October 15, 2020

December Milk Sets Contracts High

 |  By: Know Your Market

December Milk sets contract highs Thursday on a nonexistent cheese trade. The CME spot trade saw both blocks and barrels fail to trade and sit unchanged with blocks at 2.72/lb and barrels at 2.20 ½. Butter held its strength, gaining 1 ¼ cents to $1.51 ¼. 

Grade A Non fat dry milk gained a quarter of a cent to $1.13 ¾ and Dry whey was unchanged and failed to move a load to hold at $0.38 3/4/lb.

Class III milk liked what it saw in cheese futures despite no trades on the spot trade. October gained 2 to 21.32, November gained 38 cents to 20.83, and December traded as high as 18.79, but settled 50 cents higher to 18.66/cwt. Jan – March gained 11-20 cents to average at $16.82/cwt.

Class IV was unchanged in October at 13.53 and November at 14.20, with December fall 13 cents to 14.47.

The grain complex had corn pushing above $4 for the first time since pre -Covid. December corn finished at $4.03 ¾, soybeans gained 6 to 10.62 1/7, and Soybean meal gained $8.50 to 372.10. Soybean meal is at highs we have not touched since the summer rally of 2018.