The Orange Juice futures has unfortunately continued to decline in its recent trades as hurricane threats in the Atlantic caused worries about the development of oranges in which can influence a boost in orange supplies.
For the September delivery, the Frozen Concentrated Orange Juice declined to at least 1.1% to $1.2535 for each pound in the ICE Index – one of the lowest marks since the 11th of March, 2916.
"There are some storms starting to form, but so far these are not forecast to hit the state and are still quite some time from hitting any land mass," Vice president of Price Futures Group in Chicago, Jack Scoville told reports..
At the current periods of the year, it is customary that investors carefully watches Orange Juice futures for the fact that possible Hurricanes could influence the total standpoint of the futures, especially in Florida where most of the orange juice futures are harvested in the US.
So far, the market has accepted the fact that Florida may not produce the expected results for the sole reason that right now, Florida farms are facing diseases that has affected the plantations in a bad way. This is the lowest production results since the year of 1863.
Furthermore, the world’s largest harvester: Brazil has reportedly improved its orange juice production for the current year. The Brazilian production of Orange Crops is expected to harvest 471 million boxes for the current period which is an up from 2016-17’s production number of just 352 million. This is the highest since 2012-13.
Out of the 471 expected produce, 340 million of them will be processed in factories to be turned in to juices. Only 222 million was processed in the last season if to compare, according to sources.
As for the other futures, the production for Raw sugar for October inclined upwards by 2.2% to 14.14 cents for each pound. Cocoa futures for the month of September was also seen increasing at about 1.8% to $1,946 for each ton as Arabica coffee for the same month surged 0.2% to $1.352 a pound. Lastly, the cotton futures declined by 0.5% to 67.85 cents for each pound.
In its latest trading session, the orange juice futures have gathered bears instead of bulls in which had halted its potential upsurge in its future trades. Generally, it was down at about -1.75%.
As for its RSI level, it can also be seen that the futures inched down that can support the fact that the recovery is short-lived. The indicator went back to 49.30 in its latest trades.
Lastly, the indicator of Coppock Curve was seen inching a bit to -8.28. It is far down from the negative zone so a position of buy would be much more recommended.
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