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Market Data 04.05.2017

Harvesting of the 2017/18 crop intensifies in São Paulo

The harvesting of oranges from the new crop (2017/18) intensified in orange groves from São Paulo State in April. Although trading of the early oranges rubi, hamlin and westin started in mid-­February (one month before in relation to 2016/17), only now fruits are reaching the maturation stage for the in natura market.

Harvesting of the 2017/18 crop intensifies in São Paulo

The harvesting of oranges from the new crop (2017/18) intensified in orange groves from São Paulo State in April. Although trading of the early oranges rubi, hamlin and westin started in mid-February (one month before in relation to 2016/17), only now fruits are reaching the maturation stage for the in natura market.

In March, the harvesting advance of the fruits that were still green limited price rises of all orange varieties. A sharper production increase, however, was forecast by agents only for this period (late April and early May), based on the higher quality of the fruits in groves, due to the favorable weather in the first months of the year.

The supply of baía oranges has increased in the market of SP. However, according to Cepea collaborators, the demand for baía and rubi oranges has risen, because of better flavor and quality, compared to other varieties. Early in the baía harvesting, quotes averaged 34.12 BRL (10.86 USD) per 40.8-kilo box, on tree, 41.6 % higher than those in the same period last year, in nominal terms.

Regarding pear oranges, the slow pace of sales in the second fortnight of April, due to both lower quality of the supplied fruits and the Brazilian holiday of Tiradentes on April 21, affected prices. Besides, the mild weather in SP also limited orange trades. Thus, on the average of the month, pear orange quotes averaged 30.41 BRL per 40.8-kilo box, on tree, 27.3 % down compared to average in March.

PONKAN TANGERINE – The harvesting of ponkan tangerine stepped up in the main Brazilian producing regions in late April. The harvesting is two months earlier compared to the 2016 crop, and this season in São Paulo State competes directly with the supply from Minas Gerais, where field activities have also been advancing.

As the supply from Minas Gerais increases in São Paulo, growers from SP have had difficulty to flow volumes in the in natura market, which has been pressing down tangerine quotes. In Minas Gerais, agents from the sector believe the volume will be larger than that in the previous season, considering the favorable weather during all the developmental stage of the crops.

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