Superior prices in plants boost in natura values

The higher prices for the orange delivered in their plants (spot market) boosted the in natura fruit values. On July 16th, pera orange was traded at 10.90 reals or 5.83 dollars per box of 40.8 kilos, in tree, up 2.54 percent in Real over June 29th. In the spot market, the average was of 10.89 reals or 5.82 dollars per box, increase 20 percent in Real in the same period.

Even with higher orange prices in the domestic market, trades moved at a better pace during the last days. Lower temperatures forecast for the next weeks, however, should limit the orange consumption.

In the 2006/07 Brazilian citrus crop, long term contracts traded this year averaged 4.20 dollars per box, according to the Cepea. Those growers who renegotiated contracts settled before Oct/2005 based on Faesp (Sao Paulo State Federation of Agriculture) proposal obtained 4.59 dollars per box, relating to 3.30 dollars per box (previous value) plus 1.29 dollar per box (bonus). However, few growers got this value, since most part of them renegotiated before the deal agreement.

The goal of this renegotiation was adjust prices at the new juice level in the international market. Even with several negotiation trials, the increases for Brazilian growers were so lower than the juice raising.

Regarding the Florida's 2006/07 orange crop, the USDA reduced its forecast from 130.6 million boxes of 40.8 kilos to 128.9 million boxes, the lowest volume in 17 years. The next Florida's season (2007/08) starts in October.


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