Investing.com - Orange juice futures came under selling pressure for the sixth consecutive session on Monday, falling to the lowest level since early October on the view that global supplies are more than ample to meet demand.
On the ICE Futures Exchange, orange juice for May delivery traded at USD1.5664 a pound during early U.S. morning trade, slumping 0.2%.
It earlier fell by as much as 0.9% to trade at USD1.5572 a pound, the lowest since October 10.
Trading on the ICE Futures Exchange remained closed on Friday in observance of Good Friday.
Orange Juice prices have lost nearly 18% since March 16, as favorable weather conditions in Florida, the largest citrus-growing state in the U.S., dampened sentiment on the commodity.
The U.S. Department of Agriculture expects the 2011-12 Florida harvest to total 147 million 90-pound boxes of oranges, up 4.6% from the previous season.
The likelihood of a freeze this season has becomes nearly non- existent, while the start of the annual Atlantic hurricane season is still more than six weeks away. The U.S. hurricane season begins on June 1 and ends on November 30.
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.
According to Florida Citrus Mutual, the state’s leading industry group, the industry generates nearly USD9 billion a year in economic activity and employs almost 76,000 people across the state.
Meanwhile, weakening domestic retail demand for the breakfast beverage also weighed. U.S. retail sales of orange juice from October through mid-March was nearly 11% lower compared with a similar period a year ago, according to the Florida Department of Citrus.
Market participants continued to monitor crop conditions in California amid concerns over the spread of a plant disease known as “citrus greening,” which is fatal to citrus trees.
The disease, also known as Huanglongbing or Yellow Dragon Disease, turns fruit into small, bitter lumps and slowly kills every tree it infects.
California is the second-biggest citrus producer in the country, after Florida. However, traders noted that market reaction to the news has been lackluster so far.
Continued market talk of hedge funds and large institutional investors liquidating long positions amid bearish chart signals further added to the selling pressure.
Trading volumes on the orange juice futures market are thin compared to other commodities. It is the smallest agricultural market on the ICE Futures exchange and a large sell or buy order from funds can result in exaggerated price action.
Back in January, prices rallied sharply to a record high USD2.27 a pound after the U.S. said it found a prohibited fungicide in imports of Brazilian juice, which accounts for half of all imports and around 10% of U.S. juice supplies.
The FDA conducted tests and excluded some shipments, but fears over a disruption to supplies receded amid optimism over the Florida crop.
Elsewhere, on the ICE Futures Exchange, cotton futures for March delivery eased up 0.03% to trade at USD 0.9647 a pound, while sugar futures for March delivery rose 0.88% to trade at USD0.2339 a pound.
On the ICE Futures Exchange, orange juice for May delivery traded at USD1.5664 a pound during early U.S. morning trade, slumping 0.2%.
It earlier fell by as much as 0.9% to trade at USD1.5572 a pound, the lowest since October 10.
Trading on the ICE Futures Exchange remained closed on Friday in observance of Good Friday.
Orange Juice prices have lost nearly 18% since March 16, as favorable weather conditions in Florida, the largest citrus-growing state in the U.S., dampened sentiment on the commodity.
The U.S. Department of Agriculture expects the 2011-12 Florida harvest to total 147 million 90-pound boxes of oranges, up 4.6% from the previous season.
The likelihood of a freeze this season has becomes nearly non- existent, while the start of the annual Atlantic hurricane season is still more than six weeks away. The U.S. hurricane season begins on June 1 and ends on November 30.
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.
According to Florida Citrus Mutual, the state’s leading industry group, the industry generates nearly USD9 billion a year in economic activity and employs almost 76,000 people across the state.
Meanwhile, weakening domestic retail demand for the breakfast beverage also weighed. U.S. retail sales of orange juice from October through mid-March was nearly 11% lower compared with a similar period a year ago, according to the Florida Department of Citrus.
Market participants continued to monitor crop conditions in California amid concerns over the spread of a plant disease known as “citrus greening,” which is fatal to citrus trees.
The disease, also known as Huanglongbing or Yellow Dragon Disease, turns fruit into small, bitter lumps and slowly kills every tree it infects.
California is the second-biggest citrus producer in the country, after Florida. However, traders noted that market reaction to the news has been lackluster so far.
Continued market talk of hedge funds and large institutional investors liquidating long positions amid bearish chart signals further added to the selling pressure.
Trading volumes on the orange juice futures market are thin compared to other commodities. It is the smallest agricultural market on the ICE Futures exchange and a large sell or buy order from funds can result in exaggerated price action.
Back in January, prices rallied sharply to a record high USD2.27 a pound after the U.S. said it found a prohibited fungicide in imports of Brazilian juice, which accounts for half of all imports and around 10% of U.S. juice supplies.
The FDA conducted tests and excluded some shipments, but fears over a disruption to supplies receded amid optimism over the Florida crop.
Elsewhere, on the ICE Futures Exchange, cotton futures for March delivery eased up 0.03% to trade at USD 0.9647 a pound, while sugar futures for March delivery rose 0.88% to trade at USD0.2339 a pound.