OREANDA-NEWS  Stock prices for orange juice in the world have reached a record $ 4.56 per pound of frozen concentrate, according to ICE Futures data. The price increase is explained by the unfavorable forecast for the harvesting of oranges in Brazil, which is their main producer in the world, Lyudmila Rokotyanskaya, an expert on the stock market of BCS World of Investments, commented to RIA Novosti.

According to ICE Futures, following the results of trading on the American stock exchange on Tuesday, the price of frozen orange juice concentrate jumped to $ 4.56 for about 450 grams from $ 4.46 a day earlier, reaching a new historical record.

"The fundamental factor in the growth of the price of orange juice futures is Brazil has announced an unfavorable forecast for the production of oranges in the current season. It is expected that 24% fewer oranges will be harvested than in the previous season. This will be the lowest harvest since 1989," Rokotyanskaya said. She recalled that the country ranks first in the world in the production of this product with a share of 34%.

At the same time, futures prices may also rise due to a technical factor, the expert added. "Futures have broken through an important resistance level. At such levels, the volume of short positions usually increases. The players expect the price to go down. When the price, on the contrary, sharply breaks up, then there is a massive closure of short trades. Closing such a transaction involves performing a reverse action — a purchase," the analyst noted.