Orange Juice Futures Continue to Squeeze Higher, Despite An Increase in Supply

Since 2007, the Floridian citrus industry has been decimated due to citrus greening disease. It has afflicted massive damage to 75% of Flordia’s orange trees, which produce half of America’s orange juice. Cost of production has skyrocketed, as a result, and the price of orange juice has risen, in kind.

Today the futures are higher by more than 4%. The June production forecast will be released soon. Over the past 4 months, the forecast has risen steadily, now at 81 million boxes of oranges. Yet, in spite of the additional supply, prices are rising.

My guess, Moritmer and Mortimer are back, or people are gambling on a busy hurricane season.