The futures contracts orange juice traded on the ICE stock exchange rose as much as 5.5% on Wednesday as Hurricane Ian approached off the coast of Florida, threatening to damage fruit crops in the world’s largest producing state. USA.
Meat companies are also bracing for the storm to hit the southeastern United States, where cattle and poultry are raised. THE Cargill closed facilities that handle products ranging from grains the salt.
Meteorologists say Ian would unleash high wind-driven waves and torrential rain that can cause coastal flooding of up to 3.7 meters in Florida.
Juice futures had already gained more than 2% before the storm on Tuesday.
The stakes increased for the crops as Ian’s route changed a bit.
“The storm shifted eastward and further south overnight, putting more oranges in jeopardy,” said Judy Ganes, soft commodities analyst at J.Ganes Consulting.
Orange juice prices have already soared this year as Florida production is expected to drop sharply due to a fungal disease.
Florida is also the largest sugarcane producer in the US, but the crops are located further west of the storm’s path.
“The stalks of sugar cane tend to bend (due to winds) rather than break,” said Janes.
Food and agricultural companies are taking preventive measures.
Cargill has closed grain processing, salt packaging, and starches and sweeteners facilities in the Tampa, Florida area, said spokesman Daniel Sullivan.
The company also closed an animal nutrition facility in the Poinciana-Kissimmee area, he said.
Cal Maine Foods, the largest U.S. egg-in-shell producer and Florida egg-laying breeder, began preparing for the storm a week ago and is watching it closely, Chief Financial Officer Max Bowman said.
Perdue Farms, which raises poultry, is ensuring farms have enough feed, spokeswoman Diana Souder said.
The private company is adjusting delivery and processing schedules as needed, she said.
Tyson Foods, the largest US meat company by sales, is preparing to send a disaster relief team, spokeswoman Kelly Hellbusch said.
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Source: Moneytimes
I am a journalist with over 6 years of experience working in the news industry. I currently work as an author for Global Happenings, and my coverage focuses on Technology news. I have written for various publications, including Reuters, The New York Times and The Guardian.
