Orange juice futures increased to a two year high after the U.S. Department of Agriculture (USDA) announced that the crop in Florida, the world’s second biggest grower behind Brazil will shrink to its lowest point since 1985 which saw a crop of 103.9 million 90-pound boxes. Growers harvested 133.6 million boxes of oranges last year, and last month the USDA estimated this year’s crop to be 114 million boxes; however the latest forecast from the agency states that the crop will equal 110 million boxes. The dramatic drop in production is due to a combination of the Asian citrus psyllid which spreads citrus greening which causes fruit to wither and drop early, and drought conditions. In December the USDA created an “emergency response framework” to combat the spread of the greening.
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