Tuesday, February 16, 2010

Orange juice, sugar prices increase on falling supply


Sugar and orange juice prices rose Tuesday (feb10th) after the Department of Agriculture's most recent report predicted smaller supplies of the crops than previously estimated.
Grains were small changed after the report, which showed supplies for those commodities in line with expectations, said Frank Cholly Sr., a senior market strategist at Lind-Waldock.
The USDA cut its forecast for the 2009-2010 orange harvest by 3 percent from last month's estimation. Freezing temperatures in Florida in early January damaged some of the crop.
Florida produces more than 70 percent of the nation's whole orange crop. Analysts say it might still be months before it is certain how much of the crop was ruined.
The USDA said sugarcane production was down fractionally from its January estimate, but supply was unchanged. Pressure on supply is not probably to improve until April when Brazil's crop starts to get harvested.

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