How Commodity Markets Work | WSJ

Published 2023-03-02
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

All Comments (21)
  • @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.
  • Jokes on them, I grow my own oranges. Those Duke Brothers won't get my money! Lol
  • @musak.4068
    Crazy my grandmother got laid off from her orange production job up in Central Florida. This was around November last year.
  • @e815usa
    Trading Places, anyone????????????
  • @judyl.7811
    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.
  • Thank you, WSJ! After this video, now I'll be able to beat the Dukes before they corner the entire frozen orange juice market!
  • “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”
  • @mind-of-neo
    So speculation around the future price of an item gets to affect its actual, current market price. Sounds completely reasonable. 🙃
  • @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.
  • @VictoriaStobbie
    Literally had to look this up. I didn’t know OJ trading was real.
  • @Barbutt
    Why did OJ concentrate? Because shouting, “They had it coming!” In the courtroom was way different than privately with your lawyer.