Class III Finishes Sharply Higher Monday
A bid in the milk and cheese markets showed up on Monday morning and the market followed through in spot cheddar trade and Class III futures. Cheddar values jumped 10.25 cents in blocks to $2.07 per lb. while barrels were up 5 ¼ cents to $2.05 ¼. Four trades took place in the block market whereas barrels saw just a single bid come to the market. Butter added a half cent and settled out at $2.12 per lb. Grade A nonfat dry milk fell a half cent and ended at $1.16 1/2. Dry whey volumes in spot trade continued to be massive. 14 loads exchanged hands and the whey market closed unchanged at 28 ½ cents per lb.
Class III milk futures markets ended sharply higher. November ended 50 cents higher while December was up 34 cents. January traded 20 cents higher while the remaining months in 2020 were slightly higher.
The USDA released its September edition of their Milk Production report. Milk cow numbers after minor revisions going back to the May report saw a 3,000 head drop between August & September. Milk per cow climbed to 1,891 pounds for the month, an average of 63 pounds per day per cow. Total milk production in the U.S. came out to 17.6 billion pounds, up 1.3% year over year.