Weekly Commodity Prices Update (6/25)
July corn was down 18 3/4 cents and December corn was down 47 1/4 cents. July soybeans closed down 66 1/4 cents and November soybeans were down 43 1/4 cents. September KC wheat closed down 6 3/4 cents, September Chicago wheat was down 25 cents and September Minneapolis wheat was up 41 3/4 cents.
From Friday to Friday livestock futures scored the following changes: June live cattle up $1.78, August live cattle up $1.25; August feeder cattle up $4.53, September feeder cattle up $4.03; July lean hogs down $6.72, August lean hogs down $6.90.
The week's total estimated slaughter is pinned at 661,000 head, down 2,000 from a week ago and 4,000 head from a year ago.
Boxed beef prices closed mixed: choice down $2.86 ($304.56) and select up $0.04 ($276.18) with a movement of 93 loads (61.90 loads of choice, 17.83 loads of select, 8.80 loads of trim and 4.90 loads of ground beef). Throughout the week boxed beef prices ascended lower compared to last week's averages. Choice cuts through the week averaged $312.20 (down $17.52 from last week) and select cuts averaged $277.79 (down $14.71 from last week) and the week's total movement of cuts, grinds, and trim totaled 541 loads. The week's choice/select spread averaged a wide $34.41.
The slightly higher close in some milk contracts provides little consolation to those who have been bullish on the market. Losses for the week were steep and continued to mount until Friday. The minor gains Friday were likely the result of positioning for the weekend and not any real concern over holding positions through the weekend. Overall milk production is steady to lower in some cases, while at the same time plants indicate milk receipts remain very strong. There have been some reports of a shortage of truck drivers for hauling milk and cream to locations and plants. The milk production reports showed strong milk output and increasing cow numbers. The monthly slaughter report showed lower culling, indicating the desire of farms to keep barns full and production strong. Higher grain prices have had little to no impact on the desire to produce milk.
For the week, blocks declined 0.25 cent with only four loads traded. Barrels declined 5.25 cents, ending with 24 loads traded. Dry whey declined 3.25 cents with two loads traded. Cheese inventory grew according to the monthly Cold Storage report, but inventory was not burdensome. However, it is large enough along with strong cheese production to keep supply readily available to the market. Spot milk prices were again reported from $4.00 to $6.00 under class this week.
Butter futures followed the other dairy markets lower as underlying cash price declined. Supplies of milk and cream are readily available for churning, keeping current demand supplied. Retail demand is considered soft and running along seasonal lines. This is putting the slight pressure on cash price as sellers want to continue to move supply to the market rather than have inventories build. For the week, butter declined 6.75 cents with 14 loads traded. Grade A nonfat dry milk remained unchanged with 19 loads traded.