Markets See a Sea of Green
Green as far as the eye can see as we look over Tuesday’s trading results. The grain markets charged higher on a World Ag Supply and Demand report that reflected what farmers have been witnessing for weeks. A reduction in corn planted acres by 3 million acres and yields reduced by 10 bu/acres from May. Corn markets responded quickly and finished the day 12 cents higher in July to $4.27 ¾. Soybeans acres and yield was held the same as May’s estimates and decreases in usage pushed the carry out estimate to over 1 billion bushels. July soybeans gained only ¾ of a cent to $8.59 ¼.
The CME spot product trade also showed nice gains. Butter gained 1 ¾ cents to $2.40 ½. Cheddar Blocks gained 1 cent to $1.79 ½ /lb. A high we have not seen since February of 2017. Cheddar barrels gained 1 ¾ cent to $1.55 ¼.
Dairy Powders were unchanged with no loads trading hands. Grade A Non Fat dry milk finished at $1.05 ½ and Dry whey at $0.35 ¾ /lb.
Class III milk followed the parade of green. June gained 5 cents to $16.35/cwt, July gained 13 to $16.84 and the second half average gained 4-14 to finish at $17.13/cwt
Class IV milk gained 0-4 cents and had June at $16.80, July at 17.20 and second half finished Tuesday averaging $17.42/cwt
For Commodity Risk Management Group, this is Jenny Wackershauser on know your Markets.