Orange Juice Futures

ICE Futures U.S. lists frozen concentrated orange juice futures, known as FCOJ-A. This is a contract on qualifying orange juice solids, not on cartons of retail juice or a fixed number of oranges. Its delivery standards define the product that can satisfy an expiring contract.

Contract specifications

Exchange / code	ICE Futures U.S. / OJ
Contract size	15,000 pounds of orange juice solids
Quotation	U.S. cents per pound
Minimum price movement	0.05 cent per pound = $7.50 per contract
Settlement	Physical delivery
Contract months	January, March, May, July, September and November

This summary describes the standard contract. Confirm the selected expiry, delivery terms and current exchange rules. ICE FCOJ-A Futures — contract specifications.

A worked example

Suppose you buy one contract at 200.00 cents per pound and close it at 210.00. The 10-cent increase is $0.10 per pound, giving $0.10 × 15,000 = $1,500 profit before costs. A decline to 190.00 produces a $1,500 loss. At 200.00 cents, the contract has a $30,000 notional value.

Long futures P/L = (exit quote − entry quote) ÷ 100 × 15,000 × number of contracts

For a short position, reverse the price difference. These examples assume an offsetting trade in the same contract month and exclude commissions and slippage. They are illustrations, not forecasts.

Market drivers and hedging

Crop conditions, weather, disease, inventories and consumer demand can change the balance between supply and use. A processor may hedge expected sales with short futures; a buyer may hedge a future purchase with long futures. Product specifications and delivery timing still matter: retail juice prices need not track the futures price one-for-one.

Margin, expiry and delivery

Futures use margin and are marked to market. Adverse moves can require additional cash, and losses can exceed the initial deposit. Daily price limits and thin liquidity may prevent an immediate exit. A stop order does not guarantee an execution price.

These contracts permit physical delivery. Traders who do not intend to make or receive delivery need to close or roll positions before their broker's applicable deadline, which may precede exchange notice or expiry dates. Rolling means closing one expiry and opening another; the prices and costs can differ.