WXOW News 19 La Crosse, WI – News, Weather and Sports |Orange juice prices fall as dollar strengthens
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DENVER (AP) - Orange juice futures contracts fell to the lowest point in nearly three weeks Thursday as a stronger dollar made them less attractive for traders.
The dollar's rise also diminished demand for many other commodities. Silver, copper and energy prices settled lower while grains were mixed.
Orange juice prices for May delivery fell 4.4 cents to settle at $1.441 a pound, the lowest level since Feb. 26 when the contract closed at $1.436 a pound.
Small markets like orange juice have light trading volume, which can exaggerate price movements.
"Orange juice, by nature, is a pretty thinly traded market. What we're seeing is some pressure as the dollar really strengthens," Telvent DTN analyst John Sanow said. "We did push this market quite a bit higher since January because of the freeze scare."
Orange juice futures hit a two-year high of $1.5115 a pound in January because of concerns a cold snap would damage the citrus crop in Florida. Prices retreated after those fears abated.
Since Friday, the price has fallen about 5 percent after the Agriculture Department forecast a 2 percent increase in Florida orange production.
The agency said growers began harvesting oranges at a quicker pace after January's scare, which moved more fruit to processing plants in January and February.
Commodities and the dollar typically move in opposite directions. A stronger dollar can make commodities, which are priced in dollars, less attractive for overseas buyers.
The dollar gained after Greece said Thursday it may have to turn to the International Monetary Fund if the European Union cannot agree to a bailout plan for the debt-ridden country.
The ICE Futures US dollar index, which measures the dollar against six other currencies, rose 0.5 percent.
Gold for April delivery rose $3.30 to settle at $1,127.25 an ounce as it retained value despite the stronger dollar. May silver fell 10.1 cents to $17.422 an ounce and May copper fell 2.25 cents to $3.3955 a pound.
Grains were mixed. In contracts for May delivery, wheat fell 6.75 cents to close at $4.8925 a bushel while corn rose 2 cents to $3.76 a bushel.
Soybeans rose 0.25 cents to close at $9.5925 a bushel, benefiting in part from a delayed harvest in Brazil and more demand from China, Sanow said.
Benchmark crude for April delivery fell 73 cents to $82.20 a barrel on the New York Mercantile Exchange.
In other Nymex trading, natural gas for April delivery settled down 21.8 cents to $4.085 per 1,000 cubic feet after the Energy Information Administration said natural gas stockpiles diminished less than expected last week. Heating oil fell 2.04 cents to $2.1191 a gallon.
Gasoline fell 0.88 cent to $2.3009 per gallon.
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