Crushing slows down in SP; 18/19 activities should start in May
The crushing pace of the 2017/18 oranges has been slow at processors from São Paulo State. Currently, only one plant of the large-sized processors is operating (in Araraquara), receiving early oranges, both purchased through contract and in the spot market…
The crushing pace of the 2017/18 oranges has been slow at processors from São Paulo State. Currently, only one plant of the large-sized processors is operating (in Araraquara), receiving early oranges, both purchased through contract and in the spot market, where bidding prices for pear and late oranges have been around 15 BRL per 40.8-kilo box, harvested and delivered at the processor. At small-sized processors, however, mainly those that produce fresh juice, quotes may reach 23 BRL per 40.8-kilo box, depending on yield and quality.
Crushing of the 2018/19 early oranges, in turn, should start only in May – activities are forecast to step up in June. Remuneration in the spot has not been defined yet, but prices bid by processors are expected to be similar or even higher than in the 2017/18 crop (at 18 BRL per box), since orange supply is expected to be smaller this year, and juice inventories, limited.
2017/18 SEASON – On April 10, Fundecitrus (Citrus Defense Fund) announced that orange production in the citrus belt (São Paulo and Triângulo Mineiro) ended with 398.35 million boxes of 40.8 kilos, a staggering 62.4 % up compared to that harvested in the 2016/17 crop (245.3 million boxes). Compared to the average in the last 10 years, the current production is 25 % higher and the largest since 2011/2012, when it totaled 416 million boxes. According to Fundecitrus, good rain volumes in the developing period and higher investments in crop management favored productivity.
DOMESTIC MARKET – With the slower crushing pace, early oranges were sold exclusively to the in natura market in the first fortnight of April. Between April 2 and 13, pear orange prices averaged 31.88 BRL per 40.8-kilo box, on tree, 17.6 % up compared to the average in the first fortnight of March.
As for tahiti lime, the market was calmer in the first half of April. However, with the price rises observed in late March, growers continued to control the harvesting pace, aiming to underpin quotes. In that scenario, tahiti lime prices averaged 17.93 BRL per 27-kilo box, harvested, 31.1 % up compared to that in the first fortnight of March.