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January 17, 2018

Market News

Avocado (Mexican) Mexico’s harvest is increasing, with better volume now showing up to the states. As we move forward into the month, weekly volumes are anticipated to ramp up for the Super Bowl pull. Size curve continuing to be more toward 48’s/40’s and a larger percent of #2 fruit. The smaller fruit 60’s/70’s still a lighter percentage of what is being packed. We are see an increasing percentage of #2 fruit starting to come out of the harvest.
Asparagus Production has started from San Luis, Mexico, and Caborca, Mexico. Weather is excellent in both growing regions, and production should continue to increase in the next 2 weeks. Northern Peru (Trujillo), and Southern Peru (ICA) have very little volume due to seasonality. Both of these 2 regions should be wrapping up in the next 2 weeks with Mexico having more volume, and warmer weather in the regions. Overall market is higher due to Mexico just starting up, and Peru winding down.
Blueberry supplies have improved this week. Central Mexico and Baja production has slowly increased over the last week and we expect better availability moving forward. Quality has been good with occasional smaller berries and light color. Market prices on Mexican fruit has gradually declined with some more aggressive prices being offered in Texas. Chilean arrivals have improved this week as well; with better availability on both the east and west coasts. Quality is being reported as good. Market prices have gradually started to decline on Chilean fruit as well. There is a large number of Pints being packed and shipped out of Chile, so 6oz fruit is still limited. Demand is strong and we expect consistent supplies as we approach peak season late January.
Strawberries will be extremely limited this week. California received it’s first real storm of the season and moderate rainfall disrupted harvest in Santa Maria and Oxnard for the first part of the week. Yields have been greatly affected as well as overall quality. Due to the rain, the strawberries are showing splits, bruising and soft spots. Although the weather is expected to improve moving forward, we expect to see the residual damage and shortages for the next week. Florida has yet to recover from the weather they experienced last week. In addition they received more rain at the beginning of this week and are expecting more Friday. Supplies have been very light and again, quality is being jeopardized. With the rain and freeze that has hit Florida, the strawberries are showing heavy bruising, wet and soft spots and small size. Mexico has been consistent in production this week, but supplies are not enough to cover the demand. This fruit is being sold primarily out of Texas with a little being transferred to California to try and cover demand. Overall we expect strawberries to remain very limited for the next 10-12 days, barring any further weather delays. Market prices will be higher and firm.
Lime supplies remain steady. The industry has seen a slight increase on demand on some of the larger size limes which has firmed up the price a bit, but smaller limes are consistent. Quality has been solid. There has been some delays of fruit arriving in Texas due to trucks being held at the boarder, but our biggest challenge continue to be with LTL deliveries. This has been an ongoing issue for the last several weeks and the situation has yet to improve. Due to new trucking regulations, LTL truck options are extremely limited and freight is very high. Shippers continue to work with logistic companies to find solutions, but progress has been slow. We continue to see weekly delays and missed picks due to the shortages of trucks. Loading FOB is the best option at this point. Otherwise, we will have to remain flexible on delivery dates as we navigate through these challenges.
Navel Oranges: Rain on the weekend and the first part of the week has keep growers from picking. Weather will be clearing mid week and picking will resume. This has really shorten availability on an already short product. The crop continues to peak on 72s/56s and the percentage of 113s/138s continue to be very slim in pack outs. Pack-outs remain clean with good color resulting in grade ratio of 80% to 85% of Fancy fruit, leaving very little choice fruit for the demand for of the choice grade. The market remains active on 88s/113s/138 both grades. We are looking at peaking on the larger sizes 72s/56 for the balance of the navel season. Small fruit will be in short supply all season long.
Grapes (Green) The imported green grape market has eased slightly and will continue to do so over the next few weeks. Supplies will continue to improve on both coasts throughout the month of January. Quality is reported as very good with sizing running from a medium to extra large.
re looking at peaking on the larger sizes 72s/56 for the balance of the navel season. Small fruit will be in short supply all season long.
Grapes (Red) The domestic red grape supply is just about done for the season. Imported Peruvian and Chilean grapes have been arriving with a wide range of sizing and varieties available, with the majority of product arriving on the East coast. Quality is reported as good to excellent, We expect to see the market ease down with increased volume arriving to the ports.
Tomatoes (Western) As Nogales continues to increase crossing from Mexico, Baja is finishing up for the season with the last of their fruit available this week. Eastern Mexico is continuing to contribute in a small way, but most all volume will be coming from Culiacan through AZ until California begins in Summer. Nearly all items have fallen by $5 or more this week with another dip forecasted next week helping to pull the market down as all areas produce more week over week. Mexico has also experienced their share of cool weather patterns slowing production but supply has continued to improve none the less. Warm weather in the immediate future will continue to help plants thrive and volume should continue to improve tremendously pending a catastrophic event.

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