October 14, 2020

CME Product Values Proceed Higher

 |  By: Know Your Market

CME product values proceeded higher once again on Wednesday despite Class III futures pointing towards softer prices earlier in the session.  Cheddar barrels rose another 6.5 cents/lb to $2.2050 while blocks added a quarter cent and ended at $2.72/lb.  Three loads moved from seller to buyer.  Butter increased 2.5 cents back to $1.50/lb after a single trade.  Dry whey lost a half cent and nonfat was down a quarter cent as well.

Class III milk prices traded 13 cents higher to $21.30/cwt.  November lost 14 while December ended unchanged.  2021 prices ranged from 10 cents lower to 2 cents higher.  First half 2021 Class III average is now offering dairy producers a price of $16.58/cwt.  Class IV prices settled 20 cents higher on Wednesday as well.

Grain prices caught some strength following further dryness in South America.  December corn traded 5 cents higher and ended at $3.965/bu.  Soybeans moved 12 cents in the positive direction to $10.56.  Soybean meal gained $7/ton in December.  The wheat complex was up 1-4 cents as well.