First produced in the early 1900s, frozen concentrated orange juice (FCOJ) is a relatively new product, and therefore, an even newer available futures contract. FCOJ futures have been known for their versatility and volatility, and it has gradually gained popularity among traders. It has become a vital market for hedgers and speculators and is used as a price discovery mechanism for the futures industry.
|Orange Juice Contract Specifications|
|Contract Size||15,000 pounds of orange juice solids (3% or less)|
|Price Quotation||Cents and hundredths of a cent to two decimal places|
|Contract Months||January, March, May, July, September, November.|
|Minimum Price Movement||5/100 of a cent per pound ( $7.50/contract / )|
|Settlement Procedure||Physical Delivery|
|Grade/Standards/Quality||US Grade A with a Brix value of not less than 62.5 degrees|
|Daily Price Limit||Ten cents per pound above/below the prior day settlement price. NOTE: this limit is subject to expansion under certain conditions, please see FCOJ Rule 13.08.|
|Delivery Points||Exchange licensed warehouses in Florida, New Jersey, and Delaware|
|Delivery Origins||U.S., Brazil, Costa Rica and Mexico.|
|First Day Notice||First business day of contract month.|
|Last Trading Day||14th business day prior to the last business day of the month.|
|Last Notice Day||Fifth business day prior to the last business day of the contract month.|
Brazil is the top global supplier of orange juice, but Florida is the leader in U.S. production. Citrus farmers in Florida rely heavily on the juice industry as approximately 90% of their crop is produced for all forms of juice. As global demand for orange juice increases, so has the strong supply growth from the EU, China and Mexico.
There are three forms of juice not squeezed directly at the point of consumption that is commonly marketed:
- Frozen Concentrate – diluted with water after purchase
- Reconstituted Liquid – concentrated and then diluted with water before purchase
- Not From Concentrate (NFC) – single strength and unconcentrated
Last updated May 2013
Orange Juice News Articles
- Orange juice futures slip as demand falls (4/10/2012) - Reduced demand pulled down the price of orange juice futures on Tuesday as the commodity dropped to its lowest price in 17 months, according to Bloomberg. The U.S. Agriculture Department's chief economist told the news service that consumption of orange juice has dropped because of competition from other drinks and juices. The commodity has seen... Read More.
- Orange juice futures set record for second-straight session (1/23/2012) - Government probes for a prohibited fungicide and the outbreak of a disease in Texas drove orange-juice futures to record prices for the second consecutive session on Monday, according to Bloomberg. The soft commodity set all-time high prices of $2.2695 per pound on Monday amid the fallout of the U.S. Food and Drug Administration looking into... Read More.
- Orange juice futures drive to record high (1/20/2012) - The price of orange juice futures was propelled to record highs on Friday amid preoccupations about reduced inventories in the U.S., according to Bloomberg. Impacting the amount of supplies is the U.S. government's probe of imports of the soft commodity for the presence of a fungicide that is legal in Brazil but prohibited in the... Read More.
- Orange juice futures drive toward best monthly gains since October 2009 (1/19/2012) - Thursday saw the price of orange juice futures advance the most in one week of trading as the soft commodity hurtled toward its largest monthly gain in at least 24 months, Bloomberg reports. The upward tack of the commodity's price is attributable to concerns about supplies of oranges being minimized by the U.S. Food and... Read More.
- Orange juice futures driving high from frozen crops, fungicide (1/10/2012) - Inclement weather and the presence of a fungicide pushed orange-juice futures to their sharpest climb since 2007, according to published reports. Citrus groves in Florida endured large amounts of damage from sub-zero temperatures, Bloomberg reports. Roughly 5 percent of the groves in the Sunshine State's central groves, considered the main growing region for oranges, endured... Read More.
- Freezing temperatures in Florida benefit orange-juice futures (1/4/2012) - Inclement weather in Florida helped push orange juice futures to their highest value in five months, Bloomberg reports. Cold weather proved to be harmful to citrus crops in the Sunshine State, recognized as the globe's second-largest grower. Roughly three-quarters of the citrus-growing region endured weather cold enough for a frost, one-quarter of which endured a... Read More.
- Orange groves in Florida not as damaged by colder temperatures, meteorologist reports (12/28/2010) - Florida's citrus groves did not suffer as much damage as some had expected as a result of freezing temperatures from Monday to Tuesday, which pushed down the price of orange juice to its lowest levels since mid December, Bloomberg reports. Though the October 2010 to July 2011 harvest will produce 143 million boxes of Florida... Read More.
- Orange juice futures fall on weak demand and strong supply (8/10/2010) - Wednesday’s trading didn’t just start badly for equities traders – orange juice futures also suffered a drop, as a bumper crop from Florida may arrive just as demand for juice falls. Futures on the IntercontinentalExchange in New York fell 1.4 percent to $1.3705 per pound at 10:15 a.m. EST, reported Bloomberg News. Today’s fall follows... Read More.
Orange Juice Blog Posts
- Market Spotlight: Orange Juice (6/12/2012) - Oranges, grown on trees, are widely cultivated in tropical and subtropical climates for the sweet fruit. Oranges are peeled or cut (to avoid the bitter rind) and eaten whole, or processed to extract orange juice, and also for the fragrant peel.