See photos
Although July is usually the month with the lowest pear orange prices for the in natura market in the year, due to the peak of crop and the typical weakening of demand – because of the cold weather – in 2016, quotes have been high. The firm demand from processors decreased the availability of pear oranges in the Brazilian market in the first fortnight of the month, despite the harvesting advances in São Paulo State.
The higher demand from processors had already been pushing up pear orange prices in the in natura market in the last months. Pear orange average quotes in April, May and June were the highest for the respective months, considering the whole Cepea series, which started in 1994, in nominal terms. In June, the average was 20.36 BRL (6.11 USD) per 40.8-kilo box, on tree, 59.3% up compared to June 2015.
Growers consulted by Hortifruti/Cepea have reinforced the expectations for high pear orange prices in July also based on the slight temperature increase in the first fortnight of the month, which tended to push up demand, and the reduction of ponkan supply in São Paulo State.
While the harvesting of pear oranges was intensified in that period, supply of early oranges decreased. Although the production of early oranges was small this year, the season is ending. Citrus growers forecasted that the harvesting of early oranges will be extended to mid-August, mainly for processors. According to the Citrus Defense Fund (Fundecitrus), the production of early oranges may total 59.34 million boxes in 2016/17, 19% down compared to last season’s. Early oranges (hamlin, westin, rubi, etc.) represent 24% of the total production in the citrus belt this season, also according to Fundecitrus.
Source: Hortifruti/Cepea
