Have you been following the cheese market prices? Barrel market down to $1.20 today which leads me to believe the block market will continue it’s decline. Is any of this related to the recent talk of tariffs? Any insight into the reason for the decline is appreciated.
From the Cheesereporter front page:
China’s announcement about its plans to raise tariffs on imports of dairy products from the US appears to have caused some anxiety in US dairy markets this week. USDA’s Dairy Market News reported that its midwestern cheese market contacts are anxious about the growing CME block to barrel price gap, tariff-related trade pushback and tumbling market prices, while in the northeastern region of the US, the recent trade news from China has concerned some contacts about how the cheese market will be affected.
And from MilkBusiness.com:
University of Wisconsin dairy economists Bob Cropp and Mark Stephenson both say dairy markets are likely over-reacting to the threat of tariffs on U.S. dairy products by Mexico and China. They note the tariffs are more threat than reality at this point, and not a single tariff has been imposed—yet.