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☆ Why orange juice futures are spiking
▼ + stars: | 2023-08-09 | by ( Danielle Wiener-Bronner | ) edition.cnn.com time to read: +4 min

New York CNN —Orange juice futures are hitting record highs because of bad weather and a nasty citrus disease. “Record-high orange juice prices in 2023 are a consequence of a very tight market, with smaller-than-expected production and low inventories,” he added. Spiking futures prices could mean higher prices at the grocery store, he said. On Walmart’s website, a 52-ounce bottle of Tropicana Original orange juice currently goes for about $4. Shoppers may not tolerate prices getting any higher, especially when they don’t see orange juice as a staple.

Persons: ”, Billy Roberts, Hurricanes Ian, Nicole, Chandan Khanna, Citrus, Mathew Joyner, Roberts, “, Andrés Padilla, Jack Scoville Organizations: New, New York CNN, OJ, Hurricanes, Getty, US Department of Agriculture, Citrus Mutual, Rabobank, Price Futures Group, Bureau of Labor Statistics Locations: New York, Florida, America, Brazil, Mexico, United States

The upshot: The price of orange juice, which has already climbed to an all-time high of $2.90 per 12-ounce can because of soaring food inflation, could go even higher. "We’re factoring in a very tight [crop production] situation here," said Jack Scoville, vice president at PRICE Futures Group in Chicago. Tristan Wheelock / Bloomberg via Getty ImagesFlorida oranges serve as the feedstock for most orange juice produced in the U.S. He also predicted that more Americans will switch to Vitamin C supplements as the cost of orange juice begins to climb further. Both of those factors could ultimately prevent orange juice prices from rising faster, he said.

Hurricane Ian was set to produce significant damage to much of Florida's citrus crop as it tore through the central-southwest part of the state, threatening to send the price of orange juice higher. November orange juice futures contracts were trading as high as $1.92 per pound Wednesday before falling back to $186.55. "The amount of loss is going to be pretty significant," Scoville said. Depending on the season, more than 90% of America’s orange juice is made from Florida-grown oranges, according to state data. According to the Agriculture Department, cold storage stocks of orange juice were at lows not seen since at least 2019 heading into August.

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