Milk Markets Unchanged On USDA Cold Storage Report
Class III milk continues to follow CME spot cheese sales. The USDA Cold Storage report on Monday showed us a small increase in all cheeses from July to August of 700,000 lbs. to 1.36 Billion lbs. American style cheese however fell. Inventories fell 3.6 million lbs from July to 768 million lbs.
Butter finally found its peak production; inventories fell 24.5 million from July 2018 to 305.1 million. We still have 4.9% more butter in storage then we did in 2018 heading into the holiday baking season.
Cheddar Blocks held unchanged Monday at $2.05 per lb. with 4 loads trading, and 1 offer left. Cheddar Barrels however fell 3 ¾ cents as 10 loads moved from seller to buyer. The block barrel spread is at an all time high at 43 ¼ cents.
Butter was stronger, gaining 4 cents to 2.15 ½ with 2 loads trading. Grade A non-fat dry milk gained ¾ of a cent to $1.09 per lb. with 1 loading moving. Dry whey fell 3 cents to $0.36 ¾ per lb. with 2 trades, 1 bid and 1 offer.
Class III milk had a mixed trading day, seeing both green and red as we moved through the day. Moving higher during early trade, nearby failed to hold as we traded cheese lower in the CME Spot market. Sept was unchanged at $18.26, Oct fell 33 cents to $18.33, and November fell 13 to $18.26 per cwt. 2020 markets saw January – March mixed at 5 lower to 3 higher with an average at $16.73 per cwt.
Class IV milk was unchanged in fall of 2019 markets with Sept at $16.33 per cwt.
Grain markets saw corn and soy higher. December corn gained 2 ½ to $3.73 ¼, November soybeans gained 9 3/4 to $8.92 ¼ and soybean meal gained $3.40 to $294.50 per ton.