Milk Markets Ignore Crude Oil Fallout
The story of Monday’s markets once again was Crude Oil. Historic day in which crude traded negative for the first time ever. Dropping as low as -$37/barrel as May crude moves into its last day of trading on Tuesday. This pressured all of our commodities. Milk started the day with green coming out of the USDA announcement on Friday of the aid program for all Agriculture sectors. More details will be released this week.
The CME spot trade was mixed. Butter traded 9 loads and saw a nice gain of 1 ¼ cents to $1.20/lb with 4 bids and 8 offers left. Cheddar saw blocks move half a penny lower to 1.00 ¾ of a cent on 1 load, and Barrels gained ¾ of a cent to $1.01 ¼ with 2 loads trading, 12 bids and no offers.
Grade A nonfat dry milk saw the largest move, but only fell 1 ½ cents to $0.84/lb with 4 loads moving, 7 bids, and 3 offers. Dry whey was unchanged at $0.39/lb with no loads trading, 4 bids and 5 offers.
Class III milk was unchanged in April at $13.41, May fell 19 to $10.91, and June fell 25 to $11.91/cwt.
Class IV milk was unchanged in April at $11.42, May fell 7 to $10.59, and June gained 7 to $11.16. The balance of 2020 was even to 13 cents higher.
Grain and feed followed crude with corn down sharply – falling 8 cents to $3.14 ¼, soybeans fell 6 to $8.26 ½, and soybean meal fell $2.60 to $286.60/ton.