Early fears of hurricanesThis article was originally published in Foodnews
FCOJ futures rose 5.8% on 13 May; slightly surprising given that this year's US orange harvest is forecast to be 7% higher than last year's, and Brazil has just announced a bumper crop. The futures price settled at USD1.8285 per lb, the highest level for about three months. It seems that investors are already weighing the hurricane risk. It is still quite early to be worried about hurricanes, but although demand is down in Europe and the US retail market remains very week, investors and speculators seem to be taking a long-term view and are looking at the supply/demand situation a year or two down the line.