Class III Moves Lower
A mixed day of trading in the CME Spot Product market drove class III milk lower Tuesday. Following the closed market for Memorial Day on Monday, Butter gained 2 cents on 2 trades to $2.40 3/4/lb. Values we saw this time last year when the market topped out at 2.43/lb and then retreated. Cheddar Barrels fell 3 ¾ cents to $1.54 ¼ on 9 trades and Cheddar Blocks were unchanged with only 1 offer, no bids, and no trades. Finished at $1.68 ¼ and widening the Block/Barrel spread to 14 cents.
Grade A Non Fat Dry Milk was unchanged with 4 loads trading hands and finished Tuesday at $1.04 ½. Dry Whey fell ¾ of a cent to $0.35 1/4/lb.
The weakness in Cheddar Barrels saw Class III milk falling sharply losing 23 cents in June to $16.08 and 12 in July to 16.40. May continues to hold unchanged at $16.38 as we wind down the month of trading. Second half months saw losses of 5-12 cents and finished with an average at $16.70, 30 cents off our peak average of $17 we witnessed last week.
Grain markets continue a strong rally with delayed planting and wet weather conditions across the Midwest. July corn gained 16 cents Tuesday to 4.20 ¼, July Soybeans were up 26 ¼ to 8.56 even and July Soybean meal gained $12.30 to $312.80/ton. The May 28th planting progress report has the US with only 58% of its corn crop in the ground, versus a 90% 5 year average.
For Commodity Risk Management Group, this is Jenny Wackershauser on know your Markets.