New York, May 9 - U.S. orange juice prices hit a one-month high Wednesday on fears that a tropical storm could hit the main citrus producing state of Florida as the country's hurricane season approaches.
Soybeans were another produce that rallied as players bought into a market expected to see a smaller harvest due to farmers switching from soy to corn.
In metals, gold and copper fell. Energy markets slid, too, after a big rise in U.S. crude oil stocks.
Prices of frozen concentrated orange juice futures on the New York Board of Trade surged after the U.S. National Hurricane Center said tropical storm Andrea, which formed Wednesday, was about 135 miles north-northeast of Daytona Beach, Florida,
Traders have said they expect tight physical supplies of juice in coming months if Florida gets hit by storms. Four hurricanes struck the top U.S. orange grower in 2004 and 2005, sharply cutting output and spreading diseases such as citrus canker.
"Of course, now, everyone is keen on the hurricane season, which is right around the corner, and we had a little tropical storm off the coast today that reminded people what time of the year it is," said James Cordier, an analyst at Liberty Trading Group.
The Atlantic hurricane season runs from June 1 to Nov. 30.
Juice for July delivery settled up 1.20 cent, or 0.7 percent, at $1.6880 per lb, after rising to $1.7150 -- its highest level since April 12. The session low was $1.6850.
Cordier said the contract could test psychological resistance at $1.80 by next week.
"We feel fair value for orange juice is somewhere between $1.80 and $1.9,0 based on the incredible tight supply from the last small production figures out of Florida," he said.
Soybean futures at the Chicago Board of Trade closed higher as the market recovered from Tuesday's losses amid stronger investor interest in soy as more farmers turned to corn.
CBOT soybeans closed 6-1/4 to 10 cents per bushel higher, with spot May up 7-3/4 cents at $7.33-3/4 per bushel and July up 8 cents at $7.47-1/2. New-crop November settled up 8-1/2 cents at $7.77-1/4.
GOLD DOWN AS FED STAYS; COPPER, OIL SLIDE
Gold futures ended lower, but well off their session lows, after investors largely sat out of the market ahead of the Federal Reserve's latest decision on interest rates.
The Fed left benchmark interest rates steady at 5.25 percent, a rate unchanged since June 2006, in a move that had marginal bearing on commodity markets.
Most-active gold for June delivery on the COMEX division of the New York Mercantile Exchange settled down $4.90 at $682.50 an ounce, having traded from $677.50 to $688.90.
Copper futures held at lower levels on the close Wednesday, with technical selling holding sway in a thinly traded market.
Most-active copper for July delivery on COMEX finished down 4.35 cents at $3.6780 a lb in technical selling.
In oil, London's Brent crude, currently seen as more representative of the global market than U.S. prices, settled down 34 cents to $65.20 a barrel, after a hefty rise in crude stocks in the United States.
U.S. oil fell 71 cents to $61.55 after weekly government data showed U.S. crude stocks increased by 5.6 million barrels last week, far exceeding analyst expectations for a rise of 400,000 barrels.