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Market Data 18.06.2020

Brazilian juice exports may grow in the 2019/20 season

The Brazilian exports of Frozen Concentrate Orange Juice (FCOJ) Equivalent (2019/20 crop) are ending, and the volume sold to all destinations continues higher than that last season.

Brazilian juice exports may grow in the 2019/20 season
(Photo: CEPEA)

The Brazilian exports of Frozen Concentrate Orange Juice (FCOJ) Equivalent (2019/20 crop) are ending, and the volume sold to all destinations continues higher than that last season.

From July/19 to May/20, Brazil shipped 1.03 million tons of juice, 13 % more than that exported in the first 11 months of the 2018/19 season (913.4 thousand tons), according to data from Secex. Revenue, in turn, rose by 1 % (in the same comparison), totaling 1.7 billion USD.

To the European Union, specifically, Brazilian juice shipments totaled 723.7 thousand tons, 23 % up compared to that in the same period last season (587.7 thousand tons). Revenue amounted 1.2 billion USD, for an increase of 10 %. To the United States, Brazilian exports have decreased by 19 % this season, to 154.5 thousand tons, and the revenue downed 25 %, to 248.96 million USD.

Low demand explains the decrease in the volume sent to the US, due to the forecast for a recovery in the 2019/20 season in Florida for the second consecutive year. The state has faced several problems involving weather and plant health this season and in previous crops.

However, due to the covid-19 pandemic, juice sales in the American retail market have increased significantly – data from Nielsen indicate that, this season (from October/19 to April 11, 2020), the volume sold was 6.1 % higher than that in the same period of the crop before.

In this scenario, local juice stocks are being consumed. Although inventories are higher than that in the season before, projections indicating an increase in stocks are lower than those at the beginning of the year.

BRAZILIAN MARKET IN JUNE – The trading pace for citrus was weak in the first half of June, but the volume of oranges available in the in natura market was lower, since processing plants were receiving fruits in that period. Therefore, the average price for pear oranges in the first fortnight of the month was 25.25 BRL per 40.8-kilo box, 4.7  % down compared to that in the first half of May.

Players surveyed by Cepea reported higher sales of ponkan tangerine in São Paulo between June 1 and 15. Thus, the harvesting of this variety stepped up in that period, so that growers could take advantage of the high price levels, although fruits have not reached the ideal maturation stage yet.

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