Ag groups have been preparing for President Trump’s tariffs for some time now. One dairy group says that preparation has actually helped their numbers.
“So, certainly, folks have been gearing up. That’s actually been good for our trade data so far. We’re moving a lot more product because folks don’t want to be out of U.S. products during these times,” said Sarah Dorland, a dairy economist with Ceres Dairy Risk Management.
Dorland says it does not take much market action to shake up the dairy economy. While they are shipping a lot of products now, she warns that could change drastically in the future.
U.S. dairy products are looking at an additional 10 percent tariff from China in the coming days. China has responded with its own tariffs that aim to target a number of U.S. ag goods. They include a 15 percent tariff on all U.S. chicken, wheat, corn, and cotton. There is also an extra 10 percent on U.S. soybeans, sorghum, pork, beef, as well as other fruits and vegetables. Chinese officials say those take effect March 10th.
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Tight feeder supplies and lower placements indicate continued support for the cattle market, with regional impacts heightened in Texas by reduced feeder imports.
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Cattle markets are watching the Cattle-on-Feed Report for signs of tighter supplies, while USMEF warns limited China access is cutting producer profits.
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