markets up
September 5, 2017

Crude Oil, Corn, Milk Markets Improve Following Long Weekend

 |  By: Know Your Market

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.

 

This block is broken or missing. You may be missing content or you might need to enable the original module.