ICE FCOJ Review: Higher On Technical Buying

ICE FCOJ Review: Higher On Technical Buying

KANSAS CITY (Dow Jones)--Frozen concentrated orange juice futures closed higher on technical buying, as prices rebounded from recent losses to close near the middle of the trading range.

Nearby May FCOJ rose 115 points to settle at 84.95 cents a pound, and July closed 135 points higher at 88.25 cents.

Higher crude oil prices and a firm trade in the commodity indexes helped to spark spillover buying in orange juice futures.

"We attracted some buying from the firm outside markets, and orange juice has rebounded quite nicely from the lows of the past two sessions," a broker said.

Beneficial rain in Florida this week had taken prices off of five-month highs, but the price decline has been tempered by technical strength and traders getting more bullish about the market.

One broker/analyst said the climb in open interest that accompanied the price rally to five-month highs is a bullish sign for a market that had been severely oversold.

Friday saw the expiration of May options, which also proved supportive for prices.

Florida is expected to see dry conditions through Sunday with scattered shower and thundershowers developing from northwest to southeast on Monday, private forecaster DTN Meteorlogix said. Dry weather will return on Tuesday.

Traders continued to spread contracts and roll positions out of nearby May ahead of its last trading day on May 8, the broker said.

Open interest increased 170 to total 28,997 contracts, ICE reported. Traders rolled out of 1,356 May contracts and added 1,434 to July.

Futures volume is estimated at 2,086 contracts, with 219 calls and 27 put options traded.

  ICE         Settle      Change    Range (At time of settlement)  May         $0.8495     up  115   $0.8380-$0.8525  Jly         $0.8825     up  135   $0.8745-$0.8865  

-By Tom Sellen, Dow Jones Newswires; 913-322-5177; [email protected]

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires

April 17, 2009 14:23 ET (18:23 GMT)

Copyright 2009 Dow Jones & Company, Inc.