Milk Markets Bounce Back
Milk finds some support mid-day despite a mixed spot trade. After the Global Dairy Trade Event 254 showed weakness everywhere except cheese, the CME spot market saw nonfat be the biggest mover. Overall the Global Dairy Trade was down 2.9% with only cheddar trading higher than 2 weeks prior, up 5.3%.
Butter was 3.9% lower, anhydrous milk fat was 5.5% lower, skim milk powder traded 2.6 below 2 weeks ago, and whole milk poser slipped 2.6% lower.
CME spot trade had butter as our biggest volume trade. 16 loads moved from seller to buyer with the price sliding to $1.79 ½, down half a penny. Cheddar was mixed with barrels seeing NO volume offered or trading and the price stayed unchanged at $1.58 ½, blocks fell a penny to $1.81 with 5 loads trading.
Grade A nonfat dry milk was our lone market to move higher, bolting 3 cents higher with 2 loads trading hands to $1.20/lb. Dry whey was unchanged holding at $0.37/lb with no loads trading, 2 bids and 2 offers.
Class III milk started the day down sharply, but as we moved through trading bounced back to finish mostly in the green. February fell 1 to $16.98, March unchanged at $17.01, and April gained 10 to $17.16. The balance of 2020 was 3-12 higher except Dec which was off 4 cents.
Class IV milk saw nice gains following a large volume of butter trading – Feb was unchanged at $16.28, March gained 18 to $16.20 and April gained 15 to $16.35/cwt. Balance of 2020 trading 10-15 higher.
Grains saw wheat as the story of the day – gaining 24 cents to $5.66 ¾, while corn and soybeans were mostly mixed.