Loading…
Dairy product prices on the CME fell through June after US tariffs on Mexican steel and aluminum and on some Chinese goods triggered retaliation. Mexico announced a tariff on US cheese, and China targeted some dairy products along with corn and soybeans.
Cheddar barrels fell from $1.59 in early June to $1.32 by end-June.
Mexico is the largest export market for US cheese, so retaliatory tariffs cut export demand and pressure domestic dairy prices. Feed buyers should expect weaker milk and dairy-byproduct pricing while the trade dispute continues.
farmprogress.comFran O'LearyJul 2, 2018After 49 past bearish trade events, Milk (Class III) moved a median -0.3% over 5 sessions (39% higher; middle half -4.7% to +1.5%), and -0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
Retaliatory Mexican and Chinese tariffs on US dairy cut export demand and pushed cheese barrels sharply lower, directly pressuring Class III futures.
Trade dispute with Mexico and China retaliatory tariffs on cheese drove cheese prices lower through June, lowering Class III value.
Trade dispute retaliation drove cheese price declines through June, setting up weakness carried into the window.
