Orange Juice Futures and Options Market Trading

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T & K Futures and Options, Inc. is a federally licensed U.S. corporation specializing in helping investors implement futures and options investment strategies. We are happy to answer all of your questions about Orange Juice Futures and Options. Click here for answers to your questions.

Orange Juice Futures Trading Facts

The orange tree is a semi-tropical tree consisting of three major varieties including the sweet orange, the sour orange and the mandarin orange. Only the sweet orange is grown in the United States commercially. The Frozen Concentrated Orange Juice (FCOJ) futures contract began in 1945 and was the catalyst for oranges becoming the main fruit crop in the United States. The frozen concentrate orange juice futures contracts at the ICE have the second lowest volumes of the softs. The 15,000 pounds of orange solids specified by the orange juice future contracts can come in drums or tanks, at the seller’s option. Approximately 50% of the orange weight comes from its juice and the remainder is the peel, pulp and seeds which are dried and then fed to cattle.

The United States and Brazil outpace all others in orange juice production and are therefore very influential on the price of orange juice futures.

Orange Juice Futures and Options Quick Facts

• 15,000 pound contract size

• one cent equals $150

• trades Jan., Mar., May, July, Sep., Nov.

Fundamental analysis of the orange juice market

Top Producers 2010-2011

• Brazil (approx. 33% of world production)

• United States (approx. 15% of world production)

• Mexico (approx. 8% of world production)

Other fundamental factors affecting orange juice prices

• weather (especially hurricanes in Florida and freezes in Brazil)

• disease

The orange crop is another commodity more susceptible to weather than most. Systems such as hurricanes, freezes and tropical storms can cause the orange juice futures market to rally dramatically if they hit at the right time. More than 98% of the U.S. crop comes from Florida, which recently was hit by 5 hurricanes in the space of two years. This geographic concentration can lead to extremely volatile trading in the orange juice futures and orange juice options markets during the June-December hurricane season.

Contact us at contact@tkfutures.com for specific orange juice futures and orange juice options data.

A tree can take as long as 15 years to reach maturity. This means that any damage to mature trees can affect the orange supply and therefore the orange juice futures prices for years. In recent years, citrus canker and citrus greening have been cutting into the yields of orange juice producing regions. Orange juice futures and options are used by end users, producers and speculators to offset or benefit from large orange juice futures price moves.

Frozen Concentrate Orange Juice Contract Specifications
Orange Juice Futures and Orange Juice Options

Trading Unit - 15,000 lbs. of orange solids (3% more or less).

Trading Hours - 8:00 a.m. - 2:00 p.m. (NY time).

Price Quotation - Prices quoted in cents and hundredths of a cent.

Trading Months - January, March, May, July, September, November with at least two January months listed at all times.

Ticker Symbol - OJ

Minimum Fluctuation - 5/100 of a cent per pound ($7.50 per contract).

Last Trading Day - 14th business day prior to the last business day of the month.

First Notice Day - First business day of contract month.

Daily Price Limit - Daily limit: 5 cents ($7.50 per contract) above or below the previous day's orange juice futures settlement price.
Spot Month Limit: A moveable 10 cents ($1500 per contract) above or below the previous day's orange juice futures settlement price.

Point Value - $1.50

Orange juice futures and options have a combined limit in futures equivalents.

Orange Juice Options

Trading Unit - One Orange Juice Futures Contract

Price Quotation - Prices quoted in cents and hundredths of a cent

Trading Months - In addition to a February options contract, each listed futures month will have its option month listed for trading (two Januaries, March, May, July, September, November). In addition, the newest calendar month which is not a futures month will be listed (April, June, August, October, and December).

Ticker Symbol - OJ

Minimum Fluctuation - 5/100 of a cent per pound ($7.50 per contract)

Last Trading Day - The third Friday of the month preceding named option month

Expiration Date/Time - Until 5:00 p.m (New York time) on any trading day including last trading day.

Daily Price Limits - None

Strike Price Increments - 5 cent increments for all contract months

Minimum Price Fluctuation - 1/100 of a cent

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To visit other soft commodities go to cocoa futures, coffee futures, sugar futures and cotton futures.

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