October 23, 2020

Class III Moves Higher After Farmers To Food Box Announcement

 |  By: Know Your Market

Announcement of Round 4 of Farmers to Food box program brings limit moves to Class III Milk. Rumors started the day on Friday and was confirmed by USDA that a Fourth round of buying will occur by October 30th with shipment windows of November – December. The mixed boxes will include some dairy, but at lower volumes than previous rounds. 

Class III Milk held unchanged in Oct at 21.63, November jumped the 75 cent limit to 22.19, and December gained 75 cents to 20.16/cwt. Setting new highs for the December contract. January also set contract highs at 18.10, a 50 cent move higher. 

Class IV was mostly quiet. October unchanged at 13.52, November gained 10 to 13.77 and December up 4 to 13.77/cwt. 

The Spot trade had Butter unchanged at 1.43 ½, Cheddar blocks help unchanged at 2.77 ¼, and Barrels gained 5 ¼ cents to 2..45 ½. Non Fat Dry Milk was unchanged at 1.09 ¾, and Dry Whey gained a penny to $0.38 ½ /lb. 

Grain complex set new highs. Corn was up 3 cents at 4.19 ¼, Soybeans closed 10 cents higher at 10.83 ¾, and soybean meal gained $4.00 to $386.40/ton.