Markets Off to a Bang After Three-Day Weekend
The vacation effect of the three-day weekend came to an abrupt end on Tuesday as the market started out with a bang. Milk prices were up 20 cents in the month of June, July and August prior to the product trade.
That said, the CME spot product session held good news as every one of the five products that are traded in it traded higher. Butter rose 1/4 cent to $2.41 and 3/4. Blocks rose a penny. It finishes at $1.62. Barrels rose a penny as well and finish at $1.55 and 1/2. Grade A nonfat dry milk rose 1/4 cent to finish it at 84 and 1/2 cents and dry whey rose 1/2 cent finishing at 37 and 3/4.
In the wake of such a positive trade, one would expect that the higher start to the Class III market would only be added to. However, prices eroded following product with the average for those three months falling back to just 12 cents higher. By the end of trade, the June contract was just 9 cents higher, and that set the tone for the entire calendar year where the average now stands $16.45, 9 cents over Friday's finish.
Elsewhere, grain markets started out on a positive note as well, only to be deflated by news of more questions surrounding the negotiations of trade between the U.S. and China. The White House announced that as of June 15, tariffs would take place on imports of certain Chinese goods. Secretary Wilbur Ross heads to China to continue these negotiations.