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August 29, 2019

Milk, Grains Rally Higher

 |  By: Know Your Market

The Class III milk market turned in a great day of trade following a rather lackluster move in the product market. 2019 months ranged from 7-17 higher September through December while first half 2020 prices settled 1 lower to 2 cents higher. Class IV milk results had September down 12 cents, October 7 softer, and November traded 10 cents higher. 

Over in the product side of things, cheddar blocks traded 7 loads and closed a quarter cent higher to $1.88 per lb. Butter and barrels were both unchanged at $2.21 cents per lb. and $1.68, respectively. Butter saw no trades while barrels moved 8 loads. Grade A nonfat dry milk lost a penny in Wednesday’s trade falling to $1.0375 per lb. Dry whey weakened a half cent to 39 cents per lb. 

The grain markets finally traded higher on Wednesday after the bloodbath that it has experienced basically the entire month of August. Corn traded 4-6 cents higher off of news from Agriculture Secretary Sonny Perdue announcing that President Trump plans to boost bio fuel demand. That announcement is expected over the next couple of weeks. The soybean market traded 6.5 cents higher to $8.6575 per lb. The wheat complex fell 1-2 cents in Chicago and Kansas City whereas Minneapolis was down 4.