Orange juice sours, gold gouged

Jan 4, 2013


Here is this week’s edition of Futures File, our weekly commodities wrap-up:

Orange Juice Prices Sour
Orange juice prices fell this week as better weather across Florida increased hopes for a robust orange crop this year.  The Sunshine State produces more than 70% of U.S. oranges, making its weather patterns important to orange juice traders. Much-needed rains fell across the state over the last few weeks, and weather has remained warm, reducing fears of a damaging frost this winter.
As traders brushed weather fears aside, they sold their orange juice holdings, dropping prices. In a little over two weeks, prices for frozen concentrated orange juice (FCOJ) collapsed by more than 34 cents per pound, a decline of nearly 25%.
Despite the recent sell-off, OJ bulls point out that there are still lingering threats to this year’s crop. A citrus disease, known commonly as “greening,” threatens to sap long-term orange production. Furthermore, a surprise cold snap during late January or early February could still hit Florida’s orange groves, potentially sending prices sky-high. As of midday Friday, FCOJ for delivery in January was $1.11 per pound.
Beans Continue Down
Once again, soybean prices are feeling downward pressure from China, as the Chinese canceled another large order of soybeans (315,000 metric tons).  Presumably, the Chinese have been cutting purchases in anticipation of being able to purchase cheaper soybeans from South America.  In addition, better weather conditions in South America may yield more crops for major soybean producers Brazil and Argentina than previously expected.

As of midday Friday, prices for soybeans for January delivery were at $13.80 per bushel, down 44 cents (-3.1%) during the week.
Gold Gouged By Fed Minutes

Gold prices tumbled on Thursday following the release of Federal Reserve meeting minutes that indicated that fiscal stimulus may end sooner than expected. Low interest rates, driven by Federal Reserve policy, have been one of gold bugs’ motivations for buying the precious metal over the past few years, and the potential for higher rates by the end of 2013 caused widespread selling of gold. In just two days, gold fell as much as $60 per ounce (-3.6%).



IMO, buy gold on the dips.

All that those "kiddies" in DC are doin' is "kickin' the can" toward the edge of the "fecal canyon."

From a new IMF study:

"Governments can't run large budget deficits and build up debts indefinitely without disastrous consequences. The question is how -- and how fast -- they can get to fiscal prudence without tanking their economies."


Contango, did you read the story in the Huffington Post today about Obama wanting to have the mint coin a platinum coin and value it at 1 trillion dollars to avoid the debt ceiling debate? I'll get the link and get it to you

Think that will lead to a wee bit of inflation?


@ Fromthe419

Pan down about a third of that website you wanted your buddy Contango to look at.

Look for this heading:

'What The GOP Doesn't Want You To Know About The Deficit'

Thanks for the link.


What does one expect, it's from farther left than AP, Huffpo!!!!!!!


@ 4shizzle:

I read it on another site. Agitprop.

Problem: Borrowing costs will not remain low forever.

The bull market in bonds has been goin' on for three decades - it can't last. Prices goin' down, interest rates goin' up.


@ con

Oh yeah,... agitprop. That's how we got into Iraq.


Regardless of the politics involved, how is creating 1 trillion dollars out of thin air going to solve the problems that face the nation. I am neither a democrat or republican, I am for a sound fiscal and monetary policy. We might as well print our own money in our basement to pay our bills if our government is going to do the same thing




419, Want advice? consult a real expert.


@ Fromthe419:


It's a joke that the business and financial news media have been kickin' around.

"Nothing" serious.