Orange Juice Surges Most Since January Amid Concern Storm May Hit Florida
Orange-juice futures rose the most in eight months on speculation that a tropical storm may damage citrus groves in Florida, the world’s second-largest grower. Cotton prices were little changed.
Tropical Storm Igor, in the eastern Atlantic off the Cape Verde Islands, will probably strengthen steadily as it moves into warm waters and become a hurricane before next week, according to the National Hurricane Center. Igor is the ninth named storm of the June-through-November Atlantic hurricane season.
The bad weather “might be the culprit” responsible for boosting prices, said Jimmy Tintle, an analyst at Transworld Futures in Tampa, Florida. “This might be the start of a run for orange juice.”
Orange juice for November delivery rose 7.55 cents, or 5.5 percent, to settle at $1.456 a pound at 2 p.m. on ICE Futures U.S. in New York. That’s the biggest gain for a most-active contract Jan. 8.
The commodity has advanced 13 percent this year. Brazil is the world’s largest orange producer.
Futures extended gains after the price “made a pretty decisive move” through the 50-day moving average near $1.416, said Jodi Timmons, a vice president at Global Commodity Futures LLC in Fort Lauderdale, Florida. The prices also rose above the 40-day moving average, she said.
Orange juice fell 4.2 percent in August and 1.2 percent in July.
“We got oversold and the market bounced back up,” said Sterling Smith, an analyst at Country Hedging Inc. in St. Paul, Minnesota.
Indian Monsoon
Cotton futures for December delivery dropped 0.1 cent, or 0.1 percent, to settle at 90.46 cents at 2:33 p.m. on ICE. The fiber has climbed 20 percent in 2010.
The monsoon in India may last longer than estimated, the India Meteorological Department said.
More rain could reduce the country’s harvests, said D.K. Nair, the secretary general of the Confederation of Indian Textiles Industry. Supply concerns pushed domestic prices to a record.
“All the bullish fundamentals are still in place,” said Mike Stevens, an independent trader in Mandeville, Louisiana.
To contact the reporter on this story: Elizabeth Campbell in Chicago at ecampbell14@bloomberg.net
Rate this Page