Red Dominates the Dairy Futures
January 19, 2021
After markets were closed Monday in observation of Martin Luther King Jr. Day, we see red dominate Tuesday’s commodity trade. The dairy market failed to get cheese to follow through on last week’s gains and gave back some of the late-week rally.
Class III milk fell a penny in January to $16.22, February moved limit lower – falling 75 cents to $18.48 and March fell 43 cents to $18.61/cwt.
Class IV milk however gained on higher nonfat and butter moves. January gained 2 to $13.77, February gained 13 to $14.49, and March gained 15 cents to $15.27/ cwt.
This followed a Global Dairy Trade event that continued a stronger trend. The index was up 4.8% from 2 weeks prior. Butter was up 4.6%, Cheddar was down 3/10 of a percent, Lactose was up 6.6% with Skim milk powder jumping 7% higher.
This was followed by a CME spot trade with only cheese showing weakness. Butter gained 11 ½ cents to $1.40 ½, Nonfat dry milk gained 1 ½ cents to 1.21 ½, and Dry whey gained half a cent to $0.53 ½ /lb.
Cheddar blocks however fell 3 cents to $1.80/lb. and barrels fell 1 ¼ cents to $1.56/lb.
The grain complex took a breather. Corn fell 5 ½ cents to $5.26 even, Soybeans fell 31 cents to $13.85 ¾ and soybean meal fell $12.70 to $450.50/ton