In May, orange prices dropped off somewhat in the Brazilian market, due to both the colder weather and high supply at the orchards from SP.
As juicing increases in Brazil, citrus farmers tend to reduce orange supply to the regular market, aiming to prioritize the trades already closed with processing plants. Many farmers allocated large volumes of early oranges to the regular segment in May, waiting for juicing to start.
Between May 2 and 31, pear orange quotes averaged 21.17 BRL per 40.8-kilo box, 33.4% down compared to that between April 1 and 30.
Concerning tahiti lime, besides the higher supply, prices were down by the low demand, from both the Brazilian and the international markets. In May, tahiti lime quotes averaged 15.21 BRL per 27-kilo box, 36.8% down compared to April.
The larger crop estimated by Fundecitrus (Citrus Defense Fund) for the Brazilian citrus belt (São Paulo and Triângulo Mineiro) in 2019/20, at 388.89 million boxes of 40.8 kilos (36% larger than that from the 2018/19 season), should offset the inventories at processing plants from São Paulo in June 2020, according to Cepea estimates.
According to CitrusBR (Brazilian Association of Citrus Exporters) estimates from Feb/19, the 2018/19 season should end, in June/19, with the smallest output since June/11, smaller than the strategic amount (of 250,000 tons). Thus, if these estimates are confirmed, industrial demand may be firm in 2019/20, offsetting higher orange supply – this context has practically been confirmed, considering the anticipated trades closed in late 2018 at firm prices.