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 a 3.7 percent drop yesterday. Florida is projected to increase its output of oranges by as much as 25 million boxes in the next harvest, which could lead to a glut of supply in the markets.
Demand isn’t doing much better: James Cordier, a portfolio manager in Tampa, Florida, told Bloomberg News that “The dismal figures out of Washington are weighing on the market. The U.S. is not doing well in terms of demand for orange juice.”
Other soft commodities dropped as well – No. 11 sugar futures on the ICE lost 1.4 percent to 18.30 cents per pound, while cocoa futures lost 1.9 percent to $2,874 per metric ton.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
