Class III Markets Close Limit Up
Another round of small cheddar volumes and big results came to the CME market on Thursday. Cheddar blocks jumped 5 1/4 cents to $2.14 1/2 on a single trade. Barrels gained 6 cents on two trades moving from seller to buyer.
Butter lost 3/4 of a cent and traded seven times with 12 uncovered to $2.22 3/4 per lb. Grade A nonfat dry milk added a penny to $1.05 1/2 while dry whey was up 3/4 of a cent and closed at 39 3/4 cents/lb.
Class III milk markets had an amazing day with October milk closing limit up 75 cents at $19.16/cwt. November followed closely behind adding 50 cents and December was also up 37 cents. First quarter 2020 markets lept 23 to 38 cents per cwt and second quarter closed 17 to 22 cents higher. Class IV markets harnessed the strength in Class III and grew 13 to 22 cents in the fourth quarter of 2019 and first quarter of 2020.
Also released on Thursday in the grain markets was the September edition of the Supply and Demand report. Corn yield was reduced from 169.5 million bushels to 168.2. The average analyst guess came in a bushel lower than printed and ending stocks grew slightly to 2.19 billion. Soybeans traded 29 cents higher on a reduction in yield, ending stocks, and positive news on the trade front with China. Wheat say no change on its balance sheet.