In September, the Mintec Benchmark price of Brazilian orange juice rose by 30% month-on-month, to USD 1,780 / MT. It then remained stable at this level throughout October. The October average price is an increase of 35% year on year (y-o-y). The price increase is attributed to a tight supply of oranges in Brazil, which is the largest producer of both oranges and orange concentrates worldwide.
Brazilian orange production was hit following a sustained drought, which affected key producing areas in July through to October. The drought combined with frosts early in the season (June-July) resulted in high fruit droppage.
Fundecitrus reduced its forecast for the São Paulo and West-Southwest Minas Gerais citrus belt to 267.9 million boxes, a decline of 9% from the previous forecast. As a result, in the 2021/22 season fewer fruits will be earmarked for the production of orange concentrate, limiting supply and thus exerting upward pressure on orange juice prices.