Main grains grown in Santa Catarina have price reduction

In June, wheat, rice, beans, corn and soy showed a decrease in value compared to the previous month

20.07.2023 | 14:05 (UTC -3)
Marcionize Elis Bavaresco, Cultivar edition
Image: Disclosure/Epagri
Image: Disclosure/Epagri

The Agricultural Bulletin for the month of July presented data on the reduction in the producer price of the main grains grown in June in Santa Catarina. Wheat, rice, beans, corn and soybeans had a decrease in value compared to the previous month. Data are from the Center for Socioeconomics and Agricultural Planning (Epagri/Cepa). Check out more details about the production and market of monitored products:

Wheat

Between May and June, prices received by wheat producers fell 4,53%. The average monthly price of a 60 kg bag closed at R$70,12. In the annual comparison, in nominal terms, the prices received in June this year are 32,99% below those recorded in the same month of 2022. The price of a bag of wheat on the domestic market has been falling since July last year. In the international market, prices fluctuated a lot during the period, both due to exchange rate issues and due to a decline in sales in exporting countries. The war between Russia and Ukraine has generated insecurity about the availability of grains on the market, given the comings and goings regarding the agreement to transport the harvests. In Santa Catarina, until the last week of June, around 56% of the area estimated for wheat planting in the 2023/2024 harvest had already been sown. In comparison with the last harvest, Epagri/Cepa estimates point to a 2% reduction in the planted area and production volume.

Bean

In the month of June, the average monthly price received by Santa Catarina's carioca bean producers closed at R$229,42 per 60 kg bag, a reduction of 13,55% compared to the previous month. For black beans, the average price fell 8,91%, with a monthly average of R$195,61 per 60 kg bag. The reduction in bean prices was already expected for this time of year because, with the end of the second harvest of beans, especially in the south of the country, there is an increase in supply. From November onwards, prices paid to producers normally react. In the 2022/2023 harvest, the total area planted with beans in Santa Catarina (sum of the 1st and 2nd harvest) fell by approximately 11%. On the other hand, average productivity increased by 22%, which resulted in a 9% increase in production compared to the previous harvest.

Corn

In  the  domestic  market,  corn  prices  were  pressured  in  June. In the State, prices fell 4,9% compared to the previous month and 37,8% compared to the same month in 2022. On the other hand, after two consecutive years of losses in corn production due to drought, in the harvest 2022/2023 there was a recovery. Total state production, estimated at the end of the harvest, was 2,88 million tons, around 800 thousand tons more than in the previous harvest. This volume is significant for the State, which has had a deficit of more than 5 million tons in recent years. In Brazil, a total production of 127,7 million tons of corn is expected, an increase of around 13% over the last harvest. 

Soybean

In Brazil, the confirmation of a record harvest in 2022/2023 of 155,7 million tons continues to put pressure on soybean prices in the domestic market. In the State, the price of R$124,39 per 60 kg bag, the average received by producers in June, was the lowest since 2021. Legume production in Santa Catarina, when considering the first and second harvests, totaled 3,02 million tons according to the final estimate released in June. The 2022/2023 harvest is the largest in the historical series surveyed by Epagri/Cepa and IBGE in the State. The systematic increase in the cultivated area, technological evolution and climatic conditions resulted in this record production. 

Rice

The 2022/2023 rice harvest is over in Santa Catarina with record production. As already expected for this period of the year, paddy rice prices fell both here and in Rio Grande do Sul. Compared to the month of May, prices fell 1,67% in  Santa  Catarina  in  the  month  of  June,  with a closed average  in R$78,75 per 50kg bag. In  the  first  fortnight  of July,  prices  showed  a  trend  of  stability,  despite  still  being  low, with a  partial average of R$78,59 per 50kg bag. This is due to the closure of the harvest and subsequent commercialization. For the second half of the year, an increase in prices is expected, given that a large part of the production has already been sold and other factors tend to keep the market warm, such as exports and a low stock-consumption ratio due to the crop failure gaucho.

Garlic

The reduction in the area planted with garlic in Santa Catarina was consolidated. Since the 2018/19 harvest, when 2.406 hectares were planted, there has been a reduction. The estimate is that, in the 2023/2024 harvest, the area occupied by the crop will be approximately 1.171 hectares, a reduction of 51,33% compared to 2018. The expected production for the new harvest is 11.996 tons and the initially estimated productivity is of 10.244kg per hectare. Around 75% of the area expected for the 2023/2024 harvest has already been planted. 

Onion

The updated data for the 2023/24 harvest points to an increase in planted area in relation to the 2022/23 harvest. Vegetable cultivation is expected to occupy 19.013 hectares, with an estimated production of more than 568 thousand tons and an average productivity of 30.039 kg per hectare. The implementation of the 2023/24 harvest is occurring normally and is already approaching 55% of the estimated area. In the first half of 2023, Brazilian onion imports were 103.783 tons, a volume 19,28% lower than in the same period last year.

Apple

In the state wholesale market, between May and June 2023, there was an appreciation in the prices of category 1 fruit, with a decrease in supply with the end of the harvest. In the national wholesale market, the price of apples of Santa Catarina origin appreciated between May and June 2023. In the first half of the year, the volume traded of fruit from Santa Catarina in supply centers represented 58,1% of the total apples sold, generating more than R $188,3 million to the State. 

Read the full Agricultural Bulletin here.

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