Orange Juice Surges on California Freeze (FCOJ futures)

Wall Street Journal ^ | 1/18/07 | Tom Sellen

[Pete from Shawnee Mission]

"Pork bellies, which are used to make bacon, as in a bacon, lettuce, and tomato sandwich."

And the Australian equivalent, "Mutton Flaps". (I don't know the Options symbol for Mutton Flaps. I'm not even sure which exchange trades mutton flaps. )

I purchased about 1/2 a bushel of oranges yesterday. They were sale priced at $0.39 per pound. Now I have to push my children to eat oranges. (They don't normally.)

[Shots]

Ah yes da oranges froze and just like the oil industry the store prices shot up overnight despite the fact store had not received any new shipments, thus they profited from oranges they bought at lower prices.:-(

[art_rocks]

SEll, SEll, Sell.

Winthrope, Get back in there and Sell!!!

[VRWCmember]

What is the replacement cost of the oranges they had in inventory? Should the stores have waited to raise prices to market price until they sold out their inventory? Then what happens to them if after they buy replacement inventory the market price comes back down?

[NonValueAdded]

I'll take "who is Clarance Beaks" for $600, Alex.

[Political Junkie Too]

-PJ

[RetiredArmy]

Ah yes da oranges froze and just like the oil industry the store prices shot up overnight despite the fact store had not received any new shipments, thus they profited from oranges they bought at lower prices.:-(

Which is really funny. We just came from the store and they have tripled at the Wal Mart here. 1 naval orange costs 75 cents!!!!!! People are saying to hell with that and are not buying them. Which is the really funny part. Because they say, shortage, we are selling them at a higher price. And, the majority of people are saying, hell no, we are not paying that high of a price, so the oranges rot on the shelves and get thrown in the trash. So that is stupid also. It is not like gas which keeps. Oranges not purchased, spoil and rot. So, no one is going to buy the damned over priced things anyway.

[Starstruck]

Global warming is a b*tch.

[biff]

It's called inventory replacement. You sell at today's replacement cost, not yesterdays.

[cmsgop]

WE ARE MOVING,WE ARE MOVING !!!

[Shots]

"1 naval orange costs 75 cents!!!!!! People are saying to hell with that and are not buying them. "

Darn you guys got off cheap here they went to one buck a piece.

[xarmydog]

OJ where I live is very expensive even prior to the global warming freeze.[s/]We go with other brands or a knock off derivative.The last time we wanted to buy OJ the price was over six dollars a gallon.Not in the budget.

[Shots]

"What is the replacement cost of the oranges they had in inventory?" That is not relevant, the fact is they raised the price to the new price knowing all along they would make a windfall profit on their current stock which they paid less for.

[VRWCmember]

That is not relevant, the fact is they raised the price to the new price knowing all along they would make a windfall profit on their current stock which they paid less for.

It IS relevant. Market price is NOT dependant on costs of inventory. If they were to sell at below market price, then they would forego profits. You, as a consumer, might consider that nice of them, but they are not in business for the purpose of your viewing them as nice.

Do you view their "windfall profit" as something immoral or unethical? If so, then you are buying into the leftist idea of economic fairness that leads people to vote for democrats and other Marxists.

[VRWCmember]

Where in the hell is Beeks?

See post #26.

[Freedom4US]

"But I'm sure in terms of tonnage, it's not enough to make up for the losses in California."

Maybe somebody needs to tell the futures traders that the juice industry gets its oranges mostly from Florida and Brazil, not Cali.

[rusty millet]

OJ - the new oil.

[G-Man 1]

Not to worry Brazil will take up the slack as they have been doing for years.Sell, sell.