In this morning’s WASDE report, USDA is estimating the 2007/08 US orange crop to be 9.83 million tons. This estimate is 29.5% higher than the 06/07 crop, which finished at 7.59 million tons. Good growing weather in Florida and California is helping the current crop. Further, this season is seeing the Florida crop finally bounce back after hurricane related losses over the past two seasons. Growing weather in Florida has been nearly ideal this year, with normal daytime temperatures, sufficient precipitation, low disease pressure, and most importantly evening temperatures which were low enough to allow allow the trees to rest. In years past, evening temps often did not get low enough for trees to slow down, and this was reflected in final yields. Despite the talk about Brazil dryness, expect today’s numbers to exert further downward pressure on OJ futures in today’s trading.

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This entry was posted on Friday, October 12th, 2007 at 9:32 am and is filed under Agriculture, Global Commodities. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.