The discovery of low levels of fungicide detected by a juice company has wreaked havoc in the orange juice market, the Tampa Bay Business Journal reports today, Jan. 11.
March orange juice futures jumped 9.6 percent, or 20 cents, to $2.08 a pound on the ICE Futures Exchange, a CNN Money report said.
Industry insiders speculated that a U.S. ban on Brazilian oranges is ahead.
On Jan. 9, the U.S. Food and Drug Administration said it learned about the low levels of fungicide in a juicer’s products as well as orange juice and concentrate made by competitors. The U.S. imports about 25 percent of oranges used in domestic orange juice. A lessening of supplies could push prices up, the report said.
The futures were traded at their highest level since 1977.