Milk Markets Follow Grain And Take A Plunge
Although the milk market was able to sustain higher trade activity on Monday unlike the livestock and grain complexes following President Trump’s Sunday evening tweet, the sellers certainly showed up on Wednesday when near $17.00 milk was hanging in front of them.
May closed 4 cents lower at $16.41 per cwt. and June lost 12 cents to settle out at $16.43. The second half of 2019 was sold off even more. July through December marks declined 14-18 cents per cwt and closed with a second half average of $16.76. First quarter 2020 declined 4-11 cents as well. Class IV trade was much more lackadaisical. 2019 prices ranged from a penning higher to 3 cents lower.
The second half 2019 class IV average closed at $17.35 per cwt. CME spot product markets mainly struggled on Wednesday. Butter dropped a penny to $2.28 and a half cents following three trades and one uncovered offer. Blocks fell a half cent also on three trades and one offer. The block price ended at $1.70 and a quarter cents per lb.
Barrels weakened a quarter cent to $1.73 and three-quarters. Dry whey was unchanged on the day at 24 and three-quarter cents per lb. Grad A nonfat dry milk was the lone product to move higher adding 1 and a quarter cent to $1.07 and a quarter.
With China in town and the Federal Register reporting that the U.S. tariffs on China will increase to 25% from 10 % on Friday unless a trade agreement is met. All markets will have an interesting close to this week with China already pledging to retaliate.