NEW YORK: Orange juice futures closed lower Wednesday on investor sales as the market consolidated in a narrow range while keeping an eye on the weather in the main citrus growing area of Florida, brokers said.
The key January FCOJ contract fell 0.35 cent to end at $1.761 per lb, ranging from $1.756 to $1.7815. It was almost an inside day compared to the Tuesday band of $1.756 to $1.805.
After posting an increase in the month of October of 20 percent, the juice market went up almost 4 percent in November.
Total volume traded Wednesday was over 1,500 lots, almost matching the 30-day average, preliminary Thomson Reuters data showed.
"It took another stab higher, but it was light so it quickly ran out of steam. I think we stay here for a while unless we get some news to justify another move in the market," a dealer said.
Winter premium buying has supported juice contracts due to fears a hard freeze may hit Florida's $9.1 billion citrus industry.
Frosty weather struck Florida in 2010 and 2011, inflicting damage on citrus trees and severely cutting production.
Forecaster Telvent DTN said Florida will be dry Wednesday to Sunday, with temperatures staying mild and well above freezing.
Analysts said that if a freeze does not hit, the juice market may come under pressure from the citrus harvest picking up in Florida, the biggest growing citrus state in the country.
Open interest amounted to 28,255 lots as of Tuesday, versus the previous tally of 28,268 lots, ICE Futures US data said.
Volume traded Tuesday came to 2,286 lots against the previous tally of 1,717 lots, exchange figures showed.
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