Technical setup bearish for orange price
Florida orange growers experienced a disastrous 2019-20 season with regard to farm prices – average farm prices plummeted 50-56% from average prices in 2018-19. The reasons cited for the drop in orange juice prices include high orange juice inventories held by Florida processors combined with high juice imports and declining orange juice sales at retail outlets. And the technical bias for price is bearish currently. On the other hand, inventories of single-strength, chilled orange juice fell 9.3% through May 30 compared to a year earlier, according to Citrus Department statistics. And single-strength orange juice imports declined by 40% during the same period. Retail orange juice sales rose 1% in the US through April 11. Falling orange juice supply and higher sales are upside risk for orange juice price.
Summary of technical analysis
|Buy stop||Below 112.93|
|Stop loss||Above 125.15|
Market Analysis provided by IFCMarkets.com
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