Futures traders have benefited from further rising prices in the orange juice futures market, which some analysts have forecast will lead to higher prices for consumers´, amidst concerns over the integrity of several key orange crops globally which it is feared could lead to a supply shortage.
Concern over the impact of persistent drought on Mexico’s pending orange crop has sent the orange juice futures market rallying up over 3.6% last week, providing an opportunity for commodities traders to capitalize on forecast supply-side issues.
Orange juice futures for March closed up to $1.846 per pound, following a turbulent week for orange juice traders. Fears over crop issues in Florida and suggestions of a US restriction on Brazilian oranges sent the markets into a tailspin, with volatile price swings seeing the market rise to an all time high of $2.12 per pound during last week before falling away and losing over 10% of its value.
Futures trading provides highly leveraged access to commodities markets, accessible for individual traders without massive barriers to entry. The orange juice futures market has benefited from heightened volatility over the past few days, and remains one to watch for futures traders running in to the new week.
The orange juice market is one of a few commodities markets riding high over the last week, with the unfolding Eurozone crisis suppressing markets for futures in other commodities virtually across the board.
As France and other Eurozone economies saw their credit ratings downgraded, with implications on the costs of servicing already burgeoning sovereign debt burden, markets have been negative, except for those commodities where geographic or weather concerns have led to future supply fears.
Prices in wheat and other crops fell, as did trading in metals and some utilities markets.