W41: Melon and Watermelon Update
Brazil
Brazilian Watermelon Shipments Start to Heat up in September (Oct 13)
The 2022/23 crop year for watermelon exports officially started in August but at a very slow pace. In September, however, shipments intensified, as expected. Even so, they are at levels lower than in the same period last year. According to data from Secex, in September Brazil exported 15,800 tones to all destinations, up 765% compared to August. It is worth remembering that, in addition to August being the first month of the season (usually with a slower start), in this specific harvest, shipments for that month were negatively impacted by rains at the beginning of planting and also by the delay in closing international contracts.
The Price of Watermelon Goes up in Brazil but Is Lower Than Expected (Oct 14)
This week (October 10th to 14th), an increase in watermelon prices in the countryside was expected, but the expectation did not materialize significantly. According to Hortifruti/Cepea employees, sales were negatively impacted by the Nossa Senhora Aparecida holiday (12), mitigating the expected increase. In Uruana (GO), large watermelon (>12 kg) was sold at R$ 0.76/kg, an increase of only 5% compared to the previous week.
Frog Skin Melon Price Drops by 20% At Ceagesp, Brazil (Oct 14)
This week (10/10 to 10/14), the frog skin melon was devalued for the fourth consecutive week at Ceagesp. The average price of the variety closed at R$ 41.00/box of 13 kg, a drop of 20% compared to the previous period. The decline is due, according to wholesalers, to the constant increase in the supply of frog skin in the warehouse, since there has been a greater harvest with the harvest in the Rio Grande do Norte/Ceará. The yellow melon also depreciated in the period, due to the same justification.
United States
US Watermelon Supply in Canada Is Unable to Meet Demand (Oct 11)
Seedless and mini watermelon supply continues to be tight in Canada. The overall quality is good, but in W41, there is strong demand and lower-than-usual volume. Many retailers and wholesalers are actively reaching out to alternative sourcing options as supply from traditionally strong productive areas in the US cannot satisfy Canadian demand as most fruit is sold in the local market.
Costa Rica
Some Costa Rican melon and watermelon producers have dropped their planted areas for the 2023 season as the shipping spaces from Costa Rica available are decreasing. The low supply and shipping lines are forecasted to disrupt the shipping volumes available for W3-5 in 2023. With close to 90% of the contracts already signed for the upcoming season, there is evidence that the planting areas in some regions decreased by 15-35% YoY.
Ukraine
Record Imports of Watermelons and Almost Record Exports of Blueberries in July 2022 in Ukraine (Oct 13)
Foreign fruit and vegetable trade in Ukraine in July of this year was subject to completely expected factors in the conditions of hostilities and the occupation of part of the country. Thus, the occupation of the southern regions of Ukraine led to a serious shortage of melons in the free territory, as a result of which the import of watermelons set a historical record. At the same time, there were fewer opportunities for importing sweet cherries, which are also produced mainly in the south, and their volumes fell sharply.
