First produced in the early 1900s, frozen concentrated orange juice (FCOJ) is a relatively new product, and therefore, an even newer available futures contract. FCOJ futures have been known for their versatility and volatility, and it has gradually gained popularity among traders. It has become a vital market for hedgers and speculators and is used as a price discovery mechanism for the futures industry.
Orange Juice Contract Specifications
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FCOJ Facts
Brazil is the top global supplier of orange juice, but Florida is the leader in U.S. production. Citrus farmers in Florida rely heavily on the juice industry as approximately 90% of their crop is produced for all forms of juice. As global demand for orange juice increases, so has the strong supply growth from the EU, China and Mexico.
There are three forms of juice not squeezed directly at the point of consumption that is commonly marketed:
- Frozen Concentrate – diluted with water after purchase
- Reconstituted Liquid – concentrated and then diluted with water before purchase
- Not From Concentrate (NFC) – single strength and unconcentrated
Source: ICE
Last updated May 2013.