Weekly Commodity Prices Update (6/18)
July corn was down 29 1/4 cents and December corn was down 43 1/2 cents. July soybeans closed down $1.12 1/2 cents and November soybeans were down $1.25 3/4 cents. July KC wheat closed down 31 1/2 cents, July Chicago wheat was down 18 cents and September Minneapolis wheat was down 5 cents.
From Friday to Friday livestock futures scored the following changes: June live cattle up $2.35, August live cattle up $1.52; August feeder cattle up $3.85, September feeder cattle up $3.70; July lean hogs down $11.30, August lean hogs down $10.30.
Boxed beef prices closed lower: choice down $2.97 ($323.28) and select down $3.63 ($283.61) with a movement of 87 loads (46.17 loads of choice, 23.38 loads of select, 10.03 loads of trim and 7.42 loads of ground beef). Throughout the entire week, choice cuts averaged $329.72 (down $8.61 from last week) and select cuts averaged $292.50 (down $15.26 from last week) and the week's total movement of cuts, grinds and trim totaled 554 loads.
Underlying cash prices declined in all categories this week, putting pressure on both Class III and Class IV futures. The September Class III contract fell below $18 for the first time since Feb. 25. Optimism at one point took price above $20 on May 12 before price came crashing down, first following corn and then decoupling itself and weakening based on sufficient milk supply for demand. April fluid milk sales declined 3.8% from April 2020. Whole milk sales fell 10.5%, flavored whole milk sales jumped 21.0%, reduced-fat milk declined 6.5%, low-fat milk declined 5.0%, fat-free skim sales fell 11.4%, flavored fat-reduced milk jumped 50.8%, buttermilk jumped 25.8%, with other milk products up 25.8%.
This puts conventional milk product sales 3.7% lower than a year ago. Organic milk sales declined 4.8%. Organic whole milk declined 4.8%, organic reduce milk declined 0.9%, organic low-fat milk declined 9.6%, organic fat-free declined 21.3%, organic flavored fat-reduced milk sales increased 9.5% with other fluid milk products down 44.6%.
Cheese production has been strong throughout the country with milk production remaining brisk despite the hotter weather that has been experienced. It is interesting to note that some plants reported that milk receipts have actually increased. However, spring flush peak has been reached and is past. Spot milk in the Midwest is reportedly $4 to $6 under class. For the week, blocks declined 0.75 cent with 14 loads traded. Barrel cheese fell 13 cents with 42 loads traded. Dry whey declined 1.75 cents with two loads traded.
Cream supply remains plentiful with no shortage for butter manufacturers. Butter supply is readily available for demand with inventory building for later demand. The tone of the market is steady, keeping price within a sideways range. For the week, butter declined 0.75 cent with 17 loads traded. Grade A nonfat dry milk declined 3.50 cents with 19 loads traded.