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 YOUR FINANCIAL CONDITION.
Recent Comments