Orange Juice Futures Skyrocket on Pesticide Fears, Cold Weather
Orange juice futures are up more than 17% in the past couple of days as a result of continuing cold weather in Florida and on reports that a fungicide unapproved for use in the US has been discovered in juice…
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Orange juice futures are up more than 17% in the past couple of days as a result of continuing cold weather in Florida and on reports that a fungicide unapproved for use in the US has been discovered in juice imported from Brazil, supplier of about half the world’s production of orange juice.
A trader told Reuters that if Brazilian orange juice is banned from import, prices could rise as much as another $0.30/pound. Futures closed today at $2.12/pound. The US imported about 190,000 metric tons of orange in the 2010-2011 crop year.
About 25% of Florida’s orange crop experienced a hard freeze (below 29 degrees F) in the first week of January. The weather is expected to warm up this week though.
Contact [email protected] for any questions or corrections.
Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
