Milk Moves Higher Despite Weak CME Trade on Wednesday

Wednesday brings mixed signals to the dairy market. The CME spot trade was weaker with the exception of dry whey, yet Class III moved higher with a short-term rally during trading. November Class finished 15 higher to $20.19, December saw a 40-cent swing during trading to finish 10 higher at $18.79, and 2020 saw Jan – March trade 9-12 higher with an average price of $17.33 per cwt.

Class IV was unchanged across the board, November at $16.73, December at $16.93, and January – March averaging at $17.30 per cwt. 

These moves higher was despite the 3 cents Cheddar blocks lost to move to $1.91 with 4 loads trading. Cheddar barrels saw 2 loads trade hands, falling 3 ½ cents to $2.28 per lb. Our block/barrel spread continues to be inverted at 37 cents, though the average Cheddar price fell to $2.09 ½ per lb.

Butter only moved 1 load and fell a quarter of a cent to $2.06 ½. Dairy powders continue to be steady with nice volume trading. Grade A nonfat dry milk was unchanged moving 10 loads at $1.21 ¾, and dry whey gained ¾ of a cent to $0.29 per lb. with 6 loads moving, and 23 bids left with no offers. 

Grain markets saw December corn fall 2 ¼ to $3.75 ¼, November soybeans fell 3 ¼ to $9.02 ½, and December soybean meal gained $1.80 to $304.10 per ton.