Dairy Markets Moved Higher As Corn Markets Crashed
Friday showed gains on all 5 CME spot dairy products for the week. A busy trading week saw 51 loads of butter moving. Though unchanged on Friday at $2.41, the weekly average came in at $2.41 up 3 cents from last week’s average. Cheddar Blocks gained 2 cents Friday to $1.85 ¾, and the weekly average was 5 cents higher with 24 loads trading this week.
Cheddar Barrels gained 2 ½ cents on Friday to $1.79, and the weekly average was 6 cents higher, averaging $1.74 for the week with 37 loads trading hands, 19 of those on Friday. We also see the block barrel spread at 6 ¾ cents.
Dairy powders showed the smallest change. Grade A nonfat dry milk was unchanged Friday at $1.05 even and was basically unchanged as an average from last week. 7 loads traded hands this week in a very stable market. Dry whey fell ¾ cent to $0.33 ½ per lb. The weeks average gained half a cent off of last week’s average with 14 loads moving this week.
Class III milk continued its moves higher. June was unchanged as it winds down trading at $16.27, July gained 11 to $17.29, and August gained 12 to $17.59. Second half average was up and finished at $17.53 per cwt.
The big news of the day came out of the USDA planted acres report. Corn estimated acreage was 91.7 million. Trade expectations were at 82-89 million. This drove corn prices sharply lower and for a time traded limit down. July corn finished the day 19 ¾ cents lower at $4.20 ¼. Soybean acres came in lower than expected at 80 million acres. Causing a rally as the trade was expecting 84 million. July Soybeans finished 12 higher Friday to $8.99 ¾.