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5 years ago
NY juice settles firmer on storm premium covering
June 5, 2012 / 5:57 PM / 5 years ago

NY juice settles firmer on storm premium covering

 * Juice moves up on buying by small speculators
 * Premium buying seen early in hurricane season
 NEW YORK, June 5 (Reuters) - Orange juice futures settled higher Tuesday on
speculative buying as some investors were apparently building a premium with the
annual Atlantic hurricane season in its first week, brokers said.	
 Benchmark July frozen concentrated orange juice added 3.30 cents, or
3 percent, to finish at $1.148 per lb after trading from $1.108 to $1.165. 	
 Volume on Tuesday was slightly over 1,900 lots, about a third below the
30-day moving average, Thomson Reuters data showed.	
 "I think we're starting to build a little bit of a premium," said Sterling
Smith, vice president of commodity research for Citibank's Institutional Client
Group in Chicago.	
 He added the ability of juice futures to hold support initially at $1 and
then $1.10 gave the market a base to build on and move higher as a result.	
 The spark for the premium buying was caused in part by the early start to
the storm season, which officially began on June 1 and ends Nov. 30.   	
 Tropical storms Alberto and Beryl formed days before the start of the season
last week. In fact, Alberto was the earliest storm to form in the Atlantic since
2003.	
 Fundamentally, the outlook for the market is bearish. Supplies are plentiful
while retail demand is weak. Supplies from top producer Brazil were also ample.	
 Open interest, an indicator of investor interest, stood at 26,893 lots as of
June 1, the highest such level since Jan. 23, ICE Futures U.S. data showed.	
  Hurricane season Take A Look          	
	
 (Reporting by Rene Pastor; Editing by John Picinich)	
 

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