Brazilian orange juice stock retreats

Stocks of Brazilian orange juice in the country and the distribution network of the largest exporting companies (Cutrale, Citrosuco and Louis Dreyfus Commodities) over the world retreated to 534 thousand tonnes equivalent to concentrated product on June 30, according to the National Association of exporters of Citrus juices (CitrusBR). According to the entity, the volume is sufficient for 23 weeks of demand, considering that, on average, shipments reach about 90 thousand tons per month.
At the end of the first half of last year, stocks amounted to 766 thousand tons. On 31 December, were 1.046 million tonnes. The reduction was expected. Because of accumulated stocks after two large orange yields in São Paulo and southern Minas Gerais, where industries sourcing of raw material, the production of juice retreated to 851 thousand tons on last year, while sales reached 1.135 million. But the fall was lower than anticipated by the CitrusBR. In February, the Authority estimated that the stocks would be in 475 thousand tons in June 30.
According to CitrusBR, the tendency of reduction of stocks of Brazilian orange juice will continue and the volume must be in 364 thousand tons in June 30, 2015. The Association estimates that the Orange production in Sao Paulo and southern Minas Gerais will be of 308.8 million boxes of 40.8 kilos in the current season (2014/15)-50 million intended for the domestic market and 259 million for the production of juice by the companies represented by the CitrusBR and others not affiliated to the entity. If these volumes are confirmed, the total production of juice you can reach 973 million tons. Commodity exports already tend to remain at about 1.1 million tons equivalent to concentrated product, always according to data of the entity.
Even if traders have not highlighted the reduction of stocks in Brazil as a factor of futures contracts support concentrated orange juice and frozen (FCOJ) on the New York Stock Exchange, although the country account for more than 80% of global exports of the product, the share price soared. On the radar of the market came back to prevail last estimated that Florida-which houses the second largest park in citrus fruit on the planet, smaller only than São Paulo-reap their smallest Orange crop in the last 29 years, which will lead to a shrinkage in inventories also juice in that country. The papers for November closed at $ 1,5495 per pound-weight, high of 65 points.
Yesterday, the shortest supply in the u.s. surpassed another report from Nielsen indicated fall in consumption of orange juice in the big American retail. In the four weeks ended on July 5, the demand was 137.2 million litres-lowest level in 12 years. Now, analysts consulted by international agencies contend that this weakening of demand is already priced. At least until prices return to retreat in New York.