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Market Data 11/23/2017

First acquisition proposals for Brazilian oranges from the 2018/19 crop start to be reported

The first acquisition proposals for oranges from the 2018/19 crop have started to be reported in the market of São Paulo State. Occasionally, large-sized processors have demonstrated interest in trades around 20.00 BRL per 40.8-kilo box, harvested and delivered at the processor.

First acquisition proposals for Brazilian oranges from the 2018/19 crop start to be reported
(Photo: CEPEA)

The first acquisition proposals for oranges from the 2018/19 crop have started to be reported in the market of São Paulo State. Occasionally, large-sized processors have demonstrated interest in trades around 20.00 BRL per 40.8-kilo box, harvested and delivered at the processor.

In general, according to agents from processors, these proposals may indicate the possible price level in the next crop, which should be smaller than the current season, that produced one of the largest volumes in all times. The first prices bid by processors, around 20.00 BRL per box, are higher than those traded in the spot market this season (17.00 BRL per box for prompt-delivery), but lower than those in the 2016/17 crop, when supply was low (averaging 22.02 BRL per box between July and December/16).

Citrus growers are concerned with the next orange crop in São Paulo. Although it is still early to measure the 2018/19 harvesting, some growers estimate the fruitlet drops of the main flowering event, between late August and early September and considered positive, may have reached 50 % (mainly for pera rio, which is more sensitive to the hot and dry weather in the last months).

BRAZILIAN MARKET – The demand for oranges was higher in the first fortnight of November in the domestic market, due to the beginning of the month, when sales usually increase. Besides, with lower supply of pear oranges with quality near that demanded by the segment, quotes of higher quality fruits pushed up the price average. Thus, from November 1 to 14, pear orange prices averaged 19.79 BRL per 40.8-kilo box, on tree, 2.2 % up compared to the average between October 2 and 13.

The volume of tahiti lime, in turn, increased in the in natura market. Besides the fruits that are reaching the size demanded by the segment, some growers were taking advantage of the firm prices to harvest and flow the variety, even before the fruits reach the ideal size and color. Thus, the availability of small-sized tahiti lime (which should be ready only this month) was increasing.

This scenario is hampering tahiti lime exportations as well, since the volume of fruits in the ideal size for shipment is low, and prices are still considered high. Besides, with the nearness of the holiday season, exportations should step up, concerning exporters regarding availability even more. Between November 1 and 14, tahiti lime quotes averaged 60.60 BRL per 27-kilo box, harvested, 25.9 % down compared to that between October 2 and 13.

EXPORTATIONS – In the 2017/18 season (July to October/17), exportations of FCOJ Equivalent continue 25 % higher than in the same period last crop, according to Secex, totaling 419.2 thousand tons. Revenue, in turn, increased 32 %, to 747.6 million USD. In Real, revenue rose 30 % in the same comparison, totaling 2.36 billion BRL. This rise was already expected by agents from the sector, based on the larger Brazilian production and higher demand from the United States.

Tahiti lime exportations, in turn, decreased, due to lower supply in Brazil in the last months. Thus, this crop (Jan. to Oct/17), shipments have totaled 81.4 thousand tons, 2.4 % lower than in the same period last season (Secex).

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