Mintec orange juice prices fell 12% y-o-y at the end of July amid anticipations of increased orange juice production by the EU in 2019/20. EU orange juice production is forecast at 106,120 tonnes for the upcoming season, a rise of 9% compared with the previous year. Additionally, larger orange production in Spain is expected to boost processing, pressurising EU orange juice prices.
Following an increase in supply, the orange juice imports in the EU are projected to decrease. EU is one of the largest importers of orange juice, importing 695,499 tonnes in 2018/19. Reduced imports from the EU is anticipated to result in plummeted global imports. In addition, due to the increase in production, orange juice EU exports in 2019/20 are expected to increase. China, Russia, Japan and Saudi Arabia are amongst the top EU export destinations.
As per the previous article published by Mintec on orange juice, prices have been plummeting in the US due to higher orange juice stocks. Thus, combining the current situation in the EU with the stock condition in the US, the global orange juice industry is likely to see subdued y-o-y prices for the beginning of the new season (2019/20).