2018 June Dairy Situation & Outlook

Professor Bob Cropp’s 2018 June Dairy Situation & Outlook  full report is now available for download at UW Understanding Dairy Markets.  The following is an excerpt from the report…

….But, the market appears to be negatively reacting to U.S. decision to place tariffs on Mexico steel and aluminum and tariffs on a number of China goods and products. In retaliation Mexico announced that they will place a tariff on U.S. cheese and China announced tariffs on some dairy products, corn, soybeans and other products. Mexico is the largest export market for U.S. cheese. In 2017, Mexico accounted for 28.3% of U.S, cheese exports. While these tariffs don’t take effect until July and the degree of impact on U.S. dairy exports is unknown at this time dairy product prices have already fallen…On the CME butter averaged $2.3751 per pound in May, was $2.3784 early June but has fallen to $2.31. Cheddar cheese barrels averaged $1.5870 per pound in May, were $1.5983 early June but have fallen to $1.3250. The 40-pound cheddar blocks averaged $1.6397 per pound in May, were $1.6525 early June but have fallen to $1.5675. Nonfat dry milk averaged $0.8441 per pound in May, were $0.8277 early June but have fallen to $0.7525. Dry whey averaged $0.2981 per pound in May, was above 0.40 in June and has fallen to $0.3950…in recent trades dairy futures have tumbled. Class III futures are now in the $15’s July and August, the low $16’s in September to November and back to the high $15 in December. Class IV is in just the high $14’s July and August and the low $15’s for the remainder of the year.

 Also, for a video podcast including Dr. Bob Cropp and Dr. Mark Stephenson discussing the  Dairy Situation & Outlook, please visit Program on Dairy Markets & Policy.

For more information regarding dairy markets, please contact UW-Extension Dairy Markets Specialist Brian Gould or visit UW-Extension Understanding Dairy Markets.

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