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July 17, 2019

Market News

Weather Update
Temperatures cool out west as an upper-level trough deepens the marine lay¬er and onshore flow. Coastal fog and drizzle will be the norm into the weekend with breezy afternoon winds. High pressure returns early next week with grad¬ual warming through the week. Scattered showers and thunderstorms continue across Central Mexico with seasonably warm temperatures into next week. Isolat¬ed showers with seasonably warm temperatures look to continue in the northern regions under a building high-pressure system. Light and isolated showers look to continue across Florida into next week.

The apple market continues to trend upward. Depending on the variety, we are seeing some smaller shippers DFS (Done For Season) on certain varieties—Golden, Granny, Fuji, and Gala—with an expected gap on Golden Delicious. The few shippers, who do have Golds, are selling to the shippers who don’t and at an inflated price. Smaller ship¬pers are done with cherries and have 100% of their lines/la¬bor packing apples, while larger shippers continue packing cherries and devote less lines/labor to apple packs.
As schools begin in some parts of the country, we will con¬tinue to see smaller shippers ‘clean up’ on certain varieties, adding pressure to the large shippers who have year-round fruit. With prebooks taking place, prices will continue to rise as we approach August and the new harvest.
We should see Wildfire Galas start the first week of August and Royal Galas the mid to late August. Ginger Golds and early Honeycrisp to start the week of August 5.
Buckeye Galas should start towards the end of July/begin¬ning of August (heavy, spring rains have affected CA start dates). Granny Smiths should start at the end of August/first week of September.
Chilean Braeburn – 70-90ct XFCY (available now)
Chilean Pink Lady – 70-90ct XFCY (available now)
Central Mexico (Guanajuato) production remains unchanged from last week. The larger sizes are still limited and will continue to be limited through the end of the month. There is no change in supply from Peru from either region. Due to seasonality, both regions in Peru have limited availability on the larger sizes. Markets on both coasts are still active and should remain the same for the next week.
Avocado (California)
Demand on California fruit this week is good and quality is excellent. We can expect a steady market for the remainder of the week. Volume will start to taper off by the end of this month and be done for the season by mid to late August.
Avocado (Mexican)
The market on Mexican fruit has dropped significantly this week. We are seeing all-new crop “Flora Loca” fruit in the pipeline. Suppliers anticipate better volume going into the weekend as we are seeing more fruit crossing into the US. As suppliers struggle to catch up and replenish inventories on top of distributing fruit, keep in mind this new crop fruit takes longer to ripen and stage to spec. We are looking at about 10-12 days of ripening depending on the desired stage. Early season fruit will remain green externally even when ripe. It is recommended to gauge ripeness by touch. Good supply of Peruvian, California and Colombian fruit.
Berries (Blackberries)
Blackberries are in short supplies out West with production tapering off in Oregon. The Central Coast is still producing mediocre yields. Quality has been good with fresh fruit. We are seeing some occasional age related issues with the transferred product. The overall market will remain firm through the end of this week. Look for increased yields next week due to warmer weather.
Berries (Blueberries)
Blueberries are in good supply coming out of several areas including California, Oregon, Washington and British Colum¬bia out West. The Eastern areas include Michigan, Indianap¬olis, and New Jersey. Quality has been good particularly out of the North West where shippers are seeing high yields but having to choose packing days to avoid the persistent rains. Look for the market to remain lower as shippers compete with all of the multiple options available to buyers. 12/6oz pack styles and pints are readily available.
Berries (Raspberries)
The market will remain firm on raspberries as we rely primarily on West Coast production to fill orders. Mexico is shipping very reduced numbers at this time. The quality is fair with some soft fruit with leakers are being reported at farthermost destinations.
Berries (Strawberries)
Salinas and Watsonville continue to be on the light side for the front end of the week. Most growers are anticipating more production for the end of the week and are posi¬tioning themselves price-wise to capture their share of the market. The market is steady with lower undertones. Santa Maria and Lompoc are still producing, however, their overall numbers will be decreasing as we see some larger growers finishing up in that area this week. Quality has still been just fair in both areas with bruising and overripe fruit being the major issues. As recommended last week please try and keep your inventories lean, maintain proper temperatures, and keep proper rotation practices in place. The quality is expected to gradually improve over the next week or two, weather permitting.
The market is steady and product continues to move. Between retail and export volumes, those shippers who are still packing continue to move fruit. Due to weather/temperature conditions earlier in the season, the overall cherry harvest should end sooner rather than later.
Citrus (Lemons)
Domestic supplies will continue to remain tight on 140’s and smaller for most of the summer. Inventory on large fruit remains readily available. Market prices on small size fruit continue to stay strong, looking at mid $30’s on choice and fancy fruit. Quality of domestic supply continues to improve. Offshore supply is getting better weekly on inbounds on both coasts which will help offset domestic supplies. We’re hearing great feedback on the export quality.
Citrus (Limes)
There is plenty of volume to push out on all sizes, markets continue to remain light on most packs. Suppliers have been receiving inbounds consistently and supplies are expected to be good the rest of the month. Quality has been really nice with plenty of opportunities for export & promotional ad’s.
Grapes (Green)
New harvest of California product is slowly increasing. Red grape varieties start before green, so only a few shippers have started. We expect the rest of the industry to pick up the pace next week. Quality is excellent, I have attached pictures. Market prices are higher in comparison to Coachella or Mexico, but the quality is much better. Mostly large and extra-large product is being har¬vested at this time. Coachella and Mexico are winding down as we approach the end of their seasons. Quality is becoming a real challenge, especially from Mexico. There are some aggressive deals being offered, but be aware of quality expectations. Moving forward, I suggest transitioning to new crop sooner than later.
Grapes (Red)
New California harvest is ramping up quickly. Most shippers start with red grapes first, followed by other varieties. We have several options for new crop in multiple locations. Quality is excellent. Market prices are certainly higher than Mexico and Coachella but are leveling off this week. Mexico and Coachella is winding down as we approach the end of their seasons. Quality is decreasing rapidly, more so from Mexico, but both are less impressive than the new crop California. That being said, there is some very aggressive prices being offered from Mexico if it suites your needs. I have attached some pictures of new harvest California. As we move forward, I suggest we make the transition soon¬er than later. All sizes are available with loading locations between Fresno, Delano, and Arvin.
Lettuce Iceberg
Demand exceeds supplies with this commodity and will continue for the entire week. Escalated pricing is in effect on all value-added items of lettuce. The quality is very clean. The problem is the lightweights that all shippers are reporting. The weights are being reported at 30-33 on wrapped lettuce. Processors are out buying extra acreage due to the low tonnage they are harvesting from the fields. This is creating issues for availability for carton product. Growers are harvesting too early in order to meet demand.

July 25, 2012

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