September 13, 2019

Milk Futures Can't Maintain Momentum

 |  By: Know Your Market

Friday marks the end of a week that saw October Class III milk climb nearly $1.50, driven by a Cheddar block market that has more buyers than sellers. The CME spot market saw less volume Friday, but Cheddar blocks gained 6 cents to $2.20 ½ but no loads traded. Cheddar barrels followed, gaining 4 cents to $1.92 with 3 loads trading. The block barrel average stands at $2.06 ¼. 

Butter traded five loads Friday falling half a penny at $2.22 ¼. Grade A Non Fat Dry milk was unchanged and didn’t move any loads at $1.05 ½, and Dry Whey was also unchanged with no loads moving at $0.39 ¾. 

Class III milk finished mixed on Friday. After limit moves Thursday, milk struggled to find its way. September gained 1 cent to $18.31, October gained 4 cents to $19.20 and November fell 4 cents to $18.35. Fourth quarter average is at $18.38/cwt. 2020 milk gave back some of Thursday’s gains, falling 5-6 cents to average at $16.70/cwt.

Class IV milk was softer. Sept was unchanged at $16.33, October fell 3 to $16.55, November fell 6 to $16.68/cwt. The fourth quarter average is at $16.66/cwt.

Feed markets calmed down a day after the Supply and Demand report from USDA. December corn gained 1 ½ to $3.68 ¾, and November soybeans gained 3 ¼ to $8.98 ¾. Soybean meal continued to climb back towards $300, gaining $2.10 to $298.20/ton.