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Mexico imposed retaliatory tariffs of 10-15% on US cheese in June, raised them to 20-25% in July, and China also enacted tariffs on US dairy. The NMPF and USDEC raised concerns about the financial impact on US dairy farms.
Higher tariffs on US cheese in Mexico, the largest market for US cheese exports, reduce export volumes and weigh on domestic milk prices. The phase-in of the Mexican tariffs softens the near-term impact.
nmpf.orgdcadminJul 5, 2018After 49 past bearish trade events, MILK 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.
Mexico's tariffs on US cheese rising to 20-25% in July cut export demand for US cheese, the key driver of Class III prices.
Mexico's tariffs on US cheese rose to 20-25% in July, reducing export outlets for US cheese and lowering the Class III price outlook.
Higher Mexican tariffs on US cheese and Chinese tariffs reduce export demand, pressuring cheese-driven Class III prices.
