Americans are kicking orange juice to the curb as futures fell to the lowest since January. According to the Florida Department of Citrus and Nielsen Co. data. in the four weeks ended July 5, retail sales in U.S dropped to 8.3 percent from a year earlier to the lowest for the period since 2002, reports Bloomberg.
The U.S. Department of Agriculture reported on July 24 that within the period of 2013 and the end of this year, world consumption will be down 3.4 percent. Prices have dropped 18 percent from this year's high reached in April at $1.68.
A recent disturbance in the Atlantic Ocean showed a 70 percent chance of tropical cyclone formation, according to the National Weather Service. This usually boosts the orange juice market.
Jack Scoville, vice president at Price Futures Group in Chicago said, "There still do not appear to be any major storms in sight in the Atlantic to hurt production, but traders will keep an eye on the developments of the system in the Atlantic to see if it grows and what its track might be," according to the Wall Street Journal.
According to Bloomberg, orange juice for September delivery was down 1.2 percent to $1.379 a pound on ICE Futures U.S. in New York. This was after falling to $1.3725, the lowest for a most-active contract since January 29.
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