Growth in Santa Catarina’s soybean harvest

The March Agricultural Bulletin indicates growth in Santa Catarina's soybean harvest in relation to initial estimates: the cultivation area was increased to 730,6 thousand hectares and the State's production reached 2,74 million tons, when the initial forecast for the 2022 harvest /23 was 2,61 million tons. Adding to the second harvest – recently cultivated on 60 thousand hectares – production in 2023 should reach close to three million tons.

According to this document, published monthly by Epagri/Cepa with information from the main agribusiness production chains in Santa Catarina, the numbers are pointing to the largest harvest in the historical series collected by Epagri/Cepa.

Rice

To date, 65,81% of the rice sown area in Santa Catarina has been harvested. The estimate for the 2022/23 harvest points to area stability, around 147 thousand hectares, and a slight reduction in productivity, given that, in the last harvest, it was above average.

Paddy rice prices continued to fall between February and March, as expected at this time of year, when the advance of the harvest and the need for immediate marketing by producers to pay debts and harvest expenses increase supply internal grain on the market. Furthermore, the expectation of a good harvest and the high productivity obtained so far reinforce the downward trend in prices.

Regarding the foreign market, in the first two months of 2023 exports totaled US$7,820 million and the main destination was Venezuela. This value is approximately 92% higher than the total exported in the entire year 2022 and reflects the trend, also observed in Rio Grande do Sul, of increasing participation in the foreign market.

Bean

Across the state, approximately 68% of the area planted with 1st crop beans has already been harvested. For the areas that remain to be harvested, 22% are in the flowering phase and 78% in the ripening phase. Regarding the condition of the crops that remain to be harvested, 100% of them are classified as in good condition.

In relation to second-crop beans, by the first week of March, 100% of the area destined for planting with second-crop beans had already been sown. Crop conditions are considered good in practically 2% of areas. In relation to crop development, in 100% of the second harvest bean areas the plants are in the vegetative development phase and in only 92% of the area the plants have reached the flowering phase.

In February, the average monthly price received by Santa Catarina's carioca bean producers fell 2,04% compared to January, closing the average monthly price at R$ 321,63/sc of 60 kg. For black beans, the average price increased by 3,55%, closing the monthly average at R$ 262,53/sc of 60 kg. Compared to a year ago, the average price of a bag of carioca beans, in nominal terms, is 19,21% above what was paid in February 2022. For black beans, the annual reduction was 6,74% .

Corn

In the March 2023 report, Epagri/Cepa updated the cultivated area and corn productivity in Santa Catarina, which resulted in a reduction in the total production estimate to 2,64 million tons, even so it is being considered a higher harvest compared to the last two harvests.

The progress of the first crop harvest, the expected production of the second crop in Brazil and the parity/export price should guide the market in the first half of 2023. The total production of the first crop in the state was initially estimated at 2,72 million of tons.

In Santa Catarina, prices paid to producers have recovered since July 2022, when they reached the lowest price of the year. In 2023, prices are being pressured, compared to 30 days (Jan. 23) and twelve months (February 2022), there was a decline of 2,8% and 13,3%.

Wheat

In Santa Catarina, the expectation is that the wheat crop that will be sown from June onwards will be larger than the one recently harvested. According to Epagri/Cepa technicians, despite the stagnation in prices received by producers in recent months, the good results achieved in this harvest are motivating producers to invest in the activity, which leads us to believe that there will be an increase in the area planted with wheat.

In February, the average monthly price paid to producers fell 1,91%, closing the monthly average at R$87,75/sc of 60 kg. In the annual comparison, in nominal terms, prices received in February this year are 4,23% below those recorded in the same month of 2022.

Regarding the prospects for the 2023/24 harvest, some factors that affect these projections must be considered. World wheat supplies are at low levels and commodity prices remain at high levels. These two aspects can act positively in increasing the intention to plant wheat in Brazil.

Garlic

Santa Catarina's garlic harvest is in the process of being commercialized, but slowly and with prices below the production cost. A similar situation is occurring in other countries such as Spain, China, Italy, among others.

In February, imports were 13,09 thousand tons, a quantity 12,2% lower than January and 5,75% lower than February 2022, behavior within normal market conditions. Vegetable suppliers to Brazil, in the month of February, were Argentina, with 11,54 thousand tons, 88,12% of imports in the month; and China, with 1,55 thousand tons, equivalent to 11,88%.

In relation to the average monthly price paid to the producer, in February there was a reduction compared to January. Class 2 and 3 garlic went from R$4,68/kg to R$3,90/kg, a reduction of 16,66%. Garlic classes 4 and 5 had average prices paid to the producer of R$6,94/kg, a reduction of 17,57%. Class 6 and 7 garlic was sold at R$9,00/kg, a reduction of 15,73%.

Onion

The harvest of the Santa Catarina onion crop has been completed. Marketing continues at a normal pace and the volume sold already exceeds 70% of Santa Catarina's production.

In relation to the price paid to the producer, the reduction in wholesale prices had an impact on prices in the main markets, such as Rio do Sul, with sales from R$1,80/kg to R$2,30/kg in recent weeks, leaving producers with a tight margin in relation to the average costs for the harvest, which is around R$1,70/kg.

Onion imports in February were 2,38 thousand tons, which added to January closed the first two months of 2023, with just over 3,76 thousand tons, a volume similar to the same period last year. The countries that supplied the vegetable to Brazil were the Netherlands (58 tons), accounting for 2,43% of the volume; Argentina (1,8 thousand tons), corresponding to 75,59%; Chile (0,52 thousand tons), or 21,97% of the imported volume.

Apple

At the supply centers, the price of apples from Santa Catarina depreciated between January and February 2023 with an increase in supply with the start of the Gala apple harvest, but they remain higher than the previous year.

The volume of Santa Catarina fruit traded at Ceagesp in 2022 represented 49,3% of the total apples sold, generating more than R$359,0 million for the State. In February, imported apples are priced above those of apples from Santa Catarina at Ceagesp, with an increase in value compared to the previous month.

In the second half of 2022 and early 2023, there was an increase in imports of apples, due to the low volume produced in the previous harvest (21/22) and problems with the quality of the fruit for storage, due to the effects of prolonged drought in orchards and at low temperatures. Furthermore, there was a delay in the harvest of the current harvest (22/23), which increased domestic prices, making imported fruits more competitive at the beginning of the year.

In orchards, the expectation is for larger fruits, with greater quality in color and flavor, with a reduction in the share of Fuji apples in total fruit production expected. According to monitoring of Gala apple production in the state, in the Joaçaba microregion it is estimated that in the month of January 17% of the volume expected for the variety in this 2022/23 harvest was harvested, 50% in February and 70% in the first two weeks of March.

In the Curitibanos microregion, it is estimated that 3% of the variety's production was harvested in January, 50% in February, increasing to 65% in the first half of March. In the São Joaquim microregion, with the harvest starting in February, the estimate is that 20% of the Gala apple production was harvested, with an increase to 60% in the volume harvested in the first two weeks of March.