Commodity Markets Shook Up After China Tariff Announcement
After China retaliated with tariffs on $34 billion worth of U.S. goods on Friday, President Trump went a step further Monday night another 10% tariffs on $200 billion of Chinese goods. While it isn’t a forgone conclusion if these additional tariffs will go into play or not, it did shake up the commodity markets.
December corn traded as low as $3.60 per bushel but rebounded and settled at $3.75 and ¼ cents per bushel. Soybeans closed 20 and ½ cents lower at $9.11 per bushel, but was at one point as low as $8.64 and ½ cents, down 67 cents at that time.
Milk markets fared pretty well despite a softer product. June and July fell a penny while August jumped 11 cents. September through December traded 2-5 cents higher while 2019 had mixed results. Class IV milk had August and September 8 cents lower.
The cheddar barrel price was slashed another 7 cents following 10 trades to $1.32 and ½ cents while blocks fell 2 and ¾ cents to $1.56 and ¾ cents. Butter declined 1 and ¼ cents on 6 trades to $2.31 cents per lb. Grade A nonfat dry milk softened ¾ cents to 75 and ¼ cents and dry whey was down ½ cents to 39 and ½ cents per lb.