This Week In Dairy 02-18-2022

February 18, 2022

 



Milk Trades Lower This Week

A quiet week of trade in the dairy market without much new news along with a noticeable shift in spot market demand kept futures on the defensive. March through August 2022 class III futures finished the week down anywhere from 13c to 36c. For class IV, the market came off of record price levels as the second month contract was down 45c for the week. Spot butter, powder, and whey were all lower while spot cheese recovered 5.25c and made a charge towards $2.00/lb. The Global Dairy Trade auction from Tuesday was supportive to prices as the overall GDT price index added 4.20%. The auction showed steady bidding in butter, cheddar, and both milk powder varieties. The US market ran into steady selling pressure on Wednesday and couldn’t recover by week’s end. Pressure came from overbought markets and products at their highest prices in years.


 

Corn Recovers From Midweek Selloff

The US corn market was volatile this week, posting four up days and one down day and closing the week green yet again. Despite a 17.75c drop in Tuesday in the front month contract, the market was able to recover by week’s end and close at $6.5425 per bushel. This is up 3.25c from last week. Volatility stems from the potential invasion of Ukraine by Russia. Reports have been conflicting all week, creating large swings in commodity markets. Private US corn acreage estimates for this year range from 91 to 93 million acres. Argentina, Paraguay, and southern Brazil will be warm and dry for at least the next week. In northern Brazil, rains continue to delay planting of the safrinha corn crop.


Soybean Meal Drops From Multi Year Highs

Soybean meal futures closed this week down $8.70 per ton in the front month contract to $447.90. This is down $30 from last week’s high and best price in years. Private exports continue to report sales of US soybeans to various locations as export demand remains high. Private soybean acreage estimates for this year in the US range from 87 to 89 million acres. Continued rains in northern Brazil are delaying soybean harvest and are causing quality concerns, adding support. Talk of lower South American crops and higher demand for U.S. crush and exports remain the biggest supportive factors right now to the soybean complex.


 

Friday’s Market Quotes

Author

Dustin Jonasson

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