The January contract of frozen concentrated orange juice (FCOJ) on the Intercontinental Exchange (ICE) hit an all-time high of $4.17 per pound during the session, before falling back to $3.83 per pound.
Did anyone predict $4.00 orange juice?
As a comparison, the most traded contract among the soft commodities, ICE's raw sugar, had over 435,000 lots in open interest.
Ibiapaba Netto, executive director at CitrusBR, the association representing Brazilian juice producers, said that a reversal of the current tight supply situation would take time, and is not certain to happen.
Brazil has a 75% share of the global orange juice trade.
Persons:
Mohamed Abd El Ghany, Dave Reiter, OJ, Darin Fessler, Ibiapaba Netto, Netto, greening, Marcelo Teixeira, Nick Zieminski
Organizations:
REUTERS, Intercontinental Exchange, Reiter Capital Investments, CitrusBR, Thomson
Locations:
El Nobaria, Cairo, Egypt, New York, United States, Brazil, Mexico, U.S