On Wednesday, orange juice futures for November delivery spiked 6.5% closing at $1.47 a pound, ahead of Hurricane Irma approaching to Florida. This is the highest closing price since May, CNBC reports.
That sent the ICE frozen concentrated orange juice futures continuous contract spiking up as high as $146.60, from the previous close of $138.60. The contract represents around 15,000 pounds of orange juice solids.
The “Sunshine State” Florida is the largest producer of orange juice in the United States.
According to the Florida Department of Citrus, Florida’s orange crop accounts for 58% of the state’s domestic output, generating close to $1.2 billion in cash receipts.
Florida also produces about half of the U.S. grapefruit harvest.
In all, citrus contributes $8.6 billion to Florida’s economy and supports over 45,000 jobs.
Irma is expected to make landfall in Florida later this week or earlier next week.
It could be the most ferocious Category 5 storm ever, the National Hurricane Center said.
Irma's course remained uncertain, but many of its potential paths would take it right over Florida.