February 28, 2020

Dairy Markets Survive Another Coronavirus Sell Off

 |  By: Know Your Market

Commodities again struggled Friday to close the week with additional cases of the coronavirus flaring up in different parts across the globe. At the time of this recording, the Dow Jones Industrial average was down 670 points on the day and 3,881 lower for the week. 

The energy space was also much softer as crude took a $2 bath and was trading near $45 per barrel. Corn ended unchanged on Friday while soybeans were down 3 and the wheat complex was off 2 cents in Chicago, up 1.5 cents in Kansas City, and 3.5 stronger in Minneapolis. Cattle took it on the chin once again losing nearly the limit in fat cattle, $1.30 in feeders and hogs suffered $1 per cwt decline. 

Dairy prices were on of the few places that actually printed green on the screen. Class III futures climbed 1 to 15 cents returning all prices to settlements with $16 and $17 numbers in front of them. Class IV prices also grew 10 and 26 cents on Friday. 

The CME spot dairy product auction resulted with massive volumes for butter as 39 loads moved from seller to buyer. Butter traded 3 cents higher to $1.725 per lb. Blocks and barrels both settled unchanged at $1.7225 and $1.59, respectively. Grade A nonfat dry milk lost 1.5 cents as 11 loads were exchanged. Dry whey added ¼ cent to 34 cents per lb.