Dairy Markets Give Back What They Gained
Dairy markets were down today following a drop in prices accross the CME spot product trade. Butter was down 2.25 cents finishing the day at $2.24/lb with 4 trades. Showing one of the stronger down days we have seen recently in the butter market.
Cheddar blocks and barrels were also lower. Blocks finishing at $1.38 and three-quarter cents per lb. and barrels falling below our 2018 low of $1.20 to finish the day at $1.18 and a half cent. These moves were on limited offers and no trades today. Finishing below $1.20 pushes us to the lowest we have seen barrels trade since 2009. We will be keeping a close eye on this trend, as markets in 2009 saw Barrels trade as low as $1.03 per lb.
Non Fat Dry milk fell ½ cent to finish at $1.02 and three-quarters lb., and dry why ended similarly down a half cent to finish at $0.52 per lb.
Class III finished the day down $0.06-.17 with the first half average finishing at $14.90 per cwt. and July – Dec at $16.44. Class IV followed moving down $0.14-27 per cwt. across all months except February.
The biggest movers of the trading day came in the grain markets. Rumors about China coming into the market and buying corn and wheat sent late day trading rallying across the grain complex.
March corn finished the day up 6 cents to $3.80 even. March soybeans showed strength finishing up 13 ¼ to 9.07 ¾. Its highs for the day were up as many as 17 cents and touched 9.12 for a time during trading. SBM followed with May finished the day at $315.80 per ton.
With no trade reports being issued during the government shutdown, rumors are driving the grain markets.
For Commodity Risk Management Group this is Jenny Wackershauser on Know your Markets.