Orange Juice Falls on Outlook for Ample Supply; Cotton Drops
Orange-juice futures fell for the fifth time in six sessions on signs that supplies will remain ample as crops increase in Brazil, the world’s leading grower, and Florida, the second-biggest. Cotton also dropped.
Orange output this year in Brazil’s Sao Paulo state, the largest growing region, will rise 17 percent to 377.1 million boxes from a year earlier, the government said on Sept. 1. Florida’s production will increase 2.2 percent this season to 142 million boxes, Elizabeth Steger, an independent forecaster, said last month. A box weighs 90 pounds, or 41 kilograms.
“The pressure is coming from the weak economy in Europe, the main buyer of Brazil’s oranges, which may leave some of that bigger supply available for the U.S. market,” Judy Ganes-Chase, the president of J. Ganes Consulting in Katonah, New York, said in a telephone interview.
Orange juice for November delivery fell 0.8 cent, or 0.5 percent, to $1.5065 a pound at 12:38 p.m. on ICE Futures U.S. in New York. Before today, the price declined 7.4 percent this year.
Cotton futures for December delivery dropped 0.36 cent, or 0.4 percent, to 99.79 cents a pound in New York. Before today, the price tumbled 54 percent from a record $2.197 on March 7.
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