According to the latest report by Rabobank, sales of Brazilian orange juice to the world dropped significantly in the first half of 2014. Up to May, exports amounted to 375,000 tons, 25% less than in the same period in 2013. In value, Brazilian exports decreased by 30% to 679 million dollars.
The average selling price per ton in the first five months of 2014 was of U.S. $1809, 5.6% less than the value in the previous year. It is worth mentioning that most of the volume traded was through contracts closed in advance, which don't accompany the spot market price and affects large producers.
The weather conditions in the first half of this year could increase the fruit yield in the state of São Paulo, which would favour the industry. According to the report, the main producing regions of Brazil will reach approximately 300 million boxes.
Moreover, the harvest in Florida (USA) will drop by 28% compared to 2013.
Global consumption is weak, mainly due to the bad winter weather that hit the United States.
Based on information from Rabobank/CanalRural