Brazil: Lower supply underpins quotes in January

The average prices of all orange varieties (in natura) surveyed by Cepea in São Paulo State were considered satisfactory in January/19 compared to January and December of 2018. This scenario was linked to the lower orange supply in the citrus belt (São Paulo and Triângulo Mineiro) in 2018/19. Thus, it seems the prices paid to the citrus farmers from SP will continue at high levels in February, mainly for the higher quality fruits, since the availability of early oranges should only grow from April onwards, when the first fruits of the 2019/20 can be harvested.

In the first quarter of 2019, harvesting should be limited to both the fruits that are out of the ideal period and the remaining of the late oranges. Some farmers have even ended activities related to the current crop (2018/19). Besides, the high temperatures usually observed in February may boost the consumption of citrus fruits in SP, reducing supply even more.

According to the citrus growers consulted by Cepea, although perspectives regarding the volume to be produced are positive, the weather is still crucial for a good crop development – it needs to rain significantly in the citrus-producing regions this month so that fruits growth and new blossoming are favored.

PRICES – In January/19 the average price of the pera rio orange closed at 30.42 BRL per 40.8-kilo box, on tree, 52 % higher than in Jan/18 and 12 % higher than in Dec/18, respectively, in nominal terms. For natal oranges, the price average was at 26.34 BRL per 40.8-kilo box, 45.6 % and 8.6 % higher in the same comparison.

TAHITI LIME – For tahiti lime, on the other hand, the crop peak in São Paulo continued to press down quotes in January. However, farmers have reported problems caused by the high temperatures: some fruits were becoming yellowish and dropping down from trees, which may lower supply and push up the quotes of the higher quality fruits.

In January, the average price for tahiti lime was at 16.76 BRL per 27-kilo box, harvested, 18.2 % down compared to that in the same period last year and stable (-0.5 %) compared to the average price in December/18.