Milk Production Continues To Creep Upwards
The USDA August milk production report saw August milk production up 1.8%. July milk production was also revised to 2% YoY. It was previously up 1.5%. The number of milk cows on farm in the United States was 9.36 million head, 42,000 cows higher YoY, but unchanged from last month.
Week 1 of September Dairy Cow Slaughter was down 3.7% YoY. The Midwest region was down 6.9%.
Moving along to the CME Cash Dairy Product Trade, the block/barrel spread has widened to a new record of 76.50 cents. Blocks paced 7.25 cents higher to $2.40/lb. Barrels gained 2.50 cents to $1.6350/lb. Butter crawled 2 cents higher to $1.53/lb. Grade A Nonfat milk inched 3/4 of a penny lower to $1.06/lb. Dry Whey added 1.50 cents to $.3550/lb.
Quarter 4 2020 class III milk futures climbed 29-45 cents higher for an average of $18.07/cwt. First half 2021 average is $16.45/cwt.
The grain complex rallied higher on the day. December corn settled 3.50 cents higher to $3.7525/bushel, which is the highest close in just over 6 months. November soybeans continued its tear higher, surging 17.25 cents to $10.2850/bushel. December Chicago Wheat increased 14.25 cents to $5.5625.
Fats and feeders were mixed on the day. October live cattle finished 5 cents higher to $106.77/cwt. October feeders erased 97 cents to $141.45/cwt. October crude oil settled 91 cents higher to $41.07/barrel.