Orange Juice Follows Coffee in Agricultural Commodity Rally, Reaching Record Prices

Prices of orange juice concentrate, a commodity made famous by the "Trading Places" film, are poised to keep increasing as a result of a series of

Orange juice concentrate prices are skyrocketing, hitting record highs and setting the stage for a steep rise in retail prices. The commodity, which gained fame thanks to the "Trading Places" film, is expected to continue rising due to several factors impacting citric fruit production.

Orange Juice Joins Coffee in Agricultural Commodity Rally, Hitting Record Prices

Orange juice concentrate prices, a commodity that became well-known thanks to the "Trading Places" film, are set to continue rising due to a combination of events impacting citric fruit production.

According to Brazilian media, the orange price issue will take a long time to resolve, as the country is experiencing its worst orange harvest in 36 years. Being the largest producer of oranges globally, this is already impacting prices internationally. The benchmark Frozen Concentrate Orange Juice Continuous Contract hit historic record prices, reaching 514.65¢ per lb. Several retail offerings are already reflecting these higher concentrate prices. However, prices may still rise further, as reserves in Brazil are technically depleted, according to the National Association of Citrus Juice Exporters (CitrusBR).

Both Brazil's and Florida's harvests are being impacted by a disease called citrus greening, which is destroying their productivity. In Brazil, an estimated 38.06% of the orange harvest, around 77 million orange trees, have been infected, and legislation mandates that these be cut down and discarded.

This situation is already prompting juice bottlers to devise new blends in an attempt to keep prices down, by preparing juices with a lower orange content or even mixing apple juice with orange to achieve a similar flavor.

Orange juice has joined an agricultural commodity rally that is being led by coffee, which is also trading near its historic highs. Arabica futures reached $2.49 per lb, close to the highest price seen in decades. The drivers behind this price increase are also linked to the adverse climate in Brazil, which is responsible for a third of the bean production.

What are your thoughts on orange juice concentrate prices rising to historic highs? Let us know in the comments section below.

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