The objective of the present study was to analyze why Frozen Concentrated Orange Juice Industries do not trade in the New York Board of Trade as hedger, considering that the risk of prices is high in this sector, and they prefer to use the price of Rotterdam as base for negotiation. The derivative markets for agricultural commodities are used in the administration of price risk and the majority of contracts negotiated in Stock Markets of Commodities in the entire world has had success, but in the case of the frozen concentrated orange juice negotiated on the NYBOT (actual IntercontinentalExchange (NYSE:ICE), the volume of contract negotiation is low when compared to others commodities. However, the costs of transaction related to the future market of FCOJ, together with the concentration of Brazilian Industries that produce FCOJ, have induced an alternative way of management in this sector: the forward market.
Agroindustrial Citrus System; Derivative Markets; Transaction Costs Economy
