The tropics are heating up, with a strong likelihood that PTC 6 will develop into a tropical storm or hurricane later this week. Heavy rainfall is anticipated for parts of the Gulf Coast, including Mexico, Texas, and Louisiana.
ProduceIQ Index: $1.31/pound, up +4.8 percentover prior week
Week #36, ending September 6th
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.
Meanwhile, on land, fall produce is taking center stage. Sweet potatoes and pumpkins, the quintessential symbols of autumn, are making appearances everywhere—from your local coffee shop’s menu to the front displays of grocery stores.
Sweet potato supply remains solid, with North Carolina nearing the end of its production season and California stepping in by week #40 to meet demand.
Sweet potato prices are falling during fall harvest.
The outlook for pumpkins, however, is more uncertain. Although not tracked by the ProduceIQ index, severe droughts across the Midwest, particularly in Illinois and Ohio, could lead to reduced yields and higher prices. On the flip side, the dry conditions may benefit the crop’s shelf life and overall appearance.
In the citrus market, orange supplies are dwindling as Southern California winds down its Valencia production. Chilean growers will attempt to fill the gap before Navel oranges become available in late October, but record-high prices will likely persist.
Valencia prices decline, yet remain in record high territory.
Grapefruit is facing its own challenges, with prices averaging $29—the highest in a decade. Extreme heat in Southern California has led to an early end to the production season, causing tight supply and high prices through late October.
Mango prices have also surged, climbing +37 percent over the previous week, reaching $6 due to tightening supply from South America. With Mexican production tapering off, the market will remain elevated through December.
Mango prices ascend into a volatile time of year.
This season’s combination of inclement weather events and strong demand may lead to higher prices and limited availability for several key produce items.
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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.
