The major factor determining the price of orange juice futures is the:
A) demand for orange juice.
B) cost of fertilizer.
C) profits to orange growers.
D) weather.

Question

Quizplus · Accepted Answer

The weather has a significant impact on the supply of oranges, which in turn affects the price of orange juice futures. Adverse weather conditions, such as hurricanes, frost, or droughts, can reduce crop yields and make it difficult to harvest oranges. On the other hand, favorable weather conditions, such as mild temperatures and appropriate rainfall, can boost the supply of oranges and lower the price of orange juice futures. Therefore, the weather is the major factor determining the price of orange juice futures.

The Major Factor Determining the Price of Orange Juice Futures