Analysis on price behaviour for orange juice for the past 30 years shows a potential profit opportunity. Recommend only allocating a relatively small % of capital. For example you want to risk about $2000, open a short position with the worst case scenario of OJ going to ~215 resulting in draw-down of $2000. As history has shown, when OJ goes (rarely) to a very high price it does not stay there long, maybe due to very high prices being simply unsustainable. So if you keep rolling over your contracts you should be able to get out at break even if price does head north to around its 30 year high it will crash quickly back down. The more likely scenario is that OJ price will soon fall off a cliff which will allow you to take your profits. Please do not be greedy. Set your TP targets to 130-140 as price can quickly reverse back up as it has done in the past. We are assuming that the past 30yr market behaviour will continue for the mean while. Either way do not risk a large % of capital.
