Class III Milk Futures Sold Off Heavily
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.