October 1, 2019

Milk Markets Rally Higher On Positive Cheese Trade

 |  By: Know Your Market

We continue to follow the CME spot cheese market. Cheddar Blocks gained 3 ¼ cents to $1.99 per lb. with 5 loads trading. Cheddar Barrels also gained 4 ¼ cents to $1.73 ¼ with 4 loads moving from seller to buyer. Butter was unchanged at $2.12 ¾ with no loads moving Tuesday. 

Grade A nonfat dry milk continued its strong move higher gaining 2 cents to $1.13 per lb. with 4 loads moving. Dry why fell a quarter of a cent to $0.34 ¾ per lb. but had 14 loads move. 

These moves came after the Global Dairy Trade Event 245 this morning. Overall index increased 2% from the previous event but saw mixed results. Skim Milk powder was the driving market, increasing 2.7%, Anhydrous milk fat was unchanged, Butter fell 2/10 of a percent to $1.83 per lb. 

Cheddar cheese index fell 3.4% to $1.69 per lb., with rennet casein gaining 7/10 of a percent.

September Class III milk finished trading at $18.28, October gained 15 cents to $18.28, and November gained 16 cents to $18.24. 2020 markets also moved higher, gaining 4-9 cents in January- March and showing a first quarter average at $16.68 per cwt. 

Class IV milk was up 7 cents in September to $16.45, October was unchanged at $16.45, and November gained 6 cents to $16.76 per cwt. 

Grain and feed markets were stronger Tuesday. December corn was up 4 ½ cents to $3.92 ½, November soybeans gained 13 ½ to $9.19 ½, and soybean meal gained $8.20 to push back above $300 to $304.10 per ton.

As we welcome the dairy industry to Madison this week for World Dairy Expo, we announce the merger of Commodity Risk Management Group and Rice Dairy to become Vault Ag – offering dairy and grain producers a comprehensive risk management home. 

For Commodity Risk Management Group, this is Jenny Wackershauser on Know your markets