Milk Follows Cheese Higher on Tuesday
The CME spot trade saw a consistently higher trade Tuesday. Butter gained half a penny at $2.08 ¾ with 4 loads trading, Cheddar blocks gained a penny to $2.15 ¼ and saw 4 loads move from seller to buyer, with cheddar Barrels holding unchanged at $2.25 ¼ but no loads trading, no bids and no offers. The block/barrel spread stays inverted at 10 cents. The average cheddar price at $2.20 per lb.
Our one product to move lower was dry whey – still our volume leader with 11 loads trading, 14 bids and 1 offer, we gave up half a cent in price to $0.26 ¾ per lb. Grade A nonfat dry milk gained half a penny to $1.15 ¾ with 5 loads moving, 6 bids and 9 offers.
We continue to see Class III milk follow the strength in the cash cheese trade. November gained 18 cents to $19.86, setting another contract high. December gained 33 cents to $18.92 and January – March of 2020 saw 4-13 cent moves higher to average $17.23 per cwt. Class IV milk gained 4 cents in November to $16.75, and December gained 17 to $16.74 with 2020 markets being relatively unchanged, other than January gained 6 to $16.73.
Grain markets saw a mixed day with markets down slightly during overnight trading to a mid-morning burst higher on rumors that China and the U.S. will be meeting to sign a trade agreement in Chile on November 17. The market is still shy to buy in and saw December corn gain 2 ¼ to $3.86 ¼, November soybeans fell 2 ½ to $9.18 ¼ and December soybean meal fell $1 to $303.00 per ton.