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Article: There's money in the wind: OJ trading opportunities; Now may be a prime time to trade orange juice. Here's what you need to understand about market fundamentals and technicals to exploit price moves in this volatile market.(orange juice)
- Article from:
- Futures (Cedar Falls, IA)
- Article date:
- July 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 Summit Business Media. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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In fall 2004, three major hurricanes destroyed more than 30% of Florida's orange crop at a time when orange juice futures were at 27-year lows and inventories were at all-time highs. Since then, frozen concentrate orange juice (FCOJ) futures prices have soared from 55 cents per lb. to more than $1 per lb. Hurricanes, freezes and canker tree disease are now major threats to the new crop of Florida oranges.
Only Brazil grows more oranges than Florida, and together they supply about 90% of all orange juice in the world. Since hurricanes Charley, Francis and Jeanne raged through the heart of Florida's citrus growing regions, the fundamentals of the market have gone ...