Crude Oil, Corn, Milk Markets Improve Following Long Weekend
A new month brings new direction. That was the theme of many markets after we resumed trade after the three day weekend. Crude oil rose more than a dollar a barrel, corn was up 3-4 cents, adding to the bounce that began August 31, and milk did the same
The Global Dairy Trade Auction led those efforts by rising 3/10 of a point in its price index. The fat complex had a mixed bag of results with butter and anhydrous milk fat both rising more than 3.5%, while buttermilk powder and whole milk powder dropped. Skimmed milk powder was also lower by more than a percentage point, while Cheddar rose 2.5%.
Mixed results continued in the CME spot trade where 20 loads of barrels traded hands and brought prices 2.75 cents higher to a final price of $1.5575 per pound. Blocks rose 5.75 cents to $1.5975 per pound keeping the spread at four cents. While butter dropped 7 cents on 12 trades to a final price of $2.4375 per pound. Grade A nonfat dry milk dropped ¾ of a cent to 85.5 cents.
The Class III markets found support, but in an unexpected time frame. The months of June through December 2018 rose 15-20 cents, bringing next year’s average up 10 cents to $16.43 per CWT. Nearby contracts only gained a few contracts however bringing the average from now to the end of the year 5 cents higher to $16.29 per CWT.
Class IV markets saw outright trade in only the months of November and December. Those two months were down roughly 30 cents.