Orange juice (or FCOJ-A) futures for the week ended June 30 reversed their trend in the last week to move higher on average for the whole week. These are the prices for A-grade frozen concentrated orange juice.
Last week, on June 30, the near-term orange juice contracts expiring on July 11, 2017, fell 6% to $1.3 per pound from $1.38 per pound a week ago on June 23. However, the average prices of orange juice near-term future contracts closed 1.1% higher from $1.35 per pound to $1.37 per pound.
While the frozen concentrated orange juice contracts rose last week, they were about 27% lower compared to levels in the corresponding week in 2016.
The forward curve for future maturities for FCOJ-A contracts in the above chart gives a mixed signal for the prices in the future. The near-term contracts expiring on July 11 are significantly higher than levels compared to a week ago. However, as we move toward April 2018 maturities, we see that the futures last week shifted lower than levels observed a week ago on July 23.
In the next part, we’ll discuss the prices and forward curve of cotton commodities.