Mid-Week Correction Propels Class III Higher
Thursday brings a move back higher in Class III milk after the mid week correction on Wednesday. Though Cheddar blocks still fell 9 cents in the CME spot trade, we found 2 buyers willing to spend $2.71 on blocks. Barrels held down just a quarter of a penny to 2.41 ¾ with no trades. The block/barrel spread narrowed to just under 30 cents.
Butter moved 1 load and also slid a quarter of a penny to 1.69/lb. Grade a Non Fat Dry Milk finished down a penny at $1 even and traded 10 loads. Dry whey was our lone product to move higher, gaining 1 ¼ cents o $0.33 ¼ but no loads traded hands.
Class III started the day down significantly after the limit moves Wednesday, but bounced back strongly. July fell 8 cents to 24.23, but August surged 35 higher to 22.69, and September was up 55 to 20.03. The balance of 2020 was 22-47 higher.
Class IV couldn’t follow suit. July fell 17 to 13.82, Aug fell 19 to 14.23, and September fell 6 to 14.62.
Grains saw a bounce higher as well on Chinese buying. December corn gained 3 ½ to 3.37 ½, November Soybeans gained 8 ¼ to 8.91 even, and Soybean meal moved $1.20 higher to 287/ton.