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News 21.10.2021

Brazil: rains cheer up farmers; orange price rise

The return of rains to important citrus-producing regions in São Paulo State (SP) cheered up farmers about flower development. However, it is still early to estimate results for the 2022/23 season, since the set of fruitlets will depend on the weather along October and more flowers may open until the end of the month.

Brazil: rains cheer up farmers; orange price rise
(Photo: CEPEA)

The return of rains to important citrus-producing regions in São Paulo State (SP) cheered up farmers about flower development. However, it is still early to estimate results for the 2022/23 season, since the set of fruitlets will depend on the weather along October and more flowers may open until the end of the month.

According to data from Inmet (National Institute of Meteorology), rainfall is expected to average 50 mm in most citrus-producing regions in October.

ORANGE MARKET – The trading pace for oranges was slow in the Brazilian market in the first fortnight of October because of the holiday on the 12th. Higher rainfall is expected to improve the quality of the fruits on tree, although they have not reached the ideal standard to be sold yet. This scenario added to low supply pushed up orange prices in that period.

TAHITI LIME – In the market of tahiti lime, prices faded in the first half of October, reflecting the small size of the fruits available, which is not appreciated in the in natura market. In the second week of the month, values increased slightly, influenced by higher demand during the holiday (on the 12th), which surprised farmers.

ORANGE JUICE EXPORTS – The Brazilian exports of orange juice are on the rise in the current season (2021/22). According to data from Secex (Foreign Trade Secretariat), between July and September, Brazil exported 278.9 thousand tons of Frozen Concentrate Orange Juice (FCOJ) Equivalent to all destinations, 19 % up from that in the same period last season. Revenue increased more sharply, by 32 %, reflecting the higher prices paid for the product, totaling USD 440.8 million. Of the total volume shipped this season, 20 % were sent to the United States – the volume exported to the USA has increased by 33 %, and the revenue received from the country, by 51 %.

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