DJ Nybot FCOJ Review: Bulls Charge Higher

Frozen concentrated orange juice futures closed at sharply firmer levels
Tuesday, as speculator buying drove prices within striking distance of the
contract high scored Friday.

The most active May futures climbed 4.00 to $1.4940 per pound on the New York
Board of Trade. July gained 3.05 to $1.4525.

No fresh news was seen behind Tuesday's rally, but analysts noted that the
market successfully shrugged off the minor corrective pullback seen Monday.
FCOJ has been supported for weeks by the second straight Florida growing season
with significant hurricane damage.

May futures rallied to a $1.4990 contract high Friday, before profit-taking tugged prices to a close well below that high that day.

Since late January, May futures have soared from a low at $1.1550 to last week's contract high at $1.4990. Traders and analysts say that the psychologically significant $1.5000 level will likely come under attack short term.

"The major news today was the lack of any producer hedging," noted James Cordier, president of Liberty Trading in Tampa.

FCOJ futures rallied Tuesday in tandem with the broader commodity market. The CRB Index was last up 3.81 at 331.52.

Looking ahead, Mike Zarembski, futures analyst at XPRESSTRADE, reiterated that the fundamental picture remains bullish. He pointed to "lower supplies and concerns about dryness for even the next crop" as key factors that should continue to underpin strength in the FCOJ market.

On the upside, Zarembski pointed to an initial objective at $1.5210 for May and said "that could be taken out this week." Farther out, he highlighted a major target at $1.6100, the January 1992 high.

Futures volume was estimated at 3,232 lots, the exchange said. Options activity included 285 calls and 283 puts.

-Dow Jones Newswires; 312-750-4072
03-28-06 1419ET