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Orange Juice Futures Edge Higher Days After Canadian Retaliatory Tariffs

Summary:
Orange juice futures are trading higher on the Fourth of July holiday. The rally in orange juice prices comes days after the Canadian government implemented retaliatory tariffs on US orange juice exports, harming an already weakened industry. The European Union (EU) is expected to follow by the end of the week. September orange juice futures rose %excerpt%.0125, or 0.75%, to .681 per pound at 16:07 GMT on Wednesday on the US ICE Futures exchange. Orange juice prices have been skyrocketing since April, rising close to 20%, but they have somewhat paused over the last month, likely due to the trade war. This week, Canada’s .6 billion worth of retaliatory tariffs went into effect, ranging from bourbon to toilet paper to orange juice. The import levies on orange juice, totaling as much as 15%, is

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Orange juice futures are trading higher on the Fourth of July holiday. The rally in orange juice prices comes days after the Canadian government implemented retaliatory tariffs on US orange juice exports, harming an already weakened industry. The European Union (EU) is expected to follow by the end of the week.

September orange juice futures rose $0.0125, or 0.75%, to $1.681 per pound at 16:07 GMT on Wednesday on the US ICE Futures exchange. Orange juice prices have been skyrocketing since April, rising close to 20%, but they have somewhat paused over the last month, likely due to the trade war.

This week, Canada’s $16.6 billion worth of retaliatory tariffs went into effect, ranging from bourbon to toilet paper to orange juice. The import levies on orange juice, totaling as much as 15%, is expected to cripple an already depressed industry. The EU, meanwhile, has already “finalized” its list of retaliatory tariffs and they are scheduled to go into effect on Friday.

Because of citrus greening, a decline in consumer demand, and a string of significant weather events, Florida’s orange growers are unable to take full advantage of higher prices. The state’s key agricultural industry has seen its production levels reach multi-decade lows, and there is still no relief in sight. Surprisingly, the market is still dealing with increasing stockpiles due to weaker demand.

Amid the hurricane season, investors are betting on the hurricane season to disrupt output volumes. In the end, orange growers will bear the brunt of the devastation.

This could allow competing foreign markets to continue to eat away at The Sunshine State’s market share. Brazil, which is not facing steep tariffs from Canada, Mexico, and the EU, has seen its orange exports touch a seven-year high of 650,000 tonnes. The trends could put a stop to the surge in US orange juice futures.

In other agricultural commodities, December corn futures surged $0.06, or 1.67%, to $3.65 per pound. September wheat futures jumped $0.105, or 2.19%, to $4.907 a bushel. November soybean futures slipped $0.0525, or 0.60%, to $8.642 per bushel. August coffee futures advanced $0.03, or 0.27%, to $1.119 a pound.

If you have any questions and comments on the commodities today, use the form below to reply.


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Andrew Moran
I am a full-time professional writer. Prior to my self-employment, I worked as a reporter for Digital Journal covering the politics beat and The Toronto Times reporting on the city’s entertainment scene. I currently write mostly about business, marketing and finance

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