Government probes for a prohibited fungicide and the outbreak of a disease in Texas drove orange-juice futures to record prices for the second consecutive session on Monday, according to Bloomberg.
The soft commodity set all-time high prices of $2.2695 per pound on Monday amid the fallout of the U.S. Food and Drug Administration looking into the presence of carbendazim on imports from Brazil, the globe's top producer of orange juice. The U.S. has banned the fungicide, which is legal in South America. Meanwhile, Texas acknowledged last week it is suffering from citrus-greening disease, which has been damaging to Florida crops.
"Fundamental news always wins," president Michael Smith with T&K Futures & Options in Florida told the news service, predicting the soft commodity will climb ever higher. "I don't see why it cannot hit $2.50 over the next six months."
Thus far this month the price of orange-juice futures has gained 30 percent.
Reuters reports speculation has spread about the likelihood of the U.S. prohibiting the import of orange juice from Brazil as a result of the fungicide.