NY juice sinks on macro fears, ends at 3-month low

NEW YORK: Orange juice futures closed at a three-month low on Monday on heavy investor liquidation triggered in part by the US credit downgrade and the absence of a storm threat to the citrus growing state of Florida, analysts said.

The key September frozen concentrated orange juice futures lost 9.35 cents, or 5.16 percent, to settle at $1.718 per lb, dealing from $1.7135 to $1.8115.

It was the lowest finish for juice on the spot charts since the middle of May. It was also the biggest three-day fall in the market since July 2008, Thomson Reuters data showed.

Volume was around 6,900 lots at 1:50 p.m. EDT (1750 GMT), the highest since June 21 and more than triple the 30-day norm, Thomson Reuters preliminary data showed.

The market was pressured by falling global stock markets while safe-haven investors poured into gold.

Another source of market pressure came from the US National Hurricane Center which said there is no sign a tropical storm will form in the next 48 hours.

"It's a combination of the macro weakness in almost all markets and the fact we have nothing to pose a threat to Florida," an analyst said.

The peak period for a storm or hurricane to strike Florida normally runs from late July through the middle of October, so dealers said the market will likely enjoy a modicum of support going forward.

The trade is now waiting for the first private estimates of the upcoming 2011/12 Florida citrus crop which will be released around the middle of August.

Forecaster Elizabeth Steger is said to be releasing her report next week.

Volume traded Friday in the juice market hit 6,071 lots, also the highest since June 21, ICE Futures US data showed.

Copyright Reuters, 2011