On Jan-24, orange production in Brazil encountered challenges, resulting in price hikes. Citrus growers witness prices soaring to over USD 12.49 per box. However, the orange juice market in New York experienced a decline. This situation led to economic challenges due to negative spreads between shipping prices and raw material costs. Despite efforts, Brazilian juice prices still need to evolve. The United States Department of Agriculture (USDA) has projected a slight reduction in production for the 2023/24 season. Fundecitrus estimates a 1% year-over-year (YoY) reduction in total oranges produced. There's also a 1.6% YoY drop in Brazilian juice production. This creates a challenging scenario for the sector. There are insufficient investments in new orchards due to greening.
Despite its limited presence in French and European markets, Egypt has seized the opportunity to meet rising demand and increase prices, driven by a decline in local production. The Mediterranean orange campaign is concluding with a predominance of larger-sized fruits, notably from Navelines to Lane and Nave varieties, while sales of Salutsiana juice varieties are underway, switching to Valencia by the end of Mar-24. Prices are rising due to high demand and low production in Spain and Italy. Egypt has capitalized on the market gap, driving prices up due to increasing demand. Reduced orange juice production in Brazil, caused by adverse weather, has led to higher prices.