The price of orange juice has soared by more than 20% this month, while added and added consumers looking for healthy products during the current pandemic of covid-19.
The demand has not stopped increasing in the last few weeks and the supply is affected due to which the producers have to redouble efforts to bring their crops in the midst of the restrictions imposed to prevent the spread of the coronavirus.
This phenomenon caused, in addition, an increase in the so-called”future price” of orange juice, an indicator based on the cost of delivery of the product for the next few months.
The projections indicate that this natural beverage became the asset with the best performance so far this year.
“Outbreaks of covid-19 are affecting both the supply and demand of orange juice. The properties of immune stimulation are the attraction on the demand side, while there simply are not enough quotas of shipping given that airlines do not fly to bring the product to market,” said Stephen Innes, head of global market trading company AxiCorp.
In addition, on the supply side, there are other problems such as the lack of workers, since the plantations have introduced restrictions such as the social distancing response to the pandemic.
The estimates of the price of the orange juice have seen their biggest monthly gain since October of 2015.
For Stephen Innes, just the fact that talk about the increase in the futures price causes the cost of this product is increasing in the shops.
“The effect will be rapid as producers of orange juice to transfer price increases to supermarkets and other buyers.”
Most of the products have a future price, and the contracts on these projections help to the companies to attach a cost to protect against possible fluctuations in prices.
Price contracts future are common to products known as soft as oranges and wheat, which are vulnerable to sudden increases in prices due to bad harvests and natural disasters. And pandemics are sudden, such as the coronavirus.
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