Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Orange Juice Heads for Longest Rally Since 1991 on Frost Risk

Commodities Jan 27, 2022 19:04
Saved. See Saved Items.
This article has already been saved in your Saved Items

(Bloomberg) -- Orange juice futures are heading for the longest winning streak in more than 30 years with frost threatening groves in Florida, the top supplier.

“The entire citrus country will be at risk of frost” this weekend, according to World Weather Inc. President Drew Lerner. At the moment, readings are expected between the upper 20 and low 30-degrees Fahrenheit. Trees must be exposed to temperatures near 28 degrees or below for four hours or more to cause major damage. Northern fringes of the citrus belt will be the coldest said Donald Keeney, meteorologist with Maxar Technologies (NYSE:MAXR) Inc.

The most-active March contract jumped as much as 3% to $1.6445 a pound in New York. It’s up 4.2% this week. If prices hold, this will be an eighth straight weekly gain, the longest since November 1991.   


Stockpiles have plunged and output is down in other key producing areas besides Florida. California, which produces mostly for the fresh fruit market is also expected to see a decline this season, as is third-ranked Texas. Overall, U.S. orange production will fall 11% from a year earlier, and 25% from two years ago. 

The U.S. can’t much look to imports to bolster supplies, because surging transportation costs have made them so expensive to ship from countries like top citrus producer Brazil.

There’s a chance the frost won’t materialize for Florida’s groves. The risk is low and about half of the state’s total crop has already been harvested, so any losses, if at all, would be small, said Judy Ganes, president of J. Ganes Consulting. The biggest risk would be to early buds for next year’s crop. 

Orange juice demand has risen in the pandemic partly because it is seen as boosting the immune system. However, if there isn’t enough supply, consumers will simply take vitamin C, or get vaccines instead, she said. 

“The market is getting ahead of itself,” Ganes said of the rally.

In other soft commodities, cocoa, cotton, raw sugar and arabica coffee slid, partly under pressure from the surging U.S. dollar that’s eroding the appeal of commodities priced in the greenback. The American currency climbed to a new 2022 high as Federal Reserve Chair Jerome Powell signaled that the central bank will embark on a rate-hike cycle starting in March. 


©2022 Bloomberg L.P.


Orange Juice Heads for Longest Rally Since 1991 on Frost Risk

Related Articles

Crude Oil Lower; Recession Worries Weigh
Crude Oil Lower; Recession Worries Weigh By - Jun 30, 2022

By Peter Nurse -- Oil prices weakened Thursday, heading for the first monthly decline this year as concerns over slowing economic growth have outweighed a further...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email