Know Your Markets
October 20, 2020
Global Dairy Trade event 270 started Tuesday with a small move higher. The index was up just shy of half a percentage point. Butter was up 3.3% , cheddar rose 3% off of two weeks prior’s pricing, but those two didn’t have enough to offset lower values in Lactose, down 8%, Skim milk powder, down 0.2 percent or whole milk powder that only rose 0.3 percent.
The afternoon had the USDA Milk production report. The report on September’s production showed and increase of 2.3% over 2019 levels. That is the largest month increase we have seen since March. Production per cow jumped 36 lbs. per cow to 1,944 lbs., and we gained 33,000 cows since September 2019 to 9.4 million head in the U.S.
The CME spot trade saw low volumes move with Butter unchanged with no trades, no bids and no offers at 1.49 ¾, Cheddar blocks held at 2.74, also with little action, Barrels traded 2 loads and had 3 bids to gain 4 ½ cents to 2.30/lb.
Grade a Non Fat dry milk fell 1 ¼ cents to $1.12 ¾ with 1 load moving, 4 bids and 4 offers. Dry whey held unchanged at $0.38 ¾ cents with no loads moving.
Class III was mixed all day to finish with Oct up 4 to 21.46, November fell 16 to 21.49, and December fell 14 to 19.34/cwt.
Class IV milk fell sharply with Oct down 15 to 13.52, Nov fell 22 to 14.07, and December fell 35 to 14.04/cwt.
milkbusiness.com
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