August 1, 2019

Markets Slide On Tariff News

 |  By: Know Your Market

Just about every market in the ag space fell in Thursday’s trade. On the dairy front, Class III milk prices lost 3 to 7 cents in 2019 with the exception of September closing unchanged. 2020 prices also fell ranging from 5-15 cents softer January through July 2020. Class IV milk watched the five remaining months decline 7-17 cents per cwt. 

CME spot product markets had barrels a half cent lower at $1.6925. Eight loads moved from seller to buyer. Grade A nonfat dry milk lost 1.5 cents and settled at $1.02 per lb. Butter, cheddar blocks and dry whey were all left unchanged in Thursday’s session. 

A tweet that was released by President Trump during trade sent many other markets into a sputter. The tweet mentioned that since there was no deal struck in the latest meetings in China this week, an additional $300 billion dollars of Chinese goods will be tariffed at a 10% rate. That is on top of the $250 billion already with tariffs in place at a 25% rate. Corn lost 7.25 cents to $4.025 per bu., even dipping below $4 for the first time since May 17. Soybeans dropped 16.25 cents to $8.6525. The wheat complex fell 12 cents in Chicago, 7 in Kansas City, and a penny in Minneapolis. Fat cattle added a buck, feeders softened a buck and hogs were down $3.50 per cwt. 

Other markets to note were crude losing $4.60 per barrel, diesel down 11 cents per gallon and the stock market off 312 points. 

Learn more risk management strategies from Mike North at the 2019 MILK Business Conference. 

2019 MILK Business Conference - Healthy Dairy. Healthy You. 

When: NOV. 11-13, 2019 

Where: The Luxor Resort & Casino, 3900 S. Las Vegas Blvd, Las Vegas, NV 89119

What: Build your business and mind muscle at this year’s MILK Business Conference. MILK Business Conference will offer expert insight on the constantly changing and challenging dairy industry.