NEW YORK: Orange juice futures closed lower Wednesday on investor liquidation as warm weather in the key growing state of Florida kept the market on the defensive, brokers said.
The key March FCOJ contract fell 1.30 cents to close at $1.632 per lb, trading from $1.626 to $1.658. The range almost matched Tuesday's $1.63 to $1.6485 band.
Total volume traded in the market on Wednesday reached almost 3,700 lots, almost double that of the 30-day norm, Thomson Reuters data showed.
The US National Weather Service forecast warm and dry weather in the Tampa, Florida, area with some possible rains and that some cooling is possible next week.
"You still have good weather," said The Price Group analyst Jack Scoville, adding the absence of a freeze threat makes it "hard to hold" juice futures at its current level.
Citrus-damaging freeze hit Florida in early January in both 2010 and in 2011, causing significant damage to fruit production in the Sunshine State.
Traders said there was also a lot of switch trade being done which tends to bloat trading volume as players moved their positions out of the spot January contract before it goes into delivery notice next month.
Open interest came to 25,677 lots as of Tuesday, down slightly from the previous 25,968 lots, ICE Futures US data said.
Volume traded Tuesday hit 4,549 lots, against the previous 4,265 lots, exchange figures showed.
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