Orange juice futures prolong dropping streak
Orange juice futures (MAR) have been decrease once more Tuesday, marking their eighth consecutive unfavorable session. OJ hit a low of 385.50 cents per pound, its lowest degree since Could 9, 2024. This pullback comes regardless of futures reaching all-time highs in mid-December.
Market observers are stunned by the latest downturn, given ongoing provide constraints in Florida and Brazil. On Tuesday, the USDA revised its Florida orange manufacturing forecast downward to 11.5 million containers—4% decrease than the earlier estimate and a 36% drop from final season.
Three key elements could also be driving the decline, based on Danny Munch, an economist on the American Farm Bureau Federation:
First, orange juice costs have risen so excessive that buyers and meals producers could also be shifting to options, a traditional case of demand destruction. This pattern is exacerbated by rising considerations round sugar content material in meals and drinks.
Second, merchants might imagine that costs have peaked and manufacturing will ultimately rebound. With OJ futures nonetheless effectively above five- and ten-year averages, buyers might be taking earnings, including to the promoting stress.
Lastly, a robust greenback and potential tariff considerations make imported orange juice comparatively cheaper. This forex impact might be softening worth pressures regardless of provide tightness.
—Nick Wells
Shares making the most important strikes after hours
Try a number of the corporations making headlines in prolonged buying and selling:
- DoorDash — The meals supply inventory traded almost 6% increased after better-than-expected income for the fourth quarter. DoorDash reported income of $2.87 billion in its most up-to-date quarter, whereas analysts surveyed by LSEG forecast $2.84 billion.
- Gilead Sciences — The biopharmaceutical inventory superior 4% after fourth-quarter outcomes surpassed analysts’ estimates on the highest and backside traces. Gilead notched adjusted earnings per share of $1.90 on income of $7.57 billion. Analysts polled by LSEG have been searching for earnings of $1.70 per share on income of $7.14 billion.
- Tremendous Micro Laptop — The server builder popped greater than 4% whilst the corporate slashed its fiscal 2025 full-year income steering. Tremendous Micro now sees full-year income ranging between $23.5 billion and $25 billion, whereas analysts polled by LSEG known as for $24.92 billion. The corporate additionally mentioned it thinks it will likely be in a position to file its delayed annual report by Feb. 25.
Learn the complete listing right here.
— Brian Evans
Inventory futures open little modified
Inventory futures have been little modified on Tuesday as buyers look towards the January client worth index report.
Futures tied to the Dow Jones Industrial Common ticked down 7 factors, or 0.02%. S&P 500 futures slipped 0.02%, whereas Nasdaq 100 futures have been 0.05% increased.
— Brian Evans
