Egyptian Oranges in Brazilian mkt Q1
Stelamari Ito
Published 2022년 4월 1일
The Egyptian Valencia Oranges hit the Sao Paulo wholesale market with large volumes from week 12.
Only a few buyers brought in Valencia since the start of the season. One buyer claimed he brought in 3 containers per week of Valencia arriving in week 9 and 10 and sold it within the day. Even though it is a degreened orange, the market took it very well this year.
From week 12, Valencia started to come with good quality. After that, however, the buyers who believed in Navel and kept bringing it until week 13 had to drop their wholesale prices to prices of Valencia since the Brazilian market absorbs it as “Imported Oranges” without making a massive distinction between Navel and Valencia varieties.
The buyers who kept bringing Navel up to the end are breaking even. So the best timing of ETD for Egyptian navels are maximum of week 5. After that, Valencia will start coming in and taking over the market with lower prices (the difference in pricing between Navel and Valencia is about USD 1.50-2.
In week 13, we see many Oranges in the market, pushing prices down due to competition between importers. The first Valencia class 1 was sold at wholesale prices of around USD 18.01-19.07/box, and in week 13, prices were down to USD 12.71/box.
Buyers that had Navels arriving in week 13 claim that the Navels came with low pressure, with flattened surfaces which supports that end of the season Navels are not suitable for such a long sea freight period from Egypt to Brazil (24-30 days).
About Egyptian lane late variety:
Egyptian producers claimed since the beginning that lane late does not have enough shelf-life to withstand the long journey to Brazil and did not offer it. In addition, the higher price was also an issue for the Brazilian market. However, some lanes late arrived in the Brazilian market on weeks 12-13, and importers said it indeed has problems with the pressure of the fruits, making it unsuitable for Brazil.
Moreover, Valencia oranges from ETD week 11-13 had a massive drop in prices due to the Russian-Ukrainian war, dropping almost 30% by week 13.
Only a few buyers brought in Valencia since the start of the season. One buyer claimed he brought in 3 containers per week of Valencia arriving in week 9 and 10 and sold it within the day. Even though it is a degreened orange, the market took it very well this year.
From week 12, Valencia started to come with good quality. After that, however, the buyers who believed in Navel and kept bringing it until week 13 had to drop their wholesale prices to prices of Valencia since the Brazilian market absorbs it as “Imported Oranges” without making a massive distinction between Navel and Valencia varieties.
The buyers who kept bringing Navel up to the end are breaking even. So the best timing of ETD for Egyptian navels are maximum of week 5. After that, Valencia will start coming in and taking over the market with lower prices (the difference in pricing between Navel and Valencia is about USD 1.50-2.
In week 13, we see many Oranges in the market, pushing prices down due to competition between importers. The first Valencia class 1 was sold at wholesale prices of around USD 18.01-19.07/box, and in week 13, prices were down to USD 12.71/box.
Buyers that had Navels arriving in week 13 claim that the Navels came with low pressure, with flattened surfaces which supports that end of the season Navels are not suitable for such a long sea freight period from Egypt to Brazil (24-30 days).
About Egyptian lane late variety:
Egyptian producers claimed since the beginning that lane late does not have enough shelf-life to withstand the long journey to Brazil and did not offer it. In addition, the higher price was also an issue for the Brazilian market. However, some lanes late arrived in the Brazilian market on weeks 12-13, and importers said it indeed has problems with the pressure of the fruits, making it unsuitable for Brazil.
Moreover, Valencia oranges from ETD week 11-13 had a massive drop in prices due to the Russian-Ukrainian war, dropping almost 30% by week 13.
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