Friday, January 8, 2010

Orange Juice spiking on Florida freeze.....Randolph & Mortimer explain...

No, I have no intention, nor the background, to invest in orange juice futures.  But thought I'd share that the Flordida freeze is causing a BIG spike in March contracts for orange juice:

"NEW YORK (AP) -- Orange juice futures contracts surged to a new two-year high on Friday following fresh concerns that cold weather in Florida could wipe out parts of the citrus crop over the weekend.

March contracts for frozen orange juice concentrate rose 10 cents, or 7.1 percent, to settle at $1.5115 a pound, marking the second time in three days the price reached two-year highs. Prices retreated Thursday after a bout of cold weather earlier in the week had minimal effect on the crop.
Orange juice prices have risen 17 percent during the past week.
Temperatures are expected to fall below freezing again in parts of Florida on Saturday and Sunday nights, bringing concerns to farmers and commodities traders. Orange fruit still hanging on trees can be ruined if temperatures fall below 28 degrees for at least four hours."
A tutorial on trading futures, courtesy of Randolph & Mortimer!

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