Markets Drop Lower Before Tariffs Begin
A day before tariffs are scheduled to go into play between the United States and China, commodity markets traded in a volatile manner. After beginning Thursday’s trading session up 5 and ½ cents, corn slowly drifted lower and settled at $3.63 and ½ cents, up ¼ cents for new crop.
Soybeans fell 8 and ½ cents to $8.55 and ¾ cents and put in a new contract low of $8.54 and ¼ per bushel on November beans. Wheat markets added 8-19 cents per bushel depending on the market. CME spot product markets were mainly lower on Thursday. Butter fell 2 cents to $2.18 per lb. after 3 trades. Cheddar blocks declined ¾ of a cent to $1.54 and ¼ cents while barrels were hammered and weakened 8 and ½ cents to $1.28 per lb. following 3 trades.
Grade A nonfat dry milk added ¼ cent to 74 and ¼ cents per lb. and dry whey lost ¾ of a cent following 1 trade to 39 and ¼ cents per lb. Class III milk dropped 11-15 cents July-December 2018 and 4-8 cents January-May 2019. The second half of 2018 average settled at $15.22 per cwt. and the 1st half of 2019 closed at $15.67.
Class IV markets were 1-12 cents softer in 2018. The second half of 2018 average for Class IV now stands at $14.35 per cwt.