Market Update

Throughout the years, our team has cultivated strong relationships in every facet of the produce industry – from growers and packers to wholesale suppliers, the foodservice industry, and retailers. These relationships have established a line of open, honest communication, which allows us to create educated market forecasts.

Every month, we post Market Updates on our LinkedIn company page, and at the end of each month, we share them here. Here are our Market Updates for the month of May:

Week of May 1, 2016 – May 7, 2016

The two-week Cinco De Mayo/Mother’s Day promotion caps off a record month for industry demand. Consequently, inventory levels have been drawn to seasonal lows and prices have advanced considerably. The success of the current promotion and follow through demand (at higher prices) will largely determine market values over the next 30 days.

Week of May 8, 2016 – May 14, 2016

Demand momentum is likely to cool as prices have nearly doubled in the scramble to stock the shelves for the Cinco de Mayo/Mother’s Day promotion. The California crop is hitting its stride, Mexico has a strong two months left, and Peru is around the corner. Altogether, supplies are more than adequate to meet normal demand going forward.

Week of May 15, 2016 – May 21, 2016

The market is entering a settling phase as the impact of dramatically higher prices and reduced promotional activity is beginning to have negative effect on demand. Certain sizes heavily promoted over the last few months, now “out of the money,” are likely to lose favor as still promotable sizes gain more attention during the settling process.

Week of May 22, 2016 – May 28, 2016

Memorial Day weekend may hold clues to avocado market direction during June and for the big July 4th event. As the first promotion at prices nearly double those of 30 days ago, record Memorial Day movement will continue to put pressure on gradually declining supplies.

If you would like to receive more of these updates when they go live, feel free to connect with us on LinkedIn.