The development and growth of the frozen concentrated orange juice (FCOJ) market evolved just after the second World War when the process for making FCOJ was invented. The industry continued to grow, and in 1966, to meet the challenging demands of this industry, the Citrus Associates of the New York Cotton Exchange, Inc. (CANYCE) was formed and FCOJ futures began trading. Then in 1985, FCOJ options were introduced to offer market users an additional vehicle to hedge and speculate on FCOJ. Since 1966, millions of FCOJ futures contracts have traded on the Citrus Associates, making it the world's leading marketplace for the buying and selling of FCOJ futures and options.
Everyday, Americans drink over 79 million six ounce glasses of orange juice which accounts for over half of all fruit juice sold. The FCOJ industry is relatively new however. There was a period when oranges were squeezed at home for the juice- In 1947, the process for making Frozen Concentrated Orange Juice (FCOJ) was invented in Florida and demand quickly grew. It was no longer necessary to squeeze oranges at home to make juice and the market for FCOJ quickly developed in the United States as consumers enjoyed its convenience and the consistency of its taste. As a result, consumers substituted the more convenient processed product for fresh orange consumption and it has become a staple in the North American diet. Today, over 70% of the oranges harvested in the U.S. are processed for orange juice.
More recently, the FCOJ market has also experienced tremendous growth internationally due to technological innovations in packaging and bulk transportation systems. Along with the U.S. and Canada, the European Communities (EC), Japan, Switzerland, Sweden and Saudi Arabia account for most of the world's orange juice croppage, the juice yield per orange and loss of trees due to weather or disease such as canker, can all be important factors in determining FCOJ production.