Dairy A Bright Spot Amid Gloomy Markets
Markets continued to slide Wednesday following news of a key indicator for recessions coming from the Bond Markets. Grains and the Dow fell again, though dairy was a bright spot with both volume trading in the CME spot market and price gains pushing Class III milk higher.
August gained 3 cents to $17.63, September gained 6 cents to $17.79 and October gained 8 cents to $17.45 per cwt. 2020 markets were more muted. January and February gained a penny, but March fell a penny. Giving us an average for the first quarter of 2020 at $16.56 per cwt.
Class IV milk was more mixed. August gained a penny to $16.60, Sept was unchanged at $16.73 and October gained 8 to $16.92.
The CME spot product trade saw a more lively trade on Wednesday. Cheese led the action with Cheddar blocks up 2 ½ cents to $1.89 ¼ with 6 loads moving, and Cheddar barrels gained 3 ½ cents with 22 loads moving. Butter was unchanged at $2.34 per lb but saw 13 loads move from seller to buyer.
Dairy powders didn’t have as much volume, but nice gains. Grade A nonfat dry milk gained 1 ¼ cents to $1.02 ½ with 1 load trading and dry whey gained 1 ¼ cents to $0.36 ¾ with 1 load moving.
December corn continued its slide, falling 6 ¼ to $3.70 ¼. November soybeans followed falling 11 cents to $8.78 even. August soybean meal gave back most of Tuesday’s gains falling $4.80 to $293.00 per ton.