Class III Futures See Significant Strength
Commodity markets across the board were stronger. Yesterday afternoon, President Trump announced the USDA will spend $1 billion in the Farmers to Families Food Box program under the Coronavirus Food Assistance Program. This funding must be contracted before September 30th, 2020.
In the CME Cash Dairy Product trade, blocks and barrels responded positively to round 3 of the Food Box Program. Blocks surged 10 cents to $1.83/lb. Barrels added 4.50 cents to $1.4050/lb. Butter gained half a penny to $1.52. Grade A Nonfat Milk finished 1.75 cents higher to $1.0125/lb. Dry Whey fell half a penny to $.3250/lb.
Class III futures saw significant strength today. August lost 1 penny to $19.60/cwt. September to December milk settled limit up. Quarter 4 average is $17.66/cwt. First half 2021 gained 8-40 cents for an average price of $16.45/cwt.
Class IV futures also printed green. September milk climbed 12 cents to $13.28/cwt. November finished 19 cents higher to $14.46/cwt. December saw the most strength, adding 40 cents to $14.76/cwt.
The grain market joined in on the higher price movement. December corn launched a 9.50 cent gain to $3.5450/bushel. November soybeans broke through $9.20 resistance, adding 14.50 cents to settle at $9.2025/bushel. September soybean meal gained $2.50 to $291.60/ton. September Chicago Wheat climbed 6.50 cents to $5.2725/bushel. October live cattle was up 85 cents to $108.77/cwt. September feeder cattle settled 22 cents higher to $143.07/cwt. October crude oil gained 75 cents to $43.37/barrel.