Friday, 11 May 2012

Orange Juice


The last 3 years.  From the high of $226.95 on 23rd January OJ has crashed down to as low as $112.3, more than a 50% decline.

Sentiment is desolate;

Chart from


You may need to stay that way, a search of an ETF database didn't release any juice.  Still, there's always futures...

How things change, I bookmarked this article back in January;

Excerpt from Telegraph;

"Orange juice will soon be 'luxury'

Orange and apple juice, an integral part of many people's breakfast, could    become an unaffordable "luxury", according to a report, which    highlights how the price of fruit juice has rocketed.  
                                                                                                                                                                                                                                                                                                         The price of orange juice has more than doubled on the commodity markets Photo: Fran Stothard / SWNS.COM                                                                                                                                                                                                                                                                 A series of bad harvests from Florida, America to Shandong Province, China,    combined with increased demand from Asian countries, has forced up the price    of orange and apple juice on the world market. Supermarkets have started to    react in Britain by pushing up the price of a carton of juice.

  The Grocer, the industry trade magazine, reported prices are set to    climb even higher making most juices a "luxury".

  Experts predicted factory prices could rise by as much as 80 per cent for    orange juice and 60 per cent for apple juice in 2011.

  This would place further pressure on retailers to increase the price of orange    and apple juices on shop shelves even though they have already gone up    sharply. Over the past year, the price of a one-litre carton of Tropicana    fresh orange juice across the five major supermarket chains has risen 22 per    cent, from an average of £1.80 to an average of £2.19, while a one-litre    carton of own-label apple juice from concentrate has gone up an average of    21 per cent, from 87p a year ago to £1.05 now.

  Fruit juices are just the latest key household staple to be hit by the spike    in global commodity prices, which has affected everything from a litre of    unleaded petrol to a loaf of bread.

      The Office for National Statistics has calculated that inflation, based on the    Consumer Prices Index, increased from 3.3 per cent in November to 3.7 per    cent in December, with food prices driving much of this jump. Food increased    in price by 6.1 per cent during last year, with butter, fruit, lamb, tea and    juices particularly badly hit.

  Orange juice has been particularly affected by the bitterly cold winter in    Florida last year, the main orange growing area in the world and which at    one point was colder than Alaska. Cold weather in China, too, wiped out 40    per cent of the apple harvest in some parts of the country. China has become    one of the main producers of apples in the world.

  Richard Hall, chairman of food consultancy Zenith International, said orange    and apple juice producers were already the world's largest, most efficient    juice producers, so there was little room for them to absorb cost increases.

   "Pricing for orange and apple juice this year could see the most radical    change," he said.

  Adam Pritchard, chief executive of drinks maker Pomegreat, which makes    pomegranate and other juices, said costs had gone up 40 per cent and his    company would have to pass on about 10 per cent increase.

   "Part of the problem is the upward shift in demand from places such as    China and India, who are spending more money on expensive drinks. This is    putting pressure on the world markets."

No comments:

Post a Comment