Orange Juice Rises to 3-Week High on Florida Chill; Cocoa DropsMarvin G. Perez
Orange-juice futures climbed to a three-week high on speculation that cool weather in Florida, the world’s second-largest citrus grower, will threaten crops. Cotton and sugar rose, while cocoa and coffee slid.
Temperatures in Florida’s orange groves may drop as low as 41 degrees Fahrenheit (5 Celsius) on Nov. 14, or more than 10 degrees below normal lows for this time of year, Anthony Chipriano, a meteorologist with MDA Weather Services in Gaithersburg, Maryland, said today in a telephone interview. Brazil is the world’s leading orange producer.
“This is a reminder to traders of what can happen during the colder months in January and February,” Fain Shaffer, the president of Indianapolis-based Infinity Trading Corp., said in an e-mail. “Speculators buy ahead of the frost season.”
Orange juice for January delivery added 0.9 percent to $1.26 a pound at 11:05 a.m. on ICE Futures U.S. in New York, after reaching $1.2695, the highest for a most-active contract since Oct. 15. Prices may climb to $1.30 in the near term, Shaffer said.
Cotton futures for December delivery advanced 0.6 percent to 77.22 cents a pound on ICE.
Raw-sugar futures for March delivery rose 0.1 percent to 18.05 cents a pound on ICE.
Cocoa futures for March delivery declined 0.8 percent to $2,672 a metric ton, heading for the third straight loss.
Arabica-coffee futures for December delivery slipped 0.1 percent to $1.0385 a pound.