Orange-Juice Futures Advance Most in Seven Weeks
Orange-juice futures jumped the most in seven weeks on concern that a crop disease will curb output in Florida, the world’s second-biggest citrus grower. Cotton also rose.
On Jan. 11, the U.S. Department of Agriculture cut its estimate for Florida’s orange output as citrus greening, a bacterial disease, damaged groves. Prices have climbed 4.8 percent since the day before the government report.
“The bullish case is all about greening,” Shawn Hackett, the president of Hackett Financial Advisors Inc. in Boynton Beach, Florida, said in an e-mail.
Orange juice for March delivery surged 3 percent to $1.1775 a pound at 11:12 a.m. on ICE Futures U.S. in New York. A close at that price would mark the biggest gain for a most-active contract since Dec. 12.
“We are still seeing continued fruit drop,” Dean Mixon, the president of Mixon Fruit Farms Inc., a grower in Bradenton, Florida, said in an e-mail.
The USDA will update its Florida forecast on Feb. 8. Brazil is the biggest orange producer.
Cotton futures for March delivery rose 0.5 percent to 82.79 cents a pound in New York.
To contact the reporter on this story: Marvin G. Perez in New York at email@example.com
To contact the editor responsible for this story: Steve Stroth at firstname.lastname@example.org