|Orange Juice futures prices soar because of another cut to the annual production forecast due mostly to an orange tree disease called citrus greening. |
Frozen concentrated orange juice for January delivery OJF7, +0.47% rose 10 cents, or 4.7%, to settle at $2.2365 a pound on the ICE Futures exchange Tuesday. That’s the highest close on record, according to FactSet. Prices have gained more than 50% year to date.
The USDA Florida citrus report released on Oct. 12 showed a 14% drop in Florida production for the years 2016-2017.
The “Citrus: World Markets and Trade” report released in July also showed a 14% drop in production out of Brazil for the same time period. Higher than normal temps and this bacterial citrus tree disease, citrus greening were cited as the major issues for the upcoming year.
Farmers have been quoted saying that they believe the rally to be a little over done and mainly due to speculators getting overly involved in the market and at this point, it could go either way. "Here’s why orange juice futures just closed at an all-time high"