Milk markets continue to be under pressure. An abundance of whole and skim milk continues to be dumped in the Upper Midwest and Northeast regions. However, watch for milk production to be somewhat constrained moving forward as grain prices rise, producer’s receive May milk checks, dairy cow slaughter stays at elevated levels, and the heavy rains hold back production in the Southwest.
On the CME Dairy Spot Call, both blocks and barrels slipped a couple of cents while dry whey ticked up a penny. This caused further degradation of the Class III Futures curve 5-15 cents, with July settling to $15.86. In Class IV, butter dropped a cent to around $2.35 while Nonfat remained the same after a flat GDT Pulse auction this morning. July Class IV fell 20 cents to $17.74.
Grains were loving the dry weather story until rain rolled through Chicago around noon time. In turn, December Corn finished up 2 cents from yesterday at $5.5125. Soybeans seem to be located in more heavy drought country, as they skyrocketed over 30 cents to $12.3950. December Soybean Meal followed suit, as it came to $377.20, up almost $7. July Wheat followed corn, finishing the day at $6.3625, up two cents.
Livestock started off in the red and quickly turned around finishing higher. June Live Cattle gained 75 cents, up to $181.200 while August Feeder Cattle added nearly a dollar and fifty cents, settling to $2.4045. Lean Hogs were down in the nearby months but had very modest gains of around 50 cents or more in the remainder of the forward curve. Crude bounced off the hard support of $67, once again, bringing it to about $69.20.
With Ever.Ag, this is Bryce Windecker on Know Your Markets.
