June 30, 2020

Grains Strengthen on USDA Acreage Report

 |  By: Know Your Market

Tuesday’s commodity markets were highlighted by a stronger dairy and grain complex. Cheddar blocks rose 2 cents and closed at $2.64 per lb., 5 loads moved from seller to buyer on the day. Barrels, butter and dry whey all closed unchanged. Barrels ended at $2.40 per lb., butter at $1.765, and whey at 31 ¾ cents per lb., respectively. Grade A nonfat dry milk moved 6 loads and fell to $1.00 ½, down ¾ of a cent Tuesday. 

Class III milk prices rose double digits in 2nd half 2020. August milk led the charge jumping 60 cents to $19.80 per cwt. Frist half 2021 added double digits as well. Class IV markets were mixed following butter’s unchanged session and nonfat’s slight fall. 

Over in the grain complex the USDA released its Planted Acreage and Quarterly Stocks reports. The surprise came in the corn acres data. While the trade was looking for an average of 95 million acres, USDA printed 92 million acres spurring the corn market 12-15 cents higher. December corn traded through $3.50 per bu. for the first time since April 14. Soybean acreage was more in line with expectations as 83 million acres were released. Soybeans rallied 17-20 cents per bu. Tuesday.