Dollar Index Hits Multi-Year Low
Late in 2016 and early 2017, the U.S. dollar index traded as high as 103.815. Since that time, the index has gradually softened. The dollar index is valued against a basket of world currencies. A high dollar means that other countries have to pay more for U.S. products, while a weaker U.S. dollar makes the United States much more attractive to do business with. On Tuesday, the U.S. dollar traded as low as 89.84 ½, the lowest value it has traded at since December 26, 2014. This is very good news moving forward as a high U.S. dollar has priced our products out of many export opportunities.
CME spot product markets showed little activity on Tuesday. Butter traded once and a half cent lower to $2.115. Grade A nonfat dry milk added a penny and closed at $71 ¾, two trades took place. No trades were made in blocks or barrels. Barrels finished unchanged while blocks fell a penny to $1.56. No bids or offers were left open for the second straight day.
Class III milk had mixed results. January closed a penny higher to $13.90 per cwt. February dropped 8 cents, March – May was up 4-8 cents, while June – December was up 2-5 cents per cwt. Class IV had May – August trade 1-6 cents higher.