Drop in the price of beans marks the SC agricultural market in May
Abundant national harvest ended up reducing the prices received by bean producers
22.06.2023 | 15:21 (UTC -3)
Epagri
Abundant national harvest ended up reducing the prices received by bean producers; Photo: Aires Mariga
The June Agricultural Bulletin showed a reduction of almost 20% in the price of black beans paid to producers in Santa Catarina. The publication is published monthly by Epagri/Cepa with information from the main agribusiness production chains in Santa Catarina.
Carioca bean prices ended the month with an average monthly price of R$265,46 per 60kg bag, a reduction of almost 20%. For black beans, the average price fell 13%, closing the monthly average at R$215,20/sc of 60kg. With a supply quite adjusted to demand, the occurrence of a slightly more abundant national harvest ends up harming marketing, reducing the prices received by producers.
Across the state, approximately 85,5% of the area planted with second-crop beans has already been harvested, with closure expected for the second half of June. For this Santa Catarina bean harvest, the total planted area (sum of 1st and 2nd harvest beans) is expected to fall by around 9%. On the other hand, productivity should increase by 22%, resulting in an increase in production of 11% compared to the previous harvest.
Check the performance of other agricultural products in the month of May.
Rice
From the second half of May onwards, prices for paddy rice, which until then had been rising, registered successive drops throughout the state of Santa Catarina and Rio Grande do Sul. This is due to the progress of the harvest and the consequent commercialization , since most producers need to save money immediately after harvesting to make the next harvest viable. Regarding the harvest, the harvest is closed in the State and the current estimate points to area stability – around 147 thousand hectares – and productivity around 2% above that obtained in the previous harvest, which was also above average.
Corn
The total production of the first corn crop in the State, initially estimated at 2,72 million tons, was revised to 2,69 million tons. The below-average rainfall in the western region, especially in the municipalities of the Uruguay River Valley and the Far West, was reflected in the decrease in expected productivity. Part of this decrease was offset by the good productivity achieved in other regions.
In Brazil, a total production of 125,7 million tons is expected, an increase of around 11% over the previous harvest. Producer prices continued to be pressured in May. In 2023 there was a decline of almost 35%.
Soybean
The initial forecast for soybean production in Santa Catarina, in the first 2022/23 harvest, was 2,61 million tons. In the May 2023 update, the state's production was increased to 2,86 million tons. The current harvest is the largest in the historical series compiled by Epagri-Cepa and IBGE. The systematic increase in the cultivated area in the state and the weather conditions in the current harvest resulted in this record production.
In Brazil, the confirmation of a record harvest in 2022/23 of 155,7 million tons continues to force soybean prices on the domestic market. In the State, the price of R$126,86/sc, in May, was the lowest value since 2020. However, in the first half of June, the few rains in the green belt in the United States offer signs of a recovery in contract prices futures, which is a positive sign for producers.
Wheat
The month of May was marked by a sharp drop in prices received by wheat producers. In Santa Catarina, between April and May, prices fell practically 9%, closing the monthly average at R$73,47/sc of 60kg. In the first twelve days of June, the reduction in prices received by producers became even more pronounced. So far, the May price is R$70,49/sc of 60kg.
The low prices that have been practiced in recent months, combined with climate forecasts for the occurrence of El Ninõ between the months of September and November (critical phase of the crop), have reduced the spirit of producers, who are afraid to increase their planting areas. As a result, our initial estimate points to a 2% reduction in the planted area, compared to the last harvest.
Banana
Between April and May 2023, there was a devaluation in the prices of caturra bananas, due to the increase in relative supply. The expectation is that prices will be maintained with a reduction in supply, but with better fruit quality. For silver bananas, there was a devaluation in prices due to lower demand for the variety. The expectation is to maintain prices with lower supply due to the variety and competition of seasonal fruits.
In May, the producers' strategy was to slow down the harvest with the expectation of a reduction in fruit supply and an increase in future prices to compensate for the seasonal decrease in fruit demand. In the first five months of 2023, banana production in Santa Catarina accounted for 9,0% of the total sold on the wholesale market at national supply centers.
The negotiated value of fruit from Santa Catarina was R$65,9 million, an increase of 43,7% compared to the same period of the previous year. In the 2022/23 harvest, production is estimated at 702,3 thousand tons, a reduction of 2,3% compared to the 2021/22 harvest. The main microregion in Santa Catarina that produces caturra bananas is Joinville, with 52,9% of the total volume; while the Araranguá microregion represents 43% of silver banana production in the State.
Garlic
The commercialization of the Santa Catarina harvest occurred slowly due to market saturation until March. In this way, many producers sold their production at prices lower than the production cost. According to monitoring of the Epagri/Cepa harvest project, the commercialization of Santa Catarina's garlic harvest has already reached more than 95% of production, and is nearing completion.
Like previous harvests, Santa Catarina will have a further reduction in planted area. The planted area in the 2018/19 harvest was 2.406ha, rising to 1.171 ha in the 2023/24 harvest, a reduction of 51,33% in the period. The expected production for the new harvest is 11.996 tons and the initially estimated productivity is 10.244 kg/ha.
In relation to the price paid to the producer in May, in the Joaçaba reference square, class 5 garlic was sold at R$7,92/kg, an increase of 22,6% compared to the previous month, which was R$6,46 /kg.
In May, 13,15 thousand tons of garlic were imported – an increase of 19,32% compared to April. The quantity imported in the first five months of the year is around 1,27% greater than that imported in the same period last year, therefore it can be considered normal for the period.
Onion
The commercialization of the 2022/23 Santa Catarina onion harvest was completed, reaching 551,2 thousand tons. As announced in the last edition of the Agricultural Bulletin, Epagri/Cepa presents in this edition the initial estimate of onion production in the 2023/24 harvest. The data points to an increase in planted area of 4,69% in relation to the 2022/23 harvest, reaching 18.436 ha, estimated production of more than 554 thousand tons and average productivity of 30.060kg/ha. In this sense, Santa Catarina should remain the largest national onion producer.
In the first five months of 2023, imports were 82.040 tons, a volume 29,47% lower than in the same period last year.
This year, imports up to the month of May were 82.040 tons, with a disbursement of US$7,37 million, and an average price (FOB) of US$0,21/kg – a reduction of 22,22% in relation to the average price of the year past.