Class III Markets Bounce Like a Yo-Yo
Monday’s Yo-yo Class III milk move was driven by Cheddar Blocks and their 7 cent move higher on zero trades and only 2 bids to finish at $1.64/lb. Cheddar barrels were up ½ cent to $1.57. This widens the Block/barrel spread back out to 7 cents from the tightening we saw last week.
Butter was up 1 ½ cents to $2.28 on only 1 trade. Grade A Nonfat Dry milk fell a quarter cent to $0.95 ½ /lb and Dry whey also fell a quarter cent to $0.32 3/4/lb
We saw April Class III milk rally as much as 30 cents during cheese trading, to settle at 20 cents higher to $15.49. The remainder of the months didn’t do as well. March was up 2 cents to $15.05 and second half saw mixed moves from 1 cent lower to 5 cents higher for an average of 16.22/cwt.
Class IV milk was also mixed from 7 cents lower in August to 9 cents higher in June. April Class IV ended the day at 15.84/cwt and May at $15.96.
Monday’s Corn and Soybean markets showed slight gains. May corn up 1 ½ to $3.79 ¾ and May Beans up 2 ¾ to $9.06 ½. July SBM has had a steady climb since March 12thto $318.40/ton. We will continue to watch these markets as Friday’s Planting intentions report will be released.
For Commodity Risk Management Group, this is Jenny Wackershauser on know your markets.