Orange juice futures climbed to a fresh record of 535.40 cents per pound on Tuesday, as severe supply constraints continue to drive prices higher in a market already strained by drought and disease in major producing regions.

The January 2025 contract rose 1.71%, or $0.09, extending a relentless rally that has pushed prices up nearly 80% this year alone. The latest peak surpasses September’s then-record of 492 cents per pound.

“The perfect storm” of conditions continues to plague the industry, as Rabobank analyst Andrés Padilla noted earlier this year, citing widespread drought and the devastating impact of citrus greening disease in key growing regions.

Brazil, the world’s largest orange juice exporter, has seen 38% of its orange trees affected by citrus greening disease, with psyllid insect populations reaching their highest levels since 2004. The country’s orange yields were projected to fall 25% from the previous year as of September, marking the smallest crop in 35 years.

The crisis extends to Florida, where citrus greening has decimated orange groves over the past two decades. The combined impact of falling production in both regions has forced soft drink companies to grapple with surging costs.

The futures price, which traded around 300 cents per pound at the start of 2024, saw a sharp upturn in May before establishing a new trading range and pushing steadily higher through the latter half of the year.

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