Orange Juice Ends Lower for Fifth Straight Session
December 08 2016 - 5:36PM
Dow Jones News
By Julie Wernau
Orange juice futures ended with a fifth straight session of
losses Thursday as traders eyed improved weather in Brazil, the
largest growing region.
Frozen concentrated orange juice for January delivery slipped
0.2% to end at $2.137 a pound on the ICE Futures U.S. exchange.
"In Brazil, Sao Paulo state is getting good weather, and crop
development is called good," said Jack Scoville, vice president of
Price Futures Group in Chicago.
November started out dry in all citrus areas, but it has been
wetter in northeastern areas in recent days, according to
WeatherBELL Analytics LLC in New York.
On Friday, the U.S. Department of Agriculture will update its
estimate of this year's orange crop in Florida. In November, the
department said it expected a crop of 72 million boxes, the lowest
since the 1963-64 season and a 12% drop from last year as citrus
greening disease causes fruit to drop prematurely.
Florida is home to the most oranges used in U.S. juice, but the
vast majority of that crop is used in not-for-concentrate juice.
Changing consumer tastes and greening disease have forced the U.S.
to increase imports of concentrated orange juice from Brazil and
Mexico. Imports have exceeded domestic juice in the concentrated
market since the 2013-14 season, according to data from the Florida
Department of Citrus.
Traders are closely watching developments in Brazil, where a
bumper crop could change the bullish stance of the orange juice
market.
Orange juice futures are up 44% year to date on the back of a
year in which drought in Brazil and greening in Florida hurt crops.
Florida is now partway through its next harvest, and Brazil's crops
are still developing.
Consumer demand for juice has been on the decline. Americans
drank 5.3% less juice year-over-year in 2016, according to Nielsen
data, setting a new low of 464 million gallons in data going back
to 2002.
In other markets, raw sugar for March lost 0.7% to end at 19.49
cents a pound, cocoa for March was down 2.8% to end at $2,259 a
ton, arabica coffee slipped 0.1% to settle at $1.415 a pound, and
cotton for March delivery was up 0.6% to settle at $71.44 cents a
pound.
Write to Julie Wernau at julie.wernau@wsj.com
(END) Dow Jones Newswires
December 08, 2016 17:21 ET (22:21 GMT)
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