Grains and Milk Go in Opposite Directions
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.