July 2024 Outlook Report: Vegetables

- Key Indicators: Global freight prices jumped 38.60% in Jun-24 to USD 4282.67, rising more than USD 1,000 MoM. This increase results from an early start to the ocean peak season, high global port congestion along with continued disruptions in the Red Sea. The World Bank fertilizer index jumped nearly 10 points to 118.2 in Jun-24, a 8.99% increase, roughly back to its level in Dec-23. The increase resulted from increases on fertilizer prices across the board, especially urea prices.

- Potato: In Jun-24, the French potato market experienced significant price increases driven by strong international demand and challenging weather conditions, which impacted production and decreased exports to manage stock quality. Key importers included Spain, Belgium, and Italy, with notable increases in their imports, and there was a resurgence in exports to the United Kingdom (UK). Similarly, Germany faced disruptions due to heavy rainfall, which delayed planting and harvesting, creating a tight supply and increasing prices. Reduced imports and a shortage of seed potatoes further strained the market, though the commencement of the primary potato harvest in mid-June is expected to ease some supply constraints.

- Tomato: In Jun-24, Mexico's tomato market experienced a peak in northern production due to warmer temperatures, resulting in a price drop. Meanwhile, heavy rainfall delayed planting in the south, adding to market volatility. The United States (US) lifted a four-year restriction on fresh Mexican tomato imports, simplifying the export process. Morocco experienced a price decline due to a supply surge from warm weather, yet maintained steady exports to Europe. Spain faced price increases from seasonal shifts and limited supply, driven by reduced cultivation and drought conditions, yet export demand remained robust.

- Onion: In Jun-24, Indian onion prices surged due to reduced production from inadequate rainfall and strong domestic demand, prompting government interventions to stabilize the market through buffer stock procurement and maintaining export duties. The Netherlands experienced a significant price drop caused by surplus supply and weak demand, exacerbated by disappointing export figures. Conversely, Mexico's onion market faced rising prices due to constrained supplies of white and red onions, affected by adverse weather conditions and increased procurement by importing countries such as Canada.