Big News And Big Jumps In Markets
The Big News of the day was the announcement of plans to reopen the federal government for at least 3 weeks. This should bring us not only fresh reports and information from the USDA office, but also the opportunity for producers to sign up for the new Dairy margin coverage program at the FSA office .
Dairy Revenue Protection will also be available as USDA NASS will be able to release daily premium and price information to agents.
A strong day of trading finished the week with one of the few positive markets for dairy products and Class III milk. The first half average for Class III finished today at 14.54/cwt and second half at 16.20. Every month showed rally of .01-.15/cwt.
Though we saw some nice positive move in Fridays trading of the CME Cash Products, they ended with averages under last week’s. Butter averaged the week at $2.23/lb off 2 cents.
Cheddar Blocks hit $1.38 and Barrels continued their fall to end the week with an average of just under $1.17/lb.
Nonfat dry milk followed suit, falling 3 cents on the week to end with and average just under $1.01/lb.
Dry Whey was our only commodity trading down during Friday’s trade. For the week we saw 21 trades to drop the average to just over $0.42 ½ cents/lb.
The news of the reopening of the USDA means commodity markets will get updates on both cold storage and export sales reports that were missed over the 35 day shutdown. Expect some volatility as information is released into the market in the days to come.
For commodity risk management Group this is Jenny Wackershauser on know your markets.