The future price of orange juice has spiked by more than 20 percent this month as consumers look for healthy products during this coronavirus pandemic.
While demand has risen, supply has been hit as producers struggle to transport goods due to transport restrictions.
This has driven a rise in the price of orange juice, which shows its cost for delivery in the coming months.
Orange juice futures are the best performing asset so far this year.
According to the BBC, “The Covid 19 outbreaks are hitting both the supply and demand for orange juice.
The chief global market strategist at broker AxiCorp, Stephen Innes, noted that the immune-boosting properties are the demand side attraction for the oranges while there are simply not enough tanker spaces with airlines not flying to bring the product to markets”.
On the supply side, there are also issues with not having enough workers as plantations introduce restrictions such as social distancing.
| Orange juice | Fresh orange | |
| Calories | 110 | 62 |
| Fat | 0 grams | 0 grams |
| Carbs | 25.5 grams | 15 grams |
| Fiber | 0.5 grams | 3 grams |
| Protein | 2 grams | 1 gram |
| Vitamin A | 4% of the RDI | 6% of the RDI |
| Vitamin C | 137% of the RDI | 116% of the RDI |
| Thiamine | 18% of the RDI | 8% of the RDI |
| Vitamin B6 | 7% of the RDI | 4% of the RDI |
| Folate | 11% of the RDI | 10% of the RDI |
| Calcium | 2% of the RDI | 5% of the RDI |
| Magnesium | 7% of the RDI | 3% of the RDI |
| Potassium | 14% of the RDI | 7% of the RDI |
Reports say Traders are wondering if workers are around to man the plants in Florida, USA and in Brazil.
Orange juice futures have seen their biggest monthly gain since October 2015, at a time when global stock markets are being battered.
Some schools of thought, however, believe that the spike in orange juice futures prices will mean higher prices for orange juice.
Reports say from all indication, The pass-on effect will be quick as orange juice producers are likely to pass the price rises onto to supermarkets and other buyers.
Futures contracts are said to be common for soft commodities like oranges and wheat. This is because they are known to be vulnerable to sudden price rises owing to bad harvests and natural disasters.
It is pertinent to note that Orange Juice is high in antioxidants and micronutrients like vitamin C, folate, and potassium.
It is also high in calories and sugar.
It is best to consume orange juice in moderation and its equally ideal to select fresh-squeezed or 100 percent orange juice at all times.
Source – https://www.bbc.com/news/technology-52030133
https://www.healthline.com/nutrition/orange-juice
