October Milk Production Increased Again
November 18, 2020
October’s UDSA milk production Report mirrored September’s numbers, rising 2.3% YoY in the United States. Milk production per cow was slightly higher in October compared to October 2019. The number of milk cows on farms in the United States was 9.39 million head, 43,000 head more than October 2019, and 14,000 more head than last month.
In the CME Cash Dairy Product Trade, blocks continue freefalling lower, settling at $1.6425/lb. on 4 trades. Barrels have found support at $1.40/lb. for the 3rd consecutive day. Butter gained 1.25 cents to $1.3750/lb. Grade A Nonfat Milk gained half a penny to $1.0875/lb. Dry Whey lost ¼ of a cent to $.42/lb.
Class III milk futures saw much less volatility than what we have been accustomed to lately. November milk gained 14 cents to $23.17. December milk lost 7 to $16.09. January through December 2021 settled 6 cents lower to 14 cents higher. Class IV milk futures also saw very little movement.
The grain complex saw both December 20 corn and January 21 soybeans put in contract highs. December corn climbed 5.50 cents to $4.2575 cents. January soybeans increased 6 to $11.7575/bushel. December soybean meal fell 90 cents to $394.90/ton. December Chicago Wheat added 2.50 cents to $5.9775/bushel.
Fats and feeders both traded lower. December live cattle lost 67 cents to $110.65/cwt. January feeder cattle settled $2.42 lower to $137.30/cwt. December crude oil gained 26 cents to $41.69/barrel.