Class III Milk Trade Tests Limits on Thursday
The USDA Milk production report was released on Thursday following a Class III milk trade that was limit up in July and August several times during trading. As expected, milk production fell 1.1% over 2019 levels as milk processors enacted many mandatory production cuts during May. Most of the adjustment came in production per cow, falling 31 lb. to 2,010 lb., a 1.5% decline from the previous year. Cow numbers were 11,000 lower than April, but still 4/10 of a percent above 2019 levels.
The CME spot trade was quiet. Butter had no bids, no offers and no trades, but gained ¾ of a cent to $1.80 ¾. Blocks held unchanged, also seeing no action by way of bids or offers, holding $2.50 even. Cheddar barrels fell 5 cents on 1 trade to $2.28/lb.
Grade A nonfat dry milk fell a penny to $1.02/lb. with 5 trades, and dry whey was our volume leader with 8 trades, gained 1 ¼ cents to $0.31 ¾/lb.
Class III milk finished trading with June up 17 to $20.91, July gained 64 to $20.43, and August gained 45 to $18.54/cwt. September – December were 7-28 higher.
Class IV saw June fall 1 to $13.34, July fell 37 to $14.82, and August fell 10 to $15.35.