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New US tariffs on Chinese goods took effect, and China responded with its own tariffs on US products including soybeans, pork and dairy. Wisconsin dairy futures had already dropped about $2 per hundredweight.
China is a major buyer of US soybeans and pork, so the retaliatory tariffs cut export demand and push down domestic prices. Soybean meal and hog markets face bearish pressure as long as the tariffs remain.
wpr.orgHope KirwanJul 6, 2018After 803 past bearish trade events, Soybeans moved a median +0.0% over 5 sessions (51% higher; middle half -1.7% to +1.7%), and +0.9% over 20.
After 123 past bearish trade events, Lean Hogs moved a median -0.4% over 5 sessions (43% higher; middle half -2.9% to +2.0%), and -0.2% over 20.
After 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.
Chinese tariffs on US dairy took effect, cutting expected export demand and pushing dairy futures lower.
New US-China tariffs took effect with Chinese retaliation on dairy, adding to trade-driven bearish sentiment, though much of the drop was already priced in.
