Orange juice headed for the biggest drop in almost two weeks on signs of higher output in Florida, the world’s second-biggest citrus grower. Cocoa also fell, while coffee gained.
Florida’s orange production in the season that runs from October to June may increase 4 percent from a year earlier to 152.4 million boxes, the highest since 2009, according to a Bloomberg News survey of seven analysts. The U.S. Department of Agriculture will release its first estimate of the crop on Oct. 11.
“The favorable production weather in Florida” is pushing orange juice down, Fain Shaffer, the president of Infinity Trading Corp in Medford, Oregon, said in an e-mail. The price may drop to $1 a pound in the short term, he said.
Orange juice for November delivery slumped 1.7 percent to $1.132 at 10:42 a.m. on ICE Futures U.S. in New York. A close at that price would mark the biggest drop for a most-active contract since Sept. 25. The last time the commodity fell below $1 was May 23.
A box weighs 90 pounds (41 kilograms). Brazil is the biggest producer.
The dollar climbed against a basket of major currencies, eroding the appeal of commodities, Shaffer said.
Cocoa futures for December delivery slid 0.3 percent to $2,374 a metric ton on ICE.
Arabica-coffee futures for December delivery rose 0.1 percent to $1.682 a pound.
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