July 21, 2019

Hot Temperatures, Hot Milk Prices

 |  By: Know Your Market

Both Class III milk and the temperatures are on the rise! With record hot temperatures in the Midwest this week, we saw nice gains in Class III milk that is once again in shouting distance of $18.00 this fall. July fell1 cents to $17.41 and Aug fell 3 to $17.66, but we saw gains of 7-10 cents in the remaining fall months with and average for July – December at 17.69/cwt.  2020 markets also continue to climb. Gaining 3-8 cents in the first quarter to average at $16.87/cwt

The CME spot product trade saw butter again leading in volume. 14 loads traded from seller to buyer and saw the price slide 1 ¼ cents to $2.39 3/4/lb. Cheddar was unchanged. Blocks had no trades, no bids and no offers and finished the week at $1.78/lb. Barrels traded 11 times and held at $1.70 ½ and brings our block/barrel spread to 7 ½ cents.

Grade A non fat dry milk fell a penny to $1.00 ¾ of a cent with one load trading, 3 bids and 7 offers. Dry whey gained a half a cent to $0.34/lb but had no loads trading hands and 7 bids left on the table.

Grain and feed markets saw a bounce back Friday. December corn gained 6 to $4.35 ¾, November soybeans gained 20 ¼ cents to 9.19 ¼, and Aug Soybean meal gained $4.20 to $311.20/ton.

Monday is a busy day for information into the dairy market as we get both the cold storage report and the milk production report from the USDA .