Milk Markets Soften, USDA Releases February WASDE
Class III and IV milk markets lost some ground following Tuesday’s trade. March through July 2020 softened 1 to 8 cents while remaining months in 2020 fared a little better as they closed in the green. The 2nd half of 2020 is offering dairy producers a $17.83 per cwt average at today’s close. Class IV milk markets fell double digits as March to July months traded 13-20 cents lower.
CME spot dairy product markets saw good volumes trade on Tuesday as well as a couple of big moves. Butter moved a penny higher with 11 loads moving from seller to buyer and butter closed out at $1.81 ½ per lb. Cheddar blocks traded just once but dropped 6 cents and ended at $1.88 per lb. Barrels jumped 7 ½ cents to $1.56 per lb., 4 trades took place. The block to barrel spread narrowed to 32 cents after today’s trade which remains extremely wide. Grade A nonfat dry milk fell 1.5 cents to $1.22 ½, 21 trades took place. Dry whey settled unchanged at 39.5 per lb.
The February supply and demand report was released by USDA on Tuesday. The February report is typically a snoozer and proved it once again. U.S. wheat exports were raised 25 million and ending stocks declined in the same amount. Corn ending stocks were left unchanged after ethanol demand grew 50 million but exports fell by the same amount. U.S. soybean ending stocks fell 50 million bu. with exports being raised. In the end, corn dropped 2 cents, soybeans were unchanged, and wheat declined 10 in Chicago, 4 in Kansas City and Minneapolis dropped 2.