Dairy Margins Take Hit on Wednesday
July 14, 2021
Dairy margins took a bit of a hit during Wednesday’s CME market trade. Corn prices rose 16-18 cents/bu from Sept 2021 to July 2022. Soybean meal added $9.5-$12/ton out through 2023 markets. Soybeans traded 31.5 cents/bu higher in the new crop November price with the settlement posted at $13.8325/bu. Wheat markets followed suit jumping 13-20 cents/bu across the three complexes.
Class III dairy prices lost early gains as cheese found a couple sellers. August through October declined 29-35 cents/cwt while November and December were down 19 and 10 cents, respectively. 2022 prices were unchanged except for February adding 5 cents and August falling 4 cents. Class IV milk prices saw gains of 2-17 cents over the August through December 2021 months while 2022 was unchanged.
CME spot product markets had barrels down 5.25 cents as two loads were exchanged and a closing price of $1.595/lb. Blocks weakened 1.5 cents with 2 trades also taking place and settlement posted at $1.7375. Butter moved 11 loads from seller to buyer but ended the day unchanged at $1.71. Dry whey softened 1.75 cents to $0.52/lb. Non-fat dry milk fell 2.75 cents to $1.24/lb.