August is a notoriously slow month for fresh produce.
Heat, the end of summer vacation, and the lack of holidays all contribute to weakened demand. The winding down of cherry season also causes our ProduceIQ index to decline at this time of year. For that reason, historical patterns indicate that overall prices will continue to decrease for another week.
Crude oil prices are $91/barrel, down from the $125 we reported in early March. And for the first time since March, the national average for a gallon of gas dipped below $4. Though news of lower energy costs is a glimmering hope for the entire fresh produce industry, experts are still skeptical whether the shimmering object just out of reach is a mirage or the real thing.
Several factors contribute to the rapid decrease in oil and gas/diesel prices. The primary cause being symptoms of recession.
ProduceIQ Index: $1.02 /pound, -12.1 percent over the prior week Week #32, ending August 12th
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.
Economic slowdowns usually decrease demand for petroleum products like gas, diesel, and jet fuel. Rising interest rates are anticipated to reduce inflation by slowing the economy; slowing inflation is good, but recession, however it’s defined, remains a risk.
Moreover, authorities warn that the global energy market is on a hair-trigger, and various factors, including hurricanes in the gulf, may likely set prices roaring again.
Thanks to lighter demand and, partly, to declining oil prices, overall produce market prices are finally back in the range of historical precedent. Maybe they just got too lonely up there in the clouds, or perhaps gravity just pulled them back to Earth? Regardless of the reason, we’d just like to say it’s nice to see some normalcy return to produce markets.
Leading the downhill charge, blueberry prices fell another -5 percent over the previous week. Averaging $16, there is a plentiful and promotable supply of blueberries across the U.S. Look out for local product availability out of the Pacific Northwest, New Jersey, California, Michigan, and more through Labor Day.
Blueberry prices revert to historical norms, disappointing growers
Down -13 percent over the previous week, Hass Avocados are stabilizing in a downward trend. Mexican growers are tightening export volume to the U.S. to regain market price control; however, Peruvian growers are taking no prisoners.
And growers may continue to send mountains of Peruvian Avocados despite passive-aggressive glances from their Northward primos. When under $40, many buyers will choose the Mexican varieties for consistent quality control, causing a wide discount on Peruvian product.
Peruvian avocados, 48ct, are trading at $26, a $12 or 32 percent discount to their Mexican counterpart
While a plethora of deals will be had this week, some commodities are still swimming hard and fast upstream.
Eggplant prices are continuing their historic climb. Average prices are nearing a ten-year high. On the West Coast, heat is tightening supply. And on the East Coast, growing regions are transitioning Northward, contributing to a leaner supply. Production supplies should strengthen as the East Coast picks up over the next two weeks, and prices may relax.
It is a fantastic time to be a strawberry grower, that is, if you actually have any left. Prices are up another +6 percent over the previous week to $16, a ten-year high. Because peak production ended a bit earlier than usual, there will be a larger than normal gap in supply. As a result, prices are forecasted to remain elevated well into the fall.
Strawberry prices have breakout potential
Lime prices are up +27 percent over the previous week. Rain in Mexico is making it difficult for growers to harvest. Seasonal weather, such as heat and humidity, is also causing quality issues and decreasing available supply. Relief is expected sometime in the next two weeks when the new crop should alleviate some of the pressure markets are experiencing.
Please visit Stores to learn more about our qualified group of suppliers, or our online marketplace, here and enjoy free access to our market tools which created the graphs above.
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.
August is a notoriously slow month for fresh produce.
Heat, the end of summer vacation, and the lack of holidays all contribute to weakened demand. The winding down of cherry season also causes our ProduceIQ index to decline at this time of year. For that reason, historical patterns indicate that overall prices will continue to decrease for another week.
Crude oil prices are $91/barrel, down from the $125 we reported in early March. And for the first time since March, the national average for a gallon of gas dipped below $4. Though news of lower energy costs is a glimmering hope for the entire fresh produce industry, experts are still skeptical whether the shimmering object just out of reach is a mirage or the real thing.
Several factors contribute to the rapid decrease in oil and gas/diesel prices. The primary cause being symptoms of recession.
ProduceIQ Index: $1.02 /pound, -12.1 percent over the prior week Week #32, ending August 12th
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.
Economic slowdowns usually decrease demand for petroleum products like gas, diesel, and jet fuel. Rising interest rates are anticipated to reduce inflation by slowing the economy; slowing inflation is good, but recession, however it’s defined, remains a risk.
Moreover, authorities warn that the global energy market is on a hair-trigger, and various factors, including hurricanes in the gulf, may likely set prices roaring again.
Thanks to lighter demand and, partly, to declining oil prices, overall produce market prices are finally back in the range of historical precedent. Maybe they just got too lonely up there in the clouds, or perhaps gravity just pulled them back to Earth? Regardless of the reason, we’d just like to say it’s nice to see some normalcy return to produce markets.
Leading the downhill charge, blueberry prices fell another -5 percent over the previous week. Averaging $16, there is a plentiful and promotable supply of blueberries across the U.S. Look out for local product availability out of the Pacific Northwest, New Jersey, California, Michigan, and more through Labor Day.
Blueberry prices revert to historical norms, disappointing growers
Down -13 percent over the previous week, Hass Avocados are stabilizing in a downward trend. Mexican growers are tightening export volume to the U.S. to regain market price control; however, Peruvian growers are taking no prisoners.
And growers may continue to send mountains of Peruvian Avocados despite passive-aggressive glances from their Northward primos. When under $40, many buyers will choose the Mexican varieties for consistent quality control, causing a wide discount on Peruvian product.
Peruvian avocados, 48ct, are trading at $26, a $12 or 32 percent discount to their Mexican counterpart
While a plethora of deals will be had this week, some commodities are still swimming hard and fast upstream.
Eggplant prices are continuing their historic climb. Average prices are nearing a ten-year high. On the West Coast, heat is tightening supply. And on the East Coast, growing regions are transitioning Northward, contributing to a leaner supply. Production supplies should strengthen as the East Coast picks up over the next two weeks, and prices may relax.
It is a fantastic time to be a strawberry grower, that is, if you actually have any left. Prices are up another +6 percent over the previous week to $16, a ten-year high. Because peak production ended a bit earlier than usual, there will be a larger than normal gap in supply. As a result, prices are forecasted to remain elevated well into the fall.
Strawberry prices have breakout potential
Lime prices are up +27 percent over the previous week. Rain in Mexico is making it difficult for growers to harvest. Seasonal weather, such as heat and humidity, is also causing quality issues and decreasing available supply. Relief is expected sometime in the next two weeks when the new crop should alleviate some of the pressure markets are experiencing.
Please visit Stores to learn more about our qualified group of suppliers, or our online marketplace, here and enjoy free access to our market tools which created the graphs above.
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.
Mark Campbell was introduced to the fresh produce industry as a lender for Farm Credit. After earning his MBA from Columbia Business School, he spent seven years as CFO for J&J Family of Farms and later served as CFO advisor to several produce growers, shippers and distributors. In this role, Mark saw the impediments that prevent produce growers and buyers to trade with greater access and efficiency. This led him to cofound ProduceIQ.
