Red Spreads Across The Board
The commodity space watched red spread across the various markets on Thursday. Grains saw corn lose 2 and a half cents, soybeans fell 5 cents and the wheat complex softened 5-6 cents per bu. The meat markets followed suit as fat cattle dropped $1 and a half dollars per cwt., feeders softened 75 cents and hogs lost $1 per cwt.
Over in the dairy space, Class III milk futures closed 9-22 cents lower. March is now trading at $16.67 per cwt. June and onward in 2020 still holds a price in excess of $17.00 per cwt. Class IV markets took it on the chin even harder. March milk lost 30 cents per cwt. while all other months declined double digits.
CME spot dairy markets ended on a softer tone. Butter declined 2 cents to $1.75 and a half, blocks settled a penny lower and barrels were 1 and ¾ cents softer. Dry whey closed unchanged at 37 cents per lb. while Grade A nonfat dry milk took on the greatest volume moving 17 loads and prices softened 1 and ¾ cents to $1.17 and ¾ per lb.
USDA released their January milk production report on Thursday. Milk production in the United States grew 0.9% year-over-year. Milk cows on farm grew 5,000 head to 9.348 million. Total milk produced on farms during January totaled 18.785 billion pounds.