markets
November 12, 2020

Milk Softens Again

 |  By: Know Your Market

Red was a popular color across the CME screens on Thursday.  Grains took a step back after the euphoria experienced on Tuesday following surprising changes to the U.S. grain balance sheet.  A common theme was less yield and more demand in the corn and soy complexes.  On Thursday, however, corn retreated $0.09/bu while soybeans softened $0.07.  Soybean meal lost $5/ton and soy oil declined slightly.  The wheat complex which was along for the ride in previous days also dropped 6-10 cents/bu.  

The dairy world has largely been in a tailwind since last Monday.  Cheese values fell once again with barrels losing $0.185/lb and blocks down $0.09 today.  Barrels settled out at $1.90 while blocks printed a price of $2.08 at the close.  Trading volumes for barrels was four and blocks saw five, respectively.  From our peak set at the end of October and beginning of November, barrels are now off $0.63/lb.  From our most recent high and same timeline, block cheese is $0.70/lb lower.

Class III milk values struggled with the weightiness of the cheddar block and barrel trade.  November milk lost 9 cents while December weakened 47 cents/cwt.  December milk touched a low Thursday of $17.86/cwt.  January prices experienced a 32 cent drop while February and onward ranged from 12 softer to 8 stronger.