Orange Juice Futures up 20% in Wake of Irma

Irma is expected to damage 50% of this year's orange crop.

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In wake of this weeks hurricane, Florida is expected to suffer form a major shortage of oranges this year as farmers scramble to protect their trees.

In response to this, orange juice futures are skyrocketing as investors anticipate this years crop yield. In an interview with FOX Business, the president of Premier Citrus president Tom Jerkins estimated that in a Category 3 hurricane, 50% of supply will be wiped out and 20% of trees will be gone.

This is particularly devastating for Florida as agriculture contribute more than $104 Billion US, to the Florida economy which is second only to tourism; which is also taking a hard hit.

As the results and damage of the hurricane are realized in the coming weeks, it will be interesting to see how the markets react.

 

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