Dairy Off to a Slow Start While Grain Climbs Quickly
While dairy markets have had a slow start to the week, grain markets have had anything but.
Monday's trade saw corn markets finished 10 cents lower, before retracing every penny of that in Tuesday's trade. Soybeans were even less inspired. They fell 16 cents on Monday, only to recover less than a penny in Tuesday's trade. New crop soybeans are now just 10 cents from contract lows. The weakness in soybeans has had spillover in the soybean meal where prices are now $45 off the peaks posted in early May.
The volatility in Tuesday's session follows the release of the USDA’s monthly supply and demand report which revealed a shrinking ending stocks figure for the 2018-19 marketing year. That was below 1.6 billion bushels for corn and 400 million bushels for soybeans. Those cuts translated into a shortened global balance sheet as well.
Back to our dairy markets, butter prices fell 2 cents in Tuesday's spot trade. It traded its first loads of the week, moving 4 from seller to a buyer and finishing at $2.37 cents per lb. Barrel cheese followed suit falling 2 and 1/2 cents on 15 loads to finish at $1.54. Block cheese moved the opposite direction rising 1/2 cent to $1.64. While Grade A nonfat dry milk gave up ½ cent to finish at 78 and ¾ cents. It doubled its weekly volume by trading 4 loads. Dry whey remained unchanged and finishes at 41 and ¾ cents. In response, Class III markets finished down 5 cents in their average from now through the end of the year to a price of $16.29 per cwt. The Class IV average for the same period dropped a penny.