Class III Slowly Gaining
After a much lower Class III milk trade on Tuesday, Wednesday saw an early recovery effort fade after the CME spot dairy product trade. Q4 2020 came into the session 20-40 cents/cwt higher on questions surrounding block availability after tightness led to the most recent surge higher. Block cheese lost $0.06/lb following a single trade and ended at $2.54/lb. Barrel cheese declined a half cent to $1.63/lb on two unfilled offers. Butter was walloped on Wednesday nosediving $0.10/lb to $1.52. This was on the backside of yesterday’s Cold Storage report showing burdensome butter stocks. Six loads mover from seller to buyer. Whey added $0.015/lb while nonfat was up $0.0125.
Milk prices for Class III did end up higher on the day as futures rose 9-19 cents/cwt in fourth quarter 2020. First half 2021 ranged from three cents higher to five lower. First half 2021 is now offering dairies a price of $16.50/cwt. Class IV took it on the chin as months declined 15-23 cents in Q4 but was also down double digits in first half 2021.
Grain prices suffered losses across the board as farmer selling and profit taking out of managed money took place. Corn softened a penny and sits at $3.685/bu. Soybeans slid five cents to $10.145/bu while soybean meal added $4/ton. The wheat complex dropped 6-9 cents as well.