Orange juice futures expand defeat
The future of orange juice (Mar) was low again on Tuesday, marking eight consecutive negative sessions. The OJ reached its lowest level since May 9, 2024, reaching a low of 385.50 cents per pound.
Given the continued supply constraints in Florida and Brazil, market observers are surprised by the recent recession. On Tuesday, the USDA revised production of Florida oranges, forecasting 101.5 million boxes. This is down 4% from last season, a 36% drop.
Three key factors may be driving decline, according to Danny Munch, an economist with the American Federation of Farm Bureaus.
First, orange juice prices are rising so high that consumers and food manufacturers may be moving towards alternatives. This is a classic case of demand destruction. This trend has been exacerbated by growing concerns about the sugar content of food and beverages.
Second, traders may believe that prices will peak and production will eventually recover. OJ futures are still well above the five- and ten-year averages, so investors could be profitable and increasing sales pressure.
Finally, strong dollars and potential tariff concerns make imported orange juice relatively cheap. This currency effect can ease price pressure despite the strength of supply.
– Nick Wells
Stocks that make the most of the move after business hours
Check out some of the companies that make headlines in their expansion trading.
- Doordash -Food delivery stock traded almost 6% higher after earnings exceeded expectations for the fourth quarter. Doordash reported revenue of $2.87 billion in the most recent quarter, with analysts surveyed in LSEG forecasts reporting $2.844 billion.
- Gilead Science – Biopharmaceutical inventory rose 4% after fourth quarter results surpassed analysts' top-line and bottom-line estimates. Gilead adjusted its earnings adjusted to $7.57 billion with revenues of $1.90 per share. Analysts voted by LSEG were looking for a profit of $1.70 per share with revenues of $7.14 billion.
- Super Microcomputer – Even if the company cut its full-year revenue guidance for 2025, server builders popped over 4%. Super Micro currently believes its full-year revenue ranges between $23.5 billion and $25 billion, but analysts voted by LSEG have raised $249.2 billion. The company also said it thinks it can submit it. Delay in the Annual Report By February 25th.
Read the complete list here.
– Brian Evans
Inventory futures are almost unchanged
Stock futures remained little different on Tuesday as investors turn to their January consumer price index report.
Futures tied to the Dow Jones industrial average were ticked at 7 points (0.02%). The S&P 500 futures were 0.02% higher, while the Nasdaq 100 futures were 0.05% higher.
– Brian Evans
