English Deutsch Français Italiano Español Português 繁體中文 Bahasa Indonesia Tiếng Việt ภาษาไทย
All categories

3 answers

If the crop is damaged, then the supply is reduced. This drives up price, which reduces demand (If orange juice is too expensive for me I'll drink Cranberry juice).

The price is not controlled. It is traded on the NY exchange is the form of futures:

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 orange juice future contracts can come in drums or tanks, at the seller’s option.

The United States and Brazil outpace all others in orange juice production and are therefore very influential on the price of orange juice futures.

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, which recently was hit by 5 hurricanes in the space of two years. This geographic concentration can lead to extremely volatile trading in the orange juice futures and orange juice options markets during the June-December hurricane season.

2006-09-05 13:02:38 · answer #1 · answered by odu83 7 · 1 0

The price of orange juice is price controlled, so as to prevent a market collapse of that comodity.

2006-09-05 13:02:13 · answer #2 · answered by Crystal Violet 6 · 0 0

Lol, you want us to do your homework!
Supply would go down price would go up and demand would go down.

2006-09-05 13:03:47 · answer #3 · answered by Anonymous · 0 0

fedest.com, questions and answers