U.S. avocado prices surged almost 48% in just two weeks, with USDA-reported average prices for two-layer cartons climbing from $25.61 to $37.82. The driver is a sharp drop in shipments from Mexico as the country transitions toward summer production, tightening available supply at a critical moment.

This is a concrete price data point layered on top of the ongoing Mexican avocado supply story. While force majeure declarations and harvest holdbacks have been covered recently, this USDA-reported pricing spike gives buyers a specific, current number to work with when managing category margins and promotional planning.

Watch for further price volatility as Peruvian and other Southern Hemisphere origin volumes ramp up — the speed at which alternative supply fills the Mexican gap will likely determine whether prices stabilize or keep climbing through early summer.

Watermelon supply is expected to be unsettled and yields lighter than normal between now and the Fourth of July, according to industry sources. Weather disruptions are creating unpredictability in production, making it difficult to forecast how much fruit will actually be available during the highest-demand week of the summer.

Watermelon is a tent-pole item for produce departments every Fourth of July, and supply uncertainty this close to the holiday is a serious planning problem. The combination of weather-affected growing conditions and inherently variable field production makes this situation harder to hedge than a typical seasonal shortage.

Buyers and category managers should be monitoring supply commitments closely and considering whether to lock in volume early — worth having contingency conversations with multiple suppliers now rather than scrambling closer to the holiday.

Climate scientists are warning that a potentially strong El Niño event could develop between now and July, raising the risk of drought, extreme heat, wildfires, and significant crop losses. Climate scientist Daniel Swain described the upcoming event as having a high chance of becoming strong to very strong, with global agricultural implications.

This is a forward-looking supply risk that goes well beyond previously covered El Niño disease concerns for Florida strawberries. A strong to very strong event would have broad consequences for major growing regions across the U.S. West, Mexico, and key import origins — potentially affecting multiple commodity categories simultaneously during the second half of 2026.

This is worth monitoring closely as a macro risk factor across the entire produce portfolio. If the event develops as projected, sourcing strategies, promotional calendars, and inventory buffers for fall and winter commodities may all need revisiting.

Idaho potato supply is expected to last through mid-August from existing storage, but pack-out rates have declined recently, tightening available volume. Industry sources note this type of seasonal tightening is typical for Idaho around this time of year as storage crops near the end of their run.

Potatoes are a high-volume staple across both retail and foodservice, and even a seasonal tightening can create pricing pressure and sourcing stress, especially for buyers who haven't yet transitioned to new-crop or alternative growing regions. The mid-August storage runway gives a concrete planning timeline.

Watch for whether the reduced pack-out translates into meaningful price movement, and keep an eye on new-crop timing from other domestic regions that could bridge the gap.

Dollar General reported soaring sales as customers trade down at an accelerated rate, with the discounter's expanded grocery selection drawing shoppers seeking lower price points. Its CEO highlighted that a new frozen food section is performing particularly well, signaling the chain is investing in food as a category driver.

This is a relevant retail-channel signal for the produce industry. As more shoppers shift their grocery spending to dollar-format stores, the question of whether and how fresh produce fits into that channel becomes more pressing for growers, distributors, and brands looking to maintain volume.

It's worth monitoring how Dollar General's food expansion evolves — if the chain moves more aggressively into fresh or packaged produce, it could open new distribution opportunities or accelerate the conversation about value-format produce programs.

South Africa, Peru, Chile, Argentina, and Uruguay are all preparing to send citrus to the U.S. during the summer months, with industry sources saying the full Southern Hemisphere season will be in play within two weeks. Weather conditions have affected volumes and quality unevenly across origins, with some countries shipping larger volumes than normal while others face constraints.

This is the most actionable citrus update available right now, arriving at a moment when domestic U.S. production is under serious pressure — Florida's output dropped 28% this season and small orange supply has been critically tight. Southern Hemisphere arrivals will be critical to filling gaps in the orange, lemon, and specialty citrus categories.

Buyers should be getting clarity from suppliers on origin-by-origin quality and volume expectations now, as the differences between origins could significantly affect which programs hold up and which fall short through the summer.

The FDA is actively seeking input from the produce industry on potential flexibilities in traceability requirements, according to the Western Growers Association. This represents an opportunity for growers, shippers, and buyers to weigh in on how traceability rules are implemented before they are finalized or enforced.

Traceability has been a significant compliance challenge across the industry, particularly for smaller operations and those handling high-volume perishables. The FDA's openness to feedback on flexibilities suggests the agency is acknowledging real-world implementation friction and may be willing to adjust the regulatory framework.

Anyone with a stake in how traceability rules affect operations — from growers to retail buyers — should be aware that this input window is open and worth engaging with, as industry feedback at this stage can meaningfully shape final requirements.