Fewer Brazilian melon exports

As expected, Brazilian melon supplies are lower than last season. The lack of rains during the spring deeply affected performance, and a testament to this is that exports in November fell by 50%.

Fewer Brazilian melons are produced and this is having an effect on all destinations. In November, Spain has seen a 50% drop in exports; a percentage which went up to 56% in the last week of the month. This has caused the price to increase, as there is not enough supply to cover all demand, although producers and exporters point out that prices have not skyrocketed yet.

Some importers see this lack of melons as something positive, because if supply reached the levels of previous years, prices would be much lower, as demand is not great at the moment. This drop in supply is causing Brazilian exporters to shift to more valuable markets. It is not the case with Spain, as importers point out, because the "Piel de Sapo" produced in Brazil is shipped almost exclusively to Spain, and only a handful of transactions have shifted to emerging markets for the "Piel de Sapo", such as the UK.

Source: fyh

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