Orange supply may increase in the Brazilian market

Orange supply should continue to increase in São Paulo State in April. Although some oranges among the early varieties were traded in March, this month, availability should grow, offsetting the low supply of pear oranges in the market. Still, supply should not be considered high, since flower settlement in the first flowerings was reduced.

Thus, the upward trend of orange prices, observed until March, has been interrupted. Demand, in turn, should be affected (positively and negatively) by the covid-19 pandemic – on the one hand, citrus fruits are supposed to strengthen immunity, on the other hand, the demand for school meals, company meals and from food services should continue low.

It is also important to mention that the oranges from SP should reach the ideal maturation stage this month, which may allow these fruits to stay longer on trees while demand is low. However, growers tend to opt for closing deals at this time of the year, before availability grows too much (possibly pressing down quotes), from May.

Besides, crushing is currently at a slow pace at the processing plants from SP, and should step up again only in May, when early varieties start to be crushed. Thus, this month, oranges should be allocated exclusively to the in natura market and small-sized processors. However, as the market has been oscillating and uncertain, due to the changes caused by the pandemic, orange prices may rise again, changing the scenario forecast by growers.

TAHITI LIME – As the fruits from the second flowering have ripened, supply should continue high between April and early May. Quality should be high, reflecting the regular rains in March. Still, it should be lower than that available in the first quarter of the year (crop peak period). In this scenario, a considerable supply with fruits within the required standard may continue to favor exports if international demand keeps firm.

In the first quarter of 2020, the Brazilian exports of lemon and lime were records for the period. According to data from Secex, Brazil shipped 34.7 thousand tons of these fruits, a staggering 46 % up compared to that in the same period last year. Revenue, in turn, totaled 25.9 million USD in January, February and March, 42 % higher in the same comparison.