Corn Markets Ride a Volatility Rollercoaster
The CME spot product market struggled in Tuesday’s session.
Dry whey was the lone product to prevent any slippage in price. It closed at 34 cents even with six uncovered bids and one offer left hanging in the market. Cheddar barrels experienced the largest sell off falling 3 and three-quarter cents to $1.60 per lb.
Large volumes continue to be moved on the spot session as 10-barrel loads moved from seller to buyer. Blocks declined three quarters of a cent to $1.66. Five trades took place. Butter softened a penny to $2.35 and Grade A nonfat dry milk lost a quarter cent to $1.05 to three-quarters per lb.
Class III milk markets ranged from 3 cents lower in May and 7 cents higher in both August and September.
The most excitement lately has taken place in the grain markets. After falling to $3.43 Monday morning, corn closed Tuesday at $3.68 and three-quarters for July. It has without a doubt been the most volatility the corn market has seen in a long time.
New progress was the fuel for this move higher. With just 30% of the United States planted vs. a five-year average of 66%, volatility is likely to remain. Soybeans jumped 29 cents while wheat was up 5-12 depending on the complex.