Product Markets Move Higher, Milk Remains Unchanged
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.
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