Archive for Dairy Markets

Milk Markets Marginal as Cash Dairy Drive Higher in Chicago Thursday

Class III futures were slightly weaker today on the Chicago Mercantile Exchange.  May milk fell 9 cents to $12.20/cwt.   June was down $.08 at $12.63 per hundredweight and July was $.08 lower at $17.06, while August was down $.16 at $16.53 and September was a dime lower at $16.44.

July corn fell 1.75 cents to $3.1775/bushel.  Spot soybeans tumbled 11.75 cents to $8.35.   July soybean meal lost $3 to $282.50/ton.  September Chicago Wheat gained 3.50 cents to $5.1875/bushel.  June Live cattle finished 40 cents higher to $98.80/cwt.  August Feeder Cattle fell 12 cents to $128.87/cwt.  June crude oil increased 52 cents to $34.01.    

Mixed Markets in Chicago Wednesday

Dairy prices on Wednesday were stronger throughout the day at the Chicago Mercantile Exchange.  June Class III milk futures were 43 cents higher at $17.71.  July up 32 at $17.14.  August through October contracts a dime to 22 cents higher.

CME spot products put together another strong showing. Blocks up $0.07 at $1.92.  Barrels $0.07 higher at $1.8525.  Eight trades were made, ranging from $1.85 to $1.8525. Butter up $0.03 at $1.6350.  Thirteen trades, with a range of $1.6325 to $1.64. Nonfat dry milk up $0.01 at $0.9950. Dry whey steady at $0.3525. 

Dairy Markets Move Higher by Leaps and Bounds

The bulls bellowed and bucked this week, and the bears fled. The dairy markets moved higher by leaps and bounds. Although the rally faded on Friday, the magnitude and velocity of this week’s recovery are astounding. Cheese led the charge. CME spot Cheddar blocks jumped 47.5ȼ this week to $1.78 per pound. Barrels soared 45ȼ to $1.72, a new high for 2020. Both blocks and barrels stand above yearago levels, a truly impressive feat given the state of the economy. Butter vaulted 35.5ȼ this week to $1.645. CME spot nonfat dry milk (NDM) rallied 11ȼ to 93.5ȼ. Whey slipped back 0.75ȼ to 39ȼ.

The futures gained considerable ground. June Class III settled at $16.85 per cwt., up $3.17 from last Friday. The June contract has climbed more than $5 in the past three weeks. June through December Class III futures sit comfortably above $16. 2020 Class IV futures added more than $1.50, on average, this week. But at less than $15 per cwt., they are still a long ways from covering dairy producers’ costs.

The dairy markets in general, and the cheese and butter markets in particular, have been buoyed by a perfect storm of purchases. U.S. cheese was a bargain a couple months ago. Now exporters are loading containers to fill orders that were booked earlier this year. Grocers are still moving dairy products in huge volumes. They are competing with restauranteurs who are restocking after spending most of March and April on the sidelines. Meanwhile, some companies that signed up to supply nonprofits with food boxes under USDA’s Farmers to Families program are scrambling to secure the yogurt, dips, cheese, butter, and fresh milk needed to fill them. In the near term, processors may need to ramp up output to meet these simultaneous requests. Meanwhile, ice cream season has arrived, tightening up the cream markets and reducing butter production.

While dairy processors are hurrying to squeeze large orders into a very short timeframe, dairy consumption may be less concentrated. Dairy products are moving rapidly from processors to cargo containers, food banks, commercial kitchens, grocery pallets, and in-home refrigerators. But consumers probably aren’t eating a lot more dairy than they were just a few weeks ago. USDA is donating dairy at such a scale that it’s likely to cannibalize retail sales. Restaurant goers will also need fewer groceries. Importers who stocked up on U.S. cheese when it was on sale won’t need to buy as much later. Orders are not expected to maintain their current heady pace.

Whatever the future brings, improved demand has ushered the milk market into balance at a time of year when that can be difficult to achieve. Lower output has helped too. Preliminary data shows European milk collections up just 0.8% from a year ago in March. USDA’s Dairy Market News reports that high cull rates and variable feed quality have tightened milk supplies in the Northeast. Co-op penalties and self-imposed production cuts are reportedly weighing on milk yields in the Central region. In the Southwest and California, the heat is also dragging production lower. For the week ending May 2, dairy cow slaughter was 58,467 head, up 2.5% from the same week a year ago, and once again the highest total ever for this time of year, excluding 1986. Although the futures promise better days ahead, there is still immense pain on the farm. This week’s vigorous rally suggests the dairy downturn may be over sooner than we had feared.

The corn market went nowhere at all this week. July corn futures finished right where they started, at $3.1925 per bushel. On Tuesday, USDA published its first official supply and demand estimates for the 2020- 21 crop year. With massive acreage and no sign of planting trouble, the agency projects end-of-season corn stocks at over 3.3 billion bushels, the highest total since the 1987-88 season. Soybean futures slipped 12ȼ this week to $8.385. Exports are perking up, but the low corn price suggests that farmers may switch some ground into soybeans, which is not helping prices. The currency is also an impediment. This week the Brazilian real fell to an all-time low against the dollar, making South American soybeans extremely attractive for foreign buyers.

Original Report at: https://www.jacoby.com/market-report/dairy-markets-move-higher-by-leaps-and-bounds/

GDT index increases in latest auction

The latest Global Dairy Trade (GDT) event 260 event has concluded up 1% from two weeks prior. The big winner at today’s event was lactose (LAC) which shot up by 15.6% in index, easily the most dramatic move among product indices on the day.Skim milk powder (SMP) also performed strongly, rising by 6.7% in index; though, on the flip side, cheddar dropped by 6% at the event. Butter fell 1.9%, and Cheddar fell 6% over the previous auction. Whole milk powder fell slightly lower losing half of a percent, and Rennet Casein fell 1.9% from prior trade.  Lasting for two hours and 19 minutes, today’s event saw 172 bidders participate across 17 rounds, with 107 winning bidders emerging. A total of 16,787MT of product was sold on the day.

Key results:

  • AMF index up 2.7%, average price US$4,079/MT;
  • Butter index down 1.9%, average price US$3,803/MT;
  • BMP not offered;
  • Ched index down 6.0%, average price US$3,864/MT;
  • LAC index up 15.6%, average price US$1,341/MT;
  • RenCas index down 1.9%, average price US$8,719/MT;
  • SMP index up 6.7%, average price US$2,549/MT;
  • SWP index not available, average price not available;
  • WMP index down 0.5%, average price US$2,677/MT.

Today’s increase marks two small index rises, and four index drops across the six auctions that have been held since the start of March.

Milk Futures Rebound in Chicago Tuesday in Chicago

Whiplash continues in our milk markets, as cheese marched higher on the Chicago Mercantile Exchange. Class III milk rebounded nicely Tuesday after and out of character sell-off Monday. Class III milk saw May gain 3 to $12.27.  June Class III milk futures were up 62 cents at $17.28.  July 57 higher at $16.82.  August through October contracts 15 to 21 higher. Class IV was unchanged in May to $10.61, June gained 64 to $13.50 and July was limit higher, up 75 cents to $14.38 per cwt. Second half class IV now averages at $14.81 per cwt.

The CME spot trade saw Cheddar blocks and barrels show strength as blocks where up $0.0350 at $1.85.  Barrels $0.0450 higher at $1.7825.  Five trades made, ranging $1.7750 to $1.7825. Butter steady at $1.6050.  Nonfat dry milk up $0.0450 at $0.9850.  Five trades, with a range of $0.96 to $0.9850. Dry whey down $0.01 at $0.3625.  Five trades were made, with a range of $0.3625 to $0.37.

  

 

Class Three Continues to Show Weakness in Chicago to Start the Week

In the CME cash dairy product trade, blocks and barrels continued its impressive run higher.   Blocks up $0.0350 at $1.8150.  Barrels up $0.0175 at $1.7375.  Eleven trades made, ranging $1.7375 to $1.75. Dry whey down $0.0175 at $0.3725.  Eight trades were made, with a range of $0.3725 to $0.3850. Butter $0.04 lower at $1.6050. Nonfat dry milk up $0.0050 at $0.94.  Six trades were made, with a range of $0.9325 to $0.94.

July corn gained 1.50 cents to $3.2075/bushel. Nearby soybeans jumped 6.50 cents to $8.45/bushel. September Chicago Wheat declined 3 cents to $5.00/bushel. Fats and feeders showed strength today. June Live Cattle rallied $1.72 to $98.72/cwt. August feeders finished $1.47 higher to $132.55. June crude oil soared $2.90 to $32.33.

Government Drives Milk Futures Up the Limit in Chicago Thursday

Government programs drive buyers to the cash cheese and butter trade and we are seeing limit moves on cheese and both Class III and Class IV Milk. On the Chicago Mercantile Exchange  June Class III milk futures were limit up 75 cents at $16.10.  July limit higher at $16.80.  August through October 66 to 75 higher. Class IV milk also moved limit higher in several months. May was up 12 to 10.62, June to 13.05, and July finished at 14.14/cwt. The second half average for Class IV milk sits at 14.85/cwt.

The CME spot trade leapfrogged higher once again. Blocks up $0.1725 at $1.75. Barrels $0.1675 higher at $1.6675. Butter up $0.1350 at $1.6450.  Fifteen trades made, with a range of $1.60 to $1.6450. Nonfat dry milk up $0.04 at $0.92. Dry whey down $0.01 at $0.39.  Six trades were made, ranging from $0.39 to $0.40.

 

Milk Futures Continue to Show Strength in Chicago Wednesday

We saw an impressive gain in the spot cheese and butter market today. Butter up $0.1575 at $1.51.  Twelve trades were made, ranging from $1.48 to $1.51. Blocks up $0.0850 at $1.5775. Barrels $0.09 higher at $1.50. Dry whey down $0.0025 at $0.40.  Nonfat dry milk up $0.02 at $0.88.

Prices were softer throughout the grain complex today.  July corn lost 4 cents to $3.1825/bushel.  July soybeans trembled 12.50 cents to $8.3950.  May soybean meal fell $3.40 to $285.20/ton.  September Chicago Wheat stumbled 12.25 cents to $5.0525/bushel.  June live cattle fell $3.30 to $93.875.  August feeder cattle lost $2.67 to $133.07.  June crude oil declined 21 cents to $25.57.        

U.S. dairy export volume up 7th straight month, despite coronavirus outbreak

US dairy exporters topped year-earlier levels for the seventh straight month in March, despite disruptions resulting from the coronavirus outbreak, the US Dairy Export Council reports.

In March, US suppliers shipped 190,456 tons of milk powders, cheese, whey products, lactose and butterfat, 2% more than the year before. This is the highest figure since May 2018. On a solids basis, exports were up 3%. Meanwhile, the value of all exports was the most since August 2014 – $592 million (€537.8m), 10% more than a year ago.

Southeast Asia continues to be the main source of growth for US suppliers. Shipments of skimmed milk powder (SMP), whole milk powder (WMP), whey, lactose and cheese were a record-high 49,729 tons in March, up 10%. Export value was just shy of $120 million (€109m), up 33% and the best month in more than five years. In the first quarter, the value of US exports to the region were up 54% from a year ago (all first quarter percentages adjusted for leap day), led by a 40% increase in SMP sales and a 27% gain in cheese volume.

The value of exports to South America and the Middle East/North Africa (MENA) region also was higher in March, and sales to the Caribbean (led by the Dominican Republic) reached a record high.

In all, NDM/SMP exports were 62,346 tons, up 4%. In addition to stronger sales to Indonesia and Malaysia, shipments to the MENA region were the most since July 2014 and suppliers grew sales to Colombia. These gains were partially offset by a 19% drop in volume to Mexico, which saw the lightest volume (daily-average basis) since January 2018.

US NDM/SMP shipments in the first quarter were 186,360 tons, the most ever for first quarter.

Whey volumes continued to improve, posting a 7% gain. Volume of 44,380 tons was the highest in 19 months. The recovery in sales to China was noteworthy, with shipments reaching 12,793 tons, up 17%. In the first quarter, US whey exports to China were up 21%. In March, shipments to Canada, Japan and New Zealand also were higher, while sales to Mexico were lower.

Higher-protein whey products fared well in the first quarter, with WPC up 24% and whey protein isolate (WPI) up 30%.

Meanwhile, total cheese exports were 33,356 tons in March, the most in 10 months, but down 10% from last March’s record volume. Sales to Mexico and Australia were higher than last year, but shipments to South Korea, Japan and the MENA region continued to lag.

Lactose exports were 32,634 tons, down 8% from last year but in line with volume from the previous five months. Sales to China, Mexico and Southeast Asia trailed year-ago levels.

On a total milk solids basis, US exports were equivalent to 15.1% of US milk solids production in March. In the first quarter of the year, exports were 14.9% of production.

To use interactive charts with current and historical trade data, see usdec.org’s page on U.S. export data.

To download a printable PDF summary with charts showing March trade data in detail, click here.  

Mixed Markets in Chicago on Tuesday

On the Chicago Merchantile Exchange, June Class III milk futures up 17 cents to $14.60.  July down 15 at $15.30.  August through October contracts seven to 21 lower.

Blocks up $0.1050 at $1.4925.  Barrels up $0.11 at $1.41.  Seven trades were made, ranging from $1.33 to $1.41. Nonfat dry milk up $0.0025 at $0.86.  Four trades made, ranging $0.86 to $0.8650. Butter steady at $1.3525. Dry whey unchanged at $0.4025.

 

Dairy Markets See Max Moves in Chicago Monday

We saw limit moves on multiple fronts in the dairy market on Monday on the Chicago Mercantile Exchange.  June Class III milk futures were up 75 to $14.43.  July also up the limit of 75 cents at $15.45.  August through October contracts 74 to 75 higher. Class IV milk saw May gain 7 to $10.29, June gained 28 to $11.58 and July gained 56 cents to $12.66 per cwt. 

Dry whey up $0.0050 at $0.4025.  Three trades were made, ranging from $0.40 to $0.4050.  Blocks up $0.0825 at $1.3875.  Barrels up $0.03 to $1.30.  Three trades made at $1.30. Butter up $0.0625 at $1.3525.  Five trades were made, with a range of $1.34 to $1.3475. Nonfat dry milk up $0.0325 at $0.8575.  Eight-teen trades made, ranging $0.84 to $0.86.

CWT Assists with 2.9 Pounds of Dairy Product Export Sales

Cooperatives Working Together (CWT) member cooperatives accepted 11 offers of export assistance from CWT that helped them capture sales contracts for 1.270 million pounds (576 metric tons) of Cheddar and Monterey Jack cheese, 1.118 million pounds (507 metric tons) of butter, and 546,747 pounds (248 metric tons) of whole milk powder. The product is going to customers in Asia, the Middle East, and South America and will be delivered from May through September 2020.

CWT-assisted member cooperative export sales contracts for 2020 total 17.346 million pounds of American-type cheeses, 5.758 million pounds of butter (82% milkfat), 1.960 million pounds of anhydrous milkfat, 2.477 million pounds of cream cheese and 18.428 million pounds of whole milk powder. The product is going to 24 countries in six regions. These sales are the equivalent of 497 million pounds of milk on a milkfat basis.

Assisting CWT members in moving dairy products overseas through the Export Assistance program is critical during the challenging times U.S. dairy farmers and cooperatives are facing. The Export Assistance program helps in strengthening and maintaining the value of dairy products that directly impact producers’ milk price. The program is helping member cooperatives grow and maintain world market share for U.S dairy products and is a significant factor in maintaining the total demand for U.S. dairy products and the demand for U.S. farm milk.

Dairy product and related milk volume amounts reflect current contracts for delivery, not completed export volumes. CWT pays export assistance to bidders only when export and delivery of the product is verified by required documentation.

All dairy farmers and dairy cooperatives should invest in CWT. Membership information is available on the CWT website.

The Cooperatives Working Together (CWT) Export Assistance program is funded by voluntary contributions from dairy cooperatives and individual dairy farmers. The money raised by their investment is being used to strengthen and stabilize the dairy farmers’ milk prices and margins. For more information about CWT, visit www.cwt.coop

Class III struggles in Chicago Thursday

Most products traded on the CME spot dairy auction ended unchanged, Dry whey unchanged at $0.40. Blocks steady at $1.3050. Barrels up $0.0125 at $1.2525.  Nineteen trades made, with a range of $1.2450 to $1.28. Butter unchanged at $1.28. Nonfat dry milk steady at $0.8225.

The grain complex found some strength on Thursday as corn added 3 cents per bu. Corn was supported by ethanol futures trading back up to $1.10 per gallon. Gasoline demand has rebounded a little bit with futures printing 92 cents per gallon on the board of trade, up 30 cents per gallon from our previous lows. Soybeans added 11 cents per bu. as export sales were within trade expectations. The wheat complex ranged from 1-5 cents higher as well.

Calmer Markets in Chicago Wednesday

On the Chicago Mercantile Exchange after two days of giant moves higher, Wednesday was calmer. Class III milk fell 4 in May to 11.50, June was a penny lower at 13.62 and July fell 6 to 14.72. Class IV milk gained 2 in May to 10.17, June fell 14 to 11.01 and July fell 4 to 11.55, though Aug – December saw gains as high as 29 cents.

The CME spot product trade, however, saw nice gains.  Blocks up $0.0475 at $1.3050.  Four trades made, ranging from $1.29 to $1.31. Barrels unchanged at $1.24.  Fourteen trades were made, with a range of $1.2350 to $1.25. Butter $0.0850 higher at $1.28.  Fifteen trades made, ranging $1.26 to $1.28. Nonfat dry milk up $0.0175 at $0.8225.  Four trades, ranging from $0.8050 to $0.8250. Dry whey steady at $0.40.

Grain and Feed continue to struggle to move higher. Corn fell 1 ¼ to 3.11 ¾, soybeans fell 7 ¾ to 8.30 ½, and Soybean meal fell $1.70 to 283.10/ton.

Class III continues to show strength in Chicago Tuesday

Class III finished stronger on the heels of yesterday’s Section 32 announcement at the Chicago Mercantile Exchange.  June Class III milk futures were up 69 cents at $13.63.  July 44 higher at $14.78.  August through October 18 to 42 higher.  Class IV milk futures were positive as well.  June milk skyrocketed 49 cents to $11.15.  July leapt 38 cents to $11.50/cwt.  August was up 50 to $12.25/cwt.  Second half 2020 climbed 28-50 cents and now resides at $12.70/cwt.

We saw continued strength in the CME Cash Dairy Product Trade.  Dry whey up $0.0025 at $0.40. Blocks up $0.0450 at $1.2575.  Barrels $0.01 higher at $1.24.  Seven trades made, with a range of $1.2125 to $1.25. Butter steady at $1.1950.  Nonfat dry milk unchanged at $0.8050.

Spot corn gained 2.25 cents to $3.13/ bushel.  December corn sits at $3.3425/bushel.  May soybeans rose 4.25 cents to $8.38 and ¼ cent.  November soybeans gained ¾ cent to $8.46 and a half cent.  September Chicago Wheat finished 1.75 cent higher to $5.23 and 3/4.  June feeder cattle dropped $1.60 to $86.47/cwt.  August feeder cattle fell 72 cents to $128.25.  June Crude Oil blasted $4.17 higher to $24.56.

Price Race Higher in Chicago on News of USDA Purchases

Class III and IV priced raced higher on the Chicago Mercantile Exchange after news hit that USDA was making section 32 purchases. June Class III milk futures  up 75 cents to $12.94.  July 73 higher at $14.34.  August through October contracts 49 to 70 cents higher. Class IV markets rose 9-40 cents per cwt. June through December 2020 as well. $16.00 milk has now reappeared to dairy producers in Q4 2020 in the Class III market. After today, that quarter will be sitting at prices not seen since March.

CME spot product markets closed today’s session higher across the board. Dry whey up $0.0025 at $0.3975.  Blocks up $0.0075 at $1.2125.  Three trades were made, with a range of $1.2125 to $1.2550. Barrels $0.04 higher at $1.23.  Five trades made, ranging $1.23 to $1.2325. Butter up $0.0075 at $1.1950.  Nonfat dry milk up $0.0125 at $0.8050. 

The grain sector didn’t perform nearly as well as President Trump hinted at potential tariffs against China because of economic harm due to COVID-19 outbreak. Corn softened 3 cents, soybeans were off 12 and wheat was slightly higher. 

CWT Assists with 828,938 Pounds of Dairy Product Export Sales

Cooperatives Working Together (CWT) member cooperatives accepted five offers of export assistance from CWT that helped them capture sales contracts for 372,581 pounds (169 metric tons) of butter, 37,479 pounds (17 metric tons) of cream cheese, and 418,878 pounds (190 metric tons) of whole milk powder. The product is going to customers in Asia, Central and South America, and the Middle East. The products will be delivered from May through July 2020.

CWT-assisted member cooperative export sales contracts for 2020 total 16.076 million pounds of American-type cheeses, 4.641 million pounds of butter (82% milkfat), 1.960 million pounds of anhydrous milkfat, 2.477 million pounds of cream cheese and 17.882 million pounds of whole milk powder. The product is going to 24 countries in six regions. These sales are the equivalent of 456 million pounds of milk on a milkfat basis.

Assisting CWT members in moving dairy products overseas through the Export Assistance program is critical during the challenging times U.S. dairy farmers and cooperatives are facing. The Export Assistance program helps in strengthening and maintaining the value of dairy products that directly impact producers’ milk price. The program is helping member cooperatives grow and maintain world market share for U.S dairy products and is a significant factor in maintaining the total demand for U.S. dairy products and the demand for U.S. farm milk.

Dairy product and related milk volume amounts reflect current contracts for delivery, not completed export volumes. CWT pays export assistance to bidders only when export and delivery of the product is verified by required documentation.

All dairy farmers and dairy cooperatives should invest in CWT. Membership information is available on the CWT website.

The Cooperatives Working Together (CWT) Export Assistance program is funded by voluntary contributions from dairy cooperatives and individual dairy farmers. The money raised by their investment is being used to strengthen and stabilize the dairy farmers’ milk prices and margins. For more information about CWT, visit www.cwt.coop

Futures Fall as Cheese Rises in Chicago Thursday

Cheese continued its ascent today in the CME cash dairy product trade.   Dry whey down $0.0025 at $0.3925.  Two trades made, ranging $0.3925 to $0.3950. Blocks up $0.0175 at $1.2075.  Two trades made at $1.19 and $1.21. Barrels up $0.03 at $1.19.  Four trades were made, with a range of $1.17 to $1.19. Butter up $0.0175 at $1.1975.  Seven trades made, ranging from $1.1850 to $1.20. Nonfat dry milk down $0.0050 at $0.80.

The entire grain complex showed strength today.  Spot corn rallied 7 cents to $3.11 and a half cent.  December corn finished 3.75 cents higher to $3.37 and a quarter cent.  May soybeans soared 18.50 cents to $8.50 and a quarter cent.  May Chicago wheat leaped 10.25 cents to $5.29 and ¾ cents.  November soybeans jumped 13.50 cents to $8.57 and ¾ cent.  June live cattle rose $1.67 to $85.95/cwt.  May feeder cattle lost $1.45 to $117.10/cwt.  June crude oil launched a $4 gain to $19.06. 

Milk Markets See Double Digit Gains in Chicago on Wednesday

Milk markets ended double digits higher as markets rose on the Chicago Mercantile Exchange. May Class III milk futures were up 36 cents at $11.64. June 51 higher at $12.63. July through September contracts 10 to 40 cents higher.

Almost all commodities closed in the green on Wednesday.  Dry whey up $0.01 at $0.3950. Four trades were made at $0.3950. Blocks steady at $1.19. Barrels up $0.08 at $1.16. Six trades made, with a range of $1.11 to $1.16. Butter was $.0225 higher at $1.18, with four trades, including three at $1.1575 and one at $1.18. Dry whey was up a penny at $.395, with four trades at that price.

Corn and soybeans fared a bit better after testing the lower ends of the ranges. Corn closed 2-3 cents higher after making new lows on the May contract of 3.005 per bu. This represents the lowest price that corn has experienced since 2009. Soybeans ended the day 5 cents higher after posting red early in session. 

Markets Go Green in Chicago Tuesday

Green returned for a third day in our milk markets on the Chicago Mercantile Exchange. May Class III milk futures where  up three cents to $11.28.  June 17 higher at $12.12.  July through September contracts unchanged to up 13. Class IV milk also moved higher. April up 13 to $11.55, May gained 4 cents to $10.25, and June was unchanged at $10.53 per cwt. 

Dry whey steady at $0.3850. Blocks unchanged at $1.19. Barrels down $0.0125 at $1.08.  Three trades were made, with a range of $1.08 to $1.0875. Butter up $0.0125 at $1.1575.  Nonfat dry milk down $0.0025 at $0.8075.

Grain and feed markets continue to soften. May corn fell 2 ¾ to $3.02 ¾, soybeans fell 3 to $8.26 even, and soybean meal fell 3.50 to $281.80 per ton.

The Milk Markets Retreat Once Again This Week

The milk markets retreated once again this week. Class III and IV futures posted double-digit losses and nearby contracts plumbed new life-of-contract lows. The markets managed to perk up from mid-week lows, but values remain depressed, with May Class III and IV slumping to levels not seen since 2009. On Thursday May Class IV traded below $10/cwt., but it managed to rebound to a still inadequate $10.05.

These milk prices will not pay the bills, and dairy producers are likely cutting milk production accordingly. In some regions, co-op penalties will accelerate contraction. These incentives were largely absent in March, when the spring flush arrived with a vengeance. Milk output climbed to a record 19.26 billion pounds, up 2.2% from March 2019. It was relatively easy to grow milk output from last year, when a harsh winter and shrinking cow herd translated into a significant contraction in U.S. milk output. The staggering output helps to explain why so much milk was dumped in late March and early April, as the industry struggled to adjust to the impacts of Covid-19.

Milk production advanced in nearly every state, and the milk-cow herd grew as well. USDA revised upward its estimate of February’s dairy herd by 5,000 head, and reported another 5,000-cow increase in March. At 9.38 million head, the U.S. milk-cow herd stands at a 19- month high, up 47,000 head from March 2019. If slaughter facilities cannot process dairy cows in sufficient volumes, it’s possible that the dairy herd will continue to expand in the near-term. However, dairy producers are likely to cull cows aggressively when the opportunity arises. Indeed, dairy cow slaughter topped the record-high levels of last year in two of the past three weeks of available slaughter data. If dairy producers are forced to slow cull rates, they will likely step up other measures to cut costs and reduce milk output. Growth in April milk production is likely to be much more modest than it was in March.

The cheese and butter stockpiles were less burdensome than expected. There were 1.37 billion pounds of cheese in cold storage warehouses on March 31, 0.8% less than the year before. Inventories of American cheese fell 1.2% from March 2019 volumes. At 309.6 million pounds, butter stocks were 15% greater than they were a year ago, and the largest March 31 total since 1993. Cheese and butter stocks grew in March, but the month-to-month increase was smaller than in a typical year. This is likely due to the fact that manufacturers responded urgently to keep grocery cases full. At the same time, the impact of the collapse of the foodservice industry on cheese and butter stocks lagged the declines in restaurant traffic. In the fog of uncertainty, restaurateurs likely didn’t cancel shipments for food they had ordered weeks in advance, which meant product kept moving out of warehouses through most of March even as consumers stayed home. The brunt of this lost demand will be reflected in dairy product inventories on April 30. Already, refrigerated storage space is becoming scarce. Nonetheless, the bullish Cold Storage report helped to give the markets a boost on Thursday and Friday.

After falling to $1 per pound last week, the spot Cheddar market bounced back decisively. Spot Cheddar blocks closed at $1.07, up 5.75ȼ. Barrels climbed 4.5ȼ to $1.05. The other products moved lower. Spot whey slipped a half-cent to 38.5ȼ. Butter fell 4.25ȼ to $1.145. Spot nonfat dry milk (NDM) dropped 4.5ȼ to 81ȼ, the lowest value since July 2018. Milk powder prices also moved lower at Tuesday’s Global Dairy Trade auction.

It’s likely that many state and local governments will ease stay-at-home orders in May, which suggests that restaurant demand could improve from its current rock-bottom level. A Civic Science poll from early April finds that Americans list “going out to bars and restaurants” as the activity they miss second-most, just behind gathering with friends, but well ahead of shopping, self-care, and sports. We are feeling cooped up and tired of cooking. But we’re clearly not ready to risk infection just to avoid doing the dishes. A CBS News

Poll found that only 13% of Americans would definitely return to public places if stay-at-home orders were lifted. Nearly half said they plan to avoid public places until the outbreak is over, while another 39% would assess the prevalence of the virus before they consider venturing out. Restaurants might improve sales as they continue to adapt for carryout, but in the absence of better treatments or a vaccine, it seems unlikely that the foodservice sector is going to meaningfully bounce back anytime soon. The dairy markets in general, and the butter market in particular, are likely to remain under pressure until consumers feel confident enough to dine out in large numbers. Unfortunately, it could be a very long time.

Both corn and soybeans lost about a nickel this week. July corn settled at $3.26 per bushel, while July soybeans closed at $8.4675. Planters are rolling in the Western Corn Belt, with none of the wet weather woes of last spring. Ethanol production continues to drop, and exports are hit-or-miss. Feed demand is likely also declining as the beef industry places fewer cattle on feed, and pork and poultry growers euthanize some young stock. Covid-19 has countless victims.

Original Report: https://www.jacoby.com/market-report/the-milk-markets-retreat-once-again-this-week/

Milk Futures Show Strength in Chicago to Start the Week

Cash cheese enjoyed having a bid in the CME cash dairy product trade today.  Blocks up $0.12 to $1.19.  Barrels up $0.0425 at $1.0925. Dry whey unchanged at $0.3850. Butter steady at $1.1450. Nonfat dry milk unchanged at $0.81.

A Tale of Two Classes Thursday on Chicago Mercantile Exchange

A tale of Two markets on Thursday as Class III shows nice gains while Class IV falters on the Chicago Mercantile Exchange. April Class III was our only weak month, falling 22 cents to $13.19.  May Class III milk futures  up 16 cents at $10.68.  June 27 higher at $11.32.  July through September contracts a nickel to 26 cents higher. Class IV milk however struggled as both Butter and Non Fat Dry milk fell during the spot product trade. April held unchanged at $11.42, May fell 23 cents to $10.05, and June fell 24 cents to $10.41/cwt. The second half fell 9-49 cents. 

Dry whey unchanged at $0.3850. Blocks up $0.03 at $1.05.  Four trades were made, ranging from $1.0250 to $1.0550. Barrels $0.0275 higher at $1.04.  Butter down $0.0325 at $1.10.  Nine trades made, with a range of $1.10 to $1.1275. Nonfat dry milk down $0.01 at $0.8150. 

Mixed Markets in Chicago Wednesday

Class III milk futures were mixed today on the Chicago Mercantile Exchange.  May Class III milk futures where up 13 cents at $10.52.  June down 11 at $11.05.  July through September contracts two higher to 16 lower. Class IV milk futures were negative today.  July milk leaked 25 cents to $11.25/cwt.  August and September milk also both suffered a 25-cent loss to $11.75 and $12.25/cwt.  October milk tumbled 21 cents lower to $12.70.  

In the CME cash dairy product trade dry whey unchanged at $0.3850. Blocks up $0.0125 at $1.02. Barrels steady at $1.0125. Butter down $0.0525 at $1.1325. Nonfat dry milk down $0.01 at $0.8250.

Spot corn rallied 8.25 cents to $3.1750/bushel.  May soybeans gained 4 cents to $8.3475.  Spot soybean meal lost 80 cents to $288.30/ton.  Chicago wheat fell 3.75 cents to $5.43/bushel.  April Live Cattle lost $2.65 to $88.95.  April Feeder Cattle rose 57 cents to $118.47/cwt.  April crude oil was 2.25 higher to $13.82.  

Dairy prices fall to lowest level in more than a year

Dairy prices have fallen to their lowest level in more than a year in the global dairy auction overnight.

Whole milk powder prices as shown on the Global Dairy Trade website

Whole milk prices as shown on the Global Dairy Trade website. Photo: Screenshot / Global Dairy Trade

The average price at the auction fell 4.2 percent to $US2836 ($NZ4747) a tonne.

Most of the products offered fell in price, but dairy powders were markedly lower.

The price of whole milk powder, which strongly influences the payouts for local farmers, fell 3.9 percent to $USD2707 a tonne.

That is the weakest since January last year, and below the break-even point for many farmers.

Fonterra says it is not surprised by the latest drop in global dairy prices.

The company’s chief executive Miles Hurrell said the drop wasn’t not ideal, but he was still confident of paying farmers in the indicated range of $7-7.60 per milk solid for this season. It was too early to predict an opening price for June, he added. 

Some commentators were predicting prices could have dropped even further.

”But when you put it against the backdrop of what is a global recession coming at us thick and fast you see that in all the offshore markets two thirds of the population are in some form of lockdown on a global basis so not unsurprising when you consider a lot of the products we make go into the food systems around the world so that is not surprising,” Hurrell said.

He could not predict what will happen in upcoming auctions, but he did not believe the spring milk peak, which would happen for European and American farmers in a month, would impact as much as some commentators were saying.

”There has been talk or rumours of milk being spilt in some of those markets already because of those domestic markets in Europe and North America have, as the food service market in particular, the out of home consumption has dried up, bu that has been reflected very, very quickly through milk prices.

”We are starting to see farmers in those markets impacted, their milk prices are coming back which has an impact on milk production, so as they head into their spring I get that but a lot of these farmers won’t be able to produce feed to feed their cows in a grain feed system, they won’t be able to feed those cows and make money, so I suspect you will see that in production over time come back.”

Fonterra is sticking to its forecast price range for this current season of $7-7.60 per kilo of milk solids.  It will narrow that range for farmers in May.

Hurrell said a lot can change in that time, including the exchange rate, which had dropped hugely in the past month.

He said he was loath to give any farmer advice.

”They are the ones experts at making this white-gold.”

He said if he was a farmer he would start to understand what his break even point is.

”I would take a cautious approach into purchasing and cost structures for next season and just watch some of those macro-economic things and see how that may play out, but ultimately farmers know their own land and their own farming systems themselves and they will make their own calls with the best information we can provide them.”

Mr Hurrell said a recent Rabobank prediction for a final payout next year of $5.60 is probably a bit off the mark.

”Well that is certainly at the low end of all the commentators out there.  

“We are not coming out at this point with a number.  We will come out in the first week of June and give our prediction and even then it is 18-month out and you have to give farmers clarity of where they see the market in 18-months time, so it is still a fair way out, he said. ”

Source: rnz.co.nz

Milk Markets Down in Chicago to Start the Week

On the Chicago Mercantile Exchange Monday Milk futures were down, and cash dairy prices were mixed.  Class III milk was unchanged in April at $13.41, May fell 19 to $10.91, and June fell 25 to $11.91/cwt.  Class IV milk was unchanged in April at $11.42, May fell 7 to $10.59, and June gained 7 to $11.16. The balance of 2020 was even to 13 cents higher. 

The CME spot trade was mixed.  Dry whey was unchanged at $.39 cents per pound.  No sales were recorded. Forty-pound blocks were down $.0050 at $1.0075 per pound. There one sale recorded at $1.0150. Barrels were up $.0075 at $1.0125 per pound.  There were two sales recorded at $1.0125 and $1.03. Grade AA Butter was up $.0125 at $1.20 per pound.  Nine sales were recorded from $1.1950 to $1.21. Nonfat dry milk was down $.0150 at $.84 per pound.  Four sales were recorded at $.084 to $.85.

Milk Futures Show Little Mercy in Chicago Thursday

Class III milk futures showed little mercy on the Chicago Mercantile Exchange with May down 16 cents at $11.02.  June down 22 at $12.11.  July through September contracts three to five cents higher. Class IV milk futures were mixed once again.  April milk softened 15 cents to $11.42/cwt.  May milk didn’t trade and resides at $10.69/cwt.  June milk lost 14 cents to $11.09.  Second half 2020 sits at $12.67.

In the CME cash dairy product trade Dry whey up $0.02 at $0.3750.  Five trades were made at $0.3750. Blocks up $0.0075 at $1.0075. Barrels down $0.0375 at $1.00.  Twelve trades made, ranging from $1.00 to $1.0350. Butter $0.02 higher at $1.16.  Four trades were made, with a range of $1.15 to $1.16. Nonfat dry milk up $0.01 at $0.86.  Seven trades made, ranging from $0.8475 to $0.86. 

Grain prices were negative on the day.  December corn inched 1.75 cents lower to $3.41/bushel.  November soybeans tumbled 5.25 cents lower to $8.5425.  September Chicago wheat suffered a 10.25 cent loss to $5.3575/bushel.  May soybean meal lost 40 cents to $291.80/ton. 

Milk Futures Moved Higher in Chicago Wednesday

Green retuned to milk on Wednesday as Class III and IV moved higher on the Chicago Mercantile Exchange. May Class III milk futures  up 14 cents to $11.18.  June also 14 higher to $12.33.  July through September contracts a penny to seven cents higher.

The CME spot trade didn’t see much for gains in pricing, but had nice volumes.  Dry whey steady at $0.3550. Blocks down $0.01 at $1.00.  Four trades were made, with a range of $1.00 to $1.04. Barrels up $0.0225 at $1.0325.  Seventeen trades made, ranging from $1.0325 to $1.0425. Butter down $0.01 at $1.14.  Nineteen trades were made, with a range of $1.14 to $1.1750. Nonfat dry milk unchanged at $0.85.

Feed and grain markets continue to slide lower as worries over the livestock, dairy and ethanol industries can maintain the demand needed. May corn fell 6 ¾ cents to $3.19 ¼, soybeans fell 5 to $8.42 even though soybean meal gained 4.70 to $292.20/ton.

Mixed Markets in Chicago Tuesday

Class IV milk futures on the Chicago Mercantile Exchange were steady to lower on the day.  May Class III milk futures  up six at $11.04.    June milk stumbled 21 cents to $11.05/cwt.  July gained 3 cents to $11.53.  August milk inched 1 cent lower to $11.99/cwt.  Second half 2020 is now averaging $12.52/cwt.

Commodities markets were mixed today.  Nonfat dry milk down $0.0275 at $0.85.  Two trades were made with a range of $0.85 to $0.8575. Dry whey up $0.0050 at $0.3550.  Two trades made at $0.3550. Blocks steady at $1.01. Barrels unchanged at $1.01. Butter steady at $1.15.

Grains showed a softer tone today.  Spot corn fell 5.50 cents to $3.26/bushel.  May soybeans plummeted 7.25 cents to $8.47. Nearby soybean meal declined $1.10 to $287.50/ton.  Spot Chicago Wheat slumped 6.25 cents lower to $5.4875/bushel.  April Live Cattle gained $2.70 higher to $93.70/cwt.  April Feeder Cattle rallied $1.37 to $116.40/cwt.  April Crude Oil fell $1.71 to $20.70.

 

Milk Futures Start The Week on a Slide in Chicago Monday

Class III milk futures were negative once again on the Chicago Mercantile Exchange down 45 cents at $10.98.  June down 69 to $12.13.  July through September futures 62 to 74 cents lower.

Commodity Markets across the board finished lower on Monday.  Blocks down $0.0450 at $1.01. Barrels $0.01 higher at $1.01.  Two trades were made, ranging $1.0050 to $1.0075. Butter down $0.0975 at $1.15. Nonfat dry milk down $0.02 at $1.15.  Dry whey unchanged at $0.35.

 

Markets End Easter Shortened Week Lower

On our last day of trading for the week, we saw mostly a slide lower.  May Class III milk futures on the Chicago Mercantile Exchange down 40 cents at $11.43. June fell 44 to $12.82. Second half of 2020 was mixed with Aug unchanged and November gaining 2 the second half averages at $15.61/cwt. Class IV milk saw April gain 16 to $11.57, May fell 12 to $11.41, and June fall 27 cents to $11.82/cwt.

Dry whey up $0.01 at $0.35. Blocks down $0.0725 at $1.0550.  Barrels down $0.0650 at $1.00.  Eleven trades were made, ranging from $0.9975 to $1.00. Butter down $0.0525 at $1.2475.  Thirteen trades made, with a range of $1.2475 to $1.29. Nonfat dry milk down $0.0075 at $0.8975.  Six trades were made, ranging from $0.89 to $0.90.

The April Supply and Demand report was released by the USDA on Thursday and saw corn finish the week up 1 ¾ cents to 3.31 ¾, soybeans gained 9 to 8.63 ½, and soybean meal fell 30 cents to $292.50/ton.

Milk futures drop in Chicago Wednesday

On the Chicago Mercantile Exchange May Class III milk futures limit down 75 cents at $11.83.  June 54 lower at $13.26.  July through September three to 42 cents lower.

Dry whey up $0.01 at $0.34. Blocks unchanged at $1.1275. Barrels down $0.0350 at $1.0650.  Five trades were made, ranging from $1.0650 to $1.1125. Butter up $0.0350 at $1.30.  Three trades made at $1.30. Nonfat dry milk up $0.0050 at $0.9050.  Three trades were made, with a range of $0.9025 to $0.9050.

GDT event up by 1.2%

Today’s Global Dairy Trade Event 257 has concluded with the GDT Price Index up by 1.2%.

Key results are as follows:

AMF index up 0.4%, average price US$4,345/MT

Butter index up 4.5%, average price US$4,263/MT

BMP index down 11.9%, average price US$2,446/MT

Ched index up 0.2%, average price US$4,395/MT

LAC index up 4.4%, average price US$959/MT

RenCas index down 2.6%, average price US$9,717/MT

SMP index down 0.8%, average price US$2,514/MT

SWP index not available, average price not available

WMP index up 2.1%, average price US$2,820/MT

Milk futures across the board higher in Chicago Tuesday

On the Chicago Mercantile Exchange milk prices across the board were limit higher in both Class III and Class IV. May Class III milk futures  up 75 cents to $12.58.  June 75 higher at $13.80.  July through September contracts also up 75 cents.

On the commodities Dry whey unchanged at $0.33. Blocks steady at $1.1275. Barrels up $0.01 at $1.10. Butter $0.01 higher at $1.2650. Nonfat dry milk up $0.0375 at $0.90.  Three trades were made at $0.90.

Milk Futures Whiplash Monday in Chicago

Dairy markets causing whiplash on Monday as we Class III move from limit down in May during early trading to rebound and see August trade limit up in the afternoon on the Chicago Mercantile Exchange.   Class III milk finished a volatile day with a tale of two halves. April – June was in the red with April falling 19 to 13.88, May down 35 to 11.83 and June fell 8 to 13.05. July however gained 32 cents to 14.40 and the balance of 2020 saw gains of 24-41 cents in a late day rally.  Class IV milk saw similar swings, April was unchanged at 11.36, May fell 13 to 11.02, and June was unchanged at 11.54. Second half months mixed from 13 lower to 19 higher. 

Dry whey steady at $0.33. Blocks down $0.0225 at $1.1275.  Barrels down $0.0475 at $1.09.  Four trades were made, with a range of $1.09 to $1.10. Butter down $0.0250 at $1.2550. Nonfat dry milk unchanged at $0.8625.

4.4 Million Pounds of Dairy Product Export Sales

Cooperatives Working Together (CWT) member cooperatives accepted 28 offers of export assistance from CWT that helped them capture sales contracts for 2.013 million pounds (913 metric tons) of Cheddar and Monterey Jack cheese, 330,693 pounds (150 metric tons) of butter, 132,227 pounds (60 metric tons) of anhydrous milkfat, 74,957 pounds (34 metric tons) of cream cheese, and 1.803 million pounds (818 metric tons) of whole milk powder. The product is going to customers in Asia, Central and South America, and the Middle East. The products will be delivered from April through September 2020.

CWT-assisted member cooperative export sales contracts for 2020 total 10.869 million pounds of American-type cheeses, 1.607 million pounds of butter (82% milkfat), 132,227 pounds of anhydrous milkfat 1.915 million pounds of cream cheese and 10.593 million pounds of whole milk powder. The product is going to 22 countries in six regions. These sales are the equivalent of 232 million pounds of milk on a milkfat basis.

Assisting CWT members through the Export Assistance program positively affects all U.S. dairy farmers and all dairy cooperatives by strengthening and maintaining the value of dairy products that directly impact their milk price. It does this by helping member cooperatives gain and maintain world market share for U.S dairy products. As a result, the program has significantly expanded the total demand for U.S. dairy products and the demand for U.S. farm milk.

The amounts of dairy products and related milk volumes reflect current contracts for delivery, not completed export volumes. CWT pays export assistance to the bidders only when export and delivery of the product is verified by required documentation.

All dairy farmers and dairy cooperatives should invest in CWT. Membership information is available on the CWT website.

The Cooperatives Working Together (CWT) Export Assistance program is funded by voluntary contributions from dairy cooperatives and individual dairy farmers. The money raised by their investment is being used to strengthen and stabilize the dairy farmers’ milk prices and margins. For more information about CWT, visit www.cwt.coop.

Global Dairy Commodity Update – April 2020

Dairy markets continue to experience deep impacts from COVID-19 through lockdowns of people in many major countries, disrupting trade and shutting large segments of the food market to consumers.

Uncertainty grows as we are only in the early stages of the pandemic which will continue to rapidly evolve over the coming months.

The impacts of lockdowns to control the spread of disease on employment in major business sectors will transform into staggered and uncoordinated measures to unwind restrictions and settle into a deep recession in major economies – the length and depth of which depends on many factors.

These profound changes will significantly impact the upstream supply chain, causing changes in product mix in response to major shifts in product demand – mainly due to weaker cheese demand – to avoid large production of mozzarella and processed cheese. The short surge in retail sales, as consumers shifted to eating at home, has eased.  

Commodity markets reflect those risks, influenced also by supply-side dynamics as milk output builds towards the seasonal peak in Europe and the US. Demand from importing developing regions remains robust, including a recovery in Chinese business and consumer activity, conditional on COVID-19 being held in check.

While the market crash has been sudden, milk price signals and supply side impacts will lag.

Commercial and policy measures may intervene to address surplus milk supplies and take excess product off the market – kicking the can down the road into a scenario that global markets have only just shaken off.

Skim Milk Powder
SMP prices have fallen with the expected rapid stock build – initially as a result of slowing of global trade with restrictions on freight and logistics. The risk has escalated with the expected increase in SMP and NFDM production as major producers avoid production of cheese exposed to food service markets which have been decimated by COVID-19 lockdowns.  

Whole Milk Powder
European spot prices rose in March after softening in February as global markets continued to be disrupted by the spread of COVID-19. NZ values dropped under US$3,000/t mid-March and continued to slide through the month. NZ shipped prices rose, widening the gap to South American shipped values.

WMP prices cannot remain immune from falling protein and fat values. The weaker global economic outlook – especially with the uncertainty ahead for oil-producing countries – is likely to see further preference for FFMP, which may gain improve share in more traditional WMP markets.

Cheese
These profound changes will significantly impact the upstream supply chain, causing changes in product mix in response to major shifts in product demand – mainly due to weaker cheese demand – to avoid large production of mozzarella and processed cheese. The short surge in retail sales, as consumers shifted to eating at home, has eased.  

Global cheese markets are likely to be heavily impacted by the sudden loss of sales into food service. The US industry is most-exposed with near 50% of cheese sales reliant upon food service outlets.

Global cheese trade had a long sustained run of growth from Q4-2018 into early 2020 and grew 7% in the 3 months to January.

Butter
Butterfat markets have weakened with the risks to demand for butter, AMF and cream from the shutting of food service channels in major markets.

Butter markets in the EU and Oceania were delicately poised prior to the impact of major lockdowns in March 2020. Prices had steadied in EU wholesale markets as demand improved and export markets (only about 10% of EU output) surged.

Whey
Commodity whey prices have been caught in the impacts of COVID-19 on the wider dairy complex, which continues to be weighed by the contraction of demand for commodity whey in the Chinese and other Asian animal feed markets.

US dry whey output increased 10% in the 6 months to January as producers scaled back WPC output and demand for dry whey improved, including some switching from milk protein use with steadily rising prices.

Source: maxumfoods.com

Mixed Markets in Chicago Thursday

On the Chicago Mercantile Exchange milk futures mostly higher, cash dairy mostly steady Thursday.  May Class III milk futures down 24 cents to $12.88.  June up 4 to $13.60.  July through September contracts 11 to 19 cents higher.

Dry whey steady at $0.33. Blocks down $0.04 to $1.27. Barrels unchanged at $1.1750.  Eleven trades were made, ranging from $1.1750 to $1.19. Butter steady at $1.31.  Four trades made, with a range of $1.3050 to $1.31. Nonfat dry milk unchanged at $0.8750.

No April Fools Milk Futures Rebound in Chicago Wednesday

It was no April’s fool joke for Class III Milk futures.  Class III milk saw April fall 4 to 14.45, but the balance saw nice gains. May up 38 to 13.12, and June gained 50 cents to 13.56. July forward gained 37-55 cents to average at 14.89/cwt. Class IV milk recouped some losses as well. April up 2 to 11.54, May gained 40 cents to 11.73 and June gained 19 to 11.87/cwt. 

The CME spot trade saw Dry whey steady at $0.33. Blocks down $0.02 to $1.31.  Barrels down $0.03 to $1.1750. Butter down $0.0250 to $1.31.  Five trades were made, ranging from $1.31 to $1.3225. Nonfat dry milk down $0.01 at $0.8750.  Eleven trades made, with a range of $0.86 to $0.88.

Grain markets didn’t follow the milk trend. Corn fell 6 cents to 3.34 ¾, Soybeans fell 23 ¼ cents to 8.62 ¾, and Soybean meal fell $6.60 to $314.90/ton. 

Coronavirus Continues to Infect Markets in Chicago Tuesday

On the Chicago Mercantile Exchange Cash Dairy Product trade were negative once again today.  Class III milk futures were pressured on the heels of a lower cheese product trade.  April milk was down 20 cents at $14.75.  May declined 31 cents to $12.82.  June milk slid 9 cents to $13.23.  Second half 2020 lost 7-31 cents and is now averaging $14.61/cwt. Class IV milk futures tumbled downwards.  April milk suffered a 37 cent loss to $11.52.  May milk drifted 20 cents to $11.33/cwt.  July milk was 7 cents lower to $12.02.  Second half lost 7-48 cents and is now averaging $12.50.

Dry whey steady at $0.33 Blocks down $0.1075 at $1.33. Barrels down $0.0950 at $1.2050.  Seven trades were made, ranging from $1.21 to $1.2575. Butter down $0.0625 at $1.3350.  Five trades made, with a range of $1.3350 to $1.3625. Nonfat dry milk down $0.01 at $0.8850.

Spot corn inched ½ cent lower to $3.4075/bushel.  Nearby soybeans finished 3.75 cents higher to $8.86.  May soybean meal was $4 lower to $321.50/ton.  May Chicago Wheat rallied 5.5 cents to $5.77/bushel.  Kansas Wheat rose 6.25 cents to $4.93.  Fats and feeders closed higher on the day.  June live cattle were up $3 to $92.075/cwt.  May feeder cattle finished $2 stronger to $122.90.

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