Breakfast Commodities Break Out
Here's what's moving in commodities Thursday morning:
Orange Juice: The juice trade continues to liquidate as fungicide fears fade. As of morning trading, OJ futures were down another 2 percent, washing out all of the gains made earlier in the week on overblown fears of a potential supply disruption.
Government tests of the chemical on oranges coming out of Brazil yielded nearly undetectable levels. The OJ market is also squeezing out some traders as margin requirements have doubled resulting from the price action due to those fungicide fears.
Cocoa: The market is consolidating after this week’s steep rally. Concerns over the slowdown in shipment arrivals due to unfit weather conditions along the Ivory Coast, which accounts for nearly 40 percent of global production, helped take prices to an 8-week high. In morning trading, cocoa futures remained unchanged, but prices are up 16 percent so far this week.
Coffee: Futures are up nearly a percent in morning trade, supported by diminished crops and a spell of dry weather in Brazil. This week, coffee futures are up 7 percent.
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