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July 18, 2018

Market News

Weather Update:
High pressure out west will continue to dominate the weather pattern as monsoonal moisture continues to bring isolated showers to the region. The high-pressure ridge strengthens early next week keeping temperatures well above norms through July. Central Mexico will see typical warm and humid conditions with showers possible on most days. Areas to the north will see similar precipitation with above average temperatures. A weak frontal system moves through Florida from the north this week followed by another system from the south early next week. Both systems will bring widespread showers and thunderstorms to the state with seasonal temperatures.
Apples: We are one month away from new crop in Washington, New York, Michigan, and Pennsylvania apples. The current storage crop of Red Delicious looks to get extremely limited as we finish up the storage season. Start dates for new crop red delicious apples are not until mid-September. The market on Red Delicious looks to increase weekly. Other varietals are still available minus pink lady and limited supplies of honey crisp. Galas are also dwindling in supply as well. We have plenty of supplies of granny smith apples if you are looking for volume deals. California apples are available with sizes in the 88 to 125 count as well as bagged apples too. Quality remains really good with decent pressure left in the storage crop and good sugar content.
Asparagus: The weather has improved in both Mexican regions, Central Mexico, and Northern Baja. Volume has started to increase due to the better weather in both regions; we should see this trend continuing for the next couple of weeks. Weather in both regions in Peru (Trujillo/ICA) has remained unchanged; we’re still seeing very few larger size asparagus due to the cooler weather over the past month. Markets are overall lower with very good production, and with little demand.
Avocado (California) The recent heat wave growing areas of Southern California, with temps reaching 105 - 115 degrees for several days has caused fruit drop. Growers are assessing the damage. Early estimates look like a 10 to 15 percent drop of total of total crop volume. This year’s crop is 80 percent harvested. California has reached its peak in volume and beginning its seasonal decline through August.
Avocado (Mexican) Mexico harvest continues with primarily their old crop and weekly volumes continue to decline and looking to be complete by the end of the month. Their summer crop is still behind in maturity but is expected to begin with light volume by next week. Mexico’s summer crop is a small crop and is difficult to predict volume. Going forward through July and August, expect lighter supplies and stronger markets.
Berries (Blackberries) Supplies are steady and slowly improving. There are several areas in production this week. Salinas / Watsonville harvest remains limited and below expectations. We expect harvest to improve in this area as we move forward. Santa Maria harvest has been steady, and quality is being reported as good, considering the heat. Central California (Selma) is finishing harvest this week. Oregon / Washington has started with light volume. Some of that fruit is being transferred to cover orders in Salinas / Watsonville, but the majority of that volume is being sold direct. On the east coast, we continue to have limited availability in Georgia, North Carolina, and New Jersey. However, we expect supplies to really slow down in these areas after this week. We will need to focus on loading on the west coast. Market prices have been slowly coming down. We expect to see improved supplies on the west moving forward.
Berries (Blueberries) Not much change this week. We continue to have excellent supplies of Blueberries. On the west coast, we have full production in the Pacific Northwest. This fruit is available to load in Oregon, Central California, Watsonville and Los Angeles, CA. Shippers have plenty of fruit to push with aggressive prices for volume opportunities. Quality is being reported as very good. On the east coast, Michigan is in full production with good availability. North Carolina and New Jersey are winding down quickly. Quality on the Michigan fruit is good. They are packing mostly Pints, and the markets have come down slightly. Again, promotional opportunities are available.
Berries (Raspberries) Supplies remain steady. Salinas, Watsonville and Santa Maria are in production. The heat has slowed down harvest, but supplies seem to be better than expected. Quality is being reported as very good. Demand has been flat. Market prices have been slowly adjusting down, but still no real aggressive prices yet. We do expect supplies to continue to improve and we will have opportunity buys available over the next 2-3 weeks.
Berries (Strawberries) Strawberry supplies remain very limited this week. Harvest volumes continue to decrease due to the heat. This weekend, temperatures in Salinas, Watsonville and Santa Maria hovered between mid 80’s to low 90’s. The hot weather is causing some sunburn, discoloration and softer fruit. Additionally, the berry sizes have been stunted, which is resulting in more berries per container to meet weight requirements. Between walking past damaged fruit and decreased yields, supplies are expected to remain limited for the next 2-3 weeks until we start new fall harvest in August. Until we break into new bloom, we can expect to see compromised quality and limited availability. As mentioned above, please be aware of the heat damage causing smaller sizes, dark color, soft fruit, and easy bruising. Although we do not expect any major disruption in order fulfillment, same day additions and open market fruit will be a challenge. Market prices are higher this week and will remain firm.
Broccoli The broccoli market has come off slightly from last week. Supplies have been slowly increasing as we go through the typical growth cycle. The outlook is for supplies to remain at normal levels. Quality remains good with minimal yellowing, little mechanical damage, and decent crown size.
Cauliflower Cauliflower market remains very competitive with abundant supplies from both the Salinas and Santa Maria growing regions. Overall, the quality has been good. The quality reports have shown weights in the 27 to 30-pound level, little yellow cast to cream color, and occasional bruising.
Celery This market has remained firm, even though Michigan has begun production. Salinas and Santa Maria have moderate supplies with small sizing, 36s, in particular, leading the way with the least availability. This will continue throughout the week. Some slight defects include yellowing leaves, seeder due to the warm temperatures and slight bowing. The overall quality, however, continues to be good. Oxnard production is finished, and planting will not begin again for about three weeks.
Citrus (Lemons) The overall lemon demand far exceeds the limited supplies. Domestic production out of Ventura County is nearly finished with picking and working out of limited storage fruit. Importers of offshore fruit are still waiting on usable volume of fruit to begin to arrive toward the end of July, with crop reporting to be lighter in volume and larger in size.
Citrus (Limes) On Limes we are seeing a steady supply of larger fruit (150-175ct) due to the extreme heat in the growing region of Mexico. Smaller fruit is pretty tight right now (200-250ct). Overall quality has been fair with lighter color and smooth skin. We will see some light supplies these next few weeks with the heat in Mexico and also transitioning between crops.
Grapes (Green) Mexican grapes are done for the season. The floors have mostly been swept up, and any cases left are not making arrival. California greens are readily available and of excellent quality. The main area for harvesting right now is Arvin CA, pulling all colors. The Fresno area started a few weeks after Arvin but is now also in full swing. Fruit is seeing excellent size, color, with very healthy stems.
Grapes (Red) California greens are readily available and of excellent quality. The main area for harvesting right now is Arvin CA, pulling all colors. The Delano and Fresno area started a few weeks after Arvin but are now also in full swing. Fruit is seeing excellent size, color, with very healthy stems. Mexican grapes are done for the season. The floors have mostly been swept up, and any cases left are not making arrival.
Tomatoes (Western) California continues to harvest heavy yields of tomatoes helping to keep markets depressed with no indication of change in the immediate future. Bountiful supplies of mature greens and vine ripe tomatoes continue to stabilize markets at very low prices. California rounds remain near half the price of the mandated minimums set for Mexico imports. Roma tomatoes are available from both California and Mexico stabilizing markets at seasonal norms and forecasted to remain steady through July. Baja underwent a slow start to the season but has improved quality and supply helping to further create cheap grape tomato markets in the west. Quality and supply have both improved from just a few weeks ago and circulating quotes this week are again an indication of the lower markets to follow in the weeks ahead as the summer season gets underway.

July 25, 2012

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