FCOJ's
- Details
- Category: Commodity
Until 1962, Florida dominated the orange juice export market. However, due to severe freezes and hurricanes all through the years, it has been overtaken by Brazil, the world's main FCOJ exporter in 2009. In the last 30 years, Brazil's dominance in the international market has become so full that it represents 80% of all global exports. Brazil even supplies the U.S. with 30-50% of its orange juice.
FCOJ's dependence on only two geographical regions has resulted in an excessive sensitivity to weather. When hurricane Katrina hit Florida in 2005, it ruined orange groves and drove the price of frozen concentrated orange juice from ninety cents per poundto $1.ninety eight per pound. This occurred on the heels of orange juice reaching an all-time low of 60 cents per pound.
1. Movable 10 cents above or below previous day's settlement for first and second listed month.
2. As soon as the contract with the highest open curiosity hits this limit, a suspension is triggered.
3. New limit is 10 cents above or below the value at which the suspension was triggered.
Understanding FCOJ Contracts
Like every commodity, FCOJ has its own ticker image, contract value and margin requirements. To efficiently commerce a commodity, you have to pay attention to these key parts and perceive methods to use them to calculate your potential profits and loss.
Oranges are juiced and shipped world wide in frozen form. The Brix system of measurement ensures uniformity in the high quality of FCOJ that's traded between suppliers and buyers. Brix is defined as a measurement that quantifies the mass ratio of dissolvedsugar to water in a liquid.