December 11, 2019

Milk Markets Continue To Slide Lower

 |  By: Know Your Market

The cheddar tumble continued Wednesday as the CME spot trade saw offers for both Cheddar blocks and barrels with no buyers. Cheddar blocks fell 3 ¾ cents to $1.91 with 3 offers, no bids and no trades. Barrels fell 8 ½ cents to $1.86 ¼ per lb. with 4 offers, no bids and no loads changing hands. Barrels have slid 36 ½ cents in the last 3 sessions and block/barrel spread has transitioned back to 4 ¾ cents.

Butter was our lone bright spot. Moving 1 cent higher to $1.95 per lb. with 1 load moving. Grade A nonfat dry milk fell a penny to $1.25 ¼, and dry whey fell a penny to $0.35 ¼ per lb. with 3 loads moving 10 bids and no offers left. 

Class III milk moved sharply lower after the 11 a.m. CME spot trade, but saw some most months rebound a bit. The day finished with December 6 cents lower to $19.37, January fell 21 to $18.19, February fell 7 to $17.56. Our first half is averaging at $17.32 per cwt.

Class IV milk didn’t see as much of a move. December was unchanged at $16.74, January fell 4 to $16.99, and February fell 9 to $17.29 per cwt.

Feed and Grain expenses continue to fall. December corn fell 5 ½ to $3.57 ¾, January soybeans fell 7 ¾ cents to $8.93 ½, and December soybean meal fell $3.60 to $293.30 per ton.