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I am confused on the trading of orange juice, or frozen orange juice. I know speculators are there to just trade with no intention with taking delivery. However are large orange juice companies/manufacturers purchasing orange juice? I ask because i may work on a paper that revolves around the the commodity market bringing foods such as oj to areas like where i live (durango,co) year round. Where we have no citrus trees at all, but we constantly have shelves stocked with oj. So is the commodity market responsible for making this juice available year round?

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2 Responses

  1. nolde05 Said,

    If you have some free time, I recommend watching Wall Street Warriors (Its on Hulu.com). There’s one individual in the show that trades on the orange juice floor in NYC.

    To answer your question, yes. Representatives of large companies buy a spot on the floor and look to buy up tranches of orange juice at the lowest price. Let’s say Hurricane Bobby is approaching the coast of Florida – a company will want to lock in orange juice now while prices are lower and before supply is cut.

    I’m not really sure if any of this helps. I’ll see if I can find some other resources for you.

    Posted on March 10th, 2010 at 12:29 pm

  2. Jeff G Said,

    Here are a few helpful resources re OJ futures.
    https://www.theice.com/productguide/ProductDetails.shtml?specId=30

    CFTC Committment of Traders
    http://www.cftc.gov/dea/futures/deanybtlf.htm

    Posted on March 10th, 2010 at 1:28 pm

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