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Mexico: Market Comments

Week 11 ended with a harvest of 35,426 tons and 29,286 tons exported to the United States. The remaining harvest is in inventory and will be shipped on Mondays, with at least 50% going to the North American market and the rest to various other markets, the most important being Canada, followed by Japan. There is also a volume destined for the domestic market, processing, and even oil production.

We are in a month that has been characterized by good consumption in the United States, with spring there is more promotion of avocados and if we add that the market is preparing for the "Holy Week" holidays at the end of this month, a week in which we will only be able to work 3 effective days of harvesting, the demand is much stronger to cover the days that fruit will not be exported.

The week begins with a holiday because we won't start harvesting until tomorrow, and we'll have one less day to continue replenishing market inventory. Everything indicates that the week's harvesting pace will be the same as last week, but the one-day delay will affect the final export volume.

This week, the volume of available harvest hectares increased by approximately 5% (44,445.57 hectares suitable for harvest, 8,051.86 in Jalisco and 36,393.57 in Michoacán), but the strong demand for the product is allowing prices to remain very robust across all product ranges, thanks to healthy inventories at packing plants and along the border. It appears that, for the time being, demand is outpacing supply and the industry's harvesting capacity.

The size curve continues with a peak in size 48's at 35%, followed by the 60's at 25%, then the 70's and large fruit.

We're going to end the month with high consumption and a rising market, at least that's what it looks like will happen if demand continues as it has been. We're entering the last quarter of the season in terms of both timing and projected volume. The question is, what about the remaining volume on the trees in Michoacán? Will it be enough to cover the high demand in the coming months?

I wish you an excellent week

Antonio Villaseñor Zurita

antoniovz@aztecavo.com.mx

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