New Vegetable Melon and Outlook report

The USDA Economic Research Service has released its bi-monthly Vegetable and Melon Outlook report here.
Some highlights:

If the direction of spring potato prices in California, Florida, and Texas is an indicator of average domestic prices for the 2007 crop, growers may expect another year of both higher production and prices. Projected average prices across the 3 States for spring-crop potatoes are $19 per cwt compared with $12.30 per cwt in 2006. Demand for potatoes and available supply are both stronger than in 2006 as evidenced by the 4-percent expansion of market shipments through May 2007. For the 2006/07 crop, potatoes used for processing is up 8 percent through May.

And this about the general vegetable outlook:


During the first 5 months of 2007, fresh-market vegetable prices at the point of first sale (e.g., grower or shipping-point) averaged 31 percent above a year earlier. Higher average prices were received for crops such as fresh dry-bulb onions, celery, snap beans, and broccoli—easily outweighing lower average prices for tomatoes, cucumbers, and head lettuce. Following a winter quarter which saw fresh vegetable prices average 36 percent above a year earlier, farm prices this spring were up 23 percent from 2006. This summer, fresh vegetable prices are expected to average below the highs of a year ago as harvested area rises slightly and yields improve from last summer’s weather-reduced levels.

Potatoes: During the first 5 months of 2007, grower prices for potatoes averaged 3 percent above a year earlier due largely to good demand from processors and exporters. Grower prices for processing potatoes were up 8 percent through April while fresh-market prices were down 6 percent. In contrast, retail potato prices have remained fairly steady during the first 5 months of 2007, with fresh white potatoes averaging just 1 percent above a year ago (at 52 cents /lb.) and potato chips down 1 percent to $3.45/lb.