Orange juice futures are rebounding midweek as investors are placing their bets on a busy hurricane season. The agricultural commodity has slipped below the crucial decade-low threshold because farmers in Florida are recovering from the devastating citrus greening, a disease that has crippled the state’s orange growers. September orange juice futures rose %excerpt%.0225, or 2.35%, to 97.95 cents per pound at 19:08 GMT on Wednesday on the US ICE Futures exchange. Orange juice has extended its long-term losses in 2019, sliding more than 22% year-to-date. Despite the slight recovery last month, orange juice pared those gains and is down 5% this month. For the first time since November 2009, orange juice prices are trading under a buck. There have been several factors that have contributed
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Orange juice futures are rebounding midweek as investors are placing their bets on a busy hurricane season. The agricultural commodity has slipped below the crucial
September orange juice futures rose $0.0225, or 2.35%, to 97.95 cents per pound at 19:08 GMT on Wednesday on the US ICE Futures exchange. Orange juice has extended its
For the first time since November 2009, orange juice prices are trading under a buck. There have been several factors that have contributed to the classical breakfast staple’s demise.
The first is the declining consumer trend. In recent years, consumers have removed orange juice from the breakfast table, concerned about the high sugar content in a typical glass. Many households have turned to healthier alternatives.
The second is citrus greening, a bacterial disease that causes the fruit to drop before they are ripe enough to be picked. This has destroyed crops in Florida and even in parts of Brazil. Since 2016, The Sunshine State’s orange output has cratered to its worst level in more than 60 years, but there is relief on the way – and it is not from the federal government.
In response to the issue, growers are reinvesting in varieties of resilient trees, boosting existing trees with nutrients and ensuring they are
The main concern now is that any gains may be offset by future weather events, which is what investors are betting on. Now that hurricane season is underway in the Atlantic, farmers are worried that their crops could be severely damaged this year, setting them back once again. Although the season has been quiet so far, hurricane centers are tracking development in the Bahamas.
In other commodity markets, September corn futures rose $0.02, or 0.54%, to $3.7075 a pound. September wheat futures added $0.02, or 0.43%, to $4.685 a bushel. October soybean futures tacked on $0.0425, or 0.49%, to $8.725 per bushel.
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