Cold weather doomsayers do not disappoint
ProduceIQ Index:? $1.32/pound, down -3.65 percent over prior week
Week #2, ending January 12th
We didn’t intend for last week’s headline to become a self-fulfilling prophecy. Let’s agree to blame El Nino, okay? Jack Frost blasts wintery weather across the continent, plunging much of the US into below-freezing temperatures, out with the salads and in with the soups. Extreme cold can reduce fresh produce demand in northern cities as the public hunkers down in their homes.
Winter storms are making the transportation of fresh produce treacherous, with widespread reports of heavy ice and whiteout conditions. Over the weekend, the wind chill sunk below zero as far South as Dallas, TX. The silver lining, some NFL teams still made it through their Wild Card playoff game. Dolphins head coach Mike McDaniel looked a little cold, though.
Overall produce prices are down -4 percent over the previous week. Decreasing stone fruit prices and a slight dip in blackberry, blueberry, and strawberry markets are helping the ProduceIQ index chill out a bit. Average prices are still at an all-time high for week #2 (more than 10 percent higher than any prior year).
This is the most widespread blast of arctic air the US has seen since the infamous cold snap that socked Texans in February 2021. It’s like Mother Nature found a BOGO coupon for Freon and is making use of her ample supply. Fortunately, the effects, although forecasted to be extensive, shouldn’t be as devastating as that particularly catastrophic weather event for the general public.
For fresh produce, however, this week’s weather will undoubtedly have a chilling effect on struggling supply. Endangered commodities range from Arizona lettuce to strawberries and dry-veg commodities growing in Mexico and Florida. Expect slower growth rates, delayed transportation, and decreased shelf-life.
Check out how this next week’s weather unfolds using our weather tool at https://www.produceiq.com/weather.?
Sweet corn prices are up +20 percent over the previous week. Cold in Mexico and rain in Florida are strangling supply, forcing markets up to $30, the second highest in the last ten years. With more rain and cold in the forecast for the week, supply will likely not recover until late January.
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Declining Mexican lime volume is pushing prices higher earlier than usual. Rain in the Veracruz, coupled with the seasonal decline in production, is tightening supply. Markets will likely increase over the next few weeks as the new crop ramps up production.
The Strawberry crop is tight on both coasts. Cold in California is keeping growers from filling the gap left by Florida and Mexico. Much to the dismay of suppliers and buyers, more rain and cold are unfortunately forecasted for next week.
On the bright side, prices are down -6 percent over the previous week and should fall steadily, albeit slowly, as Spring production in Florida and California blooms.
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Bio
Mark Campbell is an industry veteran with over 25 years of produce experience. After earning his MBA from Columbia Business School, he spent seven years as CFO for J&J Family of Farms. He 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 from trading with greater access and efficiency. This led him to cofound ProduceIQ.
ProduceIQ is a digital toolset designed to improve the produce trading process for buyers and suppliers. We save you time, increase your profits, expand your network, and provide valuable information.