The Orange Juice Options Trading Market Futures trading in frozen concentrated orange juice started in 1945 and is claimed to be one of the reasons for oranges taking one of the top spots in U.S. crops. 2 Currently, frozen concentrated orange juice futures contracts trade on the ICE exchange.
Where is orange juice traded?
Orange Juice Futures Trading
FCOJ futures are traded at the InterContinental Exchange (ICE), formerly the NYBOT, formerly the Coffee, Sugar and Cocoa Exchange (CSCE). At ICE, FCOJ futures produce the second-lowest volume of all soft commodities futures products traded on the exchange.
Do they really trade frozen concentrated orange juice?
The short answer: yes. Frozen concentrated orange juice trading is actually a thing. Traders don’t pull up with carts full of little metal cans. Instead, they trade contracts that state they’ll deliver a certain amount of orange juice (15,000 pounds at a time, not in little cans) at the agreed-upon price.
Why is orange juice out of stock?
Citrus disease and bad weather are constraining supply of oranges in the United States and internationally. Meanwhile, demand for orange juice — which has been sliding for years — got a bump during the pandemic.
How can I invest in OJ?
A popular way to invest in orange juice is through the use of a contract for difference (CFD) derivative instrument. CFDs allow investors to speculate on the price of FCOJ. The value of a CFD is the difference between the price of FCOJ at the time of purchase and its current price.
How is orange juice sold?
Orange juice is commonly marketed in three forms: as a frozen concentrate, which is diluted with water after purchase; as a reconstituted liquid, which has been concentrated and then diluted prior to sale; or as a single strength, unconcentrated beverage called NFC or Not From Concentrate.
How much does a orange juice cost?
At the start of 2016, 16 ounces of orange juice costed the U.S. consumer about 2.73 U.S. dollars. By the end of 2020, this figure decreased by 40 cents.
How much money did the Dukes lose in trading places?
So half the Duke’s margin call is $197,000,000, that means they had a long position of 101,025 OJ Contracts ($394m/2/$1,950). Each OJ contract amount to 15,000 pounds of OJ, so that’s 1.5 million pounds of orange juice solids to be delivered to warehouses in Florida, New Jersey, or Delaware.
How did the Dukes go broke in trading places?
In other words, Winthorpe and Valentine have contracts allowing them to buy millions of pounds of orange juice in April for 29 cents a pound, and to sell it for $1.42 a pound. They sold high and bought low. They’re rich. The Dukes made the opposite bet and went broke.
How do orange juice futures work?
If the price of orange juice increases to, say, 150 cents/pound, the long orange juice call option will come in the money and will be exercised. The buyer will get the long futures position at 135 cents.
Is there an OJ shortage?
By the middle of the 2021–22 Florida citrus season, it was apparent that demand for OJ at retail would settle near 2019 pre-pandemic levels. In addition to supply chain/logistical issues and high inflation, the shortage in OJ production and supply was yet another factor contributing to higher prices of OJ at retail.
Why is orange juice so expensive now?
A revolving market. A revolving market isn’t unusual in the produce industry. Demand for orange juice waned ahead of the pandemic as consumers began to worry over the amount of sugar in fruit juices, but it quickly returned with the spread of COVID-19, Anciso said.
Why is there a juice shortage?
Fruit juice shortages – US
From October 2021 until the end of the year, US supermarkets began running low on boxed and bottled juices – a staple of school lunchboxes. This was due to a smaller-than-expected apple crop but also a shortage of cartons, due to pandemic supply disruptions.
What is the stock symbol for orange juice?
OJ
Orange Juice Sep ’22 (OJU22)
| Barchart Symbol | OJ |
|---|---|
| Exchange Symbol | OJ |
| Contract | Orange Juice [FCOJ-A] |
| Exchange | ICE/US |
| Tick Size | 0.05 cents per pound ($7.50 per contract) |
Is there an orange juice ETF?
The breakfast ETF, if approved, may be the the only fund to track orange-juice futures, Balchunas added. Futures for one of the most popular breakfast beverages have rallied to the highest level since 2018 amid a plunge in Florida orange output.
How much is a orange juice futures contract?
Orange Juice Futures
| Orange Juice Contract Specifications | |
|---|---|
| Contract Size | 15,000 pounds of orange juice solids (3% or less) |
| Price Quotation | Cents and hundredths of a cent to two decimal places |
| Contract Months | January, March, May, July, September, November. |
| Minimum Price Movement | 5/100 of a cent per pound ( $7.50/contract / ) |
Can you buy real orange juice?
so you’re always getting juice made from the freshest oranges. It’s the real orange juice — never frozen, never concentrated. Bursting with mouth-watering citrus flavor, it’s great with breakfast or lunch for a boost of vitamin C.
Why is orange juice so popular?
This is why many ads use oranges as the main color. It is said that the orange color in restaurant can stimulate people’s appetite. Citrus fruits usually contains unique volatile essential oils. Their flavor are refreshing and pleasant, which can help relive stress and nervousness, especially for women.
Is orange juice healthy?
Orange juice is a favorite beverage high in antioxidants and micronutrients like vitamin C, folate, and potassium. Regular consumption has been associated with several health benefits, including improved heart health, decreased inflammation, and a reduced risk of kidney stones.
Why is orange juice so expensive 2021?
While demand has risen, supply has been hit as producers struggle to export goods due to transport restrictions. This has caused a rise in the so-called “futures” price of orange juice, which indicate its cost for delivery in the coming months.
Why is orange juice yellow?
Orange juice gets its yellow color from chemicals called carotenoids. There are about 600 different carotenoid chemicals, most of them are yellow, orange, or red. They are responsible for the colors of carrots, canteloupes, some orange or gold autumn leaves, and oranges.