FLASH: Orange-Juice Futures Trade at Highest Level Since 1977

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Futures of frozen orange juice concentrate in New York surged on concerns that the presence of a fungicide in samples from Brazil could crimp supplies.

January-delivery orange juice hit $2.12 per pound, the highest front-month price since November 1977. The more actively-traded March contract was recently trading 10.7% higher at $2.0775 per pound on ICE Futures U.S

The Food and Drug Administration is testing orange juice for a fungicide and says it will order the product removed from the market if it poses a public health risk.

In a letter dated Jan. 9 to the Juice Products Association, an industry group, the FDA said a juice company reported “low levels” of carbendazim, a fungicide, in its and its competitors products.

The FDA said the fungicide was used on the 2011 orange crop in Brazil, the world’s largest grower of oranges and the biggest producer of orange juice.

Florida oranges produce about three-quarters of U.S. orange-juice concentrate supplies, and imports cover the rest. About 75% of those imports come from Brazil.