It seems as though members of congress are trying to ensure their place on Santa’s nice list. The rail strike that was set to begin December 9th was thwarted thanks to a law allowing legislators to regulate labor relations concerning railroads and airlines.
Although the members of the four unions that did not agree to the terms and conditions put forth by the railway companies may not be fans of the decision to intervene, consumers are undoubtedly grateful to avoid dramatic price increases amid the holiday madness.
ProduceIQ Index:? $1.30 /pound, up -0.8 percent over prior week
(Week #48, ending December 2nd)
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.
At $1.30, the overall market index is +9 percent higher for week 48 than in any prior year.
Sky-high strawberry prices declined, -5 percent for the first time in ten weeks. Strawberry markets typically peak during the early months of December and descend steadily as California winds down and Mexico/Florida picks up production. This year has seen abnormally high prices for an extended period due to an early end to the summer season.
When a commodity reaches extremely high price points during a transition, prices tend to fall rapidly as the next crop begins to harvest. Buyers often have the patience to slow down orders while anticipating that a new crop’s harvest will ramp up.
Unfortunately for strawberry buyers, heavy rain in Santa Maria/Oxnard, CA, growing regions delayed harvest over the weekend. Growers are still assessing potential rain damage. Prices may hold this week before continuing their decline. A silver lining, in a state plagued by severe drought, heavy rain at least contributes to the long-term health of California’s growing regions.
Strawberry prices reached record highs, exceeding 2015 for this time of year.
Chilean cherry export season is ramping up, and prices are responding. Although prices started on the higher end of the historical spectrum due to inflation, Chilean cherry growers are making a notable effort to satiate the American appetite for cherries in the off-season with ample volume.
A steady increase in year-over-year production is forecasted to continue this winter. Growers reported promising climatic conditions in the early fall that should result in optimal yields and quality.
Cherry prices descend as the volume of supply accelerates.
Melon prices, mainly cantaloupe and honeydew, are spiking due to a temporary gap in supply. This time of year, domestic and Mexican production winds down, and growing regions shift to central America, forcing melon prices upward.
Honeydew prices are up +45 percent, and cantaloupe +28 percent over the previous week. This week’s price increases are a little more dramatic than usual because the domestic season ended before Guatemala could get into the swing of things. Markets will continue to tighten, but with less intensity, as more product from Guatemala comes online.
Cantaloupe prices are volatile during the transition to imported melons.
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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.
