Orange Juice Rises as U.S. Inventories Ebb; Cotton Advances
Orange-juice futures climbed to a one-week high on signs of dwindling supplies in the U.S., the world’s second-biggest producer. Cotton also advanced.
As of Oct. 4, orange-juice inventories monitored by ICE Futures U.S. fell 46 percent in the past year. Most of the fruit supplies from Florida, where the harvest started this month and runs through July, may take a month to reach processors, said Jimmy Tintle, an analyst at Transworld Futures. The Standard & Poor’s GSCI index of 24 raw materials rose as much as 2.6 percent today.
“Supplies are down at the end of the harvest,” Tintle said in a telephone interview from Tampa, Florida. “The whole commodity sector has been rising the last couple of days, and that’s been helping.”
Orange-juice futures for November delivery rose 1.5 cents, or 1 percent, to settle at $1.5485 a pound at 2 p.m. on ICE in New York. Earlier, the price reached $1.566, the highest for a most-active contract since Sept. 26. In the third quarter, the price tumbled 20 percent, the most since the end of 2008.
The dollar fell for the second straight day against a basket of currencies, enhancing the appeal of U.S. commodities. Brazil is the leading orange grower, followed by Florida.
U.S. equities advanced for the third straight day as European officials presented plans to contain the sovereign-debt crisis.
Cotton futures for December delivery rose 0.43 cent, or 0.4 percent, to $1.0273 a pound in New York, the third straight gain.
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