Milk Markets Steady While Grains Rally On USDA Stocks Report
Milk markets in Class III witnessed very little change on Monday. Fourth quarter 2019 lost 2-6 cents per cwt, while 2020 prices ranged from a penny softer to 6 cents higher. The first half 2020 market is offering producers $16.72 per cwt. Class IV markets saw very little change as October through January traded just 1-6 cents higher, all other months were unchanged.
CME spot product markets saw butter lose 2 cents per pound to $2.12 ¾ following 4 trades. Cheddar blocks traded twice and a quarter cent to 35 cents per lb.
The USDA released its September version of the Quarterly Stocks Report. Surprises were seen in both corn and soybean stocks. In corn, pre report estimates landed between 2.3 and 2.5 billion, whereas actual corn stocks were released just north of 2.1 billion. The soybean range was projected before the report between 940 million and 1.035 billion. In the end, USDA released their number at 913 million bushels. Corn reacted to the news by adding 16.5 cents to $3.88 per bu. while beans jumped 23 to $9.06 per bu.