◂ Event Timeline

Jan 6, 2023TRADEUS

U.S.-Canada dairy trade relationship remains strained

In late December 2022, the USTR requested new USMCA dispute consultations with Canada over its dairy tariff-rate quota allocation measures. The US argues these measures deny American dairy exporters agreed market access, while Canada says they protect its supply management program.

WHY IT MATTERS

Trade friction over Canadian dairy quotas affects dairy export flows and could influence demand for US dairy products. The price impact on feed ingredients is limited.

AFFECTSMilk (Class III)◆

SOURCE
agproud.comDave NatzkeJan 6, 2023

Price reaction & history

Milk (Class III)◆neutralSO FAR1d +1.0%5d +2.1%20d -6.2%

After 18 past neutral trade events, Milk (Class III) moved a median -0.4% over 5 sessions (39% higher; middle half -2.9% to +1.1%), and -3.0% over 20.

Jun 12, 2018Canadian dairy sector skimming global exports, U.S. complains - AgCanada-0.6%
Jul 30, 2021U.S. Ag Groups Ask For More Trade Reforms - EDairy News English-2.4%
Apr 17, 2024Tai Promotes Biden Administration’s Trade Agenda | Red River Farm Network+0.6%
May 31, 2021Permanent Disaster Relief and USTR on Canada & USMCA - AG INFORMATION NETWORK OF THE WEST-9.6%
Dec 17, 2019Margin outlook tightens as new DMC deadline looms - Progressive Dairy | Ag Proud-0.1%

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.

Milk (Class III) MILK · GP ▸

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