Cheese and Milk Markets Take Jump
Barrel cheese was behind the story on the dairy trade on Wednesday. After dropping 15 cents in the previous trading sessions, barrels climbed 8 ¼ cents to finish at $1.59 ¼ cents per pound. Block cheese also traded higher at close to $1.68, up 2 cents. What started as a 15-cent block and barrel spread ended at 8 ¾ cents heading into tomorrow’s trade.
Butter markets softened a penny to $2.65 while grade A nonfat dry milk was unchanged at 85 cents.
Class III markets started softer but picked strength on the coattails of the cheese market. August gained 17 cents while September and October were up 39 and 37 cents, respectively. November closed 24 cents higher and December added 18 cents. 2018 prices ranged from 4 cents lower to 3 cents higher.
Class IV markets were 2 cents higher in August while all other markets were unchanged.
Cattle markets broke some key support and traded below $1.10 per pound for the first time this year. As we look forward with large placement numbers in the market, softer cull cow prices could be in store.
USDA releases its much anticipated August supply and demand report on Thursday at 11 am Central time. Most analysts guesses are for reductions in both corn and soybean yields with corn’s average guess at 166.2 bushels per acre and soybeans at 47.5 bushels per acre.