has been good out of all regions, virtually no arrival issues reported due to the extremely limited volumes available. Berries (Raspberries) Production volumes have increased some and overall availability has improved. We should begin to see an uptrend in overall volume. Quality has been good out of all areas. Limited reports of sunburn on the fruit. Berries (Strawberries) Supply is steady with good demand. The northern growing regions continue to decline as crops are transitioning south for the season. Southern growing regions are showing a slight increase in production. Temperatures have cooled down this week in all growing areas which has helped with quality and keeping the fruit firm. Some quality issues still being reported include soft shoulder, salmon (light color,) bruising and overripe. Berries are small in size, running in the low to high twenties per 1 pound clamshell. Broccoli The market continues to be stable. There are plenty of supplies from Mexico, Salinas, and Santa Maria. Quality has been really good with decent crown size and minimal yellowing. Brussels Sprouts As supplies have improved this week, we see the market trending lower. Quality is excellent with all sizes available and dark green color. Carrots 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 Cauliflower supplies remain steady with most suppliers. The market is steady with little fluctuation. Looking into next week we could see the market trend higher as shippers are 7 to 10 days ahead of harvesting schedules. The quality is nice with intermittent arrival issues with bruising. Celery This market is unchanged. Large sizing is most plentiful. Supplies continue to be abundant in Salinas and Santa Maria. Production in Michigan continues as well. Good quality exists in all the growing regions. Flexing continues on twenty-four count packs with a few suppliers. Oxnard will begin production near the end of October. Production in Salinas will continue until the third week of November. Chili Peppers Pablano - Good quality and condition expected to continue. Tomatillo - Rainy weather has affected quality of Tomatillo most recently but current conditions are improving. Jalapeño - Good quality on new crop pepper, mostly large sizing with good color. Anaheim - Good quality,condition and size are expected to continue. The Source - Page 4
Cilantro We have seen sporadic arrival issues with yellow to black discoloration in some lots but overall quality has been really nice. The market is aggressive with plenty of supplies from all growing regions. Citrus (Lemons) The Ventura crop is winding down and dropping in volume with the last of their old crop. Demand is strong and far exceeding what supplies are left. The Desert crop has started, but their start up is slow and very light in volume and will be increasing through the month, but will not reach volume until November. Chilean supplies are starting to fall of as their shipments to the states fall off. Mexican fruit is available, but the lack of California fruit is putting heavy presser on these supplies also. Citrus (Limes) The larger sizes 110ct through 175ct continue to remain more expensive than the 200ct and 250ct sizes. Demand is good on all sizes across the board. Limes are peaking on the 230ct. Quality is improving overall with less and less leaf shading (yellow color) showing up and fewer stylar end breakdown showing up from weather. Rain hit the growing region last week but no quality issues have been reported, just a temporary slowdown in production. New crop limes are being harvested and all sizes are coming in so quality is 100% better. The market is steady on all sizes. Citrus (Oranges) Cucumbers (Eastern) The cucumber market is steady. Cucumber supplies are steady, supers and selects are moving well, cartons have slowed. Supplies are spread across the east but have just about finished in the northern regions of the country. Virginia, North Carolina and Georgia have gotten a much needed break from the hot temperatures slowing production slightly but helping quality. Cucumbers (Western) Fair quality and condition on cucumbers coming out of Northern Baja coast. Fresh crop from Northern Mexico crossing through Nogales is now available, Quality will be improved as we move forward Eggplant (Eastern) The eggplant market is steady with a weaker undertone. The Northern regions of the country are winding down and experiencing some quality issues. North Carolina, South Carolina and Georgia are all shipping eggplant in steady volume with good quality. Demand has slowed some putting downward pressure on the market. Eggplant (Western) Quality and condition on eggplant has remained good coming out of Fresno. Minimal cosmetic issues. Production will continue to be limited production soon to start in the Coachella Valley with fresh crop. This season s Valencia crop is nearing it s end. Some shippers will be finishing this week and next. Supplies of small size Valencia oranges, 113s and 138s both grades are very tight and getting tighter as shippers finish with their crop. We are seeing a demand exceed situation. The Navel crop looks to start at the end of October/first of November. Valencia s are showing some weakness of quality, which is typical for this time of year after a long hot summer. The Source - Page 5
Grapes (Green) It feels like the green grape market it trying to creep up. We saw a bump in the USDA mid mostly price last week, but we have been able to secure less expensive product on the open market. However, I expect next week to see another increase in price. Supplies are consistent, but limited to mostly XL - Jumbo sizes in the Autumn King variety. Quality has been excellent and is expected to hold strong. As we move forward through the month, I expect market prices to gradually increase. November will bring even lighter supplies and another increase in price. Grapes (Red) Red grapes are moving along well with no change in supply, quality or price. I expect this to be the case for the next couple weeks. However, as we move closer to November, supplies will begin to lighten and market prices will start to climb. Smaller growers will slow production and availability will thin out. Weather cooperating, the larger growers will continue with consistent production through December as we transition into the import season. Green Onions We have seen interruptions in the steady supply of green onions from Mexico. This has caused a varied market from Salinas to Oxnard. Iceless green onions are commanding higher prices than iced. Quality has been decent with few arrival issues. Kale Kale supplies are abundant with little change in the market. Quality is excellent with dark green color, full cases, little dehydration, and minimal yellowing. Lettuce Iceberg This market is steady to stronger as some shippers begin to firm up their pricing. Overall, supplies are good and expected to be above average for the rest of the week. There continues to be issues reported, such as lightweights, pinking and slight puffiness. Shorter days due to lack of sunlight will create shorter harvesting times. Weights have had a wide range, 35-44 pounds on wrap lettuce. Transition is coming upon us soon. Huron will begin production with this commodity on October 17th. The weather is expected in the 80s to low 90s through the next 2-4 weeks of October in Huron. Yuma is expected to begin production in early November with a few suppliers. Lettuce Leaf Some shippers are beginning to firm up on all leaf items and this has allowed for fluctuations in pricing throughout the industry. Romaine as well as all leaf items have had issues on quality. These issues include fringe and tip burn as well as some internal burn. Temperatures have subsided in the growing regions, but after effects of the past high heats are showing damages to these products. The weights on romaine average 28-32 pounds. Red, green and butter leaf have had lighter weights reported compared to past weeks. Melon (Cantaloupe) Demand is steady to slightly higher right now. Supplies have lightened up since last week in the West side growing area as growers are coming close to the end of their season. Weather has been a bit cooler over the last several days which has hampered optimal growth rates. The desert will be starting this week in a small way. The market is higher on all sizes and the quality is good. The Source - Page 6
Melon (Honeydew) Demand has increased over previous levels while supplies have steadied. We can expect good supplies and quality to be the pattern for a while with a moderate range of up and down movement. The desert has started this week in a very light way. Mexico is getting closer to exporting honeydews up to us. The market is higher on all sizes. Melon (Watermelon) The current availability is improving with better sizing and offering fresh Product from Northern Mexico crossing in Nogales AZ. All sizes being offered in load volume both bins and cartons, peaking on larger fruit 36/45 with brix exceeding 10%.Volume will continue to improve Onions Washington - Yellow, red, and white onions are steady and they are still heavier to jumbos with only light volume of colossal and larger yellows. Some suppliers are still flexing for volume on jumbo yellow and jumbo red business. The quality is good. Idaho/Oregon - All sizes and all colors are steady. All colors continue to peak on jumbos. Some suppliers will flex for volume orders of jumbo, colossal, and super-colossal yellows as well as jumbo reds. The quality has been good for all colors. Pears California - Bartlett pear supplies are very light but a one supplier is still going. The quality has been good. Crimson pear supplies are also light but we have one shipper still shipping them. Bosc are steady and are peaking on smaller fruit but supplies are light. The quality has been good. Washington - Bartlett pears are steady on all sizes and continue to peak on 80/90/100s. D anjou pears are also steady and are still peaking on 90/100/110s. Stark Crimson pears are about finished for the season. Red Bartletts are steady and continue to peak on 40/45 half cartons. Bosc are steady to slightly lower and are still heavier to larger fruit in the Wenatchee valley and smaller fruit in the Yakima valley. The quality for all pears has been good. Pineapples Supplies are still light, but are improving with some shippers and others are looking to improve by the end of the month. Potatoes Washington - The market is steady on all sizes and they are still peaking on 70/80 count. The quality has been good. Idaho - The norkotah market is mostly steady on all sizes and they are peaking on 60/70 count. Some suppliers have limited supplies form the rain that Idaho last week. The norkotah sizing is still heavier to the larger counts in the south/central area and smaller or medium size counts in the northern/eastern areas. Number-twos remain limited as most shippers are still heavy to number ones. Burbanks are steady on all sizes and are peaking on 80/90 count. The Norkotah quality has been good. Wisconsin - The market is steady on counts and they have an even distribution of sizing now. The quality has been good. Colorado - The market is also steady on all sizes. Most shippers are peaking on 70-count and smaller but the size distribution is evening out. The quality has been good. Potatoes (colored) Bakersfield, California - All colors are steady and continue to peak on A-size. The quality has been good. Idaho - The market is steady on reds and golds. Both colors are peaking on A size with good quality. North Dakota - They are packing more volume this week and the gold and red markets are steady. The quality has been good. Wisconsin - Reds and golds are steady on all sizes. The quality is good. Western Washington - The market for reds, golds, and whites are steady on all sizes and colors with good availability. The quality has been good. Canada - They have a steady market and good availability for all colors but they can only pack bags, no cartons are available. The quality has been good. The Source - Page 7
Squash (Eastern) The Squash market is steady with a stronger undertone. Squash supplies in the northern growing regions have dried up. More business is switching to the south creating demand for southern shippers. Virginia, North Carolina and Georgia are all shipping squash but there has been a lot of insect pressure in the south reducing yields significantly. We expect the squash market to change upward for the weekend and continue that rend next week. Squash (Western) Supply on Italian squash and Yellow S/N out of the Santa Maria have remained steady. New fields have started in the Santa Maria. Quality and condition have improved from fair to Good. Italian and Yellow S/N have now started in Nogales Arizona. Stone Fruit In the stone fruit world, options are scant. Peaches and Plums are what s left. Peaches are sizing on the large side and are available in limited volume for the next 2 weeks. Quality is holding strong and market prices are firm. Plums are more readily available and supplies are expected to last through the month of October. Black plums seem to be on the smaller side where as the red varieties are larger in size. Quality has been very good on both colors. Market prices are on the high side and remain fairly steady. Tomatoes (Eastern) Rounds - The market is higher. Supplies are looking very short, due to current weather conditions. Hurricane will be hitting growing areas from Florida to Virginia. Production has been, and will be, effected due to evacuation areas. Out west, demand has picked up considerably due to what s happening in the east. Look for the market to continue to be tight through these current weather conditions. Range in quality. Roma - The market is higher. Supplies are very short due to weather. The hurricane will effect production in some areas due to evacuation requirements. Out west, Mexico is crossing very little supplies, due to weather as well. The National Mexico Market continues to be strong, which keeps most supplies in Mexico. Look for the market to continue to rise under current conditions. Range in quality. Cherry - The market is higher. Very short supplies in the East and West. North Florida is just getting underway. Out west, supplies also continue to be light, with FOB s much higher, and climbing. Look for the market to continue to be strong. Range in quality. Grape - The market is higher. East is in very short supply. The hurricane is due to make it worse. Grapes are due to begin in North Florida next week. Out west, supplies are short, with FOB s on the rise. Look for the market to continue to be strong. Tomatoes (Western) Rounds - The market is higher. Supplies looking to tighten up, due to the weather situation back east. Demand continues to climb, with supplies beginning to get shorter. Back east, supplies very tight, with hurricane going to hit growing areas from Florida to Virginia. Look for supplies to continue to get tighter, with the market climbing. Range in quality. Roma - The market is higher. Supplies in the west continue to be lighter. Crossings through mainland Mexico are very light. Some areas have been hurt by rain. The Mexican National Market continues to be strong, keeping the fruit in Mexico. Baja Mexico looks to be in a slight gap. Central California is sold out. Look for the market to continue to be strong. Range in quality. Cherry - The market is higher. Very short supplies in the East and West. Baja grown cherry s are in light supplies, with higher FOB s. Back east, Northern Florida due to start, but, with little supplies. Look for demand to continue to be strong, with higher FOB s. Range in quality. Grape - The market is higher. In the west, supplies looking lighter in all areas. FOB s continue to be strong. East has very little due to weather conditions. Look for the market to continue to be strong, with lighter supplies and the east getting hit with hurricane. Range in quality. The Source - Page 8
Commodities at a Glance Apples Wenatchee/Yakima, WA and Hood River, OR Steady Good Hudson/Pleasant Valley/Red Hook, NY Steady Good Stockton, CA Steady Good Coopersville/Belding/Sparta, MI Steady Good Asparagus Ica, Peru to Trujillo Lower Good Northern Baja California Norte, Mexico Lower Good Cuidad Obregon, Mexico Lower Good Avocado (Mexican) Michoacan, Mexico Higher Good Bell Peppers (Eastern) Seneca / Summit County, OH Lower/Steady Fair Ottawa / Kent / Berrien County, MI Lower/Steady Fair Henderson / Buncomb County, NC Lower/Steady Good Lee / Grady County, GA Lower/Steady Good Bell Peppers (Western) Northern San Joaquin Valley, CA Steady Good Berries (Blackberries) Watsonville, CA Steady Good Santa Maria, CA Steady Good Central Mexico Lower/Steady Good Berries (Blueberries) Concordia, Argentina Steady/Higher Good Salto, Uruguay Steady/Higher Good Trujillo, Peru Steady/Higher Good Southern Chile Steady/Higher Good Central Mexico Steady/Higher Good Berries (Raspberries) Watsonville, CA Steady Good Santa Maria, CA Steady Good Oxnard, CA Steady Good Central Mexico Steady Good Baja, Mexico Steady Good Berries (Strawberries) Salinas Valley, CA Steady Good Watsonville, CA Steady Good Santa Maria, CA Steady Good Oxnard, CA Steady Good Broccoli Salinas Valley, CA Steady Good Oxnard/Santa Maria, CA Steady Good Celaya Guanjuato Mexico Steady Good Brussels Sprouts Salinas Valley, CA Lower/Steady Excellent Carrots Bakersfield/Santa Maria, CA Steady Excellent Cauliflower Salinas Valley, CA Steady Good Oxnard/Santa Maria, CA Steady Good Celery Michigan Steady Good Oxnard/Santa Maria, CA Steady Good Salinas Valley, CA Steady Good Chili Peppers Northern Baja California Norte, Mexico Steady/Higher Good The Source - Page 9
Commodities at a Glance Cilantro Salinas, CA Steady Good Oxnard/Santa Maria, CA Steady Good Baja, MX Steady Good Citrus (Lemons) Oxnard/Ventura, CA Steady Fair Coachella, CA / Yuma, AZ Steady Good Citrus (Limes) Veracruz, Mexico Steady Good Citrus (Oranges) Merced to Bakersfield, CA Steady Good Riverside, CA Steady Good Cucumbers (Eastern) Henderson / Buncomb County, NC Steady Good Lee / Grady County, GA Steady Good Cucumbers (Western) Northern Sonora, Mexico Lower/Steady Good Eggplant (Eastern) Ottawa / Kent / Berrien County, MI Steady Fair Seneca / Summit County, OH Steady Fair Lee / Grady County, GA Steady Good Eggplant (Western) Fresno, CA Steady Good Grapes (Green) Delano, CA Steady/Higher Excellent Fresno, CA Steady/Higher Excellent Grapes (Red) Green Onions Mexicali, Baja Steady/Higher Good Salinas Valley, CA Steady/Higher Good Kale Salinas, CA Steady Excellent Oxnard/Santa Maria, CA Steady Excellent Lettuce Iceberg Oxnard/Santa Maria, CA Steady/Higher Fair Salinas Valley, CA Steady/Higher Fair Lettuce Leaf Oxnard/Santa Maria, CA Steady/Higher Fair Salinas Valley, CA Steady/Higher Fair Melon (Cantaloupe) Firebaugh, CA Higher Good Mendota, CA Higher Good Melon (Honeydew) Firebaugh, CA Higher Good Mendota, CA Higher Good Maricopa, AZ Higher Good Melon (Watermelon) Northern Sonora, Mexico Steady Good Onions Ontario, OR to Nampa, ID Steady Good Quincy/Hermiston, WA Steady Good Pears Stockton, CA Steady Good Wenatchee/Yakima, WA and Hood River, OR Steady Good Delano, CA Steady Excellent Fresno, CA Steady Excellent The Source - Page 10
Commodities at a Glance Pineapples Alajuela, Costa Rica Steady Good Heredia, Costa Rica Steady Good Limon, Costa Rica Steady Good Tomatoes (Western) Southern California Coast Higher Good Northern Baja California Norte, Mexico Higher Good Northern Sonora, Mexico Higher Good La Ceiba, Honduras Steady Good Retalhuleu, Guatemala Steady Good Peten, Guatemala Steady Good Potatoes Hamer/Rupert, ID Steady Good Plover/Bancroft, WI Steady Good Quincy/Hermiston, WA Steady Good Monte Vista, CO Steady Good Potatoes (colored) Bakersfield, CA Steady Good Mount Vernon, WA Steady Good Rupert to Rexburg, ID Steady Good Plover, WI Steady Good Red River Valley, ND Steady Good Squash (Eastern) Lee/Grady/Echols County, GA Steady Good Henderson / Bucomb County, NC Steady Good Squash (Western) Santa Maria, CA Lower/Steady Good Stone Fruit Madera south to Arvin, CA Steady/Higher Good Tomatoes (Eastern) Northern Florida Higher Good Cedarville/Hammonton, VA Higher Good The Source - Page 11