Feed Prices Soften As Milk Markets Gain Strength
Feed prices continued to soften Tuesday after being closed for Labor Day Monday. December corn made a new contract lifetime low at $3.61 down 8 ¾ cents. November soybeans fell half a cent to 8.68 ½, and September soybean meal fell $1.30 to $288 per ton.
The CME spot product trade gained momentum following the Global Dairy Trade event 243 Tuesday morning. Butter gained back 2 cents after 2 weeks of softer prices finishing at $2.21 per lb. Cheddar blocks gained a penny to $1.94, while cheddar barrels gained half a cent to $1.74 ¼.
Grade A Nonfat dry milk gained ¾ of a cent to $1.04 ¾, and dry whey was the only quiet market. Staying unchanged at $0.39 per lb. with no loads moving but 2 bids and 1 offer.
Global Dairy Trade saw the overall index fall 4/10 of a percent. Products themselves were mixed. Anhydrous milk fat saw the softest price, falling 1.5% from two weeks prior. Whole milk powder and skim milk powder had the most volume moving. SMP was up 7/10th of a percent and WMP falling 8/10 of a percent. Butter prices held steady from 2 weeks prior.
Cheddar index was down 8/10 of a percent and Rennet Casein gained 4.6%. Finally, Lactose fell 9/10 of a percent from previous trade event.
Class III milk saw mostly positive moves on Tuesday. Sept gained 10 cents to $17.72 per cwt, October fell 2 cents to $17.64, and November fell 1 to $17.39. Fourth Quarter milk is averaging at $17.33 per cwt. 2020 markets also saw nice gains. January - March were up 2-5 cents with a first quarter average at $16.41 per cwt.