market growth
July 2, 2020

Dairy Markets Rally on USDA Food Box News

 |  By: Know Your Market

USDA has approved $1.27 billion in extended contracts (previous announcement was $1.16 billion) and up to 202 million new contracts to support American producers and communities through the USDA Farmers to Families Food Box Program.  Total dairy purchases are estimated around $421 million.      

In the CME Cash Dairy Product Trade, cheddar blocks added 3.50 cents to $2.6750/lb. on 6 trades.  Barrels gained 1.50 cents to $2.4150/lb.  Butter lost 1.25 cents to $1.7375/lb.  Grade A nonfat milk finished half a cent higher to $1.01/lb.  Dry whey remains unchanged at $0.33/lb.  

Class III milk futures ended the week on a higher note.  July milk added 12 cents to $22.97/cwt.  August milk rocketed 54 cents higher to $20.95.  September increased 45 cents to $18.81/cwt.  Second half 2020 average is $18.99/cwt.  Class IV futures were relatively unchanged.

The grain complex receded today.  December corn tumbled 7.50 cents to $3.53/bushel.  November soybeans fell 1.75 cents to $8.9725/bushel.  September Chicago W=wheat decreased 6.75 cents to $4.92/bushel.  August live cattle rallied $2.75 to $100.05/cwt.  August feeders climbed $2.82 to $135.90/cwt.  August crude oil launched a 51-cent gain to $40.33.  

For all of us at Commodity Risk Management Group, have a fantastic 4th of July weekend!