This Week In Dairy 06-10-2022

June 10, 2022


Sellers Push Dairy Spot Trade Lower Friday

Dairy sellers were aggressive in Friday’s spot session across the cheese, butter, and powder markets. Sellers offered barrels 6.25c lower to $2.2425/lb on 9 loads traded. A good amount of inventory has been hitting the market, as the 9 loads traded today follows the 10 loads traded yesterday. The drop in barrel price Friday takes the barrel market down overall for the week by 0.25c. Block cheese fell 2c to $2.2550/lb on 1 load traded on Friday, which puts blocks down 1.50c overall this week. The butter trade couldn’t hold $3.00/lb as sellers moved 5 loads on Friday to push the market to a close of $2.9750/lb. Powder fell 1.50c for the second day in a row, down to $1.8550/lb.

Class III and IV milk futures had a steady week of trade overall, but ended Friday on a sour note heading into next week. Second month class III fell 33c to $24.62 on Friday while second month class IV was down 8c to $26.19. Next week should be a light week for news for dairy, so spot market trade will likely dictate price action. The market will watch to see if sellers get aggressive with spot butter near $3.00/lb and with the US block/barrel average cheese price at its lowest level since late March. The cheese market has quietly been drifting lower for a couple weeks now as regional cheese reports are hinting at inventories starting to build once again. Export demand for cheese has reportedly been strong though.


Corn Posts Strong Rebound This Week

– After falling 50.25 cents last week, the July 2022 corn futures contract recovered 46.25c this week and posted a $7.7325 settlement

– This was the first up week for July corn since the week of April 25th, snapping a five-week down streak

– In Friday’s Supply and Demand report, the USDA estimated US 21/22 corn carryout at 1,485 vs 1,437 expected and 1,440 in May. The increase in carryout was due to a 50 million bushel drop in expected US exports

– Grain prices were sharply lower Friday morning on concerns following a bearish CPI data showing strong inflation, but the corn trade rebounded by close

– Earlier this week, the USDA said 73% of the US corn crop was rated good to excellent. This was 5% higher than market expectations for 68% good to excellent

Soybean Meal Bounces Back

– After falling $24.40 per ton last week, the July soybean meal futures contract bounced back $21.20 this week and closed up at $429.10

– Buyers continue to defend the $400 per ton level while sellers have put a lid on the market near $435. Soybean meal is choppy right now

– In Friday’s Supply and Demand report, the USDA estimated the US 2021/22 soybean carryout at 205 versus 218 expected and 235 in May. The drop in carryout was due to a 30 million bushel increase in soybean exports from the US

– The USDA estimated US 2022/23 soybean carryout at 280 versus 307 expected and 310 in May


Friday’s Market Quotes


Evan Disher

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