Grain Markets Strengthen, Dairy Markets Soften
Grain markets found continued support on Monday from a lack of rain in Argentina. Whereas forecasts earlier predicted upwards to an inch and a half of rain, less than a half of an inch actually hit the ground. Dry weather will persist there for another week as we wait for the next system to move through.
In the meantime, buyers are seeking coverage of grain products while speculators unwind their short positions. In tandem their efforts drove markets higher on Monday. Corn was up 4.5 cents per bu. while soybeans climbed 17 cents. Soybean meal was up $13 per ton on average out through summer.
Less exciting moves took place in the dairy complex. Block cheese dropped a quarter cent to $1.5075 per pound. Barrels were unchanged at $1.36 per pound. Butter was up ¼ cent to $2.03 per pound, and Grade A nonfat dry milk was unchanged at 73.5 cents per pound. Whey contracts remained unchanged as well with prices averaging 26 cents per pound out through summer.
This collective low volume soft price activity found in the dairy product complex on Monday, led to a softer price in Class III milk markets where prices dropped 3 cents per cwt in the period from now through June, to an average of $13.88 per cwt. Class IV markets saw little activity and finished at $13.47 per cwt for that period.