Milk Price Hold Stead After News of MFP Payments
A quiet day in the markets was punctuated by information from USDA on the MFP payments. For dairy producers this could equal a $0.20/cwt payment with maximum of $250,000 per entity and a combined total claim between crops and livestock at $500,000. Sign up with FSA will begin on July 29th with the first of three waves of payments due mid to late August. FSA offices will be handling all sign up with producers.
Class III milk was mixed during Thursdays trade. July finished up 5 cents to $17.46, August lost 2 cents to $17.69, and September fell 6 to $17.96. We continue to have a hard time holding prices above $18. The Second half average is at $17.70/cwt. First quarter of 2020 was down 7-8 cents and averaged at $16.86/cwt.
Class IV milk saw gains of 3-8 cents with July unchanged at $16.90, and the second half average for Class IV milk at $17.12/cwt.
The CME spot product trade was quiet, but Non Fat Dry milk saw 10 loads trade hands and gained 1 ¼ cent to $1.03/lb Dry why lost a quarter of a cent on 2 loads trading to finish at $0.35 1/2/lb.
Butter didn’t trade any loads and was unchanged from yesterday at $2.36/lb, Cheddar was mixed. Blocks lost a quarter of a cent to $1.83 and Barrels gained a quarter of a cent to $1.72/lb.