Markets Drop Lower After Tariff Announcement
Milk and product markets were mainly lower on Friday, with the exception of Grade A non-fat dry milk, following the announcement of steel and aluminum tariffs against Canada, Mexico and the European Union.
Mexico threatened retaliation on U.S. cheese, among other products. Cheddar barrels fell 2 and ½ cents to $1.52 per lb. No trades took place Friday, but 26 loads moved on the week. Cheddar blocks declined a penny to $1.59 and ¾. Five of the seven trades this week took place on Friday. The average price per transaction fell 2 cents this week in both the barrel and block markets.
Butter was the most active market on Friday, as it traded 32 times and had 17 uncovered bids and 4 offers. Butter dropped 1 and ¼ cents to $2.37 and ¾ cents per lb. Sixty-five loads traded in total this week. Dry whey softened ½ cent to 38 and ½ while Grade A nonfat dry milk finished unchanged at 82 and ½ cents per lb.
Class III milk markets were lower all day. June dropped 8 cents while July was down 16 cents. August through December ranged from 6 to 10 cents lower. January through Jun 2019 months were 5 cents lower.