As of December 31 last year, global stocks of frozen concentrated orange juice (FCOJ) were recorded at 463,940 tons, marking a 6.7% increase from the end of 2022, as reported by CitrusBR, the Brazilian producers' association. This uptick halts a three-year trend of declining reserves, yet stocks remain at the second lowest level in the 13-year history recorded by CitrusBR. The association attributes this scarcity to a succession of small orange harvests over the past four seasons in Brazil, the leading global producer and exporter of orange juice. CitrusBR, which represents major industry players such as Louis Dreyfus Company, Cutrale, and Citrosuco, has observed a range of agricultural challenges, including severe droughts and excessive heatwaves, that have adversely impacted orange yields.
CitrusBR's executive, Ibiapaba Netto, highlighted that while citrus greening disease has contributed to pushing orange juice prices towards record highs, the predominant factor behind dwindling stock levels has been unfavorable weather conditions. Looking ahead, the industry's attention is now turning towards the 2024/25 orange crop forecasts from Fundecitrus, expected on May 10, which will provide insights into the forthcoming season's market dynamics.
Source: nasdaq.com