Cepea, August 3, 2020 – As high volumes of orange have been allocated to processors, availability was low in the in natura market of São Paulo State in July. In this scenario, prices increased, which is not common for this time of the year, when quotes are usually the lowest in the year.
In July, the average price for pear oranges in the in natura market closed at 26.13 BRL per 40.8-kilo box, a staggering 43.8% up compared to that in July 2019, in nominal terms, and 6.2% higher than that in June 2020.
Pear orange prices have been higher than 34 BRL/box, on tree, in the in natura market (for higher quality fruits), and quotes are expected to continue firm. Although the harvesting is supposed to step up in the coming months, supply should continue low in the in natura market (not only because of the higher demand from processors, but also because of the lower production this season).
As for crushing at the processors in São Paulo, mostly early oranges should be processed in August. However, the share of pear oranges should increase because of the harvesting.
CROPS – Trees are developing well in irrigated groves, which correspond to the minority. In non-irrigated groves, the warm and dry weather is hampering fruits growth. Thus, growers should be aware of the weather in August. If it rains enough, supply may increase in the market.