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Market Data 28.06.2022

Orange processing expected to step up in Brazil this month

Orange supply is expected to gradually increase in June, however, the demand for the fruit is also supposed to be higher, as orange processing rises. This scenario may limit devaluations in the in natura market.

Orange processing expected to step up in Brazil this month
(Photo: CEPEA)

Orange supply is expected to gradually increase in June, however, the demand for the fruit is also supposed to be higher, as orange processing rises. This scenario may limit devaluations in the in natura market.

Processing plants are expected to begin activities in June. So far, five plants of the large-sized processors have been operating in São Paulo State, and more plants are supposed to begin activities this month, majorly in the second fortnight.

In the spot market, values have been stable. The processors that are currently purchasing oranges in the spot have been paying from BRL 25 to BRL 27.00 per 40.8-kilo box (harvested and delivered at processor). As for contracts, quotations have hit BRL 32.00/box, however, not all plants are receiving fruits, and some of them have minimum quality requirements, mainly related to ratio.

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