Trump Lifts Steel Tariffs, Jolts Milk Prices
News hitting the wire Friday of tariffs being lifted by the US on Canada and Mexican Steel and Aluminum helped to feed the gains made in Class III milk. Our largest trade markets for cheese and dairy products, this will lead to a removal of retaliatory tariffs on US products, including dairy.
This also paves the way to get final approval the USMCA agreement that will be the replacement for NAFTA. This information hit the markets after the CME spot product trade concluded. Butter sold off a bit after several strong days of trading. Falling 4 ½ cents to $2.34/lb. Cheddar Blocks and Barrels had strong trading days. Blocks gained 1 ½ cent on 12 loads trading to $1.67 ¼, and Barrels gained a 1 ¼ cents on 15 trades to $1.62 ½.
Dry Whey continued to hold unchanged at $0.34/lb with no loads trading Friday and no offers or bids. Grade A Non Fat Dry Milk fell a quarter of a cent to $1.04 ¾.
Class III milk took off and was up as many as 31 cents in September during trading on Friday. May gained 5 cents to $16.33, June gained 22 cents to $16.45 and the second half was up 18-30 cents to average just shy of $17 at $16.99/cwt.
Class IV milk in May was unchanged at $16.28, June was unchanged at $16.85 , but August and September fell 15 cents and the second half is averaging $17.32/cwt.
For Commodity Risk Management Group, this is Jenny Wackershauser on Know your markets.