After a one-year hiatus due to the coronavirus pandemic, the Organic Produce Summit drew a surprisingly large turnout in Monterey, California. A fitting end to a demanding summer season.
Growing regions are pushing further south in search of warmer temperatures as summer wears off and fall begins to set in over much of the Americas.
Overall, agricultural commodity markets continue with high prices causing the ProduceIQ index to hit a 10-year high for week # 37. The short-term lack of supply is expected to cause prices to persist for a few weeks.
ProduceIQ Index: $ 1.14 / lb, + 1.8% from the previous week
Week # 37, ending September 17
Blue Book has partnered with ProduceIQ BB #: 368175 to bring the ProduceIQ Index to its readers. The index provides a benchmark of commodity industry prices using 40 major commodities to provide data for decision making.
Cucumbers are in transition, causing market risks that would scare Evel Knievel. Mexican production on the ground will start to cross in two weeks. Western markets often experience a shortage of supply in September, leaving domestic markets dependent on producers in the east to meet demand.
In the east, scattered growing regions are now consolidating in South Georgia for its growing season in early fall.
Cucumber prices may increase until Mexico begins harvesting in early October.
Up + 4 percent to over $ 30 / case, asparagus prices are close to their highest level in a decade. The Mexican and Peruvian markets are in transition and inclement weather is hampering Peruvian logistics efforts. As a result, expect markets to remain tight as supply picks up.
Hot weather is taking its toll on the broccoli supply. Price increases in September are typical of broccoli markets. However, the current demand exceeds the supply is greater than usual.
Prices are up + 17% from the previous week and are expected to continue to climb as yields from California growers decline and Mexican supplies remain difficult.
The category of berries is mixed. Strawberries fall by -27% while blueberries increase by + 25% to reach their highest price of week # 37 in ten years. Blueberry prices typically see increases in September and October due to an annual supply gap.
Volume from Peru and Mexico is expected to increase over the next 7-10 days and bring some relief to strained suppliers.
Blueberries continue to rise in price and enter a period of volatility.
Washington and Oregon’s blueberry harvest is shrinking, creating a supply gap.
For the third week in a row, there is little relief for avocado buyers. Prices remain high, exceeding $ 45 per case, in the face of late harvests. However, the transition to the new culture will bring some breathing space to competitive Hass markets.
Lettuce prices continue to rise as harvests decline in California and move from southern to Arizona. Iceberg has jumped to over $ 18 per case and has upside potential. Romaine is slightly A-HEAD of the iceberg at $ 19 and is also poised to raise further. Expect the offer to stay comfortable until the annual fall transition hits in October.
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The ProduceIQ Index is the fresh produce industry’s only point-of-shipment price index. It represents the industry-wide price per pound at the packing location for domestic products and at the United States port of entry for imported products.
ProduceIQ uses 40 commodities to represent the industry. The Index dynamically weights each commodity, by season, based on 5-year weekly moving average sales. Sales are calculated using the USDA Agricultural Marketing Service for movement and price data. The index serves as a fair benchmark for the price performance of the industry.