W14 Lemon and Lime Update: Brazil's Lime Harvest Impacted by Heavy Rainfall in Mar-24, and European Lime Market Strengthens with Reduced Shipments from Brazil and Higher Demand

Published 2024년 4월 12일

In W14 in the lemon and lime landscape, Brazil's lime harvest was affected by heavy rainfall on Mar-24, reducing availability. However, Apr-24 forecasts suggest decreased rainfall, potentially improving yields and fruit quality. Meanwhile, the European lime market improved with reduced shipments from Brazil and increased demand, but Brazil's production may be hindered by heavy rains. Lastly, Colombian lime supply is stable and expected to increase by 50% as trees mature, driven by strong demand and rising transportation costs influenced by the Mexican market.

Brazil’s Lime Harvest Affected by Mar-24 Rainfall and Promising Outlook for Apr-24

In Mar-24, Brazil experienced heavy rainfall, impacting lime harvesting and reducing the fruit's availability in the market. However, the Apr-24 forecast indicates decreased rainfall, which should create more favorable conditions for lime production. This may result in better yields and improved fruit quality compared to the previous month.

Brazilian Lime Prices Surge 55% MoM in Mar-24 Due to Supply Shortage

The Brazilian lime market experienced a notable price surge in Mar-24, reaching USD 6.15 per box of 27 kilograms (kg), a 55% month-on-month (MoM) increase. This rise was driven by a supply shortage caused by heavy rainfall, which disrupted harvesting and led to reduced availability. However, the situation is expected to improve in Apr-24 with better weather conditions, which should boost supply and potentially lower prices.

European Lime Market Improves with Reduced Shipments from Brazil and Increased Demand

In the final weeks of Mar-24, the European lime market improved with reduced shipments from Brazil and increased demand. This rise in basic demand is notable, as it has prompted a higher utilization of Category II fruits, indicating a growing market interest. However, production in Brazil may be hindered by heavy rains, potentially leading to a decrease in supply.

On the other hand, Continued lime demand from Europe has been observed in Asia, with Vietnam being a primary supplier for several years. However, Vietnam experienced a period of low quality in 2023 and is now dealing with longer shipping times due to issues in the Red Sea.

Meanwhile, Mexico continues to be the primary lime supplier for the United States (US) market, with Central America contributing volumes mainly from Guatemala and Honduras. Colombia is increasing its cargo, accounting for 15% of imports for the US. Peru contributes approximately 25 cargoes per week. The US market has been strong in recent months, with Mexico's low season expected to transition to high season by mid-Apr-24. Peru and Colombia have not made significant entries into the European market this 2024, largely due to the strong US market.

Stable Colombian Lime Supply Expected to Increase 50% as Trees Mature

Colombian lime supply is stable, and it's expected to increase by 50% in the coming years as trees mature. WYCO Produce's year-round Colombian lime program, which started in Jul-24, produces four to five containers weekly. There's a strong demand for Colombian limes due to their juicy nature and quality packaging. Rising transportation costs have led to increased interest in Colombian limes from Southeast states and other East Coast markets. Lime prices currently range from the low to mid-USD 30s, largely influenced by the Mexican market.