FINANCIAL MARKETS : Commodities : Orange Juice Futures Soar

Futures prices for frozen orange juice concentrate soared the limit allowed for daily trading Friday after the season’s first government production report fell short of market expectations.

In other action on the New York Cotton Exchange, cotton futures tumbled in reaction to the U.S. Agriculture Department’s October crop production report.

On other markets, livestock and meat futures rose sharply; energy futures were marginally higher; grain and soybean prices retreated, and precious metals were mixed.

The USDA crop report, issued Thursday afternoon, estimated an 8% increase in the Florida orange harvest, from 119.7 million boxes a year ago to 130 million boxes this season.

Even though the forecast was for the largest harvest in five years, “I think people were expecting a higher number,” said Judy Weissman, an analyst in New York with Shearson Lehman Bros. “The average trade estimate was 135 million to 140 million boxes.”

Rumors that Brazilian processors planned to raise their orange juice prices because of expected tight supplies in Brazil added to the bullish sentiment, Weissman said.

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