volatility
June 25, 2020

Volatility Runs Wild in the Dairy Markets

 |  By: Know Your Market

As the Spot CME stabilized Thursday, Class III pushes into extended limits during trading. After a steep fall Wednesday, Cheddar blocks traded 3 loads Thursday relatively unchanged at ½ a cent lower to $2.57 ½. Cheddar Barrels were unchanged at $2.40/lb with no bids, no offers and no trades. 

Butter however fell 2 ¼ cents to $1.76 ½ /lb. with 3 loads moving, 1 bid and 1 offer. Grade A nonfat dry milk gained ¾ of a cent to $1.03 ½ /lb. with 12 trades, 9 bids and 2 offers. Dry whey gained a penny to $0.31 ¼ /lb. with 8 trades, 8 bids and no offers left. 

Class III milk finished the day June fell 9 cents to $20.92, July fell 62 to $20.94, and August fell 57 to $18.98/cwt. Balance of 2020 moved 7-40 cents lower.

Class IV milk had June falling 17 to $13.08, July fell 30 to $14.45 and August fell 30 to $14.95/cwt. 

The grain complex fell sharply. July corn down 7 cents to $3.17 ¼, soybeans down 1 ½ to $8.69 ¼, and soybean meal fell $1.20 to $285.50/ton