Friday, January 18, 2019
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orange juice

ny juice ends firmer, focus on storm development

new york, june 22 (reuters) - orange juice futures ended
slightly higher friday on speculative buying as the trade kept a
wary eye on a weather system in the gulf that may gain strength
over the weekend, analysts said.  

ny juice finishes mostly lower in spread trade

players unwind positions in spot july contract
* florida weather monitored by market participants

brazil orange growers to halt fungicide use on u.s. screening

orange-juice producers in brazil, which supply about one in every six glasses drunk in the u.s., will stop using a fungicide that led shipments from the south american country to be detained, an industry group said.

carbendazim, a fungus killer banned in u.s. groves, will be removed from a list of chemicals approved by brazil’s orange- juice industry, the producers-run fund for citrus plant protection, known as fundecitrus, said today in an e-mailed statement.

ny juice ends easier as market consolidates

new york: orange juice futures finished lower on wednesday on sales by small speculators as the market consolidated in range-bound trade after prices dropped last week to the lowest in 1-1/2 years, analysts said.

key july frozen concentrated orange juice fell 1.40 cents to close at $1.4565 per lb after trading from $1.4505 to $1.488.

orange juice rebounds on renewed concern u.s. will limit imports

orange-juice futures soared, rebounding from the biggest two-day slump since 2008, on renewed concern that a u.s. government probe of imports from brazil will tighten supplies.

the food and drug administration said it will detain all imports that contain carbendazim, a fungicide that isn’t approved for oranges in the u.s. yesterday, the u.s. department of agriculture trimmed its crop forecast for florida, the world’s largest grower after brazil, by 2 percent. the estimate didn’t include damage from frigid temperatures last week.

ny juice jumps in biggest one-day rally in a month

orange juice futures jumped over 2 percent on thursday, pushing back near the top of its recent trading band, as players await news from the u.s.
food and drug administration on banned fungicide in juice imports.

it was the market's biggest one-day gain in nearly a month as prices bounced back from the $1.75 per lb level, an area of support that should continue to hold as long as the fate of brazilian juice imports remains unclear, analysts said.

"we are still waiting on news from the fda, and how they will move forward with the issue of brazilian oranges," said sterling smith, senior analyst with country hedging inc.

fda halts orange juice imports to test for pesticide

u.s. regulators have halted shipments of imported orange juice from all countries, and plan to destroy or ban products if tests find even low levels from a prohibited fungicide. initial test results are due this week.

the fungicide, linked in studies to increased risk of liver tumors in animals, was found in trace amounts last month in orange juice products from brazil, which produces about 41 percent of u.s. imports, according to census data. while the chemical, carpendazim, is used in crops in many countries, it isn’t approved for use in the u.s. on oranges.

ny juice ends slightly down, eyes fungicide news

orange juice futures eased on tuesday, following its first weekly rise in three weeks, as the market awaited further news regarding a banned fungicide in juice imports.   

on friday, the citrus market rallied on supply concerns a day after the u.s. food and drug administration had turned down a request to change its acceptable levels of carbendazim, a
fungicide commonly used in the brazilian orange juice industry.

benchmark may frozen concentrated orange juice edged down 0.6 cents to close at $1.8045 per lb, trading from $1.7650 to $1.8225. 

orange juice futures surge to record on fungicide fears

new york (reuters) - u.s. orange juice futures surged almost 11 percent to an all-time high on tuesday, as reports that discovery of small doses of an unapproved fungicide in brazil could crimp juice imports from that country added fuel to a rally sparked by a brief freeze last week in florida.

the benchmark march frozen concentrated orange juice contract on the ice futures u.s. exchange, one of the smallest futures markets featured in the 1980s movie trading places, jumped the 20-cents daily limit to $2.0775 at 9:46 a.m. est, taking two-day gains to nearly 17 percent.

the front-month january fcoj contract, which expires tuesday, was at a record high of $2.12, according to thomson reuters data. this rally exceeds the one that caused prices to rise four-fold in 2005 and 2006 after a series of hurricanes slammed into florida and battered the crop, spreading diseases such as citrus greening, which is fatal for citrus trees.

the latest surge appeared related to news reports that the food and drug administration had told juice makers that it would step up testing for the fungicide carbendazim, which is used in brazil but is not authorized for use in the united states. the reports said the fda had been contacted by an unidentified company that had discovered low levels in its own juice.

"brazil used it last year supposedly, and it wound up in some of the orange juice of at least one (u.s.) company processing the oranges," said james cordier, president of tampa, florida-based liberty trading group.

"we lost oranges on the freeze last week but this certainly trumps that," he said. "if they ban brazilian orange juice oj has...another 20 to 30 cents on the upside at least."

brazil is the world's largest orange juice exporter, accounting for more than half of the sea-borne orange juice trade.

analysts said the freeze that hit florida last week had done only minimal damage to the crop. meteorologists said on tuesday that there was no further sign of harsh weather on the horizon in the no. 1 growing state. prices rose nearly 8 percent last week on the freeze, but appeared to have cooled by week's end.

country hedging inc analyst sterling smith said there was "some nervousness" about the freeze ahead of the u.s. agricultural department's monthly supply/demand report on thursday when the next florida 2011/12 citrus crop estimate update is released. but others saw little cause for alarm.

"we experienced a little bit of damage. it was by no means catastrophic. we had some cold pockets across the state that had some burned leaves, maybe some twig damage, some reports of slush ice," said andrew meadows, a spokesman for florida citrus mutual, the state's largest growers association.

but beyond the fundamentals, some traders attributed the price spike to a possible market "squeeze", with short-sellers scrambling to cover their positions ahead of a possible shortfall in supplies. trade was almost completely concentrated in the march and may contracts.

the orange juice market is particularly susceptible to dramatic volatility due to its tiny size compared with oil and other major commodities. trading volume for march was just 1,270, an average day equivalent to about $19.05 million in nominal value.

"you're seeing the rest being dragged along because of all the buying being done in march and may," a trader said.


  • USDA Weekly Citrus Fruit Report
  • International Cocoa Org. (ICCO) Quarterly Bulletin on Cocoa Statistics
  • ICCO Monthly Review of the Market
  • International Tropical Timber Org. (ITTO) Bi-Monthly Market Report
  • International Sugar Organization (ISO) Quarterly Market Outlook Report
  • ISO Forecast Reports
  • Sucden Financial Sugar Report
  • Russian Sugar Crop News
  • Brazillian Sugar Crops
  • Indian Sugar Crops
  • International Coffee Organization (ICO) Monthly Coffee Market Report
  • Dollar Valuations vs Brazilian Currency
  • Global Crop Progress – Brazil, Argentina and Australia
  • Federal Reserve Interest Rate
  • Cotton and Wool Outlook
  • CFTC Commitment of Traders Report
  • Asian and Middle Eastern Demand
  • Inventories and Supply
  • Unseasonal or Extreme Weather – Rain, Flooding, Drought, Delayed Planting, and Early frosts
  • Rapid Population Growth in India and China
  • Government Subsidies, Programs and Loan Rates
  • Salmonella Outbreaks or other contaminated agricultural products
  • Crop Disease or Infestation
  • Dollar Valuation
  • Deforestation Rates

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