W10 Lemon and Lime: Spanish and Mexican Lemon Prices Surged in Feb-24, and USDA Forecasts Decreased Lemon Volumes in California

Published 2024년 3월 15일

In W10 in the lemon and lime landscape, Spanish lemon prices rose from 3.92% in Jan-24 to 4.33% in Feb-24, with speculative price differences surpassing field value. On the other hand, the high demand in Mexico's Mérida markets has driven prices up during W10, while the USDA predicts reduced lemon volumes in California due to inflation and rising costs.

Spanish Lemon Prices Surged in Feb-24

The Coordinator of Farmers and Livestock Organizations (COAG) in Spain has released data on the International Price of Domestic Lemons (IPOD) for Feb-24, showing an upward trend from 3.92% in Jan-24 to 4.33% in Feb-24. Lemons topped the list of speculative price differences for the fourth consecutive month, with market prices exceeding their value in the field. The origin/destination percentage difference of lemons rose from 880% in Jan-24 to 1,069% in Feb-24. In the countryside, the price of lemon stood at USD 0.18 per kilogram (EUR 0.16/kg), while it was USD 2.05/kg (EUR 1.87/kg) in the market. However, consumers paid 11.69 times the value of the lemons at origin, which is considered an abusive increase.

High Lenten Demand Drives Lemon Prices Up in Mérida During W10

Lemon prices in Mérida markets in Mexico have increased during W10, a common occurrence during Lent due to high demand. Premium fruit is now selling for up to USD 1.32/kg (MXN 22/kg) at the Lucas de Gálvez and San Benito markets. This is a USD 0.36 (MXN 6) increase compared to last week's price.

USDA Forecasts Reduced Lemon Volumes in California Amid Inflation and Increasing Production Costs

California citrus growers anticipate average seasonal production volumes amid inflationary pressures and rising production costs. Lemon volumes are expected to decrease, with a United States Department of Agriculture (USDA) forecast on Jan-24 that the planned volume will reduce from 23 to 20 million boxes for the state. Since the pandemic began, the industry has faced significant cost increases for growing, packaging, and globally shipping citrus fruits. These challenges persist as market prices have not risen sufficiently to offset the rising production costs.