The New York Board of Trade® (NYBOT®), the world’s leading “soft” commodity exchange, announced today that it will launch Not From Concentrate (“NFC”) orange juice futures and options contracts later this year, to trade in the orange juice ring alongside the existing FCOJ futures contracts.
NYBOT Chairman Fred Schoenhut said: “Ten years ago, approximately 70% of the oranges processed into juice went into the FCOJ form and 30% went to NFC. By 2005-06, that ratio nearly reversed itself with 37% going into FCOJ and 63% into NFC. Advances in technology and changing consumer demand have created this new dynamic in the OJ market, which has led us to introduce this new NFC contract to provide price discovery and price risk management tools for this important citrus product.”
The new futures contract calls for delivery of 12,000 pounds of US Grade A pasteurized orange juice (FCOJ calls for 15,000 pounds of orange solids), with a Brix value from 11.5 to 12.5 degrees, a Minimum Score of 92, Minimum Flavor of 36, Minimum Color of 36 and Minimum Defects of 18; only Florida origin product will be deliverable, and all delivery points are in Florida. Trading hours, trading months and pricing (in cents per pound solid) are the same as for the existing FCOJ-A futures contract. Speculative position limits for the contract are 300 contracts in the Spot Month, 1,000 futures equivalent contracts for Any One Month and All Months Combined.
The New York Board of Trade (NYBOT) is New York’s original futures exchange, where the world trades food, fiber and financial products. For well over a century, the New York Board of Trade has provided reliability, integrity and security in a global marketplace for cocoa, coffee, cotton, ethanol, orange juice, wood pulp and sugar, as well as currency and index futures and options. Information about the New York Board of Trade can be found at www.nybot.com and www.nybotlive.com. To learn more about New York Board of Trade Futures & Options for Kids, the Exchange’s non-profit group, please go to www.futuresandoptionsforkids.org.
