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
Recent Posts on Orange Juice
- Trade Spotlight: Options – Orange Juice (June 12, 2018) (6/12/2018) - This is a sample entry from Don DeBartolo’s email newsletter, Trade Spotlight: Options, published on Tuesday, June 12, 2018. Orange Juice Put Option The Orange Juice market rallied over .300 points in April through mid-May (this advisory profited on a 150.00 call option). The market now technically looks primed to reverse its trend and sell-off.… Read more.
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