Milk Prices Soften On Block, Butter Markets
Milk prices came into Wednesday’s session ready to extend its recent run higher. The block and butter markets had other ideas and caused milk to soften throughout 2019.
June futures lost 6 cents while July – September dropped 9-11 cents and the fourth quarter declined 2-5 cents. At the close, second half pricing in Class III was offering $17.07 per cwt. Class IV second half prices settled at $17.46 per cwt.
CME spot product trade was led by butter on Wednesday. Butter traded an impressive 19 times, had 12 uncovered bids and 7 offers to close at $2.3925 per pound, down 1.25 cents for the day. Cheddar blocks ended at $1.785, a penny lower. Barrels were unchanged at $1.5525. Grade A Nonfat dry milk saw two trades Wednesday but settled unchanged at $1.055. Dry whey was also even for the day at 35.75 cents per lb.
Grain prices followed up Tuesday’s bullish supply and demand report for corn in a positive manner. Corn added 2.25 cents to close at $4.30 per bu. while new crop ended at $4.4725. Soybeans saw the greatest jump settling out at $8.78 per bu., up 18.75 for the day. Wheat added 8.25 cents in Chicago, 5.25 cents in Kansas City, but lost 4.75 cents in Minneapolis.