Class III Milk Futures Surged Higher Following Friday’s Limit Move

October 26, 2020

Blocks and barrels remained steady in the CME Cash Dairy Product Trade.  The block/barrel average is $2.61/lb.  Barrels were offered once, but no buyers showed up.  Butter gained half a penny to $1.44/lb.  Grade A Nonfat Milk lost half a penny to $1.0925/lb.  Dry Whey added half a cent to $.39/lb. 
 
  Class III milk futures surged higher to follow up Friday’s limit move.  October remains at $21.63/cwt.  November milk climbed 50 cents to $22.69/cwt.  December milk skyrocketed 87 cents to $21.03/cwt.  January milk increased 49 cents.  Class IV futures continue to trade in the $13-$14 range.  
 
 The grain complex was a mixed bag.  December corn lost 1.50 cents to $4.1775/bushel. November soybeans gained 4 cents to $10.8775/bushel.  December soybean meal is now over a $100/ton off its low, now sitting at $389.60/ton.  December Chicago Wheat decreased 12.75 cents to $6.20/bushel.  
 
 Fats and Feeders traded higher in most months.  October live cattle gained 62.50 cents to $103.97/cwt.  October feeder cattle settled 17 cents higher to $133.70/cwt.  December crude oil decreased $1.30 to $38.57/barrel.       

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