Orange juice is a leading commodity that is consumed by millions of people every day. Most of the oranges consumed today comes from Brazil, which produces over 16 million tons of oranges every year. It is followed by China, US, India, and Mexico.
Orange juice prices have pulled back after soaring to the all-time high of $295.82 in May. Recent data shows that orange juice was trading at $274, meaning it has dropped by more than 7.5% from its highest point this year. In all, orange juice is the third-best performing commodity this year after coffee and feeder cattle.
In all, the price has jumped by more than 100% in the past ten years and by over 120% in the past 3 years. This rally is mostly because of the overall decline in US orange production.
Orange juice chart by TradingView
The daily chart shows that orange juice peaked at $296.90. It has now pulled back and moved below the important support level at $287.56, the highest point on April 4th and April 25th. The Relative Strength Index (RSI) has drifted below the overbought level.
Source: invezz.com