Orange juice has been one of the raw materials that have risen the most in price over the past six months, but a turnaround may now be on the way. After a peak in December of almost 5.50 dollars per pound (equivalent to 0.45 kilos), the price has now fallen to around 2.9 dollars per pound, writes the Wall Street Journal.
The explanation is believed to be that large hedge fund managers, who previously speculated on continued price increases, have now chosen to exit their market positions, contributing to the negative development.
From a production perspective, however, there is not much to be happy about. The US Department of Agriculture estimates that this year's harvest of so-called Valencia oranges at farms in Florida will be 38 percent lower than last year.
