September 18, 2019

Milk Prices Again Follow CME Spot Cheese Prices Lower

 |  By: Know Your Market

Follow through selling in both the CME spot product and Class III markets took place Wednesday after Tuesday’s limit down session. 

Cheddar barrels faltered 10.5 cents on just a single trade and closed at $1.785 per lb. Block cheese struggled as well declining 5.25 cents to $2.1175 per lb., also on a single transaction. Butter settled out Wednesday at $2.11 per lb., down 4 cents on the day. Dry whey was unchanged at 39.75 cents while Grade A nonfat dry added a half cent to $1.075 per lb. 

While October Class III milk at one point traded 69 cents lower during the product session, it finished today’s session at $18.73 per cwt, down 26 cents. The stretch of months between November and June 2020 ranged from 7 lower to 9 higher. Class IV markets followed a similar path watching October fall 22 cents and November through June was 13 lower to 9 higher. 

The USDA’s August milk production report was released this afternoon at 2 p.m. Results in the report had the U.S. milking herd ending August at 9.318 million, down 2,000 head after accounting for the revision of 10,000 more cows to July’s numbers than previously reported. If you net the July and August changes together, we added 8,000 head in Wednesday’s report. Milk per cow for the month of August was up 19 pounds and total milk production came in at 18.28 billion, 2/10 over August 2018.