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HF Brasil

Brazil: Low prices on the domestic market

Several products were updated by HF Brasil, however almost every product discussed was dealing with lower prices last week. This is based on information from last week, so for some products they are expecting some improvement this week or next week. The climate also had an effect on the industry last week.



Bananas
Producers of the Nanica banana from the North of Santa Catarina and Vale do Riberia in São Paulo had to market the fruit at low prices in recent weeks. These are the main producing regions of this banana variety in the country. The low prices often didn’t cover the production costs. The supply of Nanica began to decrease, which was also noticed in the prices. The São Paulo banana was traded last week at R $ 0.96 / kg, which 7% higher than the week before, while the banana produced in Santa Catarina was sold on average at R $ 0.30 / kg. However, the market is always less heated at the end of the month, according to the growers, so they expect, with the arrival of September, to notice greater reactions in prices of the Nanica banana.

Potato
Last week the potato variety Ágata experienced the biggest price decreases. The largest decline was in the wholesale market in Rio de Janeiro (capital), where the product was traded at R $ 39.00 / sc of 50 kg (-19.08%), followed by Belo Horizonte (BH) R $ 37.05 / Sc (-13.39%) and São Paulo R $ 45.56 / sc (-9.29%). The lower prices are due to the harvest of the winter season, which is intensifying in the regions of Vargem Grande do Sul (SP), Cristalina (GO), South and Cerrado of Minas Gerais. It is expected that this week the supply will remain high, therefore there might even be a chance prices will decrease even more, as harvest areas and yields are increasing in the winter crops.

Limes
The interruption of the harvest, as a result of the rains, wasn't enough to boost the prices of the Tahiti lime. The low absorption on both the domestic and international markets, resulted in high supply on the market. However, HF Brasil says expectations are the offer will increase in the state of São Paulo, as the quality and the calibers will improve.

Apple
Last week the category 1 Gala apple price was only 3% down, compared to the week before. As the average price was R $ 51.71 / cx of 18 kg in the region of São Joaquim (SC). According to HF Brasil, this decline in price may be related to the companies' strategy of keeping the Gala to be marketed in the second semester of this year. More supply of this variety will be available in the market. Moreover as the Gala has been in storage for a longer period, pressures are on producers to sell it in a shorter period to retain quality. Thus, the decline in demand also made it difficult to increase the values for the apple. The producers' expectation is that prices will recover gradually by the end of the year.



Papaya
This is one of the fruits that experienced a rise in prices last week. Although the weather in the consuming areas (South and Southeast) continues to hinder the commercialization of fruits, prices rose as a result of less supply. Last week, the highest price was paid for the Formosa variety, which was sold at an average of R $ 0.73 / kg in the West of Bahia. This is an increase of 40% compared to the week before. It's mentioned that the hopes are that prices will increase this week, if the end of the month doesn't have an adverse effect.

Mango
There is a lot of supply of the Tommy mango on the domestic market. There is a slight increase in exports to the United States, however, this has not resulted in less volume available in the domestic market. HF Brasil says that it is expected to increase shipments to the US in the first week of September. Despite the higher demand from the US, one factor worrying producers, is the lack of monitoring of the fruit fly by some of them. This could interrupt international sales, which respectively leads to more volumes in the domestic market again.

Watermelon
There are some problems in the production of watermelons in the region of Lagoa da Confusão and Formoso do Araguaia (TO). HF Brasil explains that the hot climate in these regions and the need to delay the harvest due to low demand, caused burns on the skin of the watermelon. In addition, advanced maturation also affects the quality of the fruit and resulted in lower prices. On average in Lagoa da Confusão and Formoso do Araguaia, the watermelon (> 12 kg), were quoted on average or R $ 0.28 / kg, which was a 15% decrease compared to the week before. Expectations are to have it balanced more these days, as a result of warmer weather and less volume harvested.



Melon
The main consumer markets for the yellow melon are the South and Southeast. Even though we are at the end of the month and the unfavorable climate for consumption levels, prices have stabilized last week in both the wholesale and producing regions. Prices haven´t really changed last week compared to the week before, even though reports said that there was going to be a lower entry of fruit, due to increasing exports.

Grapes
The volumes of grapes reduced last week in the region or Pirapora (MG). However, prices didn't rise at the same rate. The average price of Niagara grapes was R$ 4,91 / kg in the Mineira region, which was 6.8% higher than the week before. HF Brasil says that producers were unable to meet the demanded amount of grapes last week. This situation was probably due to lower temperatures than normal in the same period, May and June, which may have affected the maturation of the grapes that would be harvested last week.

Lettuce

Last week all lettuce varieties in the regions Ibiúna and Mogi das Cruzes (SP), were the lowest of this year. These low prices were caused by a low demand due to cold weather and rains. Moreover, another reason mentioned were the high volumes available as a result of the good productivity over the last months. Expectations were for less rain and higher temperatures for this week, which should stabilize production again.

Carrot
The offer of carrots increased during winter time in the region of São Gotardo (MG). HF Brasil mentions that productivity is rising and last week producers estimated an average of 88tn per hectare. This is 9% higher than the week before. The prices for carrots decreased last week, up to 28% less compared to the week before and reached R $ 7.20 / cx of 29 kg.

Fuente: HF Brasil

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