$18.00 Milk On The Horizon?
The dairy space came into Friday on a higher note as lower milk production numbers compared to expectation on Thursday lent support.
Futures traded as high as 35 cents higher in March but reversed course and settled lowered on the day as cheese failed to support the early rally. At the close, both first and second half 2020 averages ended near $18.00 per cwt. Class IV markets were slightly softer. The CME spot dairy auction watch dry whey add a half cent to 36 and ¼ lb. following five trades and 10 unfilled bids. All other product markets softened. Butter declined ¾ of a cent to $1.86 per lb.
Barrels softened 2 cents to $1.61 with 7 loads moving from seller to buyer. Grade A nonfat dry milk fell a quarter cent to $1.28 and ¾ per lb. For the week, whey moved the greatest volumes in the product markets with 39 loads trading. The cheese market had the best performance as blocks added 8 and a half cents and barrels were up 10 and ¼ cents week over week. Class III prices responded with February futures jumping 50 cents per cwt. at today’s settlement.