This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A Rising Tide for Agricultural Commodities

Orange Juice

Frost damage prompted the U.S. Department of Agriculture to lower projection of Florida's orange crop, which has dominated talk of the orange juice market.

CPM Group predicts that orange prices will retest the $1.80 level in the near term after receding to about $1.65, then to about a $1.72, from $1.80 in early January.

The supply constraints come as demand weakens over the last several years. "People see it as a fattening thing because of its high sugar content," Christian explained. "So you've actually seen people cycle away from orange juice."

Supply concerns from Florida and Brazil should allow prices to drift higher though, Christian said.

Oak Brook, Ill.-based fast-food restaurant franchise McDonald's (MCD) said it anticipates needing to raise prices on some of its offerings this year in order to offset rising ingredient costs, Chief Financial Officer Peter Bensen said on a conference call with analysts following its recent earnings release.

McDonald's anticipated that costs will rise between 2% and 2.5% this year in the U.S. and between 3.5% and 4.5% in Europe.

Meanwhile, the CFO of Purchase, N.Y.-based packaged foods and beverages behemoth PepsiCo, (PEP) Hugh Johnston, said he expects PepsiCo's commodity costs to rise between 8% and 9.5% in 2011. Pepsi owns the Tropicana juice label.


>>Search for Highest Dividends by Rate or Yield

More on Earnings
Today's Top Earnings
Earnings Calendar

-- Written by Andrea Tse in New York.



>To contact the writer of this article, click here: Andrea Tse.

>To follow the writer on Twitter, go to Andrea Tse.

>To submit a news tip, send an email to: tips@thestreet.com.

Copyright 2010 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
7 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs