There is good news from Brazil. Total orange crop production estimates are 26% higher than the previous crop and set to touch 494 million boxes. The São Paulo region, Brazil’s star performer in this category, is set to deliver 389 million boxes as against last year’s 286 million. It may be safe to deduce, then, that the rise in crop production is from São Paulo and that the rest of the orange growing areas have recorded negligible or no change in the figures.

With the weather as an ally for excellent blooming, fruit setting as well as fruit development, Brazil has recorded a higher number of fruits per tree. Another factor that has contributed to this tremendous harvest is the vegetative regeneration of trees due to lower production from last year. The processing industry is looking forward to an impressive rise of 93.0 million boxes of fruit for processing. There is more than sufficient supply because of the increase in crop size and prices have plummeted by a whopping 60% compared to early 2018.

Out of the 494 million boxes, around 362 million are earmarked for processing. The mood is optimistic regarding the total crop that is around 30% higher than last season. The demand for orange oil has been declining in the domestic, as well as global arenas. Some manufacturers of d’limonene are looking at creating new formulations by using dipentene as a solvent in industrial applications. Brazilian manufacturers are currently wooing the industrial sectors like the resin industry, and other institutional buyers of orange oil. Material is being offered at cheaper rates. Other traders and smaller processors have also joined the low-price bandwagon in an effort to expend old stock before the new batches hit the shelves. An uncertain market fraught with instability and volatility has prevailed over the orange oil market. Demand has weakened and this has been further fuelled by the reformulations of the oil by many producers. Clients are hoping for prices to slide further before booking their requirements; but the time has come for the top-notch players to book material. In this context, prices are expected to firm up and the market is hoping for stability.