On the Chicago Mercantile Exchange milk futures closed higher Tuesday finding strength from the cash market while prices on at the Global Dairy Trade were lower. Class III milk futures traded $0.17 higher in September and $0.36 in October. November 2020 through the end of 2021 closed in a range of $0.05 higher to $0.05 lower. Class IV months settled with September down $0.08 while October traded 132 times with its price up $0.10 to $13.97/cwt. November was also up slightly.
CME Spot Dairy Auction followed GDT with Blocks up $0.0050 at $1.8025. Six trades were made ranging from $1.7750 to $1.8025. Barrels up $0.0075 at $1.4450. Three trades were made ranging from $1.4450 to $1.4575. Butter down $0.0225 at $1.4650. Nineteen trades were made ranging from $1.4525 to $1.48. Nonfat dry milk up $0.0050 at $1.03. Two sales were made at $1.0250 and $1.03. Dry whey unchanged at $0.3350.
The Global Dairy Trade auction index in New Zealand posted another negative sales event. The index dropped one percent to $2,955 per ton. Gains in butter milk powder, +3.9%, skim milk powder, +1.8%, and lactose, +0.8%, were offset by losses in whole milk powder, -2%, butter, -1.2%, anhydrous milk fat, -0.5%, and cheddar, -0.4%.
Grains saw a lot of volatility in the overnight session but turned in a calm day session of trade. After USDA released the crop conditions report on Monday afternoon, the market fell $0.07/bu in corn and $0.11 in soybeans on the overnight. Crop conditions were reported where the trade expected them to be following a big surprise the week prior. Corn and soybeans battled back and posted stronger settlements to $3.58/bu and $9.55/bu, respectively. The wheat complex ran $0.06 – $0.115/bu higher as well.
