Orange Juice Stockpiles Shrink to Record Low in Top Exporter Brazil

Orange Juice Stockpiles Shrink to Record Low in Top Exporter Brazil

Time Stamp: August 31, 2023 12:00 AM
Source Node: 2855259

Stockpiles of orange juice in Brazil, the world’s top exporter, have reached the lowest levels in 12 years in a looming sign of a global shortage as Florida’s production declines and faces threats from what’s shaping up to be a concerning hurricane season.

Brazil reached the end of its season in June with 84,745 metric tons of juice in storage, a 41% drop compared to 2022 and the lowest level seen since industry group CitrusBR started compiling data.

The inventory drawdown follows weaker-than-expected production and signals there will be a struggle to keep up with global demand. With an even smaller harvest expected for 2023 amid impacts from the spread of the citrus-greening disease, CitrusBR warned that there might be difficulties for juice supplies going forward.

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The world is increasingly reliant on Brazilian juice following prolonged U.S. supply woes as Florida faced the impacts of disease spreading and destruction from hurricanes over the past 12 months. Orange juice futures traded in New York have jumped more than 50% in 2023.

Now, there are fears that this year’s hurricane season could once again put Florida crops in jeopardy.

“It does spook traders,” said Judy Ganes, a consultant who has followed the industry for about three decades. She expects continued supply issues and surging prices to end up killing demand, with global juice consumption set to slow down as futures trade near record highs.

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