Milk Markets Rally Despite Trade Uncertainty
Mexican trade discussions began Wednesday and gave some uncertainty to the market as the U.S. discusses tariffs on our largest home for U.S. Cheese. The CME spot product trade saw only positives though, as all 5 products showed gains. Butter was our biggest mover, gaining 3 ¾ cents to $2.38 ¾ with 1 load trading. Cheddar Barrels were the busiest market with 18 loads trading hands and gaining 1 ½ cents to $1.50 even. Cheddar Blocks gained half a penny to $1.72 ½ /lb and brings our Block barrel spread to 22 ½ cents.
Grade A nonfat dry milk moved a quarter of a cent higher on 1 trade, 4 bids and 1 offer to finish at $1.05 ½ /lb. Dry whey gained half a cent to $0.35 ¾.
Class III milk followed the product trade today and bounced back higher. June gained 20 cents to $16.12/ cwt and July gained 17 to $16.48. The second half months gained 2-17 cents to finish with an average at $16.394/cwt. First quarter of 2020 saw a dip in prices however. January was unchanged at $16.36 and Feb and March lost 2-3 cents.
Class IV milk was also stronger. June was unchanged at $16.80/cwt, and July gained 12 cents to $17.07.
Grain and feed markets saw weaker prices as traders question the accuracy of Monday’s planting progress report. Dryer conditions in key corn producing states opened more opportunities to get the crop in the ground.
For Commodity Risk Management Group, this is Jenny Wackershauser on know your markets.