Price of orange juice tumbles on weak demand

Orange juice futures closed well down in New York today, with the price being pressured by news of dropping sales.

July futures of orange juice closed down $6.15 or 4.4% to $133.85 per pound in New York today, pushed lower by concerns that demand is in decline. This is the seventh trading day in a row that orange juice prices have fallen, and the commodity has shed well over 10% of value this month.

A report released yesterday by the Florida Department of Citrus showed that retails sales of OJ fell to 151 million litres in the four weeks up to 8 June, representing a decline of 1.3%. The National Agriculture Statistics Service, an arm of the US Department of Agriculture (USDA), revealed in its 21 June cold storage report that stocks of frozen orange juice concentrate rose to 1.042 billion pounds in May from April, an increase of 2%.

Prices had climbed in late May as high as $155 per pound, hitting a 13-month high, after crops in Florida were threatened by drought and disease, with the USDA indicating earlier this month that Florida may produce some 8.6% less than last year, but the softness in demand has sparked profit taking.

We are yet to enter the hurricane season, which has the potential to seriously impact the orange juice crop.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.