Orange Juice prices have been on an unstoppable run since 2020 doubling, year after year – and according to analysts at GSC Commodity Intelligence – this trend is set to continue for the foreseeable future amid rapidly shifting supply and demand dynamics.
The vast majority of the world’s Orange Juice is produced in two countries. The U.S, which is the world’s 2nd largest producer after Brazil – the world’s No. 1 producer – accounting for about 60% of global Orange Juice supply.
In the U.S, the industry is still reeling from a series of hurricanes over recent years, which have destroyed thousands of acres of citrus crops in the country’s main planting regions. Meanwhile over in Brazil, farmers have struggled with higher temperatures and lower rainfall as a consequence of Global Warming.
While farmers in the U.S and Brazil have started planting more Orange trees to capitalize on the huge uptick in prices – unlike crops such as Corn and Soybeans, it can take up to 5-7 years for Orange trees to start bearing fruit.
Overall, Orange Juice production in the U.S and Brazil is now at the lowest in “over 100 years” – fuelling an unprecedented phenomenon known as a “Super-Squeeze”.
All of this tells us one thing: Orange Juice is only heading higher from here and it won’t take much for prices to double again in the months ahead!
