Orange juice is bucking the dismal performance of most other markets with prices up more than 40% since the start of October.
andriuXphoto / Foter.com / CC BY-SA
OJ futures approach 2014 highs; up 42% in the last 6 wks pic.twitter.com/4HPsrxiHb3
— Peter Sainsbury (@PeterSainsbury7) November 11, 2015
Orange juice futures prices began to rocket in early October when the US Dept. of Agriculture forecast output of oranges from Florida of just 80 million boxes, a 17% drop in production from last year and the smallest crop for the state since 1963. The cause is a disease called “citrus greening” has been destroying Florida’s orange groves, blocking nutrients from reaching ripening fruit, which eventually drops before it is fully mature. Although the disease has been around for many years the sharp drop in output has been seen by many that orange growers are abandoning the industry as demand for orange juice declines.