- Orange futures just reached a record high, Bloomberg data shows.
- Citrus greening, a crop disease, is spreading in Brazil and Florida, two top orange producers.
- Brazil, the world’s biggest juice exporter, will export 1.7% less orange juice to the US compared to last year.
Breakfast just got pricier for a reason other than inflation.
Orange juice has never been this expensive, with Bloomberg data showing futures hitting a record high Monday due to rising concerns about global supply from citrus greening, a crop disease, in Florida and Brazil.
Orange juice futures climbed 1.8% to $3.052 per pound around midday in New York.
Brazil, the world’s largest juice exporter, is set to ship 1.7% less orange juice to the US this year, according to a July 20 report from the Department of Agriculture. Disease concerns there as well as in Florida, the US’ biggest orange hub, have put a damper on produce expectations.
“The proliferation of disease continues to be great in Florida and the chance of a large comeback in production for the new season is limited,” Judy Ganes, president of J. Ganes Consulting, told Bloomberg. “There are signs that disease is more prevalent in Brazil, too, which is also facing long-term problems with their crops.”
Consumption of the popular drink has dropped to its lowest level in at least five years as retail prices have climbed, per Bloomberg.
Figures from Nielson published by Florida Department of Citrus illustrate retail prices in the US peaked at almost $9 a gallon this month, up from less than $8 the same time last year.
Meanwhile, prices for eggs and bacon have been easing over recent months. A dozen eggs and a pound of bacon now cost 27% less from their January peak, with declines largely attributed to cooling inflation.
The Federal Reserve has made 10 interest rate hikes over the last year and a half, and analysts expect the central bank to announce a quarter-point move this Wednesday.