MELON/CEPEA: Rain Limits Supply, Prices Continue to Rise at Ceagesp

The University of São Paulo's CEPEA research center has released its latest report, indicating that yellow melon prices at Ceagesp, São Paulo's main wholesale market, continued their upward trend between March 9 and 13. A 13 kg box of type 5 to 8 melons was sold for R$50.00, marking a 7% increase compared to the average price of the previous week. According to industry agents consulted by CEPEA, the primary reason for this price surge is the reduced supply from key melon-producing regions in Northeast Brazil, including Rio Grande do Norte/Ceará and the São Francisco Valley (Bahia/Pernambuco). Recent heavy rainfall in these areas has significantly hampered harvesting activities and adversely affected fruit quality, leading to a decrease in overall market availability. Furthermore, CEPEA researchers highlighted that this weather scenario has specifically led to a reduction in the supply of higher-quality melons destined for the Southeast market. This directly resulted in diminishing melon stocks in the capital city of São Paulo. With continued rain forecasts for the producing regions, market supply is anticipated to remain constrained throughout the current week.