We recently outlined "Orange Juice Prices Could "Increase Substantially" As Hurricane Pummels Florida's Top Citrus Grow Region." And that's precisely what's happening today.
First, let's begin with US stockpiles of cold-stored orange juice plunged by 43% in September from a year earlier -- the lowest level since 1977, according to the latest US Department of Agriculture data.
A combination of crop diseases across Florida's citrus groves and Hurricane Ian that destroyed crops are creating a supply crunch that has catapulted orange juice futures contracts to as high as $2.18 per pound, the highest level ever.
Ahead of Hurricane Ian, we penned a note titled "OJ Squeeze Ahead? Tropical Threat Looms For Florida's Citrus Groves" and warned this may spark even higher breakfast inflation. Last month, we noted that a dozen eggs at the supermarket have jumped to record highs due to devastating bird flu.
Sticky food inflation continues to wreak havoc on households, as shown in the latest CPI report.
Breakfast was cheap but has since become expensive as orange juice and egg prices soar to record highs.