Surging avocado imports from Mexico drive prices down, while weather challenges and holiday demand strain the blueberry and tomato markets.
Amid significant shifts in the agricultural market, the latest USDA report reveals critical trends in the pricing and movement of seasonal perishable products across the U.S., Mexico, and Canada. During the week of August 18-24, 2024, notable fluctuations were observed in the volumes and prices of key commodities such as avocados, tomatoes, cucumbers, and blueberries, directly impacting market dynamics and potentially influencing consumer prices in the coming weeks.
The avocado market, particularly from Mexico, saw a substantial increase in movement, with 33,449,707 pounds crossing into the U.S., marking a notable rise from previous weeks. However, the influx of smaller-sized fruit (60-84s) caused a drop in prices, with cartons of 60s priced mostly between $44.25 and $46.25, and 70s ranging from $34.25 to $36.25. In contrast, larger sizes (32-36s) maintained higher prices due to limited availability, with cartons of 32-40s mostly ranging between $68.25 and $70.25.
Cucumber supplies from Mexico, crossing through Texas, experienced a surge in movement, with trading activity increasing notably as the Labor Day holiday approached. Prices for 1 1/9-bushel cartons of medium cucumbers were reported mostly at $22.85 to $24.85, reflecting a sharp increase from the previous week. However, the quality and condition of the cucumbers varied, with some shipments delivered against prior bookings and commitments. Despite this, the movement is expected to continue growing into the holiday weekend, suggesting that prices could remain elevated due to high demand.
In the tomato market, movement from Mexico crossing through Texas is also expected to rise, but prices have dropped significantly. Vine Ripes cartons (2-layer) of 4×4-4×5 sizes were mostly priced between $16.95 and $18.95, a considerable decline compared to earlier weeks. The situation in California’s Central District tells a similar story, where the prices of extra-large and medium-sized tomatoes are lower. The report notes that the quality of tomatoes remains generally good despite these price fluctuations.
Blueberries, particularly from Washington and Oregon, are facing a seasonal decline in movement as the harvest season wraps up. The tightening supplies have driven up prices, with flats of 12 1-pint cups mostly ranging between $20.00 and $22.00. The report highlights that demand for Labor Day holiday advertisements is nearly exceeding supply, causing a slight increase in prices. The situation in Canada is more precarious, as heavy rains have affected the quality and condition of the berries crossing through Northwest Washington. Many of these berries are not meeting Canada One quality standards, further straining the market.
The USDA report underscores the impact of various factors, including labor disputes, weather conditions, and seasonal trends, on the supply and pricing of these essential commodities. As the market prepares for the upcoming holiday, consumers might experience noticeable changes in the prices of these products, driven by the shifts detailed in the report. The continued monitoring of these trends will be crucial for stakeholders across the supply chain to navigate the evolving market landscape effectively.
