BRAZIL

Now Brazil is back from the Christmas and New Year holidays, final processing results are becoming available.  Unsurprisingly there is little goods news coming out of Brazil at this stage as we conclude one of the worst seasons for orange in many years.

Alongside the well-known problem of a particuarly small crop in 2010/2011, fresh fruit consumption in Brazil continues to increase and at a time when consumption levels are typically high anyway, the chance of any remaining quantities of fruit making their way into the plant for processing are very small.

We believe some very small quantities of low aldehyde yielding fruit remain available in North-Eastern Brazil.  We are informed however that with the very high price of R$21/box being paid by the fresh fruit market, little of this material material will find its way for crushing.  ANny parcels of oil that become available are likely to be snapped up by So Paulo.

To top it off, NE Brazil has contracts still to fulfill and as already mentioned, very limited quantities of low yielding, low aldehyde fruit available with which to do so.

Israel

Crushing of fruit typically rus from December through until June however latest indications are that poor weather has reduced the crop size.

Florida

Having largely being pre-sold in December, we do not anticipate the Florida crop having any impact on current pricing levels.

All in all the picture for orange does not look good and we do not foresee any relief on prices in the near future