Weekly Commodity Prices Update (6/11)
From Friday to Friday livestock futures scored the following changes: June live cattle up $1.88, August live cattle up $1.95; August feeder cattle up $1.25, September feeder cattle up $0.78; June lean hogs up $3.18, July lean hogs down $0.62.
For the week ended June 4, July corn finished up 1 3/4 cents, December corn finished up 18 1/4 cents. July beans finished 3 1/4 cents higher for the week, and November beans finished up 3 1/4 cents. Kansas City July wheat closed up 1 1/2 cents, Chicago July wheat closed down 7 cents and Minneapolis new-crop September closed 44 1/2 cents lower.
Milk production is variable across the country, but it is the general consensus that spring flush has passed its peak. The hot weather has impacted milk production to some extent and is variable depending on cooling systems on individual dairy operations. Some have reported milk production is still holding while other report a reduction in output. This is somewhat expected every year, but the fact that it is taking place this early in the summer raises concern over what the rest of the summer will hold. Class III milk futures this week have not been very volatile and have moved generally in a sideways pattern. This could indicate the market has found a level of comfort, but one can ever be certain of anything. There has been some anticipation more concern would be evident due to higher feed prices and the potential for reduced milk production. However, this has not spurred any increasing aggressive buyer interest for the cash market. USDA still anticipates milk production to increase this year and again next year. The month of May still held varying level of negative Producer Price Differentials (PPD). The upper Midwest Order 30 had a negative PPD of $1.44 for May.
Cheese output remains strong as milk supply is plentiful. Extra milk from the school system has moved to manufacturing. Even with milk receipts decreasing in many areas, the extra milk continues to leave sufficient supply to meet demand. In some cases, extra milk is being offered to manufacturing at a discount to class. For the week, block price remained unchanged with 29 loads traded. Barrels gained 6.25 cents with 23 loads traded. Dry whey gained 2.50 cents with three loads traded.
It is reported that butter demand is about back to where it was prior to the pandemic last year. Food service demand has level off as the pipeline has been replenished. Levels will just need to be maintained. Cream continues to be available for churning needs, keeping production steady. There is some indication inventory is building, but that has not impacted price. For the week, butter gained 1.75 cents with 17 loads traded. Grade A nonfat dry milk increased 4 cents with 19 loads traded.