Market Overview

Trading The Freeze In Florida (MOO, BAL)

Orlando, Florida dropped below freezing last night in some places, and it's hitting orange juice supplies very hard. Crops, especially high-water-content fruits like oranges, die easily in cold weather, and prices at the supermarket are rising sharply.

To offset some of the rise and potentially profit from the rise in orange juice, consider purchasing Market Vectors Agribusiness ETF (NYSE: MOO), an ETF that tracks orange juice prices alonside other commodities.

Orange juice doesn't have its own ETF (just futures contracts) so if you can't trade futures or are unsure about trading futures, then owning or trading MOO is an alternative.

It's not the same as trading orange juice and every time orange juice pops, you won't necessarily see a pop in MOO that correlates to the move in OJ, but you should see some some kind of move.

Disclosure: no position in MOO.

BAL is an ETF that tracks cotton prices, which might also have been affected by the cold weather yesterday.

Posted-In: Long Ideas Trading Ideas ETFs

 

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