Reduction in Global Supply of Orange Juice

Price rises are estimated due to the 25% reduction in exports from Brazil and the decline of 28% in the orange crops in the United States.

Tuesday, July 29, 2014

From a statement issued by the Foreign Trade Promotion Office of Costa Rica (Procomer):

In the first half of 2014, exports of Brazilian orange juice showed a significant drop. Up until May, exports totaled 375,000 tons, down 25% compared to the same period in 2013. In value, Brazilian exports decreased by 30% to $679 million.

In the first five months of 2014, the average selling price per ton was $1809, 5.6% less than the value in the previous year. It is worth mentioning that most of the volume is traded via contracts with closed in advance, which do not follow the spot market price, which affects large producers.

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