Orange juice rally has a bias for more when confirming bad harvests in Brazil

Published 2021년 5월 18일

Tridge summary

Orange juice prices in New York have surged due to two consecutive low orange vintages in Brazil, with the 2020/21 crop seeing a nearly 7% decrease. This is due to drought and the spread of the disease 'greening', which is expected to further disrupt Brazil's orange supply. Additionally, production drops in the United States and Mexico due to extreme weather conditions could also impact the next crop. These factors have led to a strong rally in orange juice contracts through 2022, as the global leader in orange juice production faces significant challenges.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Caption: Bad Brazilian orange vintages are pricing juice in New York (Image: REUTERS / Paulo Whitaker) After three sessions followed by highs, and previous sessions with a stable to positive bias, orange juice completed its rally in New York this Monday (17th) with more force. It rose 2.15 points to the July screen, or more than 1.75%, to 118.45 cents a pound. All longer contracts from 2021 and 2022 also remain under upward pressure. The consultant Maurício Mendes understands that two consecutive low orange vintages - the last and the next, 21/22 -, keep breathing for the juice to seek new maxims this year. The 20/21 crop ended up almost 7% smaller, at just over 268 million boxes in São Paulo and a pigtail in the Triângulo Mineiro, the national Citrus Belt. The market prices the drought that fell and dragged over the orchards, which may result in a further break in the next Brazilian supply cycle, the largest global producer. Added to this, greening, a traditional disease known as ...

Source: Brasilagro