Hurricane Irma May Make Orange Juice Unaffordable and Destroy Your Grocery Bill

[Swordsmyth]

Citrus costs could rise if Hurricane Irma, which is deemed a category 5, makes landfall in certain regions of Florida, as the state heads toward harvest season for oranges, but other vegetables could also see prices spike.
Depending on where Irma makes landfall, produce prices will fluctuate, said Giacomo Santangelo, an economics professor at Fordham University in New York and Seton Hall University in South Orange, N.J. Florida is the main producer of oranges in the U.S., although California and Texas also grow them.
"We can expect the prices of citrus fruits such as oranges, limes, tangelos and grapefruit to be affected; however, tomatoes are Florida's second-largest crop," he said. "Florida is the largest producer of sugar cane in the U.S."
The production of orange juice plays a large contributing factor to the state's economy, since Florida is the largest producer of the beverage in the U.S. and second in the world since over 95% of oranges grown there are used to produce it, said the Florida Department of Citrus. The citrus harvest season begins in October and runs through June, which means torrential downpours and extensive flooding could damage the crops extensively.
Florida produced 68.7 million boxes of oranges in the 2016 to 2017 season, which ended in June. The industry employs over 45,000 people and contributes $8.6 billion to Florida's coffers. Fruit production occurs in 27 counties of central and south Florida, according to the food and resource economics department of the University of Florida. Florida's citrus bearing grove area has declined to 435,000 acres in 2016, a reduction of 42% decline from 2000.
"If orange crops are destroyed as a result of the storm, that will most certainly impact supermarket prices as harvesting starts as soon as next month," said Greg McBride, chief financial analyst for Bankrate, the New York-based financial content company. "Central and south Florida are home to many citrus farms and producers, so the storm is likely to impact their operations and potentially disrupt the supply chain at least temporarily."
The orange juice futures market has been reacting to the potential destruction of the hurricane, said Jack Scoville, a senior market analyst at the PRICE Futures Group in Chicago. Within the past few days, the market has been rallying.


"It depends on how much rain falls, which could affect the quality of the acid inside the oranges to make the juice," he said. "If there is extreme wind then the oranges become less usable, especially if they fall to the ground. If it is processed fast enough, they can sell it for juice. I am not sure if they will survive storm."
November orange juice futures could run as high as 165 cents per pound, Scoville said.


Unlike the majority of other commodities, the production of frozen concentrated orange juice is nearly entirely focused geographically around the central Florida region. Inventory for frozen orange juice is not vast, so production and prices are "invariably affected by the weather in a single location such as central Florida," Ma said.
Irma could affect the cost of many commodities since Florida produces most of the greenhouse plants which are sold at local nurseries and those prices could rise, said Santangelo.
If Irma's direction changes and impacts New Orleans, the city's port is one of the most important in the country for the import of various foods and commodities, he said.
"We can expect increases in the price of coffee and steel, copper and zinc," Santangelo said. "The port of New Orleans is an entry for various commodities, not just food, which originate from countries such as Japan, South Korea, Brazil, Turkey, Italy, Taiwan, India and China. Not to mention that it is the largest port for the import of rubber. We can expect increases in the price of many goods."

More at: https://www.thestreet.com/story/1429...cery-bill.html

[Natural Citizen]

I wonder how hard it would be to guide a hurricane right where you want it to go.

[pcosmar]

I wonder how hard it would be to guide a hurricane right where you want it to go.

Good luck with that.

But that article sounds like some spun excrement.

[Natural Citizen]

Good luck with that.

But that article sounds like some spun excrement.

Yeah. I was just recalling that weather derivatives are in fact a tradeable commodity these days. I sometimes watch the trading going on when some of these storms are initially observed and long before they actually make contact with any land. Sometimes you can see some odd trading going on prior to them hitting land. Indonesian securities trading right prior to that tsunami was an interesting bit to watch since there wasnt really any need for trading at the time. Tsunamis, of course, are supposed to be unpredictable. China and Japan were trying to improve relations, then bam, Fukushima.

Texas did happen to launch its bullion depository in July of this year. Then, bam. Hurricane Harvey. We followed it all the way there and it stayed there for a week in the same spot. First time in recorded history something like that happened.

Ah well. Just things that make a feller go hmm, I suppose.

[Natural Citizen]

Not to get off topic, but NASA is talking about pin pricking Yellowstone. And people are already starting to trade weather derivatives on the idea that a pin prick will cause a major, major, major problem.

[Dr.3D]

It's a good thing we don't allow Mexico to export their oranges to the U.S. Last time I was there, they had a lot of oranges. If they could export them to the U.S. the price of oranges would always be low.

[Zippyjuan]

[Valli6]

I can't remember a year when I DID NOT hear that the price of oranges was going to sky rocket. It's just usually attributed to cold weather.

[RJB]

Drink apple juice. OJ kills, but gets acquitted.

[Swordsmyth]

Hurricane Irma tore through Florida's rich agricultural heartland, and now it's going to shred consumers' wallets at the supermarket.Fruits and vegetables grown in southwest Florida — a prime region for citrus — and other parts of Florida could be in short supply after being hit by Irma. That will translate to higher prices in the grocery aisles for everything from tomatoes to orange juice.
The storm flooded fields and groves, blew oranges to the ground, twisted protective plastic, broke drip irrigation pipes and tubes, and destroyed vegetable plants. Growers struggled to get water off their fields and groves.
The hurricane knocked 50% of the fruit off the region's citrus trees, estimates Ron Hamel, executive vice president of the Gulf Citrus Growers Association. Statewide, he expects the losses to be in the same range, with at least half of this season's crop wiped out.
"The whole state was in the hurricane-force winds," he said. "But certain areas got heavier intensity."
Many groves are still flooded, leaving already stressed trees standing in water and susceptible to more damage.

More at: https://www.usatoday.com/story/money...lls/660848001/

[oyarde]

It's a good thing we don't allow Mexico to export their oranges to the U.S. Last time I was there, they had a lot of oranges. If they could export them to the U.S. the price of oranges would always be low.

I remember staying for awhile in a little village once . Best apricots I had ever tasted .

[Swordsmyth]

Florida Farmers Say Irma's Damage Is The Worst They've Ever Seen

Almost half of Florida’s citrus crops were destroyed during the hurricane and when Florida farmers survey the damage caused by Hurricane Irma, and most are saying it’s the worst destruction to their farms that they’ve ever seen.

When the worst of Irma’s fury had passed, Gene McAvoy hit the road to inspect the citrus groves and vegetable fields in Florida. McAvoy is a specialist on vegetable farming at the University of Florida’s extension office in the town of LaBelle. LaBelle is located in the middle of one of the country’s biggest concentrations of vegetable and citrus farms.
According to NPR, the storm made a direct hit to those fields. “The eyewall came right over our main production area,” McAvoy says.
Irma had destroyed almost half of the citrus crops in the central Florida area, meaning prices are likely going to go up sharply.

Many of the destroyed groves of oranges and grapefruit were actually approaching harvest too.
But after Irma blew through, it left “50 or 60 percent of the fruit lying in water [or] on the ground,” says McAvoy. Many trees were standing in water, a mortal danger if their roots stay submerged for longer than three or four days. About a quarter of the country’s sugar production comes from fields of sugar cane near Lake Okeechobee, just east of LaBelle.
Harvest season for the sugar cane crop is only a few weeks away, but Irma knocked much of the cane down, making it more difficult to harvest. “We won’t know the exact extent of the loss until it’s harvested,” McAvoy says.
Fortunately for the vegetable farms, most had yet to be planted, so the destruction was minimal. But that won’t help the destroyed citrus produce. For example, the strawberry crops had not been planted when Irma struck. Some of the plastic laid in anticipation for planting was ruined, however, growers can repair the damage that was done and plant the strawberries on schedule.

More at: http://www.zerohedge.com/news/2017-0...eyve-ever-seen

[oyarde]

I like grape and grapefruit better . I should stock up . If it gets too high I will have to see what Danke has , prospect of that is scary , I picture lime Kool Aid and no sugar .

[Krugminator2]

"Hurricane Irma May Make Orange Juice Unaffordable and Destroy Your Grocery Bill"


Ummm... These articles are why no one should read financial media. I mean. Orange juice is 33% lower today, after the hurricane, than it was 9 months ago. Were people just starving last November because of high orange juice prices? Orange juice is 9 dollars higher after it dropped 90 dollars.

[oyarde]

"Hurricane Irma May Make Orange Juice Unaffordable and Destroy Your Grocery Bill"


Ummm... These articles are why no one should read financial media. I mean. Orange juice is 33% lower today, after the hurricane, than it was 9 months ago. Were people just starving last November because of high orange juice prices? Orange juice is 9 dollars higher after it dropped 90 dollars.

This is america , pork bellies are more important .

[Danke]

I like grape and grapefruit better . I should stock up . If it gets too high I will have to see what Danke has , prospect of that is scary , I picture lime Kool Aid and no sugar .

No amount of beads will get you my stash.

[oyarde]

No amount of beads will get you my stash.

But I am old , living on a frugal fixed income and may need nourishment . Surely you would check on me ?

[Danke]

But I am old , living on a frugal fixed income and may need nourishment . Surely you would check on me ?

I'd send Suzanimal, but she disappeared. So you will have to settle for the LGBTQHB karate kid.

[oyarde]

I'd send Suzanimal, but she disappeared. So you will have to settle for the LGBTQHB karate kid.

I have been wondering about Suzanimal .

[Danke]

I have been wondering about Suzanimal .

I think my competition made her a better offer.

[oyarde]

I think my competition made her a better offer.

I had a dream she was shaving her legs and then Lucille woke me up and told me I had to cut the grass and take out the trash .

[heavenlyboy34]

I'd send Suzanimal, but she disappeared. So you will have to settle for the LGBTQHB karate kid.

It's creepily cute that you still call me LGBTQHB. I knew you still had a huge crush on me. Heartwarming <3 yet tragic (as all unrequited love stories are) but I promise I will kill you if you get rapey on me.

[heavenlyboy34]

I think my competition made her a better offer.

Since when have you been competing for women aside from the fashion sense? Does eduardo know about it?