On Dec. 31 2019, Brazil orange juice stocks (FCOJ, frozen concentrated equivalent) were projected at 853,778 tonnes, 41.8% more than seen a year earlier, local orange juice producers association CitrusBR said in a study on Tuesday.
The sharp increase in orange juice stocks is due to a large crop of the fruit harvested in Brazil’s Sao Paulo state last year, when the trees in that region were going through the “on-year” in the biennial production cycle that alternates years of higher and lower outputs, the association said.
It was the highest level of FCOJ stocks in Brazil, the world’s largest producer and exporter of orange juice, since 2014 when they surpassed 1 million tonnes.
CitrusBR has also estimated that global stocks of FCOJ in the hands of its associated companies (Louis Dreyfus, Citrosuco and Cutrale) will reach 412,836 tonnes by June 30 compared to 253,181 tonnes in June 30 2019.
Global stocks by mid-year will be as well the highest since 2014.
According to cepea.esalq.usp.br, the heavy rains that hit São Paulo State in the first fortnight of February did not result in losses in orange groves, but reduced sales and hampered activities in the field. It is worth to mention that the harvesting pace is usually a lot slower in the first quarter of the year and that many of the fruits available in the market in the first half of the month had undesirable features, such as larger size, thick peel and were beginning to crystalize.
According to Fundecitrus (Citrus Defense Fund), the harvesting of the current crop is ending in the Brazilian citrus belt (São Paulo and Triângulo Mineiro), having reached 96% of the area, on average, for all varieties.