NEW YORK—The commodities market received a jolt on Friday as orange juice futures with November settlement jumped more than 10 percent as a government report forecasted a steep drop in this season’s orange crop.
Prices for frozen orange juice concentrate on ICE Futures U.S. increased by 10.1 percent last Friday after the U.S. Department of Agriculture forecasted a smaller-than-expected Florida orange crop due to rainfall shortage and cold weather conditions this year.
Orange juice futures settled at $1.0865 per pound in Friday trading. Soybean futures jumped three percent while gold, which reached record highs earlier in the weak, retreated. Gold futures with December settlement finished the trading week up four percent.
The jump in orange juice futures likely signals higher orange juice prices this winter.
A smaller-than-expected orange crop is more bad news for Florida, which is already battered by higher-than-average unemployment rates and real estate default rates.
According to the state of Florida, the state produces around 75 percent of the nation’s orange supply, and 40 percent of the world’s orange supply. Revenues from oranges total around $9 billion annually for the Southern state.