“We had been trading sideways with an upward bias for the last two months …and now see a bit of weakness come into play because that’s kind of been our pattern since we peaked the price out in early May,” Brooks said.
The market has been bouncing around since then.
“From a dairy producers standpoint you don’t like to see a decline, especially this time of year when milk production is seasonally,” Brooks said. “at least in the Midwest we went through a pretty decent heat wave at the beginning of September and end of August and that probably hit milk production a little more than we would normally see.”
Cooler weather came into play in the Midwest the middle part of last week bringing with it a fair amount of moisture.
“I know in the Kansas City area we received about an inch (of rain) over the weekend and that will help out with the beans and at the moment there is not much of any frost or freeze to the southern Minnesota and northern Iowa. So that may add up to the estimates USDA put out last week for lower feed costs for us,” said.
People are more confident with corn.
“We have heard some good yields scattered across the Midwest…It’s the soybean complex, soybean meal that folks are concerned about.”