Watermelon sales are expected to increase with the start of summer when temperatures rise. The price of watermelons dropped slightly after the first of May holiday. The price of some watermelon varieties dropped below 2 yuan [0.28 USD] per 0.5 kg. Some people in the industry say that the price dropped because visiting traders from outside purchased watermelons prior to the first of May and watermelons are now entering the market in larger volumes.
There are two main reasons for this price fluctuation: first, the watermelons are harvested in large volumes and market supply is therefore growing; second, the best watermelons have already been selected and what is left in the market is of lower quality. Although the quality difference is not large, the highest-quality watermelons have already been purchased, which lowers the average product quality of the remaining watermelons. This is of course is reflected in the price.
The price of watermelons always drops a little bit in the period after the first of May holiday, because many visiting traders already purchase their watermelons prior to the holiday period when supply is still limited. This stimulates the watermelon price. However, after the holiday, temperatures rise and so does watermelon supply. The price then drops. This year the temperature increased rapidly after the first of May.
Price fluctuations in previous years show that the price of watermelons is always more stable after the first of May, but that does not mean the price always drops significantly. Recently, many visiting traders from south China have come to watermelon production areas in Shandong. They are competing to purchase fresh watermelons. Most of the watermelons have now been reserved. It is therefore difficult to say whether the price of watermelons will continue to drop.
Source: Weifang Evening News