Orange Juice Futures Options Trading

CALL 1-888-456-8090 TO BEGIN TRADING TODAY!
INTERNATIONAL INVESTORS CALL
1-541-773-5741

 

Orange Juice Futures Advance on Concern Storm May Hit Florida Groves

July 3rd, 2008

Orange juice futures rose on speculation a new tropical storm in the Atlantic Ocean may strike groves in Florida, the world's second-largest producer of the fruit.

A tropical depression that was just upgraded to tropical storm Bertha prompted traders to buy before the three-day weekend in case prices move higher on July 7, said Fain Shaffer, president of commodity broker Infinity Trading Corp. in Medford, Oregon. Bertha formed farther east than any other tropical storm in the Atlantic in July, according to Weather Underground, an Internet-based weather forecaster.

``Bertha may or may not even hit Florida,'' Shaffer said. ``But it's heading towards the East Coast, and the market is sensitive to any disturbance.''

Orange-juice futures for September delivery gained 0.75 cent, or 0.6 percent, to $1.2965 a pound at 1:35 p.m. on ICE Futures U.S., formerly the New York Board of Trade. Most-active futures have climbed 14 percent this week on renewed storm threats. Trading is closed tomorrow for the Independence Day holiday.

The potential of a new disturbance west of Barbados to cross Cuba and hit Florida also is driving prices higher, Shaffer said.

Colorado State University meteorologists have projected eight Atlantic hurricanes in the storm season that runs from June to November. No hurricanes hit Florida last year. Storms in 2004 and 2005 damaged citrus groves in the state and reduced output.

``Freeze used to be the only play in the orange juice market, but because of all the damage in 2004 and 2005, people are now a lot more sensitive to storms,'' Shaffer said.

 - Yi Tian in New York at Bloomberg. 

See Also: Coffee, Cocoa, Cotton, Orange Juice, Sugar

Click here for your Free Orange Juice Futures Trading eGuide


 
Futures and Options Trading involve risk of loss and is not suitable for everyone.
Options, cash &futures markets are separate and distinct and do not necessarily respond in the same way to similar market stimulus.
A movement in the cash market would not necessarily move in tandem with the related futures & options contract being offered.
1-888-456-8090 or 1-541-773-5741   Fax 1-541-773-5711
Free Investors Kit!
©1997-2008 Infinity Trading Corporation. All rights reserved.
Site Design © Copyright 2001-2008 Steelesoft Consulting.