Friday Market Watch

LIVESTOCK:

It was a mixed day for the livestock complex as both the live cattle and feeder cattle contracts closed mixed, but were thankful to see a supportive WASDE report for cattle and were relieved to see USDA didn't decrease their corn projection. Meanwhile the lean hog complex closed mostly higher after coming off the market's recent highs earlier this week. Hog prices closed lower on the Daily Direct Afternoon Hog Report down $2.57 with a weighted average of $97.73 on 4,194 head. 

From Friday-to-Friday livestock futures scored the following changes: April live cattle down $0.82, June live cattle down $2.03; April feeder cattle down $5.02, May feeder cattle down $6.75; April lean hogs down $2.27, June lean hogs down $5.88.

Friday's slaughter is estimated at 120,000 head -- 11,000 head more than a week ago and 8,000 head more than year ago. Saturday's slaughter is projected to be around 61,000 head -- 21,000 head more than a week ago and 3,000 head less than year ago.

Boxed beef prices closed lower: choice down $0.93 ($270.47) and select down $0.89 ($260.33) with a movement of 92 loads (54.90 loads of choice, 13.87 loads of select, 12.23 loads of trim and 11.43 loads of ground beef). Throughout the week choice cuts averaged $270.50 (up $4.31 from last week) and select cuts averaged $261.44 (up $2.74 from last week) with a total movement of cuts grinds and trim totaling 514 loads.

GRAINS:

May corn closed up 11 cents and December corn was up 7 cents. May soybeans closed up 43 1/2 cents and November soybeans were up 29 1/4 cents. May KC wheat closed up 36 3/4 cents, May Chicago wheat was up 31 1/2 cents and May Minneapolis wheat was up 27 3/4 cents. 

DAIRY:

MILK:

Milk futures were generally higher Friday as the increase of cheese prices continued to provide support. It is interesting that the July contract for both Class III and Class IV was a penny lower and the only decline in both markets. It has been a positive week for milk futures. USDA released the World Agricultural Supply and Demand report Friday, which contained their estimates for milk production, milk prices and product prices for the year. The milk production estimate was raised 300 million pounds from their March estimate reaching a total for 226.3 billion pounds. If this would come to fruition it would show no growth this year as milk production for 2021 was 226.3 billion pounds. The average Class III price was raised to $22.75, an increase of $1.10 per cwt since the March estimate. The Class IV average price was raised $0.35 to the level of $24.05. The expectation is for Class IV to remain above Class III the rest of the year. The all-milk price was raised $0.75 to an average of $25.80.

AVERAGE CLASS III PRICES:

3 Month:	$24.56
6 Month:	$24.46
9 Month:	$24.16
12 Month:	$23.60

CHEESE:

For the week, blocks increased 2.50 cents with nine loads traded. Barrels increased 11.50 cents with 21 loads traded. Dry whey increased 2.50 cents with eight loads traded. USDA was very generous with their average estimate for cheese price this year. They raised the price 12 cents per pound from March to an average of $2.15. In contrast, they lowered the dry whey price 2 cents to an average of 69 cents per pound.

BUTTER:

For the week, butter increased 7.25 cents with 19 loads traded. Grade A nonfat dry milk declined 2.75 cents with 16 loads traded. USDA raised their estimate of butter price by 6.50 cents from March to an average of $2.64 per pound. The nonfat dry milk price was raised only 0.50 cent to an average of $1.7450 per pound. These are estimates and much can change before it is all said and done.

OUTSIDE MARKETS:

The June U.S. Dollar Index is trading up 0.08 at 99.84. TJune gold is up $8.90 at $1,946.70, May silver is up $0.19 at $24.93 and May copper is up $0.0270. May heating oil is up $0.0490, May RBOB gasoline is up $0.0803 and May natural gas is down $0.084. May crude oil closed at $98.26, up $2.23 per barrel. The DOW gained 138 points, closing at 34,721 while the NASDAQ declined 186 points, closing at 13,711.

DETAILED MARKETS:

Forage Fodder

Dairy Diary

Livestock Lowdown