According to importers, demand for fruit has been very weak, leading to higher-than-desirable inventory levels. This was the second consecutive week of lower-than-expected harvests in Mexico. It should be noted that May typically sees lower demand than April, and this year has been no exception.

Despite the low demand for fruit, producers have refused to sell at lower prices, which have remained stable throughout the week. This appears to be a risky gamble for producers, as there are no signs of significant improvement in market conditions in the coming days, and week 21 began with a similar trend of low demand. The available fruit is increasingly concentrated among a few producers who receive visits from several exporters in a single day, creating artificial demand. This has led producers to resist lowering prices to stimulate export volumes. We will have to wait and see if the market reacts and producers can be offered the prices they are expecting, or if they will gradually become convinced that this reaction will not materialize and accept selling at lower prices.

In the producing regions of Jalisco and Michoacán, high temperatures have persisted. Exporters have reported a high percentage of dehydrated fruit arriving at packing plants, which is undesirable. This fruit is being separated from the fruit destined for export, but it's a symptom of the stress the trees are experiencing. Rain is also not expected in the coming days, which is normal since the first rains are typically expected starting in June.

There is no further news regarding the start of the new season's fruit harvest. The Mexican industry has maintained strict control over dry matter levels during the transition to the new fruit, and this year will be no exception. However, it is expected that the harvest of this fruit will gradually begin, and it will surely be preferred by both exporters and importers over the fruit from the season that is ending, provided the quality is up to par.

Sergio Paz Vega

Mexico

sergio.paz@coliman.com