Dairy Markets React to Canadian Trade Situation
For the last several months, Canadian officials have been working toward what has been deemed a national ingredients strategy.
That process hit closer to home this week as a major processor in the upper Midwest was faced with the difficult decision to let go some of its producers on the coattails of cancelled orders from Canadian clients for ultra-filtered milk. Wisconsin is not alone in these losses, New York also stands to feel some pain from this move as losses from the export of ultra-filtered milk between the two states could account for as much as $150 million.
This national strategy by the Canadians is another reminder of the sensitivity of trade issues in our marketplace. Amid the ongoing chatter surrounding Mexican nonfat dry milk powder business, trade issues will remain both a risk and a focal point in the months to come.
Concerns over trade policy were not overcome by Wednesday’s trade action. In the CME spot trade, block cheese dropped 2₵ while barrel cheese fell 2.75₵ with prices finishing at $1.50 per pound and $1.4575 per pound respectively. Butter fell a half cent to $2.145 per pound and powder remained unchanged after trading finishing at 80₵. The Class III average for the balance of 2017 fell 7₵ to a price of $16.22 per CWT.