How Commodity Markets Work | WSJ

Florida-grown oranges, which were once used to make more than 90% of the U.S.'s orange juice, might be going extinct, sending frozen concentrate orange juice futures to record highs.

WSJ’s David Uberti explains how volatility in commodity markets impacts the price you pay for products like orange juice.

Graphic: Miki Katoni

00:00 Why Florida’s oranges might go extinct
00:36 How frozen concentrate orange juice became a commodity
02:08 How commodities are traded
03:11 How futures contracts benefit farmers, manufacturers and financial traders
04:02 How futures prices impact retail prices

WSJ Glossary
Markets and economics are complex. It's easy to be overwhelmed by a sea of wonky indicators and lose track of why they matter. This series breaks down the basic terms and ideas that move the markets.

#Orange #Commodity #WSJ

[gnardawgyt]

One of the best WSJ videos in a while, really impressive editing and conciseness

[LuisBrudna]

I'm Brazilian and around here orange juice has also gone up. Precisely because it is more profitable to export.

[judyl.]

0:10 to record high and led to thousands of job cuts.
0:30 how commodity market works
2:10 Future contract: an agreement btw 2 parties for a delivery of a commodity at a future date.
3:00 Over the last couples of year, the U.S. dollar has been particularly strong.
3:10 imports from Mexico and Brazil have become effectively cheaper.
3:30 you're not going to bear the full brunt of those losses.

[musak.]

Crazy my grandmother got laid off from her orange production job up in Central Florida. This was around November last year.

[boardcertifiable]

Jokes on them, I grow my own oranges. Those Duke Brothers won't get my money! Lol

[mind-of-neo]

So speculation around the future price of an item gets to affect its actual, current market price. Sounds completely reasonable. 🙃

[DUGHANmotivates]

Thank you so much .I learnt something valuable today .

[MatthieuVlogs]

This reminds me of the Amaranth hedge fund losing $3b on natural gas futures in 2006…. presumably producers did well with above market prices locked in which may have impacted drilling efforts. So crazy how futures trading at volume can impact the physical world.

[jon]

If Florida is not suitable to efficiently produce oranges just let Mexico and Brazil specialize in growing them since they have the proper conditions to meet demand. Protectionism is what causes these prices to skyrocket. A strong dollar should make imported oranges cheaper but it doesn’t help when the government places a large tariffs on these cheaply imported commodities to compete with local producers who are not efficiently producing at all!

[joshwekony]

“WHAT ARE THEY DOING HERE?!”

“T H E Y R E S E L L L I N G M O R T I M O R”

[johnathanburns]

90% of gold is not actually used to produce or manufacture anything therefore it’s not a commodity.

[Barbutt]

Why did OJ concentrate?




Because shouting, “They had it coming!” In the courtroom was way different than privately with your lawyer.

[samboescondido]

Thank you, WSJ! After this video, now I'll be able to beat the Dukes before they corner the entire frozen orange juice market!

[johntate]

Things in general are going up all the time. Has a lot to do with currency debasement, but the other part is scarcity. For example: the last few years we have hit peak oil availability. Meaning now we are on a decline in resource availability. Tie that into population growth. Goes for every commodity. It’s a natural resource and there only a fine amount left after a century + or two of industrial use. Basically, things will get a lot more expensive because the commodity pool is shrinking.

[VictoriaStobbie]

Literally had to look this up. I didn’t know OJ trading was real.

[tonicalloway]

I just wa t to say..simply orange juice and Florida's best is lacking..I think they may be watered down now..or their Ora gesture aren't all the way ripe or something..

[ropro]

Why do people still drink OJ anyway? I stopped after learning that it's basically a glass of sugar water. 🤷 You might as well be drinking a glass of non-diet soda.

[mananatselanyane]

I wanted to understand more of how you get profit.

[The_Endo]

Orange Juice, everyone's favorite way to get diabetes!

[osunkoyaopeoluwa]

0:27, black farmer with white hands. seems someone making the graphics made a mistake.