DJ ICE FCOJ Review: Higher On Commodity Spillover, Fund Buying

Frozen concentrated orange juice futures rose on speculative fund buying linked to overall commodity strength and a weak U.S. dollar. Most active January FCOJ rose 125 points to settle at $1.1750 a pound.

Traders cited no new fundamental developments for the higher prices. Instead he market received spillover support from a constructive day in ommodities–mostly on ideas that an improving economy will lead to stronger emand for physical assets.

Third-quarter gross domestic product rose 3.5%, the Commerce Department said hursday, notching the first positive quarter of growth since June 2008. nalysts had expected GDP to grow 3.2%, so the report was met with optimism hat the worst of the recession was in the rear view mirror, a broker said.

« This could eventually increase demand for lots of commodities including range juice, » the broker said. In addition to the positive economic news, the market continues to trade near he recent highs on strong retail demand.

Total orange juice sales were up 5.3% in the four weeks to Oct. 3, and total allon sales have been higher year-over-year for the last six reporting eriods, data from retail tracker A.C. Nielsen show. Recent data from Florida, however, shows that FCOJ movement–a demand ndicator–has fallen slightly.

Florida FCOJ movement declined to 2.305 million gallons in the week through ct. 17, from 2.463 million the previous week, the Florida Department of Citrus aid.

Source : FutureSource