ProduceIQ: Polo, pests, and prices keep markets hot

Hurricane Polo is giving Mexican growers one more thing to worry about as September comes to a close. The storm exploded from a tropical storm to a Category 5 hurricane in about 24 hours last week, reaching 180 mph and becoming one of the fastest-intensifying storms on record in the Eastern Pacific.

Now, Polo is bearing down on Baja California Sur as a major hurricane, adding another layer of pressure to Mexican-grown commodities. Tomatoes, cucumbers, asparagus, avocados and limes could all feel the effects of heavy rain and high winds, while grape-type tomatoes are already sitting at a ten-year high.

ProduceIQ Index:  $1.28/pound, down -0.8 percent over prior week

Week #39, ending Sep 25^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.

Hurricane Polo strikes at a tough time for grape-type tomato buyers. Four to 12 inches of rain are forecast across large parts of Baja California and Sonora over the next 48 hours, with winds up to 115 mph in Baja California Sur.

Average grape-type tomato prices are at a ten-year high and will likely surge further over the next few weeks as growers grapple with the fallout.

Storm Clouds Gather Over Grape-Type Tomatoes

Strawberry prices fall below average for the first time in eight weeks. Average prices are down -28 percent over the previous week as more favorable growing conditions in California spur a late-season surge in supply. Unfortunately for buyers, the improvement will likely be short-lived.

Strawberry Buyers Catch a Break

Disease and insect pressure maintain an iron grip on iceberg markets. Average prices are up +30 percent over the previous week, putting Week #39 at a ten-year high by a significant margin. Tight supply is forecast to linger through the first couple of weeks of October. Hopefully, buyers don’t get another fall-of-2022 situation.

Bugs Keep Iceberg Prices Climbing

Speaking of records, asparagus prices extend their streak for a 12th straight week. Peruvian supply remains very low in Week #39, and Hurricane Polo will likely delay production in Baja California Sur. With any luck, the transition to new fields could provide some relief in October. For now, suppliers are forecasting limited volume and elevated prices through November.

Asparagus Record Streak Rolls On

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.