September 22, 2020

Butter Stocks Larger-Than-Expected

 |  By: Know Your Market

The August Cold Storage Report showed larger-than-expected butter stocks.  USA butter stocks totaled 372 million lbs.  Butter inventories are 67 million lbs greater than in 2019 and 81 million lbs above 2018 August levels.  Cheese stocks totaled 1.278 million lbs which is down 13 million lbs from the prior month.  American-type cheese stocks totaled 790 million lbs, up 4.5 million lbs from the previous month.  

In the CME Cash Dairy Product Trade, butter gained ¾ of a cent to $1.62/lb.  Cheddar blocks decreased 4.75 cents to $2.60/lb.  Barrels remain at $1.6350/lb.  Grade A Nonfat milk fell ¾ of a penny to $1.0725/lb.  Dry Whey added ¾ of a penny to $.37/lb.  

Class III milk futures traded significantly lower today.  October milk fared the worst, falling $1.24 to $18.41/cwt.  November settled 86 cents lower to $18.12/cwt.  December suffered a 46 cent loss to $17.21/cwt.  First half 2021 average is $16.51/cwt.  Class IV milk prices declined 5-14 cents.

December corn lost half a penny to $3.6925/bushel.  November soybeans decreased 2.75 cents to $10.1975/bushel.  October soybean meal increased $3.90 to $337.30/ton.

Fats and feeders traded lower.  October live cattle fell 22 cents to $106.47/cwt. October feeders declined $1.62 to $140.62/cwt.  October crude oil settled 24 cents higher to $39.55/barrel.