The price of watermelons has been regularly dropping in early June over recent years because the supply continuously grows around this time of year. This year, however, the price of watermelons has already increased by 0.5 yuan [0.07 USD] per 0.5 kg in a couple days and continues to rise. People in the industry explain that the price increase is the result of an overall decline in production volume this year, as well as the retreat of glasshouse watermelons from the market around this time of year, and the recent influence of poor weather conditions.
Glasshouse watermelons enter the Chinese market around May 1st. This includes such watermelon varieties as Red Jade, Sweet King, and Jing Xin. In early May the price of watermelons was around 3.5 yuan [0.51 USD] per 0.5 kg. The price began to drop as supply grew. The lowest price was around 1.2 yuan [0.17 USD] per 0.5 kg. In recent years the price dropped even further, but in recent days the price increased instead.
Supply from different production areas does not line up
This is the time of year when glasshouse watermelons reach the final phase of their supply period, while open-field watermelons gradually enter the market. However, poor weather conditions delayed the growth of open-field watermelons and in some cases even damaged the fruit. The market supply volume is small, which causes the price to go up. The price is unlikely to drop much in the short term.
Source: toutiao.com