Brazil: Low inventories should bolster prices for orange growers in 2019-2020

The prices orange growers from São Paulo and the Triângulo Mineiro region can ask in the 2019/20 season should be all right, despite larger production. This is because inventories are forecast to again decrease to critical levels in São Paulo state (because of lower production in 2018/19).

According to estimates from CitrusBR (the Brazilian Association of Citrus Exporters) released in August 2018, the stocks of frozen concentrate orange juice (FCOJ) equivalent forecast to June 30 2019 are at 146.7 thousand tons. This would only be enough for a two-month export period.

Indeed, the first bids from large-sized processors for the oranges from the 2019/20 crop started early again (in October of 2018). Bidding prices were around 22 BRL (€5.14) per 40.8-kilo box, harvested and delivered at processors (with the possibility of a bonus added to the orange selling price in the international market).

Source: cepea.esalq.usp.br

 


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