Cheese Continues to Lead Product Markets
While barrels led the cheese complex higher in Monday's trade, it was blocks turn on Tuesday. Blocks rose 3 3/4 cents after a single load traded hands to finish at $1.64. Blocks now carry a 16 1/4 cent premium over barrels which finished unchanged Tuesday after six loads traded hands.
Grade A nonfat dry milk followed the cheese complex higher rising 3/4 cents to finish at 73 1/2 cents. Butter was unchanged but traded a whopping 23 loads finishing at $2.32. Dried whey move the opposite direction from its counterparts in the spot trade dropping a penny to finish at 30 cents.
Despite the higher cheese trade the average for Class III prices from now through the end of the year finished down a penny at $15.60 per cwt. Class IV saw little volume with an average price of $14.75.
Elsewhere the USTA released the May World Ag Supply and Demand Estimates. Of note was an increase in corn ending stocks by 55 million bushels and a decline of soybean ending stocks by five 5 million bushels. Dry weather in Argentina, together with a slow planting pace in Brazil, lowered estimates for South American corn production, while a new record for Brazilian soybean production offset some of the losses experienced in Argentina.