When buyers signed paste contracts in the spring, they experienced sharp relief from the rising prices of the last few years. The contract price reflected the lower price of tomatoes and adjustments for natural gas, as well as expectations of a surplus market. Contract prices fell by more than 10 cents per pound this year.
Since a large proportion of the pack is sold under contract, it’s difficult to discover the spot market price is for US paste. Without a price exploration tool, there is no indication of where the spot market price will go.
Last year, the United States’ processors moved tomatoes out of their warehouses at record levels. According to supply numbers from the California League of Food Processors, 12.6 million
fresh equivalent tons disappeared. Rising net exports is the biggest driver of this high demand.
Market conditions for exports of US tomato products continue to be favorable. The lower spot market price, beneficial exchange rates, and production shortfalls in China and Turkey should keep US exports at high levels.
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