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PRUDENTIAL SECURITIES, INC.
One New York Plaza, New York, New York
(December 12, 1997) ORANGE JUICE: The USDA's December report for U.S. 1997/98 production was an exact duplicate of the October report, including no change in Florida's projected yield of 1.55 gallons per box. While not a surprise, the December report refocused attention on the market's bearish fundamentals, with Florida orange production expected to reach a record 254 million boxes in 1997/98. up 12.4% versus 1996/97.
With no fresh statistics to influence trading activity, this market will focus on Florida weather concerns and technical factors over the next few weeks. We are bearish, and expect to see futures test the October lows early next year. Florida frost scares, of course, are a potentially, supportive factor, and would be expected to delay any return to lower price levels.
Arthur Stevenson
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