Newsletter 3/21/18

Lettuce
​​The market has begun to ease with light demand being the overriding factor influencing the market. Intermittent late season Nor’easter continues to hamper the East coast. Cool, wet weather in North California transitional production areas has delayed the start of the season which has kept overall supplies moderate. Quality remains sporadic with mostly fair condition. Blister and Peel will be evident through the remainder of the month. Expect to see variations in quality, availability and price as we near transition to Northern California production areas.
Mix Leaf
​Romaine and Heart demand continue strong while supplies remain moderate. Warmer weather in the desert has helped supplies rebound although transitional production areas have been delayed by cool, wet weather in the North keeping pressure to maintain elevated FOBs. A few shippers have begun harvesting in Northern California although most are expected to continue through the end of the month in the desert. This delay will avoid an overlap and ensure a smooth transition.Quality continues to vary with wide ranging color, texture and moderate to heavy Epidermal peel. Expect blister to be evident for the balance of the desert. The Green leaf and Red leaf markets continue steady with moderate demand . Expect to see variations in quality, availability and price through the transition to Northern California production areas.
Brussels Sprouts
Production mostly from Mexico and Southern California​ continues with steady supplies. Temperatures have cooled in most of the production areas. The market has firmed with few volume deals available. Demand has begun to surge for Easter promotions. Quality​ continues to be mostly very good.
Celery
Supplies are dropping in Oxnard as a result of heavy rains in southern California. Yuma is still producing but the best deals remain in Oxnard. Product is tightening up this week due to limited harvests, and we are seeing markets improve in the short term as long as rain is still in the forecast. Quality is good with no serious problems to report.
Strawberries
Santa Maria and Oxnard are forecasted for 3 to 4 inches of rain between Tuesday and Thursday. Strawberry supplies will be extremely limited.  Evacuation notices are being implemented on burn areas around the state. If the rain is as severe as expected, it will cause immediate as well as long-term shortages to supply and directly impact quality. Shippers in Oxnard and Santa Maria are expecting to be out of harvest Wednesday, Thursday and possibly Friday. This will obviously have a severe impact on availability through the weekend and into next week. Given the severity of the rain, we can expect the prolong effect to last over the next 2 weeks as shippers slowly recover from the rain damage. Quality will also be affected. We can expect to see soft wet fruit, bruising and possibly occasional decay. Unfortunately, this will be the case until we can move past this weather, strip the fields of bad fruit and allow the new cycle of growth to reach maturity. Additionally, Florida production is nearing the end and Mexico will have very little fruit to help back fill demand. As a whole, we are expecting availability and quality to be a persistent challenge over the next 2-3 weeks. Markets jumped up in the front part of the week and we expect to see higher prices throughout the shortage.
Blackberries
Central Mexico production is finally starting to increase into the Spring Peak. Transfers continue to be the challenge with Mexican holidays affecting border crossings, but supplies are improving. Quality is much better than the past several weeks and flavor is really starting to improve with the new varieties. California production will continue to be delayed by the cooler, wet weather. We expect domestic harvest to start mid-April. Georgia is expected to start by May. Market prices have stayed steady.
Raspberries
Supplies will continue to be tight in McAllen and Oxnard. The heavy rain and cold weather in California will further delay new harvest from starting in Oxnard, Santa Maria, and Watsonville. We will continue to rely on Mexican production as the main source for raspberries. We do not expect to see any major disruption in availability, but we will continue to see light supplies. Quality has been consistent and good. Market prices have been high but have remained steady over the last week. This will be the case until domestic harvest begins by mid-April.
Blueberries
Product availability will continue to vary day to day. Chilean arrivals are expected to stop by next week. Mexico is over their peak and is gradually declining. Baja, California, and Florida will slowly ramp up over the next several weeks. Availability is expected to become limited for the next two weeks as we transition production areas, then we will recover quickly by mid-April. Pint availability will be minimal during this time. Georgia production is expected to start in the next 4 weeks and we will look to promote in this area. Quality has been okay, with some instances of small and soft fruit from Chile. Market prices have been increasing on the Mexican harvest as the quality is stronger and supplies are more limited. Chilean fruit is being offered as lower costs to move through the last of the arrivals. We expect to see a jump in prices as we transition into domestic harvest over the next couple weeks, then gradually taper off.
Broccoli
Market is back to the bottom. Shippers looking for business out of all California shipping points and Mexico continues to cross product into Texas. The rains in California will slow down harvest but not enough to create any upswing with prices. As fields dry up next week there will be lots of product available. Look for markets to remain depressed for the remainder of the month. Pay attention to quality as California product could start to show some water spotting. We will have good supplies of our Shui Ling crowns next week loading in Pharr, TX and weather has been perfect creating a very nice crown. This may be the spot you want to load out of over the next couple of weeks if you are looking for better quality.
Cauliflower
Prices have been bouncing around all week but it seems as though they have caught at current pricing which is in the mid teens. For the most part the shippers in the Imperial Valley have finished leaving Yuma, Santa Maria and Salinas as the primary shipping points. The aggressive pricing has been in Santa Maria and Salinas as shippers try to get truck traffic up their way. Quality has been fair, some yellow cast and soft shoulder seem to be the norm.
Asparagus
Production continues mostly from Mexico with limited production from Northern California. As expected cooler weather has slowed production and the market spiked. Expect the market to remain firm with heavy demand for Easter.
Organic supplies are expected to be light with limited Domestic acreage. Quality has been excellent.
Artichokes
Production of the heirloom artichoke is starting to ramp up and expected to peak in early April. Frost “kissed” artichokes are expected to be present for another couple weeks. Once the plants “clean” up expect the market to rise sharply. Take advantage of the substantially superior variety while supplies last. Moderate supplies of the “thornless” varieties are available also showing light to moderate frost damage.
Green Onions
Production from Mexico is expected to be steady. The market for iced firmed slightly while the ice less demand has been better. Quality has been slowly improving.
Oranges
Rains are limiting harvests this week and creating shortage in supply in the central valley of California. We do not expect more harvests until the weekend, which will most likely put more pressure on Mexican product. Quality is very nice out of California and Mexico, with very few quality problems to report this season.
Cantaloupes
The market improved this week in spite of continued ample supply and winter storms hitting the Northeast once again. Demand was surprisingly brisk, perhaps in response to day light savings time and the aura of impending spring.  Sizing skewed much larger this week, peaking on jbo and regular 9s. 12s and smaller were practically too few to quote. Quality remained good. Next week supplies should be about the same, and sizes look to skew large once again. It is late March so we expect the winter weather events that have hit various parts of the country should diminish, which could spur demand. We look for a firm to possibly slightly higher market next week with smaller sizes continuing to be in short supply.
Honeydews
 Honeydew pricing remained firm this week. Mexican production stumbled a bit, off shore production kept its robust pace. Sizes, like cantaloupes, skewed toward 5s with ample 6s and virtually nothing smaller, except from Mexico. Next week Mexican production should continue to be modest, as the deal is winding down. Off shore supplies look to continue to be ample with sizes running primarily 5s count then 6 count. Demand could be aided by a waning of winter weather and the anticipation of spring. We look for a firm market next week.
Organic Items
OG Broccoli & Cauliflower
Cauliflower Production continues to transition North with very limited supplies in the desert with the majority coming from Northern production areas where cool wet weather has limited production. Supplies should start to rebound with improved weather next week.
Broccoli   production has also started to transition North with better
supplies anticipated. Quality has been improving but possible water spotting  from Coastal California production areas where heavy rain is forecast for a few more days.
OG Herbs & Bunch Greens
Most Herbs and Bunching Greens have maintained good production although transition North is expect to bring some volatility to supplies. The market is expected to strengthen with improved demand.
OG Leaf and Iceberg Lettuce
Leaf, Iceberg  as well as Romaine  supplies  are beginning to ease with transition to the cooler Northern part of the state which will lengthen the transition and keep supplies light though early April. Expect  variable quality and supply. with blister and epidermal peel to be evident through the remainder of the desert season.
OG Citrus
Lemons: The market continues strong with good demand. Production from Southern California has improved but much needed wet weather will impact harvest this week. The crop has been good quality with mostly moderate sizing profile.   The market is expected to remain strong through the month.
Oranges :  Limited supplies of Navel’s are still available and the Valencia’s have been slowly increasing with moderate sugar content and limited sizing profile. This weeks rain will temporarily slow production but will have a positive impact on quality and sizing profiles.  Demand continues strong.
Limes: Quality was showing signs of improvement from Mexico and the market continues strong​.​ California production is still a few weeks away.
Grapefruit:  Supplies have been steady with good quality and demand keeping prices elevated. Rain will temporarily slow production
Mandarins: Clementine production has improved with good quality and strong demand. Tangos are currently running heavy with Golden Nuggets and Pixies ready to start with very limited availability expected.
OG Root Vegetables
Carrot ​Production will slow with the cooler weather and advance notice is required with current heavy demand.
Potato supplies continue to be steady from the Northwest Rocky Mountain region. Onion demand has been very good with strong and steady pricing expected to continue.
OG Avocados
Mexico: Production from Mexico has been steady with strong pricing. Light supplies from Peru have started with good demand.
California: New Crop Hass have started with good demand and elevated pricing compared to imports and other varieties. Wet weather will slow production but should not impact quality.
OG Melons
​ OG Watermelons  Supplies on seedless are steady.  Quality has been good from Southern Mexico. Availability has improved and the market is good from Nogales and Texas.  Mini seedless ​supplies have slowed ​temporarily.
OG Cantaloupes and Honeydews production from  East coast offshore fruit now available with improving sizing profile.
OG Grapes
Green & Red : Offshore fruit from Peru is available on the East and West coast although supplies are expected to lighten by the end of the month.

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