It seems that, after a tumultuous few months, orange juice fans may at last be able to relax - the price is stabilising.
The cost of orange juice was rising even before the carbendazim scare, but worry amongst consumers certainly didn't do prices any favours.
The average retail price from October to Feb. 18 was 7.4 percent more than a comparable period a year earlier and total orange juice sales dropped 10.4 percent in the same time frame.
However, with the USDA report that more oranges are expected to be harvested in Florida this season should allay any fears about a shortage of juice on the shelves in stores.
As soon as the increased prediction was issued the markets responded accordingly.
Orange juice for May delivery ended down 3.1 cents at $1.857 per pound on Monday. The price has fallen about 11 percent since Jan. 10, the day after the fungicide issue was made public.
Spencer Patton, founder of the hedge fund Steel Vine Investments LLC, expects futures prices to continue to fall because of the higher crop production estimate.
However, this will not necessarily make for lower retail prices just yet, as retailers are likely to hold on to the increased prices for a time.
Source: www.miamiherald.com
The cost of orange juice was rising even before the carbendazim scare, but worry amongst consumers certainly didn't do prices any favours.
The average retail price from October to Feb. 18 was 7.4 percent more than a comparable period a year earlier and total orange juice sales dropped 10.4 percent in the same time frame.
However, with the USDA report that more oranges are expected to be harvested in Florida this season should allay any fears about a shortage of juice on the shelves in stores.
As soon as the increased prediction was issued the markets responded accordingly.
Orange juice for May delivery ended down 3.1 cents at $1.857 per pound on Monday. The price has fallen about 11 percent since Jan. 10, the day after the fungicide issue was made public.
Spencer Patton, founder of the hedge fund Steel Vine Investments LLC, expects futures prices to continue to fall because of the higher crop production estimate.
However, this will not necessarily make for lower retail prices just yet, as retailers are likely to hold on to the increased prices for a time.
Source: www.miamiherald.com
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