Issue link: https://read.dmtmag.com/i/43042
Apples Marketing concentrate coming soon market for Futures by Richard Lehnert T he status of the long-awaited futures trading contract in apple-juice concentrate hasn't changed. It's still coming "soon." "We are extremely close to being there," said Rita Maloney, with Minnesota Grain Exchange, which is the principal futures and options market for hard red spring wheat and is developing the apple juice con- centrate trading system. She delivered a similar message last year to atten- dees at the U.S. Apple Association outlook and marketing conference. Kevin Barley, with Mor- "We are extremely close to being there." —Rita Maloney gan Stanley Smith Barney in Orlando, Florida, who focuses on citrus risk man- agement, chaired a com- mittee that nearly five years ago began to investi- gate the potential for a futures market for apple juice con- centrate. Two years ago, that committee chose MGEX as the trading exchange. Since then, Minnesota Grain Exchange has developed the standard contract size and quality attributes of the concentrate it will trade, developed a sampling and test- ing protocol that will be carried out by USDA inspectors, developed a system for reporting of cash price transac- tions in concentrate, and is working on the final step— establishing warehouses to serve as delivery points in the event contracts do result in delivery. "Currently, there is not a sufficient number of ware- house meeting all MGEX requirements," Maloney said. "We continue to seek new delivery locations." Those interested in this market can learn about it on the Web at www.mgex.com/ajc. "This will be a better way to manage your price risk," Barley said. Concentrate makers are vulnerable to losses in inven- tory value after they pay for apples and make the concen- trate. Bankers become reluctant to make capital and operating loans. Forward contracts have not greatly reduced the risks, Barley said. The apple juice concentrate market has been volatile, largely because of the large role of imports, which made up 82 percent of U.S. apple juice consumption last year, according to USDA figures. The United States uses 15 per- cent of its apple crop for juice and produced 115.8 million gallons of it last year. It imported 541.1 million gallons (in the form of concentrate), three-fourths of it from China. The value of annual world production of apple juice concentrate is estimated at $3.2 billion. • www.goodfruit.com 400 gallon wheel-well Pulblast • 52" outside tire width w/11Lx15 tires • adjustable width wheel centers Towers bring the nozzle closer to the spray target. Tower height and profiles to match your application. Tune air volume: adjustable air doors independently control target zones Match Rears' aggressive air delivery engineering to your application with Vertical Wall, Over-the-Row, or Grape Elbow towers. Rears Airblast Sprayers POWERBLAST Interchangeable axial flow fans to match blade pitch and air volume to your application and horsepower. Electric fan clutch Rears Constant Velocity Hitch powers through 90° turns Rears centrifugal pump and Rears gearbox: manu- factured by Rears for more than 40 years. Simple pressure adjustment to maintain accurate calibration in different row spacings. This is a time tested design for a wide range of applications. Automatic Rate Controller Option • Enter different row spacings: the controller automatically maintains your rate per acre. • Compensates for changes in ground speed. 400 gallon TTN profile Powerblast Variable pitch fans available in 28" & 36" dia. 100 - 600 gallon units with tank profiles for your application. Rears Constant Velocity Hitch available for most Pul-Blast models Piston actuated diaphragm pump or Rears centrifugal pump. Agricultural Equipment and Dealer information 800.547.8925 GOOD FRUIT GROWER OCTOBER 2011 19 made in usausa made in PULBLAST Heavy Gauge Stainless Steel Construction Spray tank and all tank hardware Tower casement, shrouds, steps Manifolds, louvers, air doors Fan and blower housing