2007-01-30 09:58:09 · 3 answers · asked by Michael L 2 in Social Science ➔ Economics
Most of Orange Juices are made from Florida orange, not California. Speculation will increase price of OJ for very short period of time, but it will just itself in time.
Fresh orange price will increase as decrease of supply, but I don't think demand will be increase. There are more imported oranges in the country already.
I think real losers will be the orange farmers and their workers.
2007-01-30 10:16:47 · answer #1 · answered by novak-9 4 · 0⤊ 0⤋
Investors who own orange call futures or options are helped, put options are neutral, and put futures are hurt--the price of oranges will go up because of the decrease in supply. Investors in companies that produce oranges in California will lose money unless the particular orchards they own were not hit. Investors in companies that produce oranges outside of the freeze zone will almost certainly make more, since they have the same supply for an increased demand.
2007-01-30 18:15:51 · answer #2 · answered by JD 2 · 0⤊ 0⤋
If you are invested in Florida OJ it is going to increase profits. Speculation of the damage of the freeze coupled with they media hype of a doom story saying the price should skyrocket means the price will go up, and go up a little higher than caused by the actual decrease in supply.
2007-01-30 18:12:50 · answer #3 · answered by JuanB 7 · 0⤊ 0⤋