Markets sideways
February 2, 2017

Product Markets Move Higher, Milk Remains Unchanged

 |  By: Know Your Market

By Mike North, Commodity Risk Management

The Feds announcement not to raise rates caught the attention mostly of the grain markets yesterday. Corn prices moved 8-9 cents higher, while soybeans and wheat were up 12 cents, the biggest move we’ve seen this calendar year.  

However, that had little translation in the milk market where a strong product trade took prices higher, albeit on little volume. Butter did not trade yesterday. Three offers showed up and finished unchanged at $2.24. The blocks climbed 4.25 cents to $1.75, where a loan bid moved the markets higher. Barrels were up 6 cents on 6 trades and finished at $1.57 ¾. That tightens the spread to 17.25 cents, a development that’s been taking place over the last couple of days and certainly a spread that has been on everyone’s mind. Grade A nonfat dry milk was up a quarter cent to 94.75 cents, again just on bids, an offer did stand at the end of the trade.

Milk markets remained unchanged largely through the course of the year. A few markets higher and a few markets lower but little movement to speak of. Class IV garnered a few trades in August and September but was quiet as well.

Listen to Mike North daily on Dairyline Radio.