ProduceIQ: Produce markets could use a post-Halloween sugar crash

We’re sure buyers wish produce markets would have a post-Halloween sugar crash. ProduceIQ Week #44 index prices are at a ten-year high by a significant margin.

Meanwhile, a Pineapple Express is bringing heavy rain to parts of the West, just another Monday for weather-weary Western growers.

In Mexico, protests and road blockades are disrupting the flow of avocados and other commodities into the U.S.

ProduceIQ Index:  $1.47/pound, up +4 percent over prior week

Week #44, ending Oct 30^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.

The effects are showing up across this week’s markets: avocado prices are climbing, strawberries are facing another round of weather-related supply pressure, and limes remain near a ten-year high. Even raspberries are joining the party after weeks of relative affordability.

Protests in Mexico drove avocado prices up +9 percent over the previous week. Although truck drivers have resumed operations following the protests, small avocado growers in Michoacán have not. Production is expected to resume this week, but the ramp-up could be slow. After an extended period of significantly reduced volume from Mexico, supplies are expected to remain tight, and markets could take a couple of weeks to stabilize.

Avocado Prices Climb as Mexico’s Protests Disrupt Supply

Declining production in Santa Maria, California, and rainy weather are adding fresh volatility to strawberry markets. Average prices are up +27 percent over the previous week, barely edging out last year’s Week #44 prices to reach a ten-year high. Unfortunately for buyers, growing conditions and supplies are not expected to improve meaningfully throughout November.

Strawberry Markets Face Another Weather Setback

Lime prices remain near a ten-year high as weather conditions contribute to supply and sizing issues. Suppliers are optimistic, however, that relief is near. Volume is expected to improve steadily as we move into November.

Lime Prices Remain Near a Ten-Year High

After weeks of consistently affordable markets, raspberry prices jumped +19 percent over the previous week. Rain-related quality issues have tightened supplies. More favorable growing conditions, however, are expected to increase production in Mexico throughout November.

Raspberry Prices Jump After Weeks of Bargains

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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.