After a very slow start to 2021, orange juice has made a great recovery, as the approach of summer and the Atlantic Hurricane season are bringing a new boon to those long on the citrus fruit.
As June’s trading began, futures of frozen concentrated orange juice, or FCOJ, vaulted above the key $1.20 per lb level on Tuesday, reaching their greatest heights in almost five months on concerns over how Atlantic territory storms in the coming weeks would impact Florida.
Being one of the few commodities that prospered in 2020 as a result of the pandemic, orange juice is having mixed fortunes this year as economic reopenings are reducing the consumption of nutritional foods.
According to the recommendation, July FCOJ has another upside of $1.2111 after Tuesday’s peak of $1.2040. But, if the contract reaches below the pivot point of $1.1863, then a succession of downside targets from $1.1781 to $1.1698 and $1.1616 could open up.
After $1.20 High, FCOJ’s Dynamic Range Could Stretch To $1.40
Jack Scoville, who heads all crop research at Chicago brokerage Price Futures Group, has a more dynamic range for the July contract. In.investing.com quoted him as saying: “Trends in FCOJ are mixed … with objectives of $1.21, $1.26, and $1.40 July. Support is at $1.17, $1.15, and $1.13, with resistance at $1.20, $1.22, and $1.26 July.”
Scoville said chart trends in FCOJ started to turn up just as the US orange harvest was ending ahead of the official June 20 kick-off of summer. “The weather in Florida is good with mostly dry weather. The hurricane season is coming and a big storm could threaten trees and fruit. An active season is anticipated.”