What Moves the Frozen Concentrated Orange Juice Futures and Options Market?
Basic Fundamentals When you are considering a trade in the frozen concentrated orange juice (FCOJ) market you need to look at Florida. The bulk of Florida’s oranges are squeezed into frozen concentrated orange juice. Florida accounts for almost 98% of U.S. supply, and almost 40% of global supply. When looking at the Florida crop some of the basic fundamentals that you should consider are: 1. Hurricanes The 2004 and 2005 hurricanes that hit Florida did tremendous damage to the Florida citrus groves. Much of this damage is still being felt today. Not only did the storms: knock down fruit, break limbs, and uproot trees, they spread disease. Citrus diseases are the most serious threat facing the industry today. Some analyst fear that the end of the Florida citrus industry may be right around the corner. 2. Citrus Canker In 1995, citrus canker reappeared in Florida after being wiped out in the early 1900s with an aggressive eradication campaign. The eradication campaign of the 1990’s was re