Florida’s Orange Citrus Industry in Worst Shape in a Century; Orange Juice Futures

Orange juice futures have been thrusted higher over a tiny-winged Asian-insect wreaking havoc by spreading a bacteria and killing-off the trees making harvests as small as they were 50 years ago. Today orange juice futures are down $1.10 per pound currently trading at $146.75 per CWT at the Intercontinental Exchange. The Florida Dept. of Citrus is looking ahead and they see the harvest of their prize crop dropping to 27M boxes by 2026, according to their report last month The current harvest that began last month is seen shrinking down to 74M boxes and is 24% less than a year ago and the least amount since 1964. Since this is the fourth consecutive seasonal decline in a row, this is considered the longest slump since 1913. “The outlook for Florida’s orange juice (futures) industry isn’t looking so good with a bug spreading a virus with no known cure,” said Devin Brady, President of Progressive Trading Group in Sherman Oaks, CA, sharing his fundamental assessment of the orange juice futures market. Brady added, “The citrus industry there risks losing a severe economic impact for the state but what’s more important is their reputation and relevance.” The trend for orange juice futures is up but with a possible top in progress. Orange juice futures is a market best left to the professionals at this time because of excess volatility. ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF...

Orange Juice Futures Feel Wrath of Bugs, Crop at 29-Year Low

Orange juice supplies are being threatened for a second time this year with weather this time, after a disease-spreading bug already wreaked havoc on Florida citrus crops earlier this year. A Florida orange juice producer says it could mean “pure hell” for supplies. Florida is the world’s second-biggest grower of oranges, but that state has taken a toll on its citrus after a disease made that state’s crop the smallest in 29 years earlier this year – so now they brace for six hurricanes forecasted through November. Orange juice futures are already up 34% since October and are expected to climb another 23% to just over $2.00 per pound. Kevin Riordan, director of research at Capital Trading Group in Chicago, had this to say regarding the current orange juice futures situation, “The Florida OJ crop may be heading into a perfect storm of negative news this summer. Already struggling with a smaller harvest due to a citrus greening disease, now the OJ crop may have to deal with as many as six hurricanes projected in the Florida area from now until November.” The trend for orange juice futures remains up since October, but must cross the $1.68 threshold to keep the up-trend intact. Orange juice futures is not a market I currently trade, but am now researching the trend continuity for “future” use (possibly). ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL...