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 CONDITION.