Investing.com – Orange juice futures retreated on Wednesday, as the previous day’s 10% rally that took prices to a record high prompted some investors to sell their position on profit taking and lock in gains.
On the ICE Futures Exchange, orange juice for March delivery traded at USD1.9760 a pound during European afternoon trade, tumbling 4.9%.
It earlier fell by as much as 6.5% to trade at a session low of USD1.9020 a pound.
Prices soared 9.7% on Tuesday, hitting an all-time high of USD2.0772 a pound after the U.S. Food and Drug Administration said "low levels" of the fungicide carbendazim had been found in juice from the 2011 orange crop from Brazil.
The FDA said the fungicide was discovered by a U.S. juice company, which it wouldn't name, saying it was confidential.
Carbendazim is used in countries such as Brazil to control mold in fruit and other crops, but at high levels can cause cancer, researchers said. The U.S. does not allow its use.
The FDA said it is running tests on imported juice and will reject any shipments that test positive for the fungicide. The testing will be complete in mid-January, an FDA spokeswoman said.
The news sparked a sharp rally in prices amid concerns that the appearance of the fungicide would lead to a sharp reduction in Brazilian orange juice imports.
Brazil accounts for about half of all orange juice products imported into the U.S., making it the second largest supplier after Florida.
Prices have rallied nearly 26% since the beginning of 2012 as news of the fungicide coupled with already existing concerns over orange crops in Florida drove prices higher.
Agricultural meteorologists continued to point to below-average temperatures across most parts of Florida’s citrus belt. Temperatures in some areas of central-west Florida dropped to 22 degrees Fahrenheit (minus 5 Celsius) overnight, enough to freeze fruit.
Oranges can sustain long-term damage if the temperature stays below 28 degrees Fahrenheit (minus 2 Celsius) for a period of four hours or more.
Florida is the largest citrus-growing state in the U.S., accounting for nearly three-quarters of U.S. concentrate supplies. The state is also responsible for 15% of global oranges.
Elsewhere, on the ICE Futures Exchange, cotton futures for March delivery eased down 0.12% to trade at USD 0.9684 a pound, while sugar futures for March delivery fell 0.9% to trade at USD0.2312 a pound.
On the ICE Futures Exchange, orange juice for March delivery traded at USD1.9760 a pound during European afternoon trade, tumbling 4.9%.
It earlier fell by as much as 6.5% to trade at a session low of USD1.9020 a pound.
Prices soared 9.7% on Tuesday, hitting an all-time high of USD2.0772 a pound after the U.S. Food and Drug Administration said "low levels" of the fungicide carbendazim had been found in juice from the 2011 orange crop from Brazil.
The FDA said the fungicide was discovered by a U.S. juice company, which it wouldn't name, saying it was confidential.
Carbendazim is used in countries such as Brazil to control mold in fruit and other crops, but at high levels can cause cancer, researchers said. The U.S. does not allow its use.
The FDA said it is running tests on imported juice and will reject any shipments that test positive for the fungicide. The testing will be complete in mid-January, an FDA spokeswoman said.
The news sparked a sharp rally in prices amid concerns that the appearance of the fungicide would lead to a sharp reduction in Brazilian orange juice imports.
Brazil accounts for about half of all orange juice products imported into the U.S., making it the second largest supplier after Florida.
Prices have rallied nearly 26% since the beginning of 2012 as news of the fungicide coupled with already existing concerns over orange crops in Florida drove prices higher.
Agricultural meteorologists continued to point to below-average temperatures across most parts of Florida’s citrus belt. Temperatures in some areas of central-west Florida dropped to 22 degrees Fahrenheit (minus 5 Celsius) overnight, enough to freeze fruit.
Oranges can sustain long-term damage if the temperature stays below 28 degrees Fahrenheit (minus 2 Celsius) for a period of four hours or more.
Florida is the largest citrus-growing state in the U.S., accounting for nearly three-quarters of U.S. concentrate supplies. The state is also responsible for 15% of global oranges.
Elsewhere, on the ICE Futures Exchange, cotton futures for March delivery eased down 0.12% to trade at USD 0.9684 a pound, while sugar futures for March delivery fell 0.9% to trade at USD0.2312 a pound.