Class III Markets Shake Off New Tariffs On Mexican Imports
All markets were rattled overnight and early in the Friday trading sessions. News of tariffs beginning June 10th of 5% of all goods imported from Mexico came out via President Trump’s Twitter account. Tariffs would increase 5% each month until maxing out at 25% in October. The tariffs are a result of Trump’s belief that immigration enforcement actions in Mexico have been lackluster.
Dairy markets shook off a lower start to the day and closed 2-10 cents higher in Class III milk June through December. Class III closed with a second half average of $17.00 per cwt.
CME spot product markets were led mainly higher by the cheddar block trade. Blocks added 3 ¼ cents following 5 trade and 2 uncovered bids to end at $1.715. Barrels were unchanged at $1.54 moving 4 loads from seller to buyer. Butter traded 7 times and a penny stronger to $2.36 per pound while Grade A nonfat dry milk experienced the greatest volume on Friday with 17 trades, 4 bids and 17 uncovered offers left hanging in the market. Dry whey was the sole product to decline in price falling a half cent to 35.25 cents per pound.
The grains did their best to climb out of the early hole they were in but faltered. Corn declined 9 cents, beans were down 11 and the wheat complex dropped 6-12 cents.
The livestock complex had fats down $1.70 per cwt, feeders $4 softer and hogs weakened $1.90 per cwt. Crude declined $3 and diesel was down as well.