ProduceIQ: It’s open… it’s closed… and produce markets feel it

It’s open! It’s closed! It’s open! Just kidding, definitely…maybe? Mostly closed. The Strait of Hormuz has become an interminable merry-go-round, and we’d all like to get off. 

In the meantime, higher-than-average oil prices will continue to raise prices and suppress demand as customers tighten spending to offset high energy costs.

As the industry strides into Spring, promises of summer and a plentiful domestic supply are approaching quickly. For now, if warm-weather consumer demand withers under the weight of the conflict or shakes off the disruption like a bad dream, it remains to be seen.

A silver lining: warm weather brings many local producers into the market, a welcome reprieve from high shipping costs.

ProduceIQ Index:  $1.42/pound, up +1.43 percent over prior week

Week #16, ending April 17^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.

It’s that time of year again. Birds are chirping in the trees, the smell of barbecue is wafting over the backyard fence, and watermelon prices are plummeting at your local grocer. 

On cue, increasing Mexican production is driving prices down. In line with seasonal trends for week #16, average prices are declining. Florida production has yet to begin, but is expected to start in a few weeks.

Watermelon

While melon markets ease, supply is tightening in the wet vegetable market. A supply gap is forming in the cauliflower and broccoli markets. Average cauliflower prices are up +59 percent, and broccoli prices are up +39 percent week-over-week. High heat in Yuma brought the growing season to an early end, and rain and cooler temps in California are now delaying production. Prices for both commodities are well above average for week #16 but still shy of record-breaking territory. California growers are still 2-3 weeks out.

Cauliflower

Pressure intensifies in leafy items. Volatility grips iceberg markets. Average prices are up +82 percent week over week. Like cauliflower and broccoli, Yuma’s early end and California’s wet start are throwing a wrench into the cogs of Spring transition. Inclement weather is increasing insect pressure and creating moisture-related quality issues. Expect shortened shelf life and elevated prices for the next 2-3 weeks.

Iceberg

Meanwhile, squash prices rise dramatically, up +50 percent week-over-week. Still, average prices remain slightly below average for week #16. Reported volume out of Mexico and Florida is below average, and relief from growers in Georgia and California is still 2-3 weeks out. Prices will likely rise further.

Yellow Squash

Spring transition isn’t done with us yet.

ProduceIQ saves you time and provides valuable information to increase your profits.

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.