Trump's Tariff Tweet Scares All Markets Except Dairy
A tweet from the White House’s fearless leader on Sunday night shook up all ag markets with the exception of dairy.
Corn began the Sunday into Monday overnight session trading 11 and a half cents lower and up to 15 cents softer as its lowest point. Soybeans settled 12 cents lower but were up to 24 cents weaker at one point. The wheat complex ranged from down a penny one higher. Fat cattle lost $1 per cwt. and feeders were down $1 and a half per cwt. Hogs finished limit down.
The tweet from President Trump mentioned that additional tariffs would be levied against China beginning Friday. $200 billion of Chinese goods have been tariffed at 10%, these will rise to 25% while an additional $325 billion of goods will also see tariffs of 25% beginning Friday, this later piece hasn’t seen tariffs as of yet. The tweet was confirmed later in the day Monday and these tariffs will indeed go into play. Dairy markets escaped a lower market on Monday.
Blocks and barrel cheese both settled at $1.70 per lb. Blocks moved five loads and 2 and a half cents higher while barrels added 3 and three-quarter cents on two uncovered bids. Butter added a penny to $2.28 and a quarter per lb. Grade A Nonfat dry milk and dry whey were both unchanged.
Class III milk prices were 13 cents higher in May, 1-4 cents higher in June-September and 1-3 lower in the fourth quarter.
Class IV markets were 2 cents lower to 8 cents higher. While milk prices were steady Monday, political news that broke continue to show how vulnerable this market could be moving forward.