National Service of Market Information
WEEKLY COMMENTARY
For the week of January February 23 - 27, 2004
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TOMATO
As already mentioned, crops of Saladette tomatoes produced in the State of
Sinaloa, have been partially affected by rains and low temperatures that occurred
in February, which is why production hasn’t reached its anticipated rhythm.
Furthermore, within the past few days, precipitation in the northern part of the state
has interfered with harvesting activities. Due to these reasons, the price has
remained high, at a level that is similar to what it was a year ago and in all
likelihood, will stay this way throughout the next fifteen days.
In the meantime, the price of Bola tomatoes has risen, although only slightly,
because wholesale volumes coming from crops produced in the State of Sinaloa
have also suffered the same weather conditions and interfered with harvesting
activities, reducing the supply levels in the marketplace. Nevertheless, some
volumes are also coming from the State of Mexico, and although consistent,
they’re rather limited. It should be noted that the price is 5.7% lower than it was a
year ago and will most likely continue climbing during the next two weeks,
particularly if that of the Saladette variety does so.
POTATO
The price of prime quality Alpha potatoes found in the capital city’s wholesale
produce market has risen slightly, reaching a level that now happens to be 56.2%
higher than it was a year ago. This happens to be a consequence of the excessive
humidity that has affected crops, namely the rains and frosts that occurred last
February, reducing the overall volumes anticipated during the first phase of
production. During the next two weeks, the prices are likely to stay high because
consumption tends to rise during Lent. Despite all this, it should also be noted that
potatoes are also coming from the states of Mexico, Michoacan and Veracruz and
happen to be apt for consumption as well as priced more affordably.
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PEPPERS
Supplies of Serrano peppers happen toe be ample, in general, given the fact that
wholesale volumes are coming from Tamaulipas, Sinaloa, and, to a lesser extent,
from Nayarit. Nevertheless, within the past week, supply levels have diminished
because of low temperatures that have affected crops in the first state, as well as
rains that fell in the second state, interfering with harvesting activities to a certain
extent. The price of the prime quality ones has risen slightly and this trend will most
likely continue throughout the next coming week. It should be noted that the price
is still rather affordable, yet happens to be 28.2% higher than it was a year ago.
As expected, the price of Poblano peppers has continued to rise because of the
high demand attributed to the start of Lent, while supply levels have diminished
because of rains that have occurred within the past few days in the State of
Sinaloa. The price has now reached a level that is 91.1% higher than it was a year
ago, and due to the reasons mentioned, it will most likely stay this way throughout
the next coming week.
As already mentioned, production of Jalapeno peppers this season has yielded
lower volumes than originally anticipated because of adverse weather conditions
that affected crops in the State of Sinaloa - namely the heavy rains and low
temperatures. Furthermore, within the past few days, rains have interfered with
harvesting activities, to a certain extent. The price has remained elevated, at a
level that happens to be 129.3% higher than it was a year ago. Considering the
consumer demand tends to rise during the celebration of Lent, this trend will most
likely persist, particularly if supply levels don’t improve within the next coming
week.
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BOLA ONION
For the tenth consecutive week, the price of prime quality white Bola onions has
remained affordably low, at a level that happens to be 51.2% inferior to what it was
a year ago. This is because harvesting is at its peak in the State of Morelos – the
primary wholesale supplier during the first quarter of the year. To the already
abundant supplies are added some lesser volumes coming from the states of
Michoacan and Guanajuato. During the next two weeks, it is hoped that the price
remains stable since further reductions are likely to discourage growers from
distributing high levels in order to maintain the same cost.
CARROTS
Domestic supplies of carrots appear to have improved slightly now that harvesting
in Guanajuato has reached its peak phase, while considerable volumes are still
coming from the State of Mexico where harvesting is now in its final phase.
Because of this, prices have dropped slightly, reaching levels that, on average,
happen to be 11.3% lower than they were a year ago. Supply levels aren’t
expected to increase dramatically within the next fifteen days, however, since
crops in the first state have suffered delays because of adverse weather conditions
that occurred last January, while levels from the second state will continue to
diminish. The prices are expected to remain somewhat stable.
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ZUCCHINI
Although weather conditions in Oaxaca and Morelos have improved within the past
two weeks, supplies of zucchini still happen to be rather scarce even though some
volumes are also coming from Michoacan and Puebla. This is because cold
weather happens to inhibit the development of the product. The price of the prime
quality ones has dropped slightly, but still happens to be rather elevated and at a
level that is 122.2% higher than it was a year ago. Consequently, supply levels
may improve if the weather remains favorable during the month of March and this
could prompt the price to continue dropping during the interim.
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CANTALOUPE MELON
This happens to be another product that has been affected by low temperatures
that occurred primarily during the month of January and that have intermittently
persisted within the past few weeks. Although the second phase of harvesting is
now initiating in Altamirano, Gro., supply levels in the City of Mexico’s Central
Produce Market have diminished noticeably. Furthermore, this state happens to be
practically the only supplier of Cantaloupe melons since crops in Apatzingan,
Michoacan have also been affected. As a result of all this, prices have risen
drastically, reaching levels that are extremely high and that happen to be, on
average, 98.9% higher than they were a year ago. During the first half of March,
supplies of melons are expected to remain limited, which is why prices will stay
high, however, slight adjustments may be noted since consumer demand is also
diminishing.
WATERMELON
Supplies of Sangria watermelons have continued to diminish given the fact that
production in Campeche and Tabasco has yielded lower volumes due to erratic
weather conditions during the beginning of the year. Additionally, considerable
volumes are also being exported, prompting the price to remain high. Because of
this, the price has climbed within the past three weeks reaching a level that now
happens to be 38.4% higher than it was a year ago. The higher price happens to
be causing consumer demand to diminish which is why it will probably fluctuate
around its present level during the next coming week.
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BANANAS & PLANTAINS
Production of Bananas commonly referred to as the Tabasco variety happens to be
in its low phase, typical of the winter season, because the lower temperatures and
lesser daylight hours inhibit the maturation of the fruit. This is why supplies are now
scarce and the price tends to be high, currently at a level that is 7.4% superior to
what it was a year ago. Given all these reasons, no significant changes are likely to
be noted in either the supply levels or the price during the first two weeks of March.
Similarly, volumes of Plantains now being gathered in Chiapas and Ribera del
Papaloapan aren’t very ample since production is also in its low phase.
Nevertheless, the price has remained rather stable since the quality of the fruit
doesn’t appear to be all that good, tending to be rather hard and brownish in color,
without reaching its optimum maturity, ample for consumption. The price is rather
high and happens to be 26.3% superior to what it was a year ago, and will most
likely stay somewhat stable since consumer demand for this fruit isn’t at all
dynamic.
VALENCIA ORANGES
Normally, between December and March, or even April, harvesting of the Late crop
of oranges is at its peak in Veracruz, which is why abundant volumes of good
quality ones are currently available in the City of Mexico’s Central Produce Market.
Furthermore, no significant variations have been noted in the price and it happens
to be affordable, now 4.5% lower than it was a year ago. During the first half of
March, volumes distributed are expected to be consistent which is why the price
will remain low even though higher volumes also tend to be demanded by the
frozen juice packing industry given the optimum quality.
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LIMES
The prices of Mexican limes have tended to remain rather stable given the fact that
supply levels have been reduced by growers in Apatzingan, Michoacan in order to
prevent the price from falling further. Supplies are actually satisfactory and the low
phase of production associated with winter is now ending earlier than anticipated
which is why prices are now affordable and, on average, 72.7% lower than they
were a year ago. Reports indicate that vast crop areas remain to be picked which
is why supply levels are expected to stay consistent during the first half of March.
Because of Lent, however, slight adjustments may be noted in the price.
With respect to Persian limes, satisfactory supply levels are being observed given
the fact that consistent volumes are coming from Martinez de la Torre, Veracruz
despite the levels that are also being exported from that state. No significant
changes have been noted in the price and it now happens to be 52.6% lower than
it was a year ago. During the next two weeks, it will most likely remain somewhat
stable unless export levels happen to increase.
HASS AVOCADO
Between November through March, harvesting of Hass avocados tends to be at its
peak in Michoacan and this is why ample supplies are currently available in the
Federal District’s Wholesale Produce Market. The price is actually affordable and
7.9% lower than it was a year ago. Due to these factors, supply levels are
expected to remain consistent during the next two weeks, however, the price may
be adjusted given the fact that consumption tends to rise during the celebration of
Lent.
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PAPAYAS
Although the price of Maradol papayas was expected to remain stable, it has
actually fallen within the past three weeks, reaching a level that is affordable and
that happens to be 12.4% lower than it was a year ago. This has to do with the fact
that supply levels have improved with consistent volumes coming from Oaxaca,
Yucatan and Veracruz, along with some sporadic shipments also coming from
Tabasco and Chiapas. During the next fifteen days, ample supplies are expected
to be available, however, with the warmer temperatures, consumer demand also
appears to be increasing which is why the price will most likely remain somewhat
stable.
PINEAPPLES
Due to the rise in temperatures noted in the Valley of Mexico, consumer demand
for pineapples has also increased. In the meantime, production in Villa Isla,
Veracruz is now entering its low phase, which is why supply levels have diminished
to a certain extent. Both these factors have prompted the price to rise slightly.
Despite all this, supply levels are still satisfactory which is why the price has
remained affordable. If demand increases within the next two weeks, the price will
most likely be adjusted and rise accordingly. Finally, it should be noted that the fruit
is priced 12.5% lower than it was a year ago.
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APPLES
Prices of prime quality apples remain rather high and happen to be 14.4% higher
than they were a year ago. On the one hand, supplies of domestically-produced
fruit warehoused in Chihuahua’s refrigerated storage facilities are diminishing – this
being fruit that was gathered last September and October – and, on the other
hand, levels of imported apples have decreased because of the custom’s duties
assessed. Normally, the prices of apples don’t change drastically since the levels
distributed from storage facilities tend to be consistent and this is why few, if any,
variations are likely to be noted in the prices within the next two weeks.