Consumers reduce the juice
Despite limit-up gains on Thursday, orange juice prices have dropped by 46% from December highs. Consumption of the drink is down 50% per capita since the mid 2000s.
Oranges in Florida have been affected by Citrus Greening, an incurable disease, as well as extreme weather conditions including hurricanes. Recent tariffs have reduced exports to Canada, a major importer from the U.S. Brazilian oranges offer competition; however, extreme heat caused exports from there to reduce in 2024. The Florida crop is the smallest in 95 years, down 35% from the 2023/2024 season with some growers selling land to residential and commercial developers.
High prices along with reduced juice quality and concerns about sugar intake have decreased demand for the drink.
Can gold hold or will prices fold?
As gold and platinum move up, consumers continue to watch the conditions that lead to the rise in precious metals’ popularity. One big concern is the economic uncertainty brought about by tariff wars, especially between the U.S. and China, which make imports and exports of various goods unpredictable. In addition, international conflicts like the Russian-Ukraine war add to instability.
Across the world, central banks are holding on to gold as countries watch the freezing of Russian bank assets. The U.S shift away from traditional allies in Europe as well as Canada and Mexico also has affected trade and prices of goods.
Traditionally, low interest rates and a devalued U.S. dollar increase the value of precious metals. The availability of gold can be affected by mining issues and gold use in technology and jewelry.
All of these factors have led Goldman Sachs to predict that gold will rise to $3,700 per oz. by the end of 2025.
JFK Jr. report harvests farmer feedback
The Make America Healthy Again Commission released its 68 page report Thursday, reflecting the positions of Health Secretary Robert F. Kennedy Jr.
The wide-ranging report edited at the last minute by the White House, focused on the poor health of American children. One aspect of the report mentions the potential effects of farm pesticides such as glyphosate used in the weed killer Roundup as well as PFAS, often referred to as “forever chemicals.”
While some indicated that the report went easy on farmers, many in the farm industry disagreed, noting that the report was “fear based rather than fact based about pesticides.” The American Farm Bureau called the report deeply troubling while farm periodicals noted that a loss of glyphosate based products might devastate operations and threaten food supplies.
A former Kennedy fundraiser noted that not taking the commission’s warnings on pesticides would cost Republicans votes, while an Ag group labelled pesticide fears as “unjustified.”
Agriculture Secretary Brooke Rollins recognized the administration’s tightrope walk trying to keep farmers happy while presenting Kennedy’s views. She noted that everyone doesn’t agree and that the report is not a binary choice.
CME midday prices: Price per bushel: July Soybeans, $10.60; July Corn, $4.59; July Wheat, $5.40. June Livestock per 100 pounds: Cattle, $215.75; Hogs, $98.27. Metals per troy ounce: June Gold, $3,363; July Silver, $33.57. July Copper per pound: $4.83. July Crude oil per barrel: $61.60. The June S&P futures contract is trading at 5818.00. July orange juice futures were trading at $2.87 per pound. Platinum for July, was trading $1,085 per ounce.
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