Long-range weather forecasts pointing to a possible damaging freeze in Florida’s citrus-growing areas triggered a jump in orange juice futures, notes Grumpy Editor.
This, naturally, makes headlines in some publications.
While some folks cope with fuzzy weather forecasts two or three days ahead, speculators are betting that frost damage will affect orange juice output during the winter --- one to three months ahead.
Orange juice futures for January, after surging 8.6 percent last week, yesterday moved up another 4.2 percent.
The National Oceanic and Atmospheric Administration (NOAA) forecasts below normal temperatures for south Florida from next month to February.
A private forecaster also indicates “a higher than average probability of a damaging freeze” in Florida citrus areas this winter.
Predictions of freezing weather in January this year sent orange juice futures higher.
But, in the end, no crop damage was reported.
Oranges usually require temperatures dropping to the mid-20s before incurring major damage to large branches and fruit.
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