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Orange Juice Falls on Declining Consumption, Industry Controversy

Summary:
Orange juice futures are tumbling on Tuesday after a new report forecast that consumption of the classic breakfast staple will continue to fall. Orange juice prices took an additional hit on an industry controversy that brands are selling fewer amounts of the beverage for the same price. January orange juice futures slipped %excerpt%.80, or 0.58%, to .379 per pound at 17:55 GMT on Tuesday on the US ICE Futures exchange. Orange juice prices have cratered over the past month, plunging 6% since the middle of September. Year-to-date, the agricultural product has dipped more than 3%. According to the latest estimates, orange juice retail sales are expected to decline. Despite a brief jump earlier this year, stemming from consumers trying to beat the flu, sales have remained in the red. This has been

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Orange juice futures are tumbling on Tuesday after a new report forecast that consumption of the classic breakfast staple will continue to fall. Orange juice prices took an additional hit on an industry controversy that brands are selling fewer amounts of the beverage for the same price.

January orange juice futures slipped $0.80, or 0.58%, to $1.379 per pound at 17:55 GMT on Tuesday on the US ICE Futures exchange. Orange juice prices have cratered over the past month, plunging 6% since the middle of September. Year-to-date, the agricultural product has dipped more than 3%.

According to the latest estimates, orange juice retail sales are expected to decline. Despite a brief jump earlier this year, stemming from consumers trying to beat the flu, sales have remained in the red. This has been the trend in recent years because health experts have warned about the high amounts of sugar found inside a glass of orange juice.

This is bad news for the Florida industry because orange groves are gradually recovering, with the number of boxes containing the state’s citrus is projected to hit 79 million, up 76% from a year ago. While the Sunshine State is trying to recover, its products will not experience greater sales.

Meanwhile, the industry is being criticized for trying to pull a fast one on shoppers. As the major US orange juice companies, like Minute Maid and Tropicana, contend with a seasonal supply shortage, they are beginning to sell smaller bottles for the same price as before. The common business practice is known as shrinkflation.

For example, in some supermarkets across the country, shoppers are buying 52-ounce carafes for the same price as the standard 59-ounce carafe. Ostensibly, though, the media appears to be making a bigger deal of it than shoppers because they purchased the same number of bottles.

In other agricultural commodities, December corn futures shed $0.0225, or 0.61%, to $3.645 per pound. December wheat futures plummeted $0.0925, or 1.82%, to $4.98 a bushel. January soybean futures declined $0.0575, or 0.67%, to $8.465 per bushel.

If you have any questions and comments on the commodities today, use the form below to reply.


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Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

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