Processors propose individual contracts

Brazilian juice processors have been offering to growers individual negotiations of long term contracts at 5.00 dollar to the current season and 4.20 for the next two seasons.

The collective deal was not settled yet, and this is a problem to growers that have contracts at delayed levels, around 2.80 to 4.00 dollars per box.

Regarding to the weather, rains that reached São Paulo state in September improved crop conditions. The dry weather in the winter season, however, already affected crop yield for 2006/07. Projections for this season should be revised to less than 350 million boxes.

In the domestic market, trades moved at a slow pace. Even so, orange prices kept moving up, supported by the better demand by citrus processors.


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