Orange Juice Advances as Hurricane Season Begins; Cocoa Gains
Orange-juice futures climbed on bets that severe weather will threaten already shrinking supplies in Florida, the world’s second-largest citrus grower. Cocoa also rose, while coffee and sugar slid. Cotton was little changed.
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 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.
“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 advanced 1.2 percent to $1.524 a pound at 11:15 a.m. on ICE Futures U.S. in New York. On May 30, the commodity reached $1.5575, the highest since April 2012.
Also in New York, cocoa futures for July delivery climbed 1.4 percent to $2,277 a metric ton, after touching $2,282, the highest since May 23.
Raw-sugar futures for July delivery slid 0.2 percent to 16.4 cents a pound. Earlier, the sweetener reached 16.37 cents, the lowest since July 2010.
Arabica-coffee futures for July delivery declined 1.2 percent to $1.275 a pound.
Cotton futures for July delivery slid 0.1 percent to 82.31 cents a pound.
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