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Update on national market - Brazil
Brazil: Increase of papaya supply causes price dropLast week, the volume of papaya had slightly increased in producing regions such as Espírito Santo and Bahia. HF Brasil says this is caused a drop of 30% in price. Reports indicate that the increased supply was caused by higher temperatures and harvests of new crops. However, the most significant impact on price was the quality, with fruits that had stains and spots. Most production regions are dealing with these spots on the papaya, except for Rio Grande do Norte and Ceará. The papaya sales in these regions benefit from this situation. However, better quality is expected in all affected producing areas next month.
The mango from Livramento de Nuestra Señora (BA), is suffering from decreasing prices on the national market. Therefore, HF Brasil explains that some mango producers, that have advanced production, have a strategy for the coming period. As prices are low the moment, producers will leave the fruits on the trees. Less supply, should help increase the prices again. However, even though it's confirmed that there is less supply, São Paulo buyers don´t expect any increase in quotations in the coming weeks.
The prices of the Italian grape variety, marketed in the São Francisco Valley (PE / BA), were below expectations last week. Even though prices increased 14% from the week before. HF Brasil explains that especially in the Northeast, which is the main market for the Italian grapes, sales have slowed down. They believe sales are highly affected by the economy, as the profitability is under pressure. Producers are discouraged from continuing to produce this seeded variety.
The melon situation has been updated. As of last week, the orange melon has been valued more than the yellow melons. This was due to the restricted entry of the variety in the Caegesp. However, melon sales in general have improved as a result of rising temperatures. HF Brasil explains that sales always decline at the end of the month, and therefore its expected that prices will remain the same.
Even though the watermelon season of the São Paulo crop has started, the region of Uruana (GO) continues to be the main national supplier of watermelon. The volumes from São Paulo were still low, and quality didn't meet expectations. According to HF Brasil, consumers therefore preferred the Uruana melons. The supply of this variety is steady, and only from the first week of October are higher volumes of São Paulo to be expected.
The hot and dry climate still favored the demand for citrus in São Paulo last week. There is a higher domestic demand in combination with a small reduction in the supply of oranges. This brings the price levels up. The good prices as well apply to the Tahiti lime. As it's still the off-season period producers have decided to only harvest what is necessary to avoid losses. Producers worry that volumes will be compromised this week.
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