Orange juice futures are hitting record highs. Here's why, and what it means for consumers

Orange juice futures are hitting record highs because of bad weather and a nasty citrus disease. That could mean higher prices at the grocery store.

In recent weeks, prices in the OJ futures market have topped $3 per pound. Around this time last year, prices were hovering at around $1.81 per pound.

The price increase has been fueled primarily by short citrus supply around the globe.

"It's really a sad and perfect storm of what's hitting the industry," said Billy Roberts, senior analyst for food and beverage at CoBank.

In Florida, which typically produces most of the orange juice consumed in America, Hurricanes Ian and Nicole in the fall of 2022, plus a late freeze later that year, devastated crops already thinned by citrus greening, which cuts off key nutrients to orange trees. Trees infected with the disease produce fewer, lower-quality oranges and eventually die.

Late last year, the US Department of Agriculture predicted that in the 2022-2023 season, Florida was expected to produce 20 million boxes of oranges - a 51% decline from the prior year, and the smallest amount produced since the 1936-1937 season.

By July, the forecast had fallen even further. Last month, the USDA said it expected Florida to produce 15.9 million boxes in 2022-2023.