Impacting the amount of supplies is the U.S. government's probe of imports of the soft commodity for the presence of a fungicide that is legal in Brazil but prohibited in the U.S. Texas verified the presence of citrus greening disease on Wednesday, which previously has proven to be damaging to crops in Florida, the globe's second-largest grower of oranges. Brazil is the world's top grower.
Citrus greening in Texas and the issue regarding the fungicide are two factors prompting orange juice futures' bullish performance, analyst Sterling Smith with Country Hedging in Minnesota told the news service. The malady to Texas crops "always makes the markets nervous because the methods used to deal with it tend to be pretty draconian."
One example he cited is tree removal.
The new record price for orange juice futures is $2.1065 per pound. Thus far this month, the soft commodity has increased 25 percent in value.
Reuters reports the U.S. Food and Drug Administration said the amount of the fungicide determined to be in samples of orange juice from Canada, Mexico, Honduras, Costa Rica and Belize was approved.
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