Did The Frigid Temps Freeze The Dairy Markets?
Frigid temps in the Midwest put a chill in our dairy markets. Low volume on the CME spot trade gave little support to Class III and IV milk as they opened softer. Only Cheddar Barrels moved high – gaining 2 ½ cents to $1.58 ½ with 5 load moving. This is a 10 cent move higher since the start of trading on Monday. Blocks only moved 1 load and was unchanged at $1.86 ½. Butter also held unchanged and failed to trade a load, had 1 bid and 2 offers holding at 1.80/lb.
Grade A Non Fat Dry Milk fell 2 ¾ cents to $1.19 ¾ with 4 loads moving, 8 bids and 14 offers. Dry whey only fell a quarter of a cent to $0.39 ¼ but failed to move a load, had 1 bid and 3 offers.
Class III milk was lower across the futures. February fell 2 to 17.01, March fell 17 to 17.12. The balance of the first half moved 25-28 cents lower to average at 17.14/cwt. Second half of 2020 slid 15-26 lower to average at 17.67/cwt.
Class IV milk also slid lower, losing 7 in Feb to 16.35, March fell 26 to 16.14, and April fell 33 to 16.33/cwt.
Grain and feed continue to be mixed Corn fell 3 ½ to 3.79 ½, Soybeans gained 3 ¾ cents to 8.96 ½, and Soybean meal gained 20 cents to 291.90/ton.