Markets Prepare for USDA Induced Volatility
Class III milk futures closed slightly lower in 2019 but higher 2020. July, September and October each fell a penny while August declined 5 cents. 2020 months ranged from even in February to 10 cents higher in November 2019. Class IV milk closed even in July and November and dropped as much as 9 cents in December. 2020 prices were softer as well with the 2nd quarter losing 24028 cents per cwt.
CME spot product markets saw mixed trade. Butter gained 1.25 cents following 2 trades and 4 uncovered bids to close at $2.4075 per lb. Cheddar barrels moved ¾ of a cent higher to $1.7675 on 2 trades. Blocks softened a penny with 3 loads moving from seller to buyer. Blocks ended at $1.83 per lb. Dry whey traded a quarter cent higher to 32.25 cents per lb. Grade A nonfat dry milk closed unchanged at $1.0375 per lb.
Grain markets on Wednesday began the day lower but reversed course and closed higher in all 3 complexes. Corn settled 2.5 cents higher on new crop to $4.395. Soybeans added 8.5 cents to $9.1275 per bu. The wheat complex added 2 cents in Chicago, Kansas City and Minneapolis.
Tomorrow the USDA releases its latest version of the World Agricultural Supply and Demand Estimates. Volatility will loom large as our balance sheet is updated once again.