There was very light volume today after President Trump announced 125% tariffs on China and China retaliated with an 84% tariff on the US. Despite China’s new tariffs on imported dairy and a slip in spot dry whey price, Class III futures came roaring back today with 40-50 cent gains for May and June for the first time in quite a while. Both blocks and barrels edged higher and gave cheese futures something they were looking for, driving the May “all cheese” contract over the $1.75 mark. Class IV markets were quieter, while energy and cattle markets had a huge range of trading due to the numerous macro-economic factor headlines at play.
Today’s Highlights from Ever.Ag’s Know Your Markets
- CME markets were relatively quiet today. Spot blocks rose a half cent to $1.7075 per pound, while barrels ticked up to $1.7725, adding $0.0175. Three lots of blocks and one of barrels changed hands. Butter settled at $2.3125 per pound, a quarter cent higher, with no trades. Spot NDM also increased, up a half cent to $1.1575 per pound, with five lots changing hands. Dry whey slipped to $0.4800 per pound, losing $0.0125, with two loads exchanged.
- Class III futures leapt higher after the White House announced a 90-day pause on most tariffs (excluding China). The May contract shot up to $17.39 per hundredweight, tacking on 47 cents, while Q3 contracts settled at $18.15, a 33-cent gain. On the grain side, nearby soybeans climbed back over the $10-per-bushel mark, closing up 20 cents at $10.1275.
- US butter remains more than a dollar cheaper than global competition. The CME weekly average price so far is $2.31 per pound compared to $3.36 in New Zealand and $3.63 in Europe. Cheese is also less expensive, with the week’s average at $1.73 per pound versus New Zealand’s $2.28 and EU’s $2.40. It’s a similar story in milk powders. The week’s US NDM average is $1.16 per pound while New Zealand sits at $1.30 and Europe at $1.21.
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