January 23, 2020

Class III Moves Higher, Class IV Falls

 |  By: Know Your Market

The Class III dairy markets found another bid on Thursday as February jumped 21 cents, March was up 25, and April gained 15. May also traded 7 cents stronger and June was up a penny. Second half 2020 ranged from even to 5 cents lower. Class IV markets watched March through may fall 9-15 cents per cwt. 

The CME spot dairy auction had minimal changes on Thursday. Butter added a quarter cent to $1.86 ¾, 3 trades took place. Cheddar blocks were unchanged at $2.25 per lb. Barrels moved 6 loads and a half cent higher to $1.63 per lb. Grade A nonfat dry milk lost ¾ of a cent to $1.29 per lb., 10 loads moved from seller to buyer. Dry whey had another solid round of volume moving 22 loads, whey closed at 36 cents per lb., up a quarter cent.  

The USDA released its December milk production report on Thursday. Milk production was reported beneath most expectations as production rose just 7/10 of a percent. Many Midwest states were down once again year over year, 3 states that continue to put out milk included Texas, Colorado, and Kansas. The milking herd totaled 9.339 billion in December which was unchanged from November after accounting for a revision in November.