Orange juice futures prices have risen in global markets this month by more than 20 percent as consumers search for health products during the outbreak of the Corona virus.
As the demand for orange juice increases, the supply of it in the markets decreased due to the difficulties that producers face in getting juice to the markets due to restrictions imposed on the movement of transportation.
This led to higher prices for orange juice futures, which will be the price at which this product will be sold in the coming months.
Orange juice futures are the best performing asset so far this year.
“The spread of the Covid-19 pandemic has struck both the supply and the demand for orange juice,” said Stephen Enns, expert on global market strategies at Axecorp Banking. , Means that the markets cannot get enough of them. “
Difficulties also arose in the supply of the commodity, as there were no longer enough workers to harvest the orange crop due to the farmer’s commitment to the epidemic prevention restrictions such as maintaining a certain distance between workers. “Traders are wondering if there are enough numbers of workers to operate farms here in Florida and in Brazil,” said Jack Scoville, of the American Futures Group Price Futures.
The orange juice futures prices are witnessing the largest increase since October 2015, at a time when global stock markets are receiving successive strikes. In London, the FTSI100 fell more than 13 percent in the last month, while the Dow Jones New York fell more than 16 percent.
As for the prospects for higher prices for orange juice for consumers, Ines said, “Prices will rise quickly, as the producers move the high prices to shopping centers and others.”
It is noteworthy that the futures prices of most commodities are used for buying and selling in the trading markets such as the Intercontinental Market (ICE). These prices help companies protect themselves from any sudden rise in prices.
The use of futures contracts is commonplace for “fragile” commodities such as orange and buckwheat juice, which are particularly vulnerable to sudden price hikes due to harvests of harvests and natural disasters.