May 13, 2019

China Continues to Sink Markets

 |  By: Know Your Market

Monday’s Trade opened with all markets lower on trade news from China that they will be retaliating on Trump Administration tariffs. Enacting their own tax on imported goods from the US. Corn rebounded late in the day to swing back 5 cents higher in May to 3.47 ¼ and Soybeans ended down 6 cents in May to 7.91 even. July soybean meal was even on the day to $287.30/ton. 

Cheese markets retreated a step on Monday and Class III milk followed suit. Cheddar barrels fell 7 ¼ cent on 7 trades to $1.63 ¾ and Cheddar blocks fell 1 ¼ cent on 1 trade to finish at $1.66 3/4/lb. This puts our block/barrel spread back to 3 cents. The $1.70/lb we saw last week and in late March, has been a peak we have not maintained long term since 2014. Once again, Cheese hit that mark and buyers retreated. 

Butter had a stronger day, gaining 2 cents on 4 trades to $2.36/lb. It was our lone bright spot, Grade A Nonfat Dry Milk fell ¾ cent to $1.06/lb and Dry Whey fell ¾ of a cent to $0.34 even. 

Class III milk fell 3 cents in May to 16.30, June fell 15 cents to $16.16 Second half months traded 3-10 cents lower with an average at 16.53/cwt.

For Commodity Risk Management Group,  this is Jenny Wackershauser on know your markets.