….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.