Markets Trade Erratically After News From China
The big news in the market on Wednesday took place in the soybean market. As reported by Reuters and numerous sources, China came in and bought U.S. soybeans for the first time since the tariffs went into play.
While the quantities thrown around ranged from 500,000 to 2.6 million metric tons, the excitement that came from China buying had markets trading erratically all day. In the end, beans added just 5 cents Wednesday. We’ll have to wait until the USDA’s official numbers come out to see how much exactly was bought. Corn added 1 and ¼ cents while wheat was up around 5 cents.
CME product markets on Wednesday had barrel cheese adding another 2 and ½ cents after being up in excess of 4 cents on Tuesday. Barrels ended up at $1.27 and ¾ cents following 5 trades and 5 offers. Blocks moved 1 and ¾ cents higher to $1.34 and ¾ cents following a single trade.
Butter fell 1 and ¼ cents to $2.18 and ½ cents on 2 unfilled offers. Grade A nonfat dry milk lost a half cent to 92 cents seeing 6 loads moving hands. Dry whey was unchanged at 43 and ¼ cents. Class III markets were higher as 1sthalf 2019 ranged from 7-14 cents higher. The 1sthalf 2019 average closed at $15.14 cents per cwt. and the 2ndhalf ended at $16.39. The Class IV full year average settled at $15.89 per cwt.