mark walter

 

Orange‑juice prices have dropped recently due to a combination of supply improvements, demand pullback, and trade-related pressures:


🌱 1. Supply recovery & large harvests

  • https://t.co/DbZ3zAsItISpain ramped up production, and North African imports declined, flooding global markets with more juice supply .

  • Weather conditions stabilized in key regions like Florida and Brazil—after hurricanes and droughts earlier, sunshine and rain improved, aiding crop yield .


📉 2. Poor fruit quality

  • Oranges have been bitter due to low sugar-to-acid ratios and excess limonin, resulting in off‑tasting juice, especially in US and UK markets. This reduced export volumes .


👥 3. Weakened demand

  • High prices have suppressed consumer interest. People are drinking less juice—per‑capita consumption has dropped dramatically since the mid-2000s .

  • As a result, futures saw steep declines—on the ICE exchange, orange-juice prices dropped around 20–45% year‑to‑date .


🌐 4. Trade tensions & tariffs

  • Tariffs imposed by the US on key buyers like Canada and Mexico—and retaliatory tariffs on US juice—introduced uncertainty and hurt US export demand .

  • Futures plunged over 36% in February due to this trade-driven volatility .


🔍 What it all adds up to:

Factor Effect
Higher global supply Lower price pressure
Bitter/off‑flavor juice Reduced demand from buyers
Ongoing weak consumption Pulls prices down
Trade/tariff uncertainty Accelerates downward movement

🔭 Looking ahead:

  • Many experts view this as a natural market correction after orange‑juice prices spiked nearly 300% from late 2022 through 2024 .

  • Futures still remain bullish long-term, as Florida and Brazil continue to battle citrus greening disease and extreme weather, keeping pressure on supply .

  • Analysts predict prices may rebound above the current low once quality recovers and demand stabilizes .


In short: orange-juice prices have dropped because supply is back, fruit quality is weak, consumer demand is soft, and trade uncertainty spooked markets—together, pushing prices down sharply, though the long-term outlook remains cautious.

Would you like a deeper dive into futures pricing, health trends in juice, or comparisons with other beverages?https://t.co/DbZ3zAsItI


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