Feed Costs Continue to Pressure Milk Dairy Margins
May 5, 2021
Feed costs will continue to pressure dairy Margins. Wednesday had December corn break through $6 for new crop and July pushed through $7. Corn finished the day with July up 11 ¾ cents to $7.08 ½. December corn at 6.04 3/4 /bu. These values have not been seen since September of 2013. Soybean meal gained 2.90 to $424.40/ton as Soybeans gained 4 cents in July to 15.42 ¼, and November gained 19 ½ cents to 13.82 ¾ /bu.
Dairy markets were stable as the CME spot trade saw Cheddar Blocks gain a quarter of a cent to 1.80 ¼, Barrels gained 2 ½ cents to 1.84 1/2/lb. Blocks moved and impressive 5 loads and Barrels 7. Butter fell a penny to $1.73 1/2/lb with 9 loads trading hands.
Grade A Non Fat Dry Milk gained 1 3/4/lb to $1.35 ¾. Dry whey gained a quarter of a cent to $0.64 3/4/lb.
Class III Milk had May up 8 cents to 19.15, June fell 2 to 19.76 and July gained 2 cents to 19.86/cwt.
Class IV milk was quiet nearby, but 2022 jumped higher. May slid 1 cent to 16.20, June and July were unchanged at 16.99, and 17.31. January of 2022 gained 20 cents to 17.75 and Feb and March also moved to 17.75/cwt.