Milk Futures Rise Sharply
The biggest news in the market on Friday was the announcement by USDA that Round 2 of Coronavirus Food Assistance Program, better known as CFAP, would offer farmers direct payments to offset market disruptions. $14 billion dollars has been approved for this round to be split up amongst many commodities. Dairy payments will be based upon total milk hundredweight marketing’s from April 1st until August 31st multiplied by $1.20/cwt. Payments for September 1st through December 31st will be based upon the average hundredweights produced per day during April 1st and August 31st, that number multiplied by 122 which is the number of days between September 1st and December 31st, and finally multiplied by $1.20/cwt. Payment limits do exist once again for individuals and entities, entities with more than one member could be eligible for extra limits. The sign-up period begins on September 21st and ends December 11th. You can find more info on USDA’s website or by contacting your local Farm Service Agency.
Milk markets rose sharply on Friday as futures gained 55 cents in October, the limit of 75 cents in November, and 52 cents in December as well. First quarter 2021 ranged from 12-35 cents higher too. Class IV finally found some life moving 11-26 stronger in Q4 2020 and the first part of 2021 had small gains. CME spot cheese values watched block cheese jump 22.75 cents/lb and ended at $2.6275/lb. Butter rose 6.75 cents to $1.5975/lb. Twelve loads moved from seller to buyer.