Milk Futures Continue To Soften
Class III milk continued to lose ground on Wednesday as we saw a mixed day on the CME spot product trade. August Class III milk was unchanged at $17.61, September fell 15 to $17.55, and Oct fell 9 cents to $17.62. Markets for 2020 fell 4-6 cents in Jan through March and it is averaging $16.41/ cwt. Class IV milk was also softer. August was unchanged at $16.63, September fell 11 to $16.57, and October fell 6 to $16.78.
Butter was our volume leader in the CME spot product trade. Twenty seven loads traded on Wednesday, but price only rose ¼ of a cent to $2.31 1/4/lb. Cheddar Blocks remained near its high, but fell 1/2 cent to $1.90 1/2/lb with 2 loads trading. Cheddar barrels widened the Block barrel spread, falling 3 cents to $1.68/lb and bringing the block/barrel spread to 22 ½ cents.
Grade A Non Fat Dry Milk was unchanged and didn’t move any loads finishing at $1.02 ¾. Dry whey was our big mover, gaining 1 ¼ cents to $0.40/lb with only 1 load moving.
Green showed up today in the Grain markets. After early lows in December corn, we finished the day up 1 ½ cents to $3.70 ¼, November soybeans also gained 4 ¾ cents to $8.73 even, and Soybean meal gained just $0.70 to $294.70/ton.