Orange juice futures up on hurricane forecasts

November contracts for orange juice were 2.2 cents higher to $1.3225 per pound on the New York Board of Trade on Thursday for a gain of 1.7 percent, the biggest rise in a most-active contract since July 25.

In contrast, November contracts were 6.8 percent lower on Wednesday, the biggest decline since September 2004.

The difference came when the National Hurricane Center, part of the National Oceanic and Atmospheric Administration, forecast an 85 percent chance that this year will see an above-normal hurricane season, with a prediction of 13 to 16 named storms and as many as 9 hurricanes developing in the Atlantic.

This affects the price of orange juice since Florida is one of the world’s biggest suppliers of oranges for juice.

September coffee futures were also higher in New York, rising 1 cent to $1.195 per pound after going as high as $1.199 per pound earlier in the session.

The gains came on a predicted decline in output in the year beginning in October, especially in Brazil where the harvest is expected to be 24 percent lower, at the same time as consumption is expected to rise.

December wheat was down 10 cents on the Chicago Board of Trade to $6.91 per bushel, while September wheat on the Kansas Board of Trade dropped 1.75 cents to $6.6025 per bushel.

The declines came on the possibility that recent high prices will slow demand for US supplies, as well as on speculation that farmers will plant more wheat to take advantage of prices which have gone up 40 percent in the past three months.

The price of West Texas Intermediate crude oil for September delivery was 52 cents lower to $71.63 per barrel at the close of floor trade on the New York Mercantile Exchange on Thursday, down more than $7 from it record high reached just nine days ago.

Brent crude September contracts, meanwhile, dropped 67 cents to $70.32 on the Intercontinental Exchange in London.

Analysts are worried that demand will slow on economic worries and as the summer driving season ends in the US with some schools returning to classes as early as next week, at the same time as inventories are 11 percent higher than the five-year average.

Metals prices were lower in New York.

December gold dropped $13.50, or 2 percent, to $672.80 per troy ounce, its biggest percent decline in two months as some sell their gold to cover losses from the subprime mess.

September silver fell 46.5 cents, a decline of 3.5 percent, to $12.71 per troy ounce, while October platinum was $15.80 lower to trade at $1,275.30 per troy ounce.

Among base metals, copper dropped 8 cents to $3.36 per pound in New York, falling 2.3 percent to its lowest close since June 27th, while London Metal Exchange inventory increases sent the price of three-month copper in London $110 lower to $7,470 per tonne.

Story link: Orange juice futures up on hurricane forecasts