Market prices decline on increasing Mexican supply
Market prices decline on increasing Mexican supply
Lettuce markets are declining, yet still in record-breaking territory as the USDA reported iceberg to be sold for at an average of $74.
Overall, prices are down about 10 percent versus last week, primarily due to increasing supply. “Much of the fall season has been marked by abnormally high prices, most notably for commodities such as lettuce and strawberries,” said Mark Campbell, founder and CEO of ProduceIQ. “Now, increased availability from domestic growers, as well as Mexican production, is reducing supply-based pressure.”
He added that increasing supply out of Mexico and Florida is an early Christmas gift for price-weary Strawberry buyers. “Although supply is slowly recovering, strawberry markets are holding tight to a downward trend,” he said. “Expect markets to continue their dramatic descent throughout the new year.”
In the tomato market, prices are benefiting from increased Eastern production. Tomato prices are down about 34 percent over the prior week. Grape-type tomato supply is still reportedly short. However, round and plum-type can meet demand. “Barring any Acts of God for Florida growers, prices should continue to decline through January,” said Campbell. “Strengthening supply from Mexico and Florida will continue to drag tomato prices back to Earth.”
Lime production is in transition, and markets are responding. Prices are up 26 percent over the previous week. “This time of year, prices typically increase as supply lessens due to a seasonal lull in Mexican production,” said Campbell. “Prices will likely climb higher through January and February as Mexican production hits its lowest point during the year.”
Another crop entering a seasonal transition, raspberries, are up 49 percent over the previous week. “However, after weeks at record-low prices, markets are still far from the pricey territory expected this time of year,” said Campbell. “Prices will climb and remain elevated until Spring. In the Spring, domestic growing regions will ramp up production again, providing much-needed supply to tight markets.”
