Orange Juice
Futures and Options
The frozen concentrate
orange juice futures at the NYCE have the second slimmest
volumes of the softs. The 15,000 pounds of orange solids
specified by the contracts can come in drums or tanks, at
the sellers option.
The United States and
Brazil outpace all others in orange juice production.
The orange crop is another
commodity more susceptible to weather than most. Systems
such as hurricanes, freezes and tropical storms can shock
the market into the stratosphere if they hit at the right
time. It's obvious why. More than 98% of the U.S. crop comes
from Florida, a geographic concentration soybean crushers
would dread.
Another measure of the
orange juice supply is the number and quality of citrus
trees, a number published bi-annually by the Florida
Agricultural Statistics Service. The report also breaks down
trees by type - 1996 orange trees up 3% to 84.2 million, of
which 78.5 million produced fruit, for example.
A tree can take as long as
15 years to reach maturity.
Once a supply pattern
becomes established, unless there's a weather surprise,
we're likely to see it continue at the same rate. While the
United States produces a great deal of oranges, its not
always enough to feed America's thirst for frozen
concentrate orange juice, which the country is importing at
near-record levels. While U.S. dependence on the primary
contributor Brazil has increased recently, analysts predict
imports are leveling off.
FCOJ Contract
Specifications
Orange Juice Futures
Trading Unit -
15,000
lbs. of orange solids (3% more or less).
Trading Hours -
10:00
a.m. - 1:30 p.m. (NY time).
Price Quotation -
Prices
quoted in cents and hundreths of a cent.
Trading Months -
January,
March, May, July, September, November with at least two
January months listed at all times.
Ticker Symbol -
OJ
Minimum Fluctuation -
5/100
of a cent per pound ($7.50 per contract).
Last Trading Day -
14th
business day prior to the last business day of the month.
First Notice Day -
First
business day of contract month.
Daily Price Limit -
Daily
limit: 5 cents ($7.50 per contract) above or below the
previous day's settlement price.
Spot Month Limit: A moveable 10 cents ($1500 per contract)
above or below the previous day's settlement price.
Additionally, on and after first notice day of the spot
month, this same moveable 10 cent limit also applies to the
next nearby contract month. Wider limits can take affect
under certain market conditions. Also, substantial price
moves (2,000 points or more) can activate imputed settlement
prices.
Point Value -
$1.50
|
Position Limits |
|
Delivery Month |
300
contracts |
| Any
other month |
1,600
contracts |
| All
months combined |
2,500
contracts |
Futures and
options have a combined limit in futures equivalents.
Basis Grade -
U.S.
Grade A with a Brix value of not less than 62.5 degrees.
Delivery Points -
Exchange
licensed warehouses in Florida, New Jersey, Delaware and
California.
Delivery Methods -
Drums or
tanks, at the seller's option.
Orange Juice
Options
Trading Unit -
One FCOJ
Futures Contract
Trading Hours -
10:30am -
1:30pm Eastern
Price Quotation -
Prices
quoted in cents and hundreths of a cent
Trading Months -
In
addition to a February options contract, each listed futures
month will have its option month listed for trading (two
Januaries, March, May, July, September, November). In
addition, the newest calendar month which is not a futures
month will be listed (April, June, August, October,
December).
Ticker Symbol -
OJ
Minimum Fluctuation -
5/100
of a cent per pound ($7.50 per contract)
Last Trading Day -
The third
Friday of the month preceding named option month
Expiration Date/Time -
Until
5:00 p.m (New York time) on any trading day including last
trading day.
Daily Price Limits -
None
Strike Price Increments
- 5
cent increments for all contract months
Minimum Price
Fluctuation -
1/100 of a cent
|
