Press "Enter" to skip to content

Where’s Beeks!?!? Orange Juice Prices Set to Soar

Duke and Duke will soon be cornering the frozen orange juice concentrate market boys and girls.

The only reason I am posting this article is not because I love the movie Trading Places, but because ZeroHedge failed to post a Clarence Beeks photo with their article on this. So here is a much more snide, realistic look at reality from the citrus capital of America, the Sunshine State of Florida.

From CNN Business:

Orange crop is set to be the smallest since WWII, sending OJ prices surging

From the CNN article:

Oranges are in trouble.

Citrus disease and bad weather are constraining supply of oranges in the United States and internationally. Meanwhile, demand for orange juice — which has been sliding for years — got a bump during the pandemic. That has sent orange juice prices higher during the pandemic, and they will probably continue to climb: Frozen orange juice futures have surged more than 50% during the pandemic, and they rose to a two-year high last week — soaring 5% alone Thursday.

“You have your classical supply-demand mismatch,” said Shawn Hackett, president of Hackett Financial Advisors, which specializes in agricultural commodities analysis. Because of that, consumers should expect “much higher prices at the supermarket.”

Duke and Duke are going to corner the market, it’s their fault is what Biden will proclaim.

In reality, the amount of acreage dedicated to citrus growing has been shrinking due to Florida’s population explosion and hell if I can sell my grove for twenty plus times what the land is really worth to some greedy developer, hell to the yeah I’m selling.

Add in decades of bad policies from an incompetent USDA, horrible trade policies, and years of diseases coming from Asia and South America, and it truly is a hard crop to nurture to a profitable production level.

Needless to say, the chart I borrowed from does not allow me to scale it to $300, but that is a realistic target considering the deterioration in the economy, the dollar dilution, and supply chain issues that actually do impact the domestic orange growing economy.

Maybe President Dementia should hire Clarence Beeks to ‘leak’ some good news….

Views: 0

Article Sharing:
Mission News Theme by Compete Themes.