freeze in Florida sent orange juice prices up this winter,
and from the looks of it the uptrend could continue.
Hackett, president of Hackett Financial Advisors, says
the market has priced the freeze in and it won’t be
much of a factor any more. However, he says demand for
orange juice could fall off because of higher prices
and the end of cold and flu season. “We’re looking at
a market that will probably have a sizable correction
as we get into the springtime and it wouldn’t surprise
me if we took the market down some,” he says. He sees
prices at $1.25-$1.30 per lb. by mid-April given lower
demand and the pricing in of extra imports from Brazil.
prices due to the freeze have put a bid under the market,
according to Spencer Patton, chief investment officer
of Steel Vine Investments. “The market’s very healthy
fundamentally and technically. Selling puts below the
market at 100 or 110 seems to be a viable strategy for
trying to attack this market,” he says. “The orange
juice crop is so sensitive that we should see elevated
prices at least through the end of 2010.” He says prices
will go higher, up to $1.60 and above by mid-April.