December 9, 2019

Milk Markets Remain Strong Despite Cheddar Price Slide

 |  By: Know Your Market

Class III milk wasn’t buying what Cheese was selling off Monday. The CME spot Cheddar trade saw barrels drop 14 ¾ cents to $2.08 per lb. with 3 loads trading and 4 loads offered without a buyer. Cheddar blocks though were unchanged at $1.97 with 4 loads trading and 1 offer left. The block/barrel spread narrowed to 11 cents inverted. Our cheddar average is at $2.02 ½.

Butter found support Monday, gained 1 ½ cents to $1.93 with 3 loads moving from seller to buyer with 1 bid and 1 offer left. Grade A nonfat dry milk was unchanged at $1.26 ¾ with no loads trading, 2 bids and 1 offer. Dry whey fell half a penny to $0.36 ¼ with 3 loads moving, 1 bid and 1 offer.

Class III milk started the day with green on the overnight into the 11 am CME spot trade, but fell as our cheddar loads showed up to the market. But we didn’t move as low as we normally would expect with a 14 + cent move in Barrels. We finished the day mixed. December fell 4 to $19.51, January gained 2 to $18.64, and February was unchanged at $17.85. Class IV was unchanged nearby with December holding at $16.74, Jan fell 3 to $17.06, but February- April gained 5-7 cents with Feb at $17.42 per cwt.

Grain markets continue to see mixed trading with December corn falling ¾ of a cent to $3.65 ¾, November soybeans gained 7 ¾ cents to $8.97 ¼ , though December soybean meal didn’t follow soybeans, falling 70 cents to $296.70 per ton.