CROP UPDATES: ORANGE JUICE - Q2 2024

USA

  • The USDA’s current forecast on Florida’s 2023/24 orange crop has been lowered by 1.0 million boxes to 18.8 million boxes. If realized, this will be 19% higher than last season’s final production.
  • The forecast of non-Valencia orange production is unchanged at 6.80 million boxes. The Navel forecast, included in the non-Valencia portion of the forecast, is 180,000 boxes. The non-Valencia harvest is over for the season.
  • The forecast of Valencia orange production has been reduced by 1.00 million boxes to 12.0 million boxes. The final fruit size is below the average, requiring 271 pieces to fill a 90lb box. The final fruit droppage at 50%, is above the average.
  • Only 50% of the Valencia crop has been harvested so far, so there could be another small cut to the forecast, say analysts.

 

BRAZIL

  • The 2024–25 orange crop forecast for Brazil’s São Paulo and West-Southwest Minas Gerais citrus belt, published on May 10 by Fundecitrus and its cooperators, is 232.38 million 90-pound boxes. The projected volume represents a significant drop of 24.36% as compared to the previous crop of 307.22 million boxes.
  • While the forecast is substantially down from the 2023–24 season, it is close to the average harvest for the last decade. Should this forecast hold true, it will be the second smallest crop since 1988–89, when forecasts using the objective method began to be performed in Brazil’s citrus belt.
  • Climate is the main cause for the drop in production. This season, the combination of high temperatures, high evapotranspiration rates and an intense water shortage during the crucial period of flowering and fruit setting resulted in a low number of fruits per tree. The forecast of drier weather over the next six months is expected to continue impacting the crop. This will further hinder fruit growth and increase the challenge of keeping groves supplied with water, even where irrigation systems are installed.

BRAZIL

  • Offers for concentrate from Brazil are USD 6,000-6,200/MT 66 brix FCA Europe, compared with USD 6,200- 6,700/MT last month.
  • Many of the larger buyers reportedly covered their needs when prices were lower and are currently holding contracts with pricing around USD 5,600-5,800/MT. It is not clear how long these contracts will last, and buyers will likely come back onto the market to fix contracts for next season once the outlook for the next crop is clearer.
  • Asking prices for Brazilian NFC juice are hard to pin down but are somewhere between USD 1,200-1,500/MT single strength FCA Europe against USD 1,350-1,400/MT last month.

MEXICO

  • The 2023/24 orange crop in Mexico is now winding down. Most processors have already closed factories and the season is expected to end in one or two weeks.
  • The fruit that is being run is mature with high ratios of 25-30.
  • Current crop estimates indicate that production was 18% bigger than last season and orange juice production, while 15% below expectations, was close to 40% above the output last year. The crop was lower than expectations due to smaller fruit development and a higher fruit drop.
  • Current offers for FCOJ out of Mexico are between USD 6,300-6,500/MT 65 brix FCA Europe, against USD 6,800/ MT last month.
  • Demand is strong from all importing regions, say local processors.