Already a Bloomberg.com user?
Sign in with the same account.
Orange juice rose, capping the longest rally in almost year, on speculation that storms may threaten crops in Florida, the world’s second-largest citrus grower. Cotton dropped.
Tropical Storm Leslie will move northward in the Atlantic from Bermuda on a path to eastern Canada, said Donald Keeney, a senior agricultural meteorologist with MDA Information Systems Inc. An area of low-pressure over southern Alabama and the Florida Panhandle is expected to move into the north-central Gulf of Mexico as early as today, the Miami-based National Hurricane Center said.
“There are two tropical storms in the Atlantic” supporting prices, Fain Shaffer, the president of Infinity Trading Corp. in Medford, Oregon, said in an e-mail.
Orange juice for November delivery climbed 2.9 percent to settle at $1.247 a pound at 2 p.m. on ICE Futures U.S. in New York. That was the sixth straight advance, the longest climb since Sept. 7, 2011.
Brazil is the top orange grower and exporter. The Atlantic hurricane season runs through Nov. 30, with severe weather activity typically peaking in September, according to MDA.
Brazil’s government last week raised the amount of orange juice that must be used to make orange-flavored nectar, a beverage that also uses other ingredients including water and sugar. The beverage now must be comprised of 50 percent orange juice, up from 30 percent, with 180 days to make the changes, according to the ministry of agriculture, livestock and supply.
The change in regulation may lift the country’s demand for orange-juice concentrate by 10,000 metric tons a year and reduce domestic inventories, Jose Carlos Vaz, the executive secretary at the ministry of agriculture, said by telephone from Brasilia.
The new rule is “bullish” because demand will rise, and the change may “improve the taste of the drink” and “increase sales,” Sterling Smith, a futures specialist with Citigroup Inc.’s institutional client group in Chicago, said in an e-mail.
Cotton futures for December delivery fell 0.4 percent to 75.35 cents a pound on ICE, the second straight drop.
To contact the reporter on this story: Marvin G. Perez in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Steve Stroth at email@example.com