Milk Markets Take A Nose-Dive
The dairy complex was lower across the board on Thursday. Product markets watched cheddar blocks fall 2.5 cents following 3 trades to $1.88 per lb. Butter softened 2.25 cents on two trades to $2.29 per lb. Barrels lost a penny and a half to $1.665 as 7 transactions moved from seller to buyer. Dry whey declined a half cent to 39.5 cents per lb. While Grade A nonfat dry milk was unchanged at $1.0275 per lb.
Class III milk futures were sharply lower following the product trade. August fell 4 cents while September was walloped losing 32 cents, October was down 16 and November dropped 9 cents. 2020 markets ranged from a penny softer to 9 lower. Class IV had similar trade as September finished 4 cents lower, October lost 15 and November was down 9 cents per cwt.
On Thursday, the USDA also released their monthly Cold Storage Report. In the July edition, total natural cheese stocks were 1.36 billion pounds, down 3% from last year and 1% lower than June. American cheese was down 6% year over year. Butter inventories in July grew to 330 million pounds, up 4% from last year and was 1% ahead of last month.