October 21, 2020

Class III Milk Futures Sold Off Heavily

 |  By: Know Your Market

Class III milk futures sold off heavily following yesterday’s bearish September Milk Production Report.  October milk jumped 14 cents to $21.60/cwt off of an uptick in barrel basis in Week 3 of the October National Dairy Sales Product Report.  November and December retreated 64 cents at $20.85 and $18.70/cwt.  First half 2021 experienced similar weakness, falling 6-48 cents.  Class IV futures fell mildly as well.


Moving along to the CME Cash Dairy Product Trade, block cheese remains stagnant at $2.74/lb.  Barrels gained ¾ of a penny to $2.3075/lb on 1 bid.  Butter fell 4.50 cents to $1.4525/lb.  Grade A Nonfat Milk tumbled 1.50 cents to $1.1125/lb.  Dry Whey dropped 1.25 cents to $.3750/lb.  


November soybeans led the charge higher in the grain complex, adding 8 cents to $10.72/bushel.  December corn gained a nickel to $4.1375.  We traded as high $4.1525 which represents a 1 year high on the December 20 contract.  December soybean meal followed suit, increasing $6.90 to $378.80/ton.  December Chicago Wheat initially was higher on the day before erasing gains and losing 2.25 cents on the day to $6.2975/bushel.  


Cattle saw both red and green today.  October live cattle declined 47.50 cents to $103.65/cwt.  November feeder cattle added 37.50 cents to $131.15/cwt.  December crude oil descended $1.71 to $39.99/barrel.