Brazil: Orange crushing continues slow in São Paulo State

Until May, only one of the large-sized processors was crushing oranges from the 2020/21 crop in São Paulo State (in Araraquara) and in June, three more plants started activities, one in Colina and the other two in Matão.

Although there were more plants crushing oranges in June and processors had started crushing the fruits purchased through contracts, the crushing pace was still slow compared to that in previous crops, due to the crop delay in most citrus-producing regions in Brazil, except for northern São Paulo, where fruits development was more advanced.

Most processors were crushing their own fruits or those previous purchased, however, one large-sized processors was purchasing oranges in the spot market. Bidding prices for pear or early oranges were ranging from 21.60 BRL and 24.00 BRL per 40.8-kilo box, harvested and delivered to processors, depending on fruits yield – when less than 290 boxes are needed to produce a ton of concentrate orange juice, remuneration is higher.

The volume of fruits available in the spot market this season is expected to be low, since the attractive prices paid to growers (up to 26.00 BRL/box) tend to increase the preference for purchases through contracts. It is worth to mention that, according to agents from processors, only a few growers have not traded their fruits from the 2020/21season yet.

BRAZILIAN MARKET IN JUNE – Sales were low in the in natura market in June, due to the colder weather in São Paulo. As restaurants are not working and schools are closed, the demand for larger-sized fruits was higher, resulting in a surplus of smaller-sized oranges. Although these fruits may be allocated to processors, pear oranges quotes did not rise last month. Between June 1 and 30, pear orange prices averaged 25.26 BRL per 40.8-kilo box, on tree, stable (-0.1%) compared to that in May.

As regards tahiti lime, agents reported a slight reaction in the demand in late June – both domestic and international. Besides, the harvesting pace was controlled, in order to avoid price drops. Thus, amid lower supply, prices increased in June. The average price for tahiti lime last month closed at 29.49 BRL per 27-kilo box, harvested, 9.9% higher than that in May.