ProduceIQ: Memorial Day markets heat up as romaine, peppers surge

We just passed Memorial Day, summer’s soft launch, and produce markets are telling a familiar story.

Week #21 index prices remain near average, as declining tomato and wet-veg supplies offset pressure elsewhere. As we enjoyed extra time with family and friends, let us also remember those who made the ultimate sacrifice for our country.

ProduceIQ Index:  $1.18/pound, down +0.85 percent over prior week

Week #21, ending May 22^nd  

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.

Here’s what buyers and suppliers should be watching this week.

Avocado prices continue climbing as growers pull back supply. Growers are postponing harvests in hopes of capitalizing on stronger late-season pricing. California growers are working to fill the gap, but markets will likely remain elevated until supplies from Peru and Colombia increase and Mexico transitions to its new crop in July.

Hass Avocado

Strong demand and low yields push romaine prices to new heights. At $60, romaine prices are shattering previous week #21 records. Persistent disease pressure and unfavorable weather will likely keep markets elevated for at least the next few weeks.

Romaine

Bell pepper markets are mirroring romaine, with prices sitting at a ten-year high. A sizeable gap has formed in the East as South Florida production fizzles and Georgia lags. Western growing regions are also caught in a seasonal transition. Prices will likely remain elevated for at least two more weeks.

Green Bell Pepper

Bean prices are in free fall. Average bean prices are down -43 percent over the previous week. Although Florida volume is nearly finished, increasing supply from South Georgia is pushing week #21 prices back in line with historical norms. Prices will likely ease slightly over the next two weeks before climbing again through the latter half of June.

Green Beans

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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.