You choose, we deliver
If you are interested in this story, you might be interested in others from The Journal Gazette. Go to www.journalgazette.net/newsletter and pick the subjects you care most about. We'll deliver your customized daily news report at 3 a.m. Fort Wayne time, right to your email.

Business

  • Peoples Bancorp yearly earnings up 30%
    Peoples Bancorp today reported fiscal 2014 earnings of $3.4 million, or $1.47 per diluted common share, a 30 percent increase from the $2.6 million, or $1.11 a share, posted for the previous 12 months.
  • Ossian auto-parts supplier to add 70 jobs
    A Wells County auto parts supplier is expanding its workforce by about 50 percent, officials announced today.
  • TI Automotive expanding, adding jobs
    TI Automotive in Ossian, Ind. announced today they will invest $10 million into their Wells County manufacturing facility in the form of new process equipment.
Advertisement

Column: Orange juice prices head lower

Breitinger

The cost of a balanced breakfast continues to get less expensive as orange juice prices plummet.

U.S. demand for orange juice has fallen to the lowest level in more than a decade, as consumers snub OJ for other beverages, dropping prices near the lowest level for the year.

Despite the sour demand outlook, some analysts point to a relative shortage of oranges, especially in Florida, which is poised to have its smallest harvest in nearly 30 years.

Florida is home to 70 percent of U.S. orange production, and has been struggling in recent years because of a plant disease known as citrus greening, which causes the trees to prematurely drop fruit.

Meanwhile, weather watchers continue to monitor the Atlantic for hurricanes, which can damage groves if they make landfall. So far, no major storms have hit Florida during this year's heretofore mild hurricane season.

As of midday Friday, frozen concentrated orange juice futures were trading at $1.38 per pound.

Wheat snaps higher

As 20,000 Russian troops amassed along the Ukrainian border this week, commodities markets quickly assessed the potential risks of an invasion.

A primary concern was Ukraine's wheat crop, one of the largest in the world.

Known as the breadbasket of Europe, Ukraine is a major exporter of the grain.

The majority of Ukrainian wheat production is in regions that are heavily populated by Russian-speakers, making them likely targets of Russian military aggression. As a result, prices for wheat popped, breaking the pattern of recent price declines seen in all of the grain markets.

Aside from a potential conflict in Ukraine, there has been heavy rain across much of Europe, damaging the wheat crop and delaying harvest. Otherwise, there is little threat to the global wheat supply, especially as the U.S. is harvesting a bumper winter wheat crop.

The harvest pace and crop yields are exceeding previous years because of good weather in the Midwest this year, which has helped keep prices lower throughout the summer.

Should the crisis in Ukraine subside, many analysts expect wheat prices to return to their recent low levels, but a worsening conflict could continue the rally.

As of midday Friday, Chicago wheat for delivery in September was trading at $5.50 per bushel, near the highest price in a month.

Walt Breitinger is a commodity futures broker in Valparaiso. He can be reached at (800) 411-3888 or www.indianafutures.com. This is not a solicitation of any order to buy or sell any market.

Advertisement