September 11, 2020

Class III Milk Jumps To End The Week

 |  By: Know Your Market

Spot block and barrel cheese traded opposite of each other with blocks adding 1.5 cents/lb while barrels lost 3.5 cents/lb.  Fourteen loads moved in barrels and three traded on blocks on Friday.  Butter and nonfat transactions were plentiful as well as thirteen and nineteen loads moved, respectively.  Butter lost a quarter cent and nonfat was unchanged at $1.04/lb.  Whey rose a penny to $0.355/lb.

Class III milk jumped despite a non-supportive spot cheese session.  October closed 61 cents higher at $19.24/cwt.  November increased 45 cents and December was up 26.  The first part of 2021 was up slightly as well.  Class IV declined 5-10 cents in many 2020 months.

Grain prices continue to see strength in the corn and soybean markets.  Corn added 3.5 cents/bu and settled at $3.685/bu while soybeans grew 18.5 cents/bu to $9.96/bu.  The lifetime contract high for soybeans is $10.06/bu.  The wheat complex weakened 2-6 cents.

USDA released their World Agricultural Supply and Demand Estimates report on Friday.  USDA lowered corn yield by 3.3 bushels/acre with ending stocks lowered to 2.5 billion bushels after adjusting for the changes on the balance sheet.  Soybean yield was reduced by 1.4 bushels/acre and ending stocks by 150 million to 460 million.