Tomato for processing planting has been wronged by wet weather in California. Concerns are building that the crops could be short which would impact numerous foodservice and consumer product supplies including ketchup, salsa and tomato sauce. There are some reasons to be optimistic. First, the average contracted tomato for processing price to farmers is up Peter Gabriel style ("Big Time") this year. So, in other words, the farmers have more incentive to salvage as much of their crops as they can. Further, acreage is up substantially as well which suggests there is at least some room for error. But we really won't know the impact until we get deep into the harvest this summer.
Datum FS has forecasts for over 50 commodities comprising various beef, dairy, grains, pork and chicken markets. If you would like to learn more about a complimentary trial to the forecasts and commentary or about Datum FS services hit the home button above. Thanks for reading.