Agronometrics in Charts: Orange prices climb to highest point since 2000

Over the last 20 years, orange prices have seen a consistent trend upwards indicative of a healthy industry with opportunities to grow as demand outpaces supply.

Topping this off, on week 40, the average price per kilo of oranges reached $1.63 per kilo, the highest point we have on record going as far back as 2000.

Through the normal periodic ups and downs, the prices see throughout the year, the market has seen a relatively steady increase since April, with Chile taking the lead in the last couple of weeks, selling their fruit on the spot market at $1.86 per kilo. This is a full $0.35 higher than California, the only other origin reporting prices this week.

The causes for these high prices and the premiums Chile is seeing could be various, however, the market data suggests that the laws of supply and demand may be playing their part.

Chile’s exports to the U.S. have also been 19.3% lower than in previous years. With no shipments registered from South Africa since week 39, this could mean that Chile’s prices, reported out of Philadelphia, are seeing an East Coast market that is hungry for oranges, while the West Coast, which is also seeing historically high pricing, is doing a better job of satisfying demand with imports as well as local production.

Written by: Colin Fain
Original published in FreshFruitPortal.com on October 13, 2020 (Link)