Milk Prices Skyrocket Higher
The majority of commodity markets jumped following news of a coming trade deal between China and the U.S. to avoid a trade war. While specifics are yet to be determined; soybeans, cattle and dairy traded much higher. Soybeans strengthened 25-26 cents, cattle added $2.50 per cwt.
Dairy markets were up 15-20 cents coming into the cheese trading and sustained that move after a solid session in Cheddar blocks and barrels. Barrels traded 20 loads and 3 ¾ cents per pound higher and closed at $1.57. Blocks failed to trade but found 3 bids to move its price up 5 ¾ cents per pound. Blocks closed at $1.64. Butter followed suit as it rose 5 cents to $2.435 on 7 trades, 14 bids and 9 offers. Grade A Nonfat dry milk grew a quarter cent to 85.5 cents while dry whey closed unchanged at 37 cents even.
Class III milk futures ranged from 8-24 cents higher June through December 2018. January 2019 – August 2019 settled 1-5 cents higher. Class IV milk added 14-28 cents June through December 2018 and 2-11 cents in the first quarter of 2019. In the remaining ag commodity markets, wheat fell 5-12 cents across all 3 contracts, lean hogs dropped a half cent and crude oil traded $1 higher to $72 per barrel. Diesel markets were up a penny.