The Death of Orange Juice? 30 Years after Trading Places…
It seems like just yesterday, Eddie Murphy and Dan Aykroyd were in the old Comex pits making millions off of Frozen Orange Juice Concentrate. As we’ve talked about before in our Top 13 movies of all time, Trading Places is why 90% of people who hear you work in the futures industry come back at you with ‘Pork Bellies’, ‘Frozen Concentrate Orange Juice’, and ‘It was the Dukes, it was the Dukes.’ If you’re confused why the Dukes went bankrupt and Winthrop and Valentine made off like bandits, Business Insider had a nice explanation a few weeks ago here.
Now 30 years later, the hype surrounding frozen concentrate orange juice is that it’s fastly fading. In fact, The Wall Street Journal just highlighted said hype with the headline, “OJ Market Shrivels as Demand Sours.”
“In the market for orange-juice futures, traders held just $440.8 million as of Monday {August 5th}, down 60% from $1.1 billion in August 2011. So far this year, average daily trading volume is 2,233 contracts, a 15% decline in the past decade.”The reasoning, according to the Wall Street Journal, anything you can think of… Hurricanes, research from Nielson on pricing, and making trading completely electronic (which afterwards caused annual volume to drop by 23%.)...MORE
