ProduceIQ: Lettuce, avocados ease while melons soar ahead of Fourth of July

The first widespread heat dome of the summer arrives just as Fourth of July demand kicks into high gear. As temperatures climb so too will shoppers’ appetite for salads, fruit platters and guacamole.

Fortunately for buyers, the volume of lettuce and avocados is improving in time for increased demand. Melons, on the other hand, seem determined to test holiday budgets, putting a premium on this year’s fruit salad.

Per usual, the holiday produce basket is shaping up to be a mix of bargains and budget busters.

ProduceIQ Index:  $1.12/pound, down -8 percent over prior week

Week #26, ending June 26^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.

Lettuce prices soften. Iceberg prices are down -30 percent and romaine -40 percent over the previous week. Supplies continue to build out of the Salinas/Watsonville growing region, pushing prices lower. Even after this week’s declines, average prices remain at a ten-year high. Favorable growing conditions and decreasing disease pressure should continue easing prices through July.

Iceberg

Honeydew prices rise rapidly, up +50 percent week over week. The end of the offshore season, Arizona’s early demise, and a delayed start for Central California have left buyers scrambling for limited supplies. Budget-conscious shoppers may want to skip the melon salad at this year’s Fourth of July barbecue.

Honeydew

Honeydew’s spray-tanned cousin is in an even more dire supply situation. With offshore and desert production now winding down, buyers are anxiously awaiting Central California to fill the gap. Harvest is expected to begin this week, but meaningful volume will not arrive until after the Fourth of July. Average cantaloupe prices have climbed to a ten-year high by a substantial margin.

Cantaloupe

Avocado prices decline as the Flor Loca crop kicks off in Mexico. Suppliers enjoyed a few weeks of above-average pricing, but it seems that was meant to be short-lived. There is still quite a bit of the Negra crop left in the pipeline. As a result, average Hass prices are ripe for promotion this Fourth of July. For shoppers planning a holiday cookout, guacamole may be one of the few menu items getting cheaper.

Hass Avocados

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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.