As the 2026/27 orange crop approaches, March closed under the impact of tensions between the U.S. and Iran, which are affecting production costs. Although diesel prices appear to have stabilised in April, the increase compared to the first months of the year exceeds 23 per cent, or R$1.40 (US$0.28) per litre on average in the state of São Paulo, according to the National Agency of Petroleum, Natural Gas and Biofuels.
In response, the federal government, together with state governments, is working on a subsidy package to contain fuel price increases and limit the impact on production costs.
Nitrogen fertilisers have also recorded increases close to 30 per cent. Although this is not yet a period of intensive use, it adds to cost pressures as the season approaches.
The market outlook reflects tighter margins for the 2026/27 crop. Demand for orange juice remains weak, particularly in Europe, while processing industries have rebuilt part of their stocks.
Source: HFBrasil
