Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Hurricane Ian to worsen bleak outlook for U.S. orange juice industry

Stock Markets Sep 29, 2022 12:58PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: An orange grove is flooded with floating oranges September 8, 2004 after Hurricane Frances struck in Hobe Sound, Florida on September 4. REUTERS/Marc Serota/File Photo 2/2

By Marcelo Teixeira

NEW YORK (Reuters) - Hurricane Ian is likely to have worsened what was already expected to be the smallest U.S. orange crop in 55 years after it blasted through a large fruit producing area when it passed through Florida this week, flooding farms and causing oranges to drop from trees.

Precise information on losses for citrus producers in top grower Florida will take days to be released, analysts said, as people in the area deal with power outages and flooding makes it difficult to check on farms. Orange juice futures jumped in the last three sessions.

Florida orange production was already expected to be poor, as planted areas have been falling yearly due to real estate expansion and the spread of the greening fungus disease.

According to the U.S. Department of Agriculture (USDA), U.S. orange production was estimated to fall 13% to the lowest in over 55 years at 3.5 million tons before the storm.

"Some of the growers that are still investing in citrus production in Florida, battling the disease with new varieties, will be hard hit by this storm," said soft commodities analyst Judy Ganes.

She said that the strong winds have likely "transported" the greening fungus from abandoned orange farms to renovated ones, wasting the work and investment.

Ian's aftermath would be bad for the juice industry.

Although imports from Brazil and Mexico currently make up for most of the orange juice consumed in the United States, Florida's production was important to the industry since it is mostly the not from concentrate (NFC) variety, which has gained popularity among consumers compared to the older style, frozen concentrated orange juice (FCOJ).

Foreign suppliers prefer to export FCOJ since it takes less space in vessels and is easier to handle.

Ganes said that if there is a shortage of NFC juice in the market, or if prices for that skyrocket, the industry could further lose share for other beverages.

Hurricane Ian to worsen bleak outlook for U.S. orange juice industry
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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 Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 Investing.com'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
Continue with Google
or
Sign up with Email