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Orange juice futures show decline

Miami Herald – October 7, 2008

Orange juice futures fell on concern that the credit crisis and a slumping global economy will erode demand for commodities.

U.S. sales of orange juice fell 4.5 percent in the 11 months ending Aug. 30 from a year earlier, according to an AC Nielsen report on the Florida Department of Citrus website. The credit crunch may spur investors to sell futures to raise cash, said Donna Heidkamp, a senior trading advisor at RJO Futures in Chicago.

‘’All commodities are getting hit, and cash is king,’’ Heidkamp said. ``There are a lot of substitutes for orange juice.’’

Orange juice futures for November delivery fell 0.45 cent, or 0.5 percent, to 81.65 cents a pound on ICE Futures U.S. in New York.

The diminishing threat that a hurricane will hit citrus groves in Florida, the world’s biggest grower behind Brazil, is also bearish for futures, Heidkamp said.

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