ProduceIQ: Heat is on as cherries say goodbye

An expanding heat dome is the weather story to watch as temperatures climb across the western and central U.S.

Although the current heat isn’t expected to dramatically disrupt produce supplies, prolonged extreme temperatures could begin affecting several crops later this month.

ProduceIQ Index:  $1.31/pound, up +3.2 percent over prior week

Week #28, ending July 10^th  

Blue Book has teamed with ProduceIQ BB #:368175 to bring the ProduceIQ Index to its readers. The index provides a produce industry price benchmark using 40 top commodities to provide data for decision making.

The seasonal transition is well underway as cherry season winds down earlier than usual, tomato supplies continue to improve, and weather-related production issues keep pressure on asparagus prices upward.

The first sign of that seasonal transition is cherries. Cherry season is wrapping up earlier than anyone would like, but not earlier than anticipated. Average cherry prices are up +28 percent over the previous week. Reported Washington volume is roughly half of week #28 levels from last year. Michigan supply is lower due to late spring cold snaps. Supply will likely taper off steadily over the coming weeks.

Cherries move higher despite historical trends

As cherries fade, tomato supplies are gaining momentum. Prices for round, grape, and plum tomatoes are all down from the previous week. Round and plum tomato prices are near or below average for week #28. Grape tomatoes remain well above average but are expected to decline steadily in the coming weeks.

California’s tomato crop bears watching as prolonged triple-digit temperatures can accelerate ripening, increase sunscald, and reduce fruit set. While a short-lived heat wave isn’t expected to significantly tighten supplies, an extended stretch of extreme heat could begin affecting quality and lend additional support to tomato prices later this month.

Tomato prices float along at the upper end of historical summer norms

Post Independence Day pull, average round green bean prices are down to $12. Following the typical seasonal pattern for week #28, prices are falling with lighter summer demand. Price trends typically reverse in the next 2 weeks.

Bean prices fall, making for summer bargains

Tight asparagus supplies continue to support 10-year high prices. Average asparagus prices are up +9 percent over the previous week and will likely climb higher in the coming weeks. Inclement weather in Mexico and Peru is tightening supply and forcing prices to record highs. This summer’s grass prices are sure to be one for the record books.

Asparagus prices take off, ignoring historical trends

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ProduceIQ Index

The ProduceIQ Index is the fresh produce industry’s only shipping point price index. It represents the industry-wide price per pound at the location of packing for domestic produce and at the port of U.S. entry for imported produce. 

ProduceIQ uses 40 top commodities to represent the industry. The Index weights each commodity dynamically, by season, as a function of the weekly 5-year rolling average Sales. Sales are calculated using USDA Agricultural Marketing Service data on movement and prices. The Index serves as a fair benchmark for industry price performance.