The Ottumwa Courier

Business

June 4, 2013

Orange Juice Spikes

As hurricane season looms, orange juice prices have risen sharply on speculation that storms could cut into orange production. Scientists at the National Oceanic and Atmospheric Administration have projected a hyperactive hurricane season, increasing the likelihood that a major storm could damage Floridian orange groves. Florida is the world’s second-largest orange producing region, second only to Brazil.

Even without hurricane damage, there are concerns that Florida’s crop will fall short due to citrus greening, a disease that is causing trees to prematurely drop fruit. Since last October, the USDA has downgraded its estimate of the size of Florida’s orange crop by more than 10 percent, helping to lift prices higher. During that same period, futures prices have risen by more than fifty cents per pound (+ 48 percent). As of Friday morning, frozen concentrated orange juice for delivery in July was worth $1.55 per pound, the highest price in over a year.

China loves

its pork

China’s insatiable appetite for meat was further exemplified last week when a Chinese meat processor tendered an offer for Smithfield Foods, the world’s largest producer of pork. This purchase, if consummated, would be the largest Chinese takeover of an American company, representing an expansion of China’s commodity control beyond metals and energy.

China is the second-largest importer of U.S. pork, second only to Mexico, and this deal is expected to give the Chinese greater access to American meat production. China currently consumes nearly half of the world’s swine population, and demand for meat continues to rise in that nation as it industrializes.

Hogs for June delivery traded over 95 cents per pound last week, the highest price in over 10 months.

Interest

rates rise

To stimulate the economy, the Fed has been pulling interest rates lower over the past few years, dropping short-term interest rates near zero and pushing long-term rates, like mortgages, to extreme low levels. As financial markets prepare for the U.S. Federal Reserve to begin reducing its multi-year stimulus effort, interest rates have been climbing. Over the last six months, interest rates have rebounded, with the average 30-year mortgage rising from 3.5 percent to 4 percent.

The Federal Reserve is not guaranteed to withdraw stimulus in the coming months, so many traders are closely watching Fed statements and economic data to discern if and when stimulus may stop.

Opinions are solely the writer’s. Walt Breitinger is a commodity futures broker based out of Silver Lake, Kan. He can be reached at 800-411-3888 or www.paragoninvestments.com. This is not a solicitation of any order to buy or sell any market.

1
Text Only
Business
  • Blue Zones Project Fairfield meets restaurant designation goal FAIRFIELD — Blue Zones Project Fairfield announced that Crepe Escape has achieved Blue Zones Restaurant designation, joining Istanbul Grill, Doc’s Inn, Green Gourmet, The Gardens Seasonal Kitchen, Revelations and Yummy’s. As a result, Fairfield has a

    April 17, 2014

  • Local grains for April 18, 2014 (Per bushel) No. 2 No. 1 Corn Soyb Wht Cargill 5.00 Farmer’s 4.85 14.87 DFS Osky 4.91 14.79 Reiff Grain 4.74 14.86 Wapello Co. 4.80 14.78 Two Rivers 4.75 14.79 Tri-County 4.80

    April 17, 2014

  • Local grains for April 17, 2014 (Per bushel) No. 2 No. 1 Corn Soyb Wht Cargill 4.95 Farmer’s 4.85 14.94 DFS Osky 4.90 14.84 Reiff Grain 4.76 14.93 Wapello Co. 4.75 14.85 Two Rivers 4.78 14.79 Tri-County 4.76 14.91

    April 16, 2014

  • MidWestOne to host document shredding event OTTUMWA — MidWestOne Bank is hosting Community Shred Days, April 21-25. The public is invited to bring up to three grocery bags full of paper to be shredded and recycled for free. On-Site Information Destruction, Inc. of Waterloo is supplying locati

    April 15, 2014

  • Local grains for April 16, 2014 (Per bushel) No. 2 No. 1 Corn Soyb Wht Cargill 5.02 Farmer’s 4.83 14.78 DFS Osky 4.97 14.56 Reiff Grain 4.81 14.77 Wapello Co. 4.82 14.69 Two Rivers 4.84 14.61 Tri-County 4.83

    April 15, 2014

  • Local grains for April 15, 2014 (Per bushel) No. 2 No. 1 Corn Soyb Wht Cargill 5.03 Farmer’s 4.88 14.53 DFS Osky 4.98 14.31 Reiff Grain 4.80 14.51 Wapello Co. 4.83 14.43 Two Rivers 4.85 14.36 Tri-County 4.85 14

    April 14, 2014

  • Local grains for April 12, 2014 (Per bushel) No. 2 No. 1 Corn Soyb Wht Cargill 4.98 Farmer’s 4.54 14.35 DFS Osky 4.93 14.18 Reiff Grain 4.75 14.33 Wapello Co. 4.78 14.25 Two Rivers 4.81 14.23 Tri-County 4.79 14.33

    April 11, 2014

  • Area nurses to be honored May 4 DES MOINES — 100 Great Iowa Nurses will be celebrated May 4 at the Iowa Events Center Grand Ballroom in Des Moines. The celebration is an annual prelude to National Nurses Week, which begins on May 6 and ends May 12 (the birthday of Florence Nighting

    April 11, 2014

  • Local grains for April 11, 2014 (Per bushel) No. 2 No. 1 Corn Soyb Wht Cargill 5.01 Farmer’s 4.86 14.52 DFS Osky 4.96 14.37 Reiff Grain 4.78 14.50 Wapello Co. 4.81 14.42 Two Rivers 4.83 14.42 Tri-County 4.82 14.50

    April 10, 2014

  • MHP donates AEDs to Lacey Recreation Complex OSKALOOSA — Employees at Mahaska Health Partnership wanted to do something special to recognize National Heart Health Month in February. They ended up raising enough money to purchase two AEDs (automated external defibrillator) for the Lacey Recreati

    April 10, 2014

Obituaries
Record
Facebook
AP National