ProduceIQ: Prices rebound as back-to-school demand meets tropical threats

Summer might be winding down, but produce markets aren’t ready to quietly go back-to-school.

Supplies are tightening, and volatility prevails as domestic production begins to transition once again. Let’s look at what’s moving and shaking this week.

The Atlantic Basin is beginning to stir. Forecasters are monitoring three areas of interest that could develop into tropical systems in the coming week. A tropical wave off the coast of Africa this weekend is strengthening and moving westward. It will draw significant attention as it moves across the Atlantic because of its potential to develop into a major hurricane. 

ProduceIQ Index:  $1.04/pound, +4 percent over prior week  

Week #32, ending Aug 8^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.

Here’s the latest on produce prices:

Asparagus markets have been on a wild ride this summer, swinging from extreme highs to near record lows, and now back to all-time highs. Average prices are sitting well above the ten-year mark, and the climb might not be over yet. Unseasonably cool weather in Peru and a mix of rain and heat in Mexico are tightening supply and driving prices higher. Demand currently exceeds supply, a dynamic that could persist through the rest of August.

Asparagus prices for the big sizes shoot past $48

Potato prices remain low and uncertain as Northwest production ramps up. Sizing is running on the smaller side for now but is expected to improve in the next two weeks as more growers enter the market.

Russet prices are only quoted for the smaller sizes (lacking size A), and just getting off the floor

Following typical week #31 patterns, lime prices increased by +22 percent over the past week. Mexican yields are slipping, and robust demand is amplifying the upward pressure. Both old and new crops are still available, though smaller fruit is easier to find. As the old crop winds down in the coming weeks, prices are expected to continue rising due to reduced supply.

Lime prices, 175ct crossing Texas, begin the early ascent

Pineapple prices remain stubbornly high as poor weather in Costa Rica and newly imposed tariffs keep the market. For three consecutive years, prices have stayed above the historical average, raising the question of whether this is the new normal. Consistent with seasonal trends, prices are expected to increase through August before easing in September.

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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 the USDA’s Agricultural Marketing Service for movement and price data. The Index serves as a fair benchmark for industry price performance.