Trade Deadlines Put Markets in a Bad Mood
As trade deadlines approach Friday, the markets had a hard time fighting off the bearish attitude we’ve seen all week. The US and China delegations are meeting this week with a tariff threat looming and its driven corn and soybean markets lower all week. May Corn fell 10 ¾ cents to 3.44 ½ and December fell 9 ½ to 3.72 ¾.
May soybeans finished the day down 14 cents to hit at 8.00 ¼. July Soybean Meal fell $3.80 to $289.10/ton. A value we have not seen since April and May of 2016.
Dairy markets followed the trend. Class III milk fell 6 cents in May to 16.35/cwt and 8 cents in June to 16.35. Second half months fell 9-16 cents finishing Thursday with an average of 16.64/cwt.
The CME spot product trade had Butter as the only bright spot of the day. 1 loaded traded moving the price 2 ½ cents higher to $2.31/lb. Cheddar Blocks fell half a penny to $1.69 3/4/lb, and Cheddar barrels fell 1 ¼ cent$1.72 1/2/lb.
Grade A Nonfat Dry Milk fell half a penny to $1.06 ¾ and Dry whey still hasn’t traded a load this week but had 4 bids and 1 offer to leave the price unchanged at $0.34 3/4/lb.
All eyes will be on the White House Friday as we look to see if the China trade deal will be finalized or if additional tariffs will go into effect.
For Commodity Risk Management Group, this is Jenny Wackershauser on know your markets.