Orange juice futures are retreating toward the end of the trading week after surprising global financial markets in the first quarter of the year. The coronavirus pandemic drove prices to their best levels in years as consumers sought vitamin C to boost their immune system amid the virus outbreak. It is unclear if the beverage can sustain the momentum after years of declining consumption, but investors who bought March contracts enjoyed a 25% profit.
July orange juice futures tumbled $0.0285, or 2.4%, to $1.16 per pound at 16:24 GMT on Thursday on the US ICE Futures exchange. Orange juice prices spiked 18.3% in March and advanced 16.3% in the January-to-March period.
Aside from wheat, its agricultural peers – cocoa, coffee, and corn – fell as much as 13% in Q1.
The beverage’s fall from grace has been well-documented. North American households have shunned the once classic breakfast staple due to health concerns regarding sugar content. Instead, consumers are resorting to alternatives, such as sparkling water and dairy substitutes, for their morning beverages. American farmers have also been significantly impacted by citrus greening, a disease that causes oranges to drop before they are ripe. It has decimated Florida orange growers and allowed Brazil to absorb greater market share.
COVID-19 appears to have pushed consumers to orange juice again. The idea is that vitamin C will boost your immune system, which some would believe could help you protect against the coronavirus. The science has not supported this theory, but many people would prefer to be cautious. This happened in winter 2019 when there was an increase in influenza cases in the US and sales surged to multi-year highs.
The other aspect is that more households are eating breakfast under lockdown, quarantine, or self-isolation. If orange juice is found at the table, the beverage will be consumed.
Neil Murray, IHS Markit’s Agribusiness Intelligence expert, likened it to toilet paper:
There is plenty of orange juice around, but it’s a bit like toilet paper — there’s no shortage, but people have been rushing to buy it.
Supplies supported orange juice prices, too. Due to poor weather conditions in Brazil, which has become the world’s largest exporter of the agricultural commodity, farmers are anticipating a disappointing harvest in the 2020-2021 marketing season. This is a concerning development due to threats to the global supply chain amid the pandemic.
In other agricultural commodities, June corn futures picked up $0.0175, or 0.52%, to $3.365 per pound. June wheat futures shed $0.0725, or 1.32%, to $5.43 a bushel. June soybean futures were flat at $8.6275 a bushel.

