FxWirePro: Orange Juice whipsaws as Irma batters Caribbean and Puerto Rico

After rising by more than 10 percent since last Friday, the orange juice contract of 15,000 pounds for November delivery saw some whipsaw action as the market remains unsure of the possible impact of monster Hurricane Irma. Before the Hurricane made a landfall in the Caribbean island of Barbuda, it was upgraded to a category 5 storm, which is the highest category for any storm. Latest reports suggest that Irma has caused massive destruction in Barbuda, where it reportedly destroyed 90 percent of the homes.

Speculation that Irma will not make a landfall in Florida, pushed the price of Orange Juice starkly lower during yesterday’s trading. The price declined from as high as $149.9 to Friday’s closing around $135.5 before bouncing back. The speculation was driven by a report that the Hurricane Irma is moving slowly and the possible time to hit Florida was pushed back from before the weekend to over the weekend. The contract is currently trading at $144.7.