DJ ICE FCOJ Review: Soft In Lackluster Trade; Hit 17-Wk Low

ICE frozen concentrated orange juice futures closed lower Monday as funds continued to liquidate positions on the lack of fresh news for the citrus market. September FCOJ settled down 5 points at 76.35 cents per pound. The contract dropped to its lowest level since March 4 at 75.65 cents and struggled to move into positive territory throughout the session.

« The market continues to drift lower. We saw the funds drive it up to over 100 cents but it was overvalued at that point, » said Sterling Smith, market analyst at Country Hedging in St. Paul, Minn., referring to the contract’s May 29 high of 100.7 cents.

A severe tropical storm, which would represent major damage to citrus crops, would be one of the only ways to get prices moving and lend support to FCOJ futures, Smith said. « We need to see something that will have a direct effect on production. Otherwise, the funds will continue to liquidate positions, » he said.

On the weather front, no tropical storms are imminent. In Florida citrus weather news, favorable conditions remain for trees and fruit growth, with partly cloudy conditions ahead and scattered to widely scattered showers and thundershowers expected Wednesday through Friday. Temperatures are near normal levels, according to DTN Meteorlogix.

Volume was estimated Monday at 1,941 contracts, according to exchange data. In options, approximately 249 were traded.

ICE   Settle     Change     Range (at time of settlement)

Jul   74.35      up 10 pts  73.55-75.10
Sep   76.35      dn 5 pts   75.65-76.55

Source : FutureSource