New York, Aug 28 - Orange juice futures banked on late speculative fund buying to finish higher Monday as jitters over whether Tropical Storm Ernesto will score a direct hit on the key growing state of Florida sparked the market, brokers said.
The New York Board of Trade's key September FCOJ contract climbed 1.30 cent to conclude at 184.55 cents per lb, moving from 180.50 to 185.70 cents.
The November FCOJ contract surged 1.60 cents to 186.45 cents. Two contracts aside, the rest gained 0.75 cent.
The National Hurricane Center over the weekend forecast that Ernesto would drench Cuba and appeared on a track to rake Florida's battered citrus groves later in the week.
This fueled an initial flurry of buying in the citrus pit, but the same speculators bidding the market higher ran out when the NHC in Miami issued a forecast track that had Ernesto giving southern Florida a glancing blow before heading out into the Atlantic Ocean.
Traders said the market did not fall too sharply since Ernesto can easily change tack and still hit Florida.
In 2004, Hurricane Charley tracked up the western coast of Florida before hooking into citrus farms near Fort Myers.
"We came back and did drop too far because people know a storm can behave erratically," a dealer said.
James Cordier of Liberty Trading Group said the first weather bulletins caused the run-up and then also sparked the sell-off later in the session.
Juice prices have surged to their highest levels in 16 years over fears that more storms during the 2006 Atlantic hurricane season running to the end of November will inflict more harm on citrus farms that have been hit by four storms in 2004 and 2005.
Meanwhile, forecaster Meteorlogix predicted Florida would get showers and the rain will get heavier with the approach of Ernesto. Top citrus producer Brazil will be mostly dry with a few showers through Friday, it said.
Technicians said resistance in the September FCOJ contract was at 190 and 200 cents, with support at 175 and 170 cents.
Floor dealers said estimated final volume reached 3,500 lots from the prior tally of 2,556 lots. Open interest fell 108 lots to 31,140 contracts as of Aug. 25.