November 14, 2017

Grains and Milk Go in Opposite Directions

 |  By: Know Your Market

Trend line violations in both corn and soybeans brought accelerated selling into the marketplace on Tuesday. Corn prices cascaded to new contract lows in December, reaching a price of $3.37 1/4 and finally closing at $3.37 1/2. Soybeans followed suit dropping 4 1/2 cents in their lead November contract finishing at $9.59 after making a low of $9.58 1/2.

Lower grain prices, however, did not equate to lower milk prices. On the contrary, Class III prices rose 5 cents in their average price for the first half of 2018 to finish at $15.09. Class IV markets remained unchanged at an average of $14.25. This came on the heals of a rather sleepy product trade. Block cheese was down 1/4 of a cent on offers only. No trades took place and the final price was $1.71. Finishing again at $1.70, barrels remained unchanged after no trades took place either. Grade A nonfat dry milk followed suit with no trades in its own market, finishing 3/4 of a cent higher on bids to settle at 74 1/4 cents. 

Butter was the most active session with 14 loads trading hands. The market rose 3 cents and the final price was $2.28 per pound. 

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