October 17, 2019

First Half 2020 Class IV Settles Higher Than Class III

 |  By: Know Your Market

In the latest version of the United States and China trade saga, China’s minister of commerce came out overnight saying that he hoped a phased agreement as soon as possible. No indication was given when additional talks would be held or the amount of future Chinese purchases however. The grain market reacted in a favorable manner all day as corn closed 3 cents higher at $3.94 3/4, soybeans added 3 ½, and wheat was up 12 cents in Chicago. 

CME spot product trade on Thursday watched cheddar prices soften. Cheddar blocks lost 3 ¾ cents following two trades to $2.00 ¼ per lb. Barrels fell 2 cents to $2 per lb. on a single unfilled offer. Butter traded twice and gained a quarter to $2.14 ½ per lb. Grade A nonfat dry milk was also up a quarter cent to $1.17. Dry whey continued its struggles falling another 1 ¼ cents to 29 ¼ per lb. with 8 loads moving from seller to buyer. 

Class III milk prices watched November mild decline 12 cents to a $18.50 settlement while December through July settled 4 lower, to 2 cents higher. First half 2020 is offering producers $17 per cwt at the close. Class IV markets fared better, ending even to 8 cents higher out through June 2020. The first half 2020 average is offering producer $17.32 per cwt for Class IV.