Friday, May 27, 2011

Today's M^3 - FC-OJ Futures up 11% for the month

Today's Major Market Move: The best performing commodity over the past 30 days has been frozen concentrate orange juice - up 11.8% over the last 30 days.

(Click on the image for a larger view. Click here for a current listing of commodity futures gains/losses.)

However since the end of January it's only up 6% so it's a little early to be talking about an orange juice bubble. The main driver for the price move is the expectation of more "apocalyptic" weather patterns, specifically hurricanes.

From the AP:
Orange juice futures rose 3.3 percent Friday as investors weighed the possibility that hurricanes could disrupt the supply of oranges.

The price of frozen orange juice futures typically begins to increase as the hurricane season gets under way. Orange juice futures rose 5.8 cents to settle at $1.8285 a pound, the highest since late February.

No comments:

Post a Comment