(Bloomberg) -- Just as record-high Mexican avocado prices were starting to squeeze American consumers, the prospect of more fruit flowing into the bustling wholesale market of Mexico City is providing some relief.
An index of Hass avocado prices in Mexico had doubled this year after a smaller California crop increased demand at a time of seasonally low Mexican supplies. On Wednesday, it slumped 13%.
Read More: Mexico's Tight Avocado Supply Has Chipotle Looking Elsewhere
The steepest decline in four years is explained by easing supply thanks to the flor loca, or ‘crazy flower,' bloom on Mexican avocado trees, said Salvador Ortiz, founder of the InfoHass website and radio show.
Improved supply in California in recent weeks is also taking the pressure off Mexico to provide the main ingredient for guacamole served in U.S. restaurant chains, said David Magana, a senior analyst at Rabobank.
--With assistance from Patrick McKiernan.
To contact the reporter on this story: Denitsa Tsekova in New York at dtsekova@bloomberg.net
To contact the editors responsible for this story: James Attwood at jattwood3@bloomberg.net, Steven Frank
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