Orange Juice Becomes 'Gold' in the US... Futures Prices Up 47% in One Year

Florida Orange Crop Worst in 90 Years
Due to Citrus Greening, Cold Snap, and Hurricanes
"Orange Juice Is Flowing Gold"

[Asia Economy Reporter Haeyoung Kwon] Orange futures prices are soaring as the orange crop in Florida, USA, is expected to record the worst yield in about 90 years.

According to the Intercontinental Exchange (ICE) in the US on the 24th, the May frozen concentrated orange juice futures price recorded 205.55 cents per pound as of the 18th. This is about a 47% increase compared to 139.95 cents at the end of 2021.

Poor harvests in Florida, the largest orange-producing region in the US, are pushing up orange futures prices. The US Department of Agriculture (USDA) expects Florida to produce 18 million boxes of oranges this year (each box weighing 90 pounds). This is less than half the harvest of last year, which had a poor orange crop, and represents a 93% decrease compared to 1998, when orange production was at its highest. To make matters worse, the USDA explained that the oranges are smaller this year, requiring more fruit to fill a box.

Citrus greening disease, cold waves, and hurricanes that have swept through Florida are damaging the orange crop. In particular, the harvest is decreasing due to citrus greening disease. This disease is spread by pests, and infected trees produce oranges that do not ripen and remain green. The fruit also tastes bitter, reducing its marketability.

The Wall Street Journal (WSJ) predicted, "For the first time since World War II, California will produce fewer oranges than Florida," adding, "This is expected to deal a significant blow to the orange juice industry, which has become synonymous with Florida."

Retail prices for orange juice are also rising sharply. Non-concentrated juice has surged to over $10 per gallon, and reconstituted juice has reached $6.27 per gallon, effectively the highest levels. Judy Gain, a commodity futures analyst at Jay Gain Consulting, said, "Orange juice is like flowing gold," and added, "As prices rise, demand will be limited."

There are also views that it will take considerable time for orange harvests to return to normal levels. Tanner Emke, an economist at CoBank, a US agricultural cooperative bank, forecasted, "Due to citrus greening disease, long-term production declines will continue."

This content was produced with the assistance of AI translation services.