While Mexican lime supply has been strained so far this year, the Brazilian export deal has gone swimmingly with a 15% year-on-year uptick in shipments for the first quarter.

A recent report from São Paulo University's Center for Advanced Studies in Applied Economics (CEPEA), said the industry expected the highly favorable market conditions to continue  in the short term.

"The good quality of fruits favored the heated international demand. Players expect international sales to remain firm at least until May, when the supply from São Paulo reduces and the tahiti lime harvesting from Mexico, which is the main competitor of Brazil, may start," the report said.

Citing data from the Secretary of Foreign Trade (SECEX), the report said the country exported 25,600 metric tons (MT) of limes between January and March, with a value of US$21 million; a figure that is 11% higher than for the same period in 2013.

"Due to the more valuated [sic] Brazilian currency compared to dollar, gains in real (Brazilian currency) were even better for exporters.

"The report authors said it was important to note Mexican growers had problems due to hurricanes in September, which reduced blossoming and affected citrus crops.

"This scenario pushed up quotes (mainly those exported to the USA), encouraging local producers to harvest all fruits, including those with smaller size, which would be in the desirable period in April and May," the report said, noting however that Europe was Brazil's main destination for limes.

"According to players surveyed by Cepea, the good pace of lime shipments and the good industrial demand mitigated decreases of domestic prices during the supply peak in São Paulo (February to April).

"From January to March, the tahiti average was 9.53 reais (US$4.28) per 27-kilo (60-pound) box, harvested, 66% more than in the same period of 2013."

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