Yesterday, President Trump was inaugurated as the nation’s 47th president in an unprecedented ceremony forced indoors by a polar vortex. Temperatures plummeted into the teens in Washington, D.C., making this the first time since Ronald Reagan’s 1985 inauguration that a swearing-in ceremony moved indoors. While the nation celebrated this historic event, growers in the Southeast braced for their battle against the bitter cold as the polar vortex aimed its icy grip southward.
A frigid chill runs through strawberry supply, upping prices that are lower than average. Although average strawberry prices are up +26 percent due to a series of cold fronts and transition in growing regions, the $16 price point is still a ‘buy’. Strawberries can be helped by a few extra chill hours during the plant’s growing cycle.
ProduceIQ Index: $1.26/pound, + up 0.8 percent over prior week
Week #3, ending January 17th
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.
This week, another polar vortex is forecasted to blast growers in the Southeast with bitter-cold temperatures. The freeze line will likely reach into the Florida panhandle. Despite this week’s weather forecast, supply will likely cover demand, and prices may even decrease over the next few weeks as more growers come online.
Strawberry prices rise yet remain a bargain for January.
Meanwhile, pineapple prices are caught in the crosshairs of a different challenge: Central America’s historic drought. Costa Rica, a key supplier, is grappling with reduced yields, while drought conditions are constraining vessel crossings through the Panama Canal. Average pineapple prices climbed +10% over the past week and are expected to rise further, with no significant supply relief anticipated until March.
Pineapple prices may spike, like in 2020.
Squash markets regain momentum. Average prices are up +29 percent over the previous week due to chilly temperatures in Eastern and Western growing areas. While prices are moderate compared to the historical average for week #3, the second bout of cold weather forecasted for this week in Florida will only further strain supply.
Zucchini prices rise as is typical for early January and may continue due to the arctic blast.
On a brighter note, for sports fans, avocado markets are racing against the clock to fill a supply gap ahead of the Super Bowl. Import volumes have increased significantly, but a sizeable shortfall remains. Average prices have risen +3% over the past week and may edge up slightly more as suppliers push to meet the game-day demand.
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ProduceIQ is an online toolset designed to improve the produce trading process for buyers and suppliers. We save you time, expand your opportunities, and provide valuable information to increase your profits.
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.
