As Grains Slide, Feed Continues To Get Cheaper
Feed prices for dairymen seem to get cheaper by the day as of late. Corn prices dropped an additional 4.5 cents on Wednesday to close at $3.4675 for May and #3.76 for new crop December. Soybean meal lost $1 per ton and is sitting at an average price of $306 per ton in 2019. Corn continues to make new contract lows with the fund community accumulating more than 370,000 short positions while bean meal is trading just north of its lows. Soybeans lost 6.75 cents to $8.895 while the wheat complex softened 6 cents in Chicago, 10 in Kansas City and 8 cents in Minneapolis.
Dairy markets on Wednesday were highlighted by the barrel market moving 2.5 cents higher to $1.60 per pound, following 7 trades and 4 bids. Blocks lost a quarter cent to $1.67 following 5 loads being exchanged. Butter fell ¾ of a cent to $2.255 with four trades taking place. Grade A nonfat dry milk added ¾ of a cent following 2 loads moving from seller to buyer to end at $1.02 per pound. Dry whey declined a half cent to 33 cents even.
Class III milk was mixed with the 2nd quarter trading 1-4 cents higher while the 2nd half ranged from even to 6 cents lower. The second half of the year is averaging $16.57 per cwt. Class IV was all over the board with markets 7 cents lower in August to 5 higher in July and December.