So Far It's Milk, Not Corn, That's Down on Trump Trade Rhetoric
- Nonfat dry milk futures are down 13% amid trade war concerns
- Mexico is looking for alternative sources, one economist says
United Nations Food And Agriculture Organization Montly Index
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The war of words between the U.S. and Mexico over trade has prompted concern over what might happen to cross-border shipments of corn and meat -- even avocados. But there’s one market that’s already feeling the effects: nonfat dry milk.
Futures prices in Chicago are down 13 percent this year. The decline is fueled largely by the “uncertainty stirred up by the heated rhetoric” between the two countries, said Ben Laine, an economist at CoBank Acb. While there’s been no change in trade policy so far, buyers in Mexico have started searching for sources of milk powder other than the U.S., he said.