Orange Juice Jumps to Highest Price Since 2007 on Florida-Freeze Forecast
Orange-juice futures rose to the highest since May 2007 on concern that freezing weather may harm groves in Florida, the world’s second-biggest grower.
Temperatures in parts of central Florida, the state’s largest growing region, may fall to 29 degrees Fahrenheit (minus 2 Celsius) tomorrow morning, said David Salmon, a meteorologist at Weather Derivatives in Belton, Missouri. Temperatures would need to touch 25 degrees to “start doing some damage to the fruit,” he said. Orange-juice prices jumped 10 percent in four sessions.
“It’s all weather-related concerns,” said Jodi Timmons, a vice president at Global Commodity Futures LLC in Fort Lauderdale, Florida. “We have some pretty cold temperatures forecast for the later part of this week.”
Orange juice for January delivery rose 7.65 cents, or 4.9 percent, to settle at $1.6445 a pound at 2 p.m. on ICE Futures U.S. in New York, the biggest gain since Oct. 15. Earlier, the price reached $1.667, the highest since May 21, 2007.
The commodity has advanced 27 percent this year as adverse weather threatened global supplies. Brazil is the biggest grower.
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