Product Trade Drives Milk Markets Lower
The CME spot product trade drove Class III milk lower on Monday as both Cheddar Barrels and Butter sold off on Monday. Butter fell a penny on 2 trades to $2.35/lb and Cheddar Barrels fell 2 ½ cents on 9 trades to $1.51 ½ /lb. Nonfat Dry Milk also lost a quarter of a cent to $1.05 ¼ /lb but didn’t trade an loads with 4 bids and 2 offers.
Cheddar Blocks gained half a penny on 2 loads trading hands at $1.72/lb and pushed the Block/Barrel spread to 20 ½ cents. Dry whey only had 2 bids, no offers, and no trades Monday to stay unchanged at $0.35 ¼ / lb.
Class III started the day up 5-10 cents and turned following the start of the CME spot trade. June falling 16 cents to $16.04/cwt, July off 16 to 16.47, and Second half being mixed with the average at 16.92/cwt.
Class IV milk fell 2 cents in June to $16.86, was unchanged in July at $17.02 and has a second half average of $17.28/cwt.
The grain complex was mixed as the planting progress report from USDA was awaited for on Monday afternoon. July corn fell 2 ¾ to 4.24 ¼, July Soybeans gained 1 ½ to $8.79 even and July SBM fell 80 cents to $320.50/ton. Monday’s USDA planting progress report shows the US farmer has 67% of corn planted versus a 97% 5-year average and soybeans were at 39% planted versus a 79% 5-year average. The Midwest continues to battle wet conditions as they work through planting season.
For Commodity Risk Management Group, this is Jenny Wackershauser on know your markets.