Why orange juice prices are soaring on global markets
The future price of orange juice has spiked by more than 20% this month as consumers look for healthy products during the coronavirus pandemic.
While demand has risen, supply has been hit as producers struggle to export goods due to transport restrictions.
This has caused a rise in the so-called "futures" price of orange juice, which indicate its cost for delivery in the coming months.
Orange juice futures are the best performing asset so far this year.
"The Covid 19 outbreaks are hitting both the supply and demand for orange juice. The immune-boosting properties are the demand side attraction while there are simply not enough tanker spaces with airlines not flying to bring the product to markets," said Stephen Innes, chief global market strategist at broker Axicorp.
On the supply side, there are also issues with not having enough workers as plantations introduce restrictions such as social distancing. "Traders are wondering if workers are around to man the plants here in Florida and in Brazil," said Jack Scoville at trading firm Price Futures Group in the US.
Orange juice futures have seen their biggest monthly gain since October 2015, at a time when global stock markets are being battered. In London, the FTSE 100 index is down more than 13% in the last month, while on Wall Street the Dow Jones Industrial Average has fallen more than 16%.
Talking about whether the spike in orange juice futures prices will mean higher prices for orange juice in stores, Mr Innes added: "The pass-on effect will be quick as orange juice producers pass the price rises onto to supermarkets and other buyers".
Most commodities have a "future" price, which can be traded on an exchange, such as the Intercontinental Exchange (ICE). Futures contracts help companies lock into a fixed price in the future to protect them from potential spikes in prices.
Futures contracts are common for soft commodities like oranges and wheat which are vulnerable to sudden price rises due to bad harvests and natural disasters.
- Pure orange juice, taken on an empty stomach, is excellent for purifying the body, as it helps eliminate waste and improves bowel movement.
- Consuming orange juice daily reduces the chances of obesity by at least 14%.
- Orange juice greatly reduces cell oxidation, slowing aging and avoiding many diseases, especially when the juice is taken with food every day.
- It is recommended to combine orange juice with meats, lentils and some ham sandwiches, since in this way iron is assimilated much better. It is very important that people with anemia take it frequently.
- The vitamin C found in oranges is excellent to help create collagen, which is responsible for preserving tissues in perfect condition.
Properties of orange juice
Digestive system: - Consuming orange juice daily brings a lot of benefits to the stomach regulating its functions.
- Drinking orange juice diluted in water greatly helps to improve problems of poor digestion, as it eliminates the residues that cause this discomfort.
Gastritis and gastrointestinal ulcers: - By taking the healthy habit of consuming orange juice daily between meals, excess gastric acidity can be alleviated.
- Heartburn is very bothersome, but ulcers are even more so. Although we do not believe it, orange juice can promote its healing.
The liver: If orange juice is consumed between meals, it is possible to avoid poor digestion, bloating and food fermentation caused by a liver in poor condition.
If we have liver problems, we can notice a great improvement when consuming orange juice daily.
Cancer: Vitamin C is very important in treatments to prevent cancer.