Posted on 03/10/2005 8:14:51 PM PST by M. Espinola
NEW YORK — Orange juice futures uncorked a sizzling rally Thursday to end up and near a 2-1/4-year high on all-around buying after a surprisingly huge cut in USDA's projection of the hurricane-hit Florida citrus crop, dealers said.
The New York Board of Trade's key May juice contract shot up 7.65 cents or 8.18 percent to settle at 101.20 cents a lb, ranging from 98.50 to 101.85 cents.
It was the loftiest close for a benchmark contract since juice futures finished at 102.05 cents on November 27th, 2002. July juice shot up its 5.00-cent limit to 99.80 cents.
The rally was sparked by the monthly supply/demand report of the U.S. Department of Agriculture (search) in which it cut by a more-than-expected 9 million boxes its estimate for citrus output in Florida in 2004/05 to 153 million (90-lb) boxes from last month's forecast.
The trade had expected a more modest decrease of 2 million to 5 million boxes. "Juice looks very strong," said James Cordier of Liberty Trading Group, adding the market's bull run was buttressed by talk of dryness for the 2005/06 citrus crop in Florida, which is the country's top growing state.
Florida's citrus production continued to suffer from the effects of the three hurricanes that slammed into the Sunshine State within six weeks of mid-August 2004. Traders also cited more cases of citrus canker in Florida and green disease in leading producer Brazil.
Both diseases would sharply curtail output in the orange groves. Futures exploded from the opening bell as fund and speculative buying ignited automatic buy-stop orders which fueled the rise.
Analysts said initial resistance in the May FCOJ contract would be at 102 cents and then up to 105 cents.
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Great movie made me interested in how to loose money in the market...
so it's straight vodka for breakfast ?
The funds are all over crude oil. 'If we can do crude, we can do juice.'
Great picture of those two crooks :)
Is the guy on the left Don Amici?
Brazil is the leading coffee and OJ producer & exporter.
'According to the International Coffee Organization (ICO), world prices have been steadily climbing since mid-January due to relatively low supplies from major producing countries like Brazil. Coffee production for crop year 2005-06 was estimated at 107 million bags or seven million bags short of the 114 million demand forecast.' Source
I didn't see anyone going out on a stretcher.
So very true. Commodity related funds are also shorting the U.S. Dollar and driving up the prices of the Pound, Euro and other currencies.
Not yet lol
Yes, that is Don Ameche, who passed away in 1993 and the other fine actor is Ralph Bellamy, who passed away in 1991. Both men were born in 1904.
yep. everything is peachy whe you look like Don Ameche.
Eddie Murphy was so funny in that movie!
I'll tell it was that movie which perked my interest in commodities:)
I thought "free trade" was going to be good for consumers?
Guess that part was B.S., also.
"Get back in there and SELL, SELL, SELL!!!"
My dad was born in 1906.
Coming to America, has a bit part played by both of them where the prince (Murphy) gives them money.
This is a supply and demand issue. Hurricane damage, plus when there are two separate orange tree diseases in both Brazil and Florida, global leaders in orange production, these are market factors, which makes for extreme pricing volatility, not to mention trader speculation.
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