Orange Juice may be poised to return to five-year highs as another hyperactive hurricane season looks set to start in the Atlantic Ocean, adding pressure to the orange crop in Florida, which is the largest grower of the commodity in the United States.
Jack Scoville, chief crop analyst at PRICE Futures Group in Chicago, said: “The market is short of oranges and short of juice production”
Orange juice has contributed to this year’s food inflation, with supermarket prices for the beverage rising by just over 7% in the year to March to reach $7.88 a gallon, according to Nielsen research. Now, it could reprise those highs and beyond as chart action combines with a devastating disease in Florida called citrus greening that damages oranges and kills the trees they grow on.
Source: investing.com
