Rollercoaster Markets Lead Milk Higher
A rollercoaster day in the ag markets came Monday following the announcement from China that they would be halting all imports of U.S. ag products as a response to the most recently announced U.S. tariffs on Chinese goods. Grains, dairy, and livestock markets fell sharply overnight, but rebounded mid-morning as buyers returned to the market.
Cheddar blocks and butter both saw big moves in the CME spot product market. Butter traded 12 loads Monday to gain 2 ¾ cents to $2.34 ¾ per lb. Cheddar Blocks saw 5 loads move from seller to buyer gaining 4 cents to $1.86 per lb. Closing in on our peak in the markets we saw in early July. Cheddar barrels however lost a quarter of a cent with 2 loads trading to $1.69 per lb. Our Block barrel spread is at 17 cents.
Grade A nonfat dry milk fell a quarter of a cent to $1.01 ¾ with 4 loads moving. Dry Why was unchanged with no loads moving at $0.34 per lb.
Class III milk started the day trading lower with most of the markets, falling as much as 14 cents in August, but turned during the CME spot market. Finishing the day with August 15 cents higher to $17.44 per cwt. September gained 2 cents to $17.81 and we see the July – December 2019 average at $17.53 per cwt. Early 2020 saw slight gains of 1-2 cents with and average at $16.63 per cwt.Grain markets were down overnight but rebounded. December corn gained strength into the close to finish 5 ¼ cents higher to $4.14 ¾ per bushel. November soybeans only gained a quarter of a cent to $8.68 ¾ and August soybean meal gained $2.50 to $294.90 per ton.
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