Prices disparity increases in the spot market

Brazilian orange prices disparity of the fruit delivered at plants (spot market) increased last weeks. While some trades have still been settled at 8.00 reals or 4.85 dollars per box of 40.8 kilos in the state of Sao Paulo, other ones have already reached 13.00 reals or 7.88 dollars per box. At the moment, the volume of fruits delivered at plants is low - few processors have already started to crush this month. Some of them should start activities at the beginning of June.

Concerning contracts, growers and processors have been trading the fruit at between 12.00 reals or 7.88 dollars per box and 14.00 reals or 8.48 dollars per box. These values are superior to those practiced in previous crops, once agents expect lower production in the Sao Paulo state 2008/09 crop.

In the fresh fruit market, the Brazilian citrus market has been moving at a slow pace, as the cold and rainy weather reduces the domestic consumption. From April 30th to May 30th, the pera orange decreased 8.8 percent in Real, averaging 11.53 reals or 7.07 dollars per box of 40.8 kilos (on tree) on May 30th. Some growers keep accepting lower values, intending to trade higher volumes. (Cepea - Brazil)

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