Class III Prices Slow, Class IV Prices Sink
The CME spot product market began this week in a lower fashion.
Cheddar blocks led the field of products trading 11 times but fell three-quarters of a cent to $1.84 per lb. Barrels followed suit losing a penny after 8 loads moved from seller to buyer and ended up at $1.77 per lb. Butter declined 1 and a quarter cents to $2.39 and a quarter on three trades while dry whey softened a quarter cent to 32 and half cents, respectively. Grade A nonfat dry milk was unchanged at $1.04 on five uncovered bids and six offers.
Class III milk markets followed suit declining 5-8 cents per cwt in the 3rd and 1-3 cents in the 4th quarter. The 2nd half of the year is now offering producers $17.69 cents per cwt. First half 2020 ranged from even to 3 cents lower.
Class IV milk markets were down much harder. July closed even while August dropped 8 cents, September 13 cents, and October 14 cents. November and December traded 26 and 21 cents lower, respectively, while the 1st quarter of 2020 weakened 9-14 cents.
Grain prices were higher in corn and beans on Monday but lower in the wheat complex. Corn added a penny while soybeans were up 3 cents. Wheat lost 4 cents in Chicago, 4 and a half cents in Kansas City and 1 cent in Minneapolis. The crop progress report was released Monday afternoon as well. Th corn crop in good to excellent condition totaled 57%, up 1% from last week while soybeans were 96% planted and had 53% of the crop rated good to excellent, down 1% from the week prior.