Orange-juice futures climbed on concern that severe weather will threaten shrinking supplies in Florida, the world’s second-largest citrus grower. Cotton rose, capping the biggest two-day rally in seven months.
A weak low-pressure system drifting northeast through the Gulf of Mexico has a “medium chance” of becoming a tropical storm, the National Hurricane Center in Miami said today in an advisory. In the 12 months that started Oct. 1, Florida will produce 138 million boxes of oranges, down 5.9 percent from a year earlier, the government forecasts. The hurricane season runs from June 1 to Nov. 30. Brazil is the top orange grower.
“Any tropical storm that may threaten the groves in Florida is bullish,” Fain Shaffer, the president of Infinity Trading Corp. in Medford, Oregon, said in an e-mail.
Orange juice for July delivery climbed 1.6 percent to settle at $1.5305 a pound at 2 p.m. on ICE Futures U.S. in New York. The price has surged 30 percent this year.
Cotton futures for July delivery jumped 2.7 percent to 84.56 cents a pound. In two days, the price soared 6.6 percent, the most since mid-October, on signs of increasing Chinese demand after the commodity dropped last week to a four-month low.
“Chinese mills are in a position to add to their coverage since the gap between U.S. prices and those within China are wide enough to encourage purchases and still cover” import costs, Sharon Johnson, a senior market specialist at Knight Futures in Roswell, Georgia, said in a report.
Cocoa futures for July delivery climbed 1.6 percent to $2,283 a metric ton. Earlier, the price reached $2,286, the highest since May 23.
Raw-sugar futures for July delivery slid 0.3 percent to 16.38 cents a pound. Earlier, the price touched 16.32 cents, extending a slump to the lowest since July 2010. The commodity fell for the sixth straight session, the longest slide since January.
Arabica-coffee futures for July delivery declined 1 percent to $1.2765 a pound.