Three Day Weekend Hits Markets Hard
Markets reopened the week after being closed in observance of Martin Luther King Jr day on Monday to see significant weakness. Cheddar Barrels continued their trend below our 2018 low point of $1.20/lb to finish the day down 2 ¼ cents to $1.17 ¾. Blocks followed suit, finished down a penny to finish at $1.39/lb.
The rest of the CME spot trade also failed to rebound and ended the day down. Non Fat Dry Milk was down 1 ½ cents to finish at $1.01 ½ and Dry Whey finished down 4 cents at $0.46 ½ /lb.
Class III milk had a hard time keeping the slight strength of early trading and ended the day down $.04-.16/cwt to finish with a first half average of $14.77 and second half at $16.35.
Class IV markets are continuing their strength. Only losing $.03-.06/cwt in the months that traded.
Grain markets continue to trade the rumor mill. SBM and Soybeans fell sharply as reports of preliminary trade talks with China being put on hold. We rebounded as it was clarified that only the planning discussions took a set back, but the planned talks were still on the calendar.
May SBM ended the day at $316.70/ton. Corn finished only a little softer. March corn finished at 3.79 down 2 ¾ cents on the day.
For Commodity Risk Management Group, this is Jenny Wackershauser on Know your Markets.