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| 06-29-2010
Orange-juice futures rose to a three-week high on speculation that demand for the beverage will improve amid signs that the economy is recovering. Cotton prices also gained.
Equities rallied before reports this week that may show the global economy is rebounding, and after the European Union said industrial output in April rose more than economists forecast. The Reuters/Jefferies CRB Index of 19 raw materials jumped to a one-month high as the dollar slumped against a basket of six major currencies.
“We’re just rallying with the basket of commodities today,” said James Cordier, an OptionSellers.com portfolio manager in Tampa, Florida. “It’s partly the realization that the economy’s getting better.”
Orange juice for September delivery rose 2 cents, or 1.4 percent, to $1.4545 a pound on ICE Futures U.S. Earlier, futures touched $1.4695, the highest price for a most-active contract since May 21. Orange-juice futures have climbed 13 percent this year.
The increase in equities “offers hope for stronger demand for orange juice in the future, and that’s part of orange juice’s rally,” Cordier said.
Cotton futures for December delivery rose 0.53 cent, or 0.7 percent, to 79.47 cents a pound on ICE. Prices have gained 5.1 percent this year.
Read the original article from Bloomberg.