Class III Breaks $20 On Wednesday
Another day higher in the CME dairy complex. It has become the norm in the market over the course of the last 3 weeks as holiday needs are being chased by buyers. Both cheddar blocks and barrels rose 2 cents per lb. with blocks ending at $2.17 ¼ while barrels closed at $2.27 ¼ per lb. Blocks traded 4 loads while barrels had just a single uncovered bid left in the market. Butter traded 6 times and ¾ of a cent softer to $2.08 per lb. Grade A nonfat dry milk added ¾ of a cent to settle out at $1.16 ½ per lb. Five loads moved from seller to buyer. Dry whey traded 8 times and had 14 uncovered bids and added a quarter cent to 27 cents per lb.
Class III milk futures turned in another solid round of trade Wednesday jumping 29 cents in November and 38 cents in December. The result is $20 milk on the board for the first time since 2014. November ended near $20.15 per cwt. December isn’t far behind as it settled around $19.35 per cwt. 2020 prices traded 9-18 cents stronger in the first quarter and 3-7 higher the remainder of the year. Class IV months traded slightly higher as well.