Futures of frozen concentrate orange juice (FCOJ) reached record levels during this year. Last Wednesday, December 20th, prices averaged 2,888.17 dollars per ton at the New York Board of Trade (Nybot), the highest value in the last 16 years. On December 17th, orange juice value raised to 3,014.76 dollars per ton, the maximum level in 30 years. The reason for the strong valuation is the expressive reduction of Florida crop production, the main producing state in the United States.
In spite of higher international values, in February of this year, Brazilian citrus processors had to pay new tariffs from 9.73 to 60.29 percent over the orange juice exported to US, according to the International Trade Commission (ITC) of US decision.
In Brazil, it is forecast that the 2006/07crop production in Sao Paulo state should totalize 350 million bags - 50 million bags more than in the previous season. Even so, orange price traded in the spot market (delivered on citrus plant) is higher over the same period of the last year.