NEW YORK: Orange juice futures settled higher Monday on follow-through investor buying as players engaged eyed weather conditions and development of the citrus crop in the main growing area of Florida, brokers said.
The juice market was shut Thursday for Thanksgiving and Friday's session shut earlier than normal.
The key January FCOJ contract rose 1.45 cents to finish at $1.7905 per lb, ranging from $1.76 to $1.803.
Total volume traded Monday reached near 1,500 lots, almost 15 percent under the 30-day average, preliminary Thomson Reuters data showed.
"We're seeing frost premium buying in the market. That's what is keeping the sellers out," said Country Hedging Inc analyst Sterling Smith.
Winter premium buying has pushed juice contracts up ahead of the time when possible freezing weather could damage output in Florida's $9.1 billion citrus industry.
A freeze struck Florida in 2010 and in 2011, causing frozen fruit and stressing citrus trees in the Sunshine State.
Forecaster Telvent DTN said Florida will see showers on Monday before clearing Tuesday and turning drier Wednesday to Friday.
Analysts said the prospect of further gains could be capped as the citrus harvest picks up in Florida, the biggest growing citrus state in the country.
Open interest came to 28,120 lots as of Nov 25, from the previous tally of 27,968 lots, ICE Futures US data said.
Volume traded Friday was at 388 lots, the lowest level traded since Nov 13, 2008 when only 373 lots were traded, exchange figures showed.
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