Winter produce markets shake off the last of the effects from fall and summer’s inclement weather.
Week #49 is experiencing major price decreases in several commodities we’ve covered in the past few weeks. For example, lettuce, squash, and beans. However, the decreases are not enough to tip the scale on average index prices.
ProduceIQ Index: $1.37/pound, flat over prior week
Week #49, ending December 6th
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Carrots’ annual transition to Bakersfield, CA, is wrought with uncertainty this holiday season. Prices are higher than a Rockette kick line and likely won’t come down until January. The record heat wave that kept Californians basking poolside into the early fall this year is coming back to haunt produce markets.
The Bakersfield region experienced extreme heat over two months during the planting and early growth stages. These high temperatures negatively affected crop growth and early development, leading to reduced yields and smaller-sized carrots.
In Southern Georgia, Hurricane Helene disrupted normal planting schedules. This caused nearly two months of delays. Although the region has started limited production from the fields that survived, the harvest is yielding smaller-sized carrots and lighter volumes. Growers in both areas hope that production will stabilize in the coming weeks as new fields become ready for harvest.
Carrot prices in the West, $27, 50lb Jumbo, are approaching last year’s record.
Sweet corn supply in the East is very tight due to cooler weather and reduced production in Florida. In the West, the transition is underway, but supplies are scarce. However, conditions are expected to improve by as early as next week. Quality is average to poor, with some insect damage and moderate demand.
Corn volatility is expected due to planting skips and inclement weather.
On top of the fallout from summer and fall’s hurricane damage, eastern tomato availability is even more restricted due to a series of cold fronts in the Southeast. Out West, the transition is progressing, but supplies are still tight.
That said, improvements in Western supply are expected as soon as next week, with markets already seeing a decline in the price of plum-type tomatoes. Product quality is moderate, while demand remains strong but manageable. Eastern supply will likely remain on the lower end of the spectrum through January.
Plum (Roma) Tomato prices in the East fall to $22 yet remain volatile through December.
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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.
