Grain Markets Seem Surprised by Hot, Dry Weather
Newsflash: July weather often tends to be hot and dry.
For most people, this seems like a common sense statement. Grain markets, however, seem to be caught off guard by that thought on an annual basis. The uncertainty about how such weather would stress the crop infuses volatility in the market that creates fireworks for buyers and sellers of grain and grain products.
The 2017 poster child for such movement has been the Minneapolis spring wheat contract. Wednesday’s trade saw the September contract peak at $8.68 ½ cents, while Thursday’s settlement was $7.69, a full dollar drop in just a day’s trade. After feeling the early morning pressure from the wheat market, row crops were able to recover. Corn finished down a penny, while soybeans were up a nickel and soybean meal was up approximately $3 ½ to $4 per ton.
In the spot dairy trade on Thursday, butter fell 7 ¼ cents to a final price of $2.57 ¼. Block cheese rose 1 ½ cents to $1.55 ½, while barrel cheese dropped ¼ cent to $1.36 ¾ and grade A nonfat dry milk was up 1 ¼ cents to 86 ¾ cents.
The Class III market remained firm all day where the average price between now and December averages $16.67, up 5 cents. Class IV milk finished unchanged at its average of $16.75.