Orange Juice Prices Fall; Soybeans Increase

25/05/07 U.S. orange juice prices fell to their lowest level in nearly a month on Wednesday amid speculative selling, while soybeans rose on technical buying, rebounding from a slump on Tuesday.

Front-month copper futures remained under pressure from concerns over slowing demand from China, while wheat bounced back from one-month lows on stepped-up fund buying.

At the New York Board of Trade, orange juice futures fell sharply on fund selling, with traders saying that a poor technical outlook pointed toward further losses ahead.

Analysts said some investors were betting that the 2007 Atlantic hurricane season will not be as severe as forecast by experts. Florida's citrus crop has suffered significant storm damage in recent years.

The U.S. National Oceanic and Atmospheric Administration has forecast 13 to 17 named storms in the 2007 Atlantic hurricane season from June 1 to Nov. 30.

Of the total, seven to 10 are expected to be of hurricane force that could threaten Florida, the top citrus growing U.S. state that was pounded by hurricanes in 2004 and 2005.

"There are some (investors) saying the number of storms will not be that high," a dealer said.

NYBOT orange juice for July delivery tumbled 6.55 cents, or 4 percent, to $1.5685 a lb.

Soybean futures at the Chicago Board of Trade rallied, rebounding from Tuesday's drop amid technical buying. Funds bought 4,000 contracts, or 20 million bushels, of soybeans.

"We sold off yesterday and we're getting a little bit of a bounce today," said analyst Anne Frick of Prudential Financial. "Technically, the market still looks strong, especially if you look at the nearby contract basis."

The market was underpinned by concerns over dry weather in the eastern Midwest at a time when farmers are sowing their crop.

CBOT July soybeans rose 7-1/4 cents to $8.00-1/2 a bushel.

CBOT wheat futures rose amid technical buying. The market was also supported by news that Pakistan suspended wheat exports due to a surge in domestic prices.

Futures have been under pressure in recent days as the U.S. winter wheat harvest kicks off.

Traders said funds bought 2,000 contracts, or 10 million bushels, of wheat on the day. Underlying support came from tight world wheat supplies. The Agriculture Department earlier this month forecast a drop in global wheat ending stocks in the 2007/08 season to 113.36 million tonnes, a 26-year low.

CBOT July wheat rose 5-1/2 cents to $4.76-1/2 a bushel.

Front-month copper futures remained under pressure from concerns over slowing demand from top consumer China. There were few other fresh factors in the market.

"It's just a technical waiting game. We're rangebound right now in all of the metals," said Frank McGhee, head precious metals trader with Integrated Brokerage Services LLC in Chicago.

Copper for July delivery fell 0.20 cent to $3.3005 a lb at the New York Mercantile Exchange's COMEX division.