March 29, 2018

Class III Markets Subdued As Grains Soar

 |  By: Know Your Market

Butter continued its high volume run, trading 20 loads in Thursday's session, up 3 cents in the end to finish at $2.215. This ends the week with 62 loads trading, all but two of which came in the last two sessions. Barrels followed a similar course trading 10 loads, but moving in the opposite direction, falling 3.5 cents to finish at $1.44 per pound. Blocks had no one even show up, so it finishes unchanged at $1.53. Grade A nonfat dry milk was down ¾ cent, three loads traded hands, and it finished at 69 cents. Dry whey traded a single load in Thursday’s session dropping ½ cent to 28.5 cents.

Class III markets were largely subdued, but finished down 5 cents. Their average for the balance of the year is now $15.17. Class IV moved 2 cents higher in its average to $14.18.

In contrast to a quiet dairy complex, grain markets were quite the opposite. The USDA announced that American farmers would plant 88 million acres of corn and 89 million acres of soybeans. Combined that was 4 million acres less than the average guess by analysts and 3 million acres less than last year's numbers. That sent corn soaring up 14 cents with soybeans up 27-30 cents, and soybean meal up 12.5 cents to $13 a ton.