Milk Markets, Grains Move Higher
Despite zero support in the CME spot product markets on Wednesday, Class III markets were mainly higher. Butter lost 3.5 cents Wednesday to $2.3725 per lb following 8 trades, 3 bids and 1 uncovered offer. Cheddar blocks, barrels, dry whey and Grade A nonfat dry milk all closed unchanged. Blocks ended at $1.6825, barrels at a 1.5425 and dry whey finished at 35.25 cents per pound.
Class III milk futures had June a penny lower and the second half 6-14 cents higher. The 2nd half average closed at $16.82 per cwt. Class IV milk lost 4-10 cents per cwt June through September.
The market was supported today by April results in Oceania milk production reported last week. Year over year, April production fell 10% to 4.2 billion pounds. Australia has been hampered by drought all year long and is the main culprit of their drawdown to 1.23 billion pounds. New Zealand production totaled 3 billion pounds in April as rainfalls slowed down as well and pastures dried up.
Grain markets had a wild ride once again Wednesday. After the USDA’s planting progress report was released Tuesday, showing 58% of the corn crop was in the ground and 29% of beans, markets gapped higher overnight. In the end, corn settled 1.5 cents lower at 19 cents off their highs, while soybeans gained 16 cents but were still 20 cents off their highs. The wheat complex had a similar move, closing 6-14 cents lower after peaking 6-15 cents higher overnight.