Milk Markets Move Higher Despite Trade Concerns
A wild ride in the grain markets captured the attention of traders and producers on Friday, mainly the soybean complex. Soybeans added 13.75 cents and closed at $10.47 per bu., 13 cents shy of the 2018 contract high. Soybean meal was the driving force behind everything. Spot soybean meal jumped $14 per ton while July through September meal was up $10-$12 as meal moves just short of $400 per ton. Trade was supported by optimism in NAFTA discussions expressed by Mexico, China negotiations next week, fewer soybean and canola plantings in Canada, and a port situation in Rosario, Argentina where a cargo ship damaged a dock. Repair projections ranged from a few weeks to 6 months in the world’s largest soybean meal exporting country. Wheat markets strengthened 9 cents in Chicago, 9.25 in Kansas City and 4 cents in Minneapolis. Next week will likely contain much volatility as Chinese and U.S. negotiations get into full swing and potential tariffs are put into play.
Class III milk futures were mainly higher after product traded. April closed unchanged at $14.51 cents while the remainder of the year was up 4-12 cents. Class IV markets were up slightly as well. Butter traded another 20 loads Friday and whopping 87 for the week but fell 2 cents to $2.36 per pound. Butter added 6 cents on the week. Grade A nonfat dry milk had a big week as well, moving 67 loads and trading 5.5 cents higher. Nonfat dry milk closed at $3 cents per pound Friday. Cheddar blocks added a penny Friday to $1.62 per pound while barrels gained a half cent to $1.4875. Forty-five trades took place with barrels this week but only 6 in the block market. Dry whey was unchanged for the day at 31 cents per pound with no trades all week.