DJ Nybot FCOJ Review: Futures Drop As Storm Threats Fade

Most-active September frozen concentrated orange juice futures fell 500
points to $1.6435 Monday on the New York Board of Trade after setting 15-year
highs late last week. Traders attribute the drop to forecasts for storms that
have not materialized.

"The buying that took us into new highs was betting this low pressure center
over the Bahamas would develop" into a tropical storm, said an FCOJ broker.

"We got a little bit of disappointment for traders that the tropical
disturbance didn't amount to anything," said Mike Zarembski, analyst and
futures desk manager at XPRESSTRADE in Chicago.

July FCOJ contracts slipped 700 points to $1.6300, the low price Monday.

Zarembski said the market may fall further before it picks up again. He said
he expects another decline Tuesday and possibly later.

"We may have to drop down to $1.60 or so on September contracts before we see
some speculative buyers come in," Zarembski said.

He placed September support near term at $1.6250 and stronger support at
$1.60, with resistance at $1.6945.

July open interest fell 185 lots to 3,601 Monday, while September rose 393
lots to 19,463. Total open interest increased 247 lots to 28,410.