Investing.com - Orange juice futures advanced on Thursday, extending the previous day’s strong rally as colder-than-normal temperatures in Florida, the largest citrus-growing state in the U.S., triggered concerns over a disruption to supplies.
On the ICE Futures Exchange, orange juice for March delivery traded at USD1.7795 a pound during European afternoon trade, gaining 0.44%.
It earlier rose by as much as 0.5% to trade at a session high USD1.7807 a pound.
Prices rallied nearly 4% to 1.8080 a pound on Wednesday, the highest since November 22.
Agricultural meteorologists said earlier that temperatures in some areas of central-west Florida dropped to 22 degrees Fahrenheit (minus 5 Celsius) on Wednesday, enough to freeze fruit.
Meanwhile, industry weather group MDA Federal said that temperatures in almost 75% of Florida’s citrus-growing region were cold enough for frost, with a hard freeze in about 25% of the area.
The frigid weather conditions could potentially threaten yields and reduce the quality of the harvest.
Agricultural traders pay close attention to the weather because farmers need favorable conditions to grow large crops to replenish low inventories.
Florida is the largest citrus-growing state in the U.S., accounting for nearly three-quarters of U.S. concentrate supplies
According to Florida Citrus Mutual, the state’s leading industry group, the industry generates nearly USD9 billion a year in economic activity and employs almost 76,000 people across the state.
The adverse weather conditions underlined concerns over dwindling U.S. supplies. According to last month’s U.S. Department of Agriculture Supply and Demand report, frozen orange juice concentrate in U.S. warehouses totaled less than 500 million pounds, compared with about 800 million pounds in the same period a year earlier.
Elsewhere, on the ICE Futures Exchange, cotton futures for March delivery shed 0.3% to trade at USD 0.9564 a pound, while sugar futures for March delivery added 0.45% to trade at USD0.2443 a pound.
On the ICE Futures Exchange, orange juice for March delivery traded at USD1.7795 a pound during European afternoon trade, gaining 0.44%.
It earlier rose by as much as 0.5% to trade at a session high USD1.7807 a pound.
Prices rallied nearly 4% to 1.8080 a pound on Wednesday, the highest since November 22.
Agricultural meteorologists said earlier that temperatures in some areas of central-west Florida dropped to 22 degrees Fahrenheit (minus 5 Celsius) on Wednesday, enough to freeze fruit.
Meanwhile, industry weather group MDA Federal said that temperatures in almost 75% of Florida’s citrus-growing region were cold enough for frost, with a hard freeze in about 25% of the area.
The frigid weather conditions could potentially threaten yields and reduce the quality of the harvest.
Agricultural traders pay close attention to the weather because farmers need favorable conditions to grow large crops to replenish low inventories.
Florida is the largest citrus-growing state in the U.S., accounting for nearly three-quarters of U.S. concentrate supplies
According to Florida Citrus Mutual, the state’s leading industry group, the industry generates nearly USD9 billion a year in economic activity and employs almost 76,000 people across the state.
The adverse weather conditions underlined concerns over dwindling U.S. supplies. According to last month’s U.S. Department of Agriculture Supply and Demand report, frozen orange juice concentrate in U.S. warehouses totaled less than 500 million pounds, compared with about 800 million pounds in the same period a year earlier.
Elsewhere, on the ICE Futures Exchange, cotton futures for March delivery shed 0.3% to trade at USD 0.9564 a pound, while sugar futures for March delivery added 0.45% to trade at USD0.2443 a pound.