Orange Juice Pauses Huge 2020 Rally Despite Sweetened US Sales

Free $100 Forex No-Deposit Bonus

Orange juice futures are slipping on Tuesday, despite new data highlighting a double-digit increase in US consumer sales. But the decline in prices might be investors betting on this being a short-term boost after more than 20 years of falling sales.

July orange juice futures settled down $0.95, or 0.74%, to $1.268 per pound at 17:59 GMT on the US ICE Futures exchange. Orange juice has had an incredible run in 2020. Over the last week, prices have risen by 10%. In the last month, the classic breakfast staple has climbed 16%. Year-to-date, orange juice is up more than 27%.

According to new data from the Florida Department of Citrus, orange juice retail sales soared 46% to 44 million gallons for the four weeks ending April 11. This is the best performance since January 2015. Despite the declining two-decade trend, consumers might be searching for a way to boost their immunity with vitamin C-rich citrus throughout the coronavirus pandemic.

Shoppers may be spending a tad more than they might have a year ago. It is estimated that supermarket prices have advanced 2.7% since March due to weather conditions impacting production capabilities.

Companies specializing in fruit drinks have witnessed a spike in sales. Florida producer Natalie’s Orchid Island Juice, for instance, reported a 50% increase in sales in the second half of March.

Judy Ganes, the president of J. Ganes Consulting, said this is a “long-awaited break for the industry” that has been decimated by bearish consumer trends, citrus greening, and natural disasters. She told Bloomberg:

The taboos of the past two decades are now erased, and with people trying to shop less frequently, drinking OJ can replace fresh fruit. This was the long-awaited break the industry needed to shake off prior negative posturing and give OJ a fresh start.

If this is part of a long-term shift, there will inevitably be a renewed demand for oranges. But be ready for higher prices: Brazil is anticipating a poor harvest, and Florida’s crops have been damaged from hurricanes.

In other agricultural commodities, July corn futures were flat at $3.2125 per pound. July soybean futures fell $0.02, or 0.24%, to $8.43 a bushel. July wheat futures picked up $0.02, or 0.4%, to 4.99 a bushel.

Copyright © 2020. All Rights Reserved. FXDailyReport.Com
Risk Warning: Trading CFDs is a high risk activity and you may lose more than your initial deposit. You should never invest money that you cannot afford to lose. will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets.