October 16, 2020

First Half 2021 Milk Prices Looking Brighter

 |  By: Know Your Market

Friday’s CME Cash Dairy Product Trade prices held relatively stable with blocks, barrels, and whey unchanged at $2.72, $2.2050, and $.3875/lb.  Butter lost ¼ of a penny to $1.51/lb.  Grade A Nonfat Milk gained ¼ of a cent to $1.14/lb.

Quarter 4 and first half 2021 class III futures pushed higher in Friday’s trading session.  October added 4 cents to $21.36.  November milk climbed 9 cents to $20.92/cwt.  December milk increased 10 cents to $18.76.  First half 2021 average improved to $16.70/cwt.  Class IV futures continued to lag in the mid $13-$14 range. 

The grain complex settled disappointingly after a strong open.  December corn reached $4.09 before retreating backwards to $4.02/bushel.  November soybeans touched $10.7075/bushel before settling at $10.50/bushel.  December soybean meal fell $4.60 to $367.50/ton.  December Chicago Wheat settled at $6.2525/bushel, the highest settlement price in 5 years.  October live cattle fell 62 cents to $107.15/cwt.  October feeder cattle declined 82 cents to $138.10/cwt.  November crude oil fell 22 cents to $40.74/barrel.