A look at Orange Juice Futures
Orange Juice Futures are an ideal way to speculate on the price movements of orange juice.
Orange juice is the juice from oranges. It can be obtained by squeezing, pressing or otherwise crushing an orange. Orange juice is high in a wide range of vitamins including vitamin C, potassium and folic acid.
Orange Juice Chart
As you can see Orange Juice prices were trending down until 2004. Since then the price of orange juice has been extremely volatile and briefly managed a 400% rise over the course of 18 months. This volatility certainly provided some excellent trading opportunities.
Orange juice contracts are traded on the NYBOT exchange. A standard contract represents 15,000lbs of orange juice. Contracts are priced in cents per lb. The smallest increment of a contract is 5 cents. Each 5 cent move is worth $7.50 on one standard contract. The nominal value of a contract is the price per lb multiplied by 15,000. For example if the current orange juice price was 140, the nominal value of the contract would be 2,100,000 cents or $21,000.
Orange future trading can be highly profitable, but as shown above there is the potential for some extreme volatility. Trading this contract on margin must always be considered high risk and only risk capital should be used.
Return from Orange Juice Futures to the Grain Futures