Orange juice prices at their highest since 2019
- Published on 24/01/2022 - Published by FRUITROP
- Free
Orange Juice market
Informations
- Product(s) : Orange juice , Orange
- Rubrique / Thématique : Direct from the markets
- Country : Brazil
- Keywords : Price , Production
2020-21 will be remembered as a bullish campaign. Prices for 65°Brix concentrated juice delivered to Rotterdam have gradually risen by US$300/t to stabilise at US$2,100/t from October 2021, their best level for almost three years. The market balance seems solid, as the increase is multifactorial, due to both supply and demand. On the production side, the combined volumes of the two giants of the sector, Brazil and Florida, are well below average for the second consecutive season (a total of 309 million growing cases expected in 2022, i.e. -4% compared to the already "small" 2020-21 harvest and -22% compared to the four-year average). In particular, Brazil has significantly reduced its initial production potential during the course of the campaign, as the weather was again difficult (frost and especially persistent drought during the first part of the campaign). The news is also rather good on the demand side. According to FDOC statistics covering the period from October to December 2021, consumption in the United States has remained steady for both concentrated and single-origin juice. This is a pleasant surprise, as the erosion trend was well established before the arrival of Covid 19. This should further reduce the level of world stocks, which had already fallen significantly in Brazil last season.
Sources: FDOC, Citrus BR, IHS Markit
