December 7, 2020
Butter continues to climb higher with good volume to go with it in the CME Cash Dairy Product Trade. Butter gained 4.50 cents to $1.5250 on 12 trades. Blocks added 1 to $1.5950. Barrels gained half a penny to $1.4050/lb. Grade A Nonfat Milk remains at $1.15 while Dry Whey sits at $.4625/lb.
Class III milk futures soared to follow up Friday’s USDA solicitation announcement purchases on both butter and fluid milk. $60 million will be purchased in fresh fluid milk while $50 million will go to butter for various food nutrition assistance programs. December milk gained just 4 to $15.39/cwt. January milk surged 41 cents to $16.13/cwt. February climbed 40 cents to $16.82/cwt. Class III 2021 is averaging $17.00/cwt. Class IV milk saw wide bids and offers with only April trading and gaining 8 cents to $15.50/cwt.
January soybeans saw plenty of movement as the overnight session traded as low as $11.49. Soybeans then reversed course, moving to $11.69 just before midday and settled the day back at $11.5850/bushel. December corn gained 2.50 cents to $4.1950/bushel. December soybean meal fell beneath a major trend line, settling at $386.50/ton. The market will be looking for confirmation of this move over the next couple of days. December Chicago Wheat reversed off its negative course early on to manage a 4.75 cent gain to $5.7125/bushel. Fats, feeders, and hogs declined to start off the week. December live cattle lost 87 cents to $108.00/cwt. January feeder cattle fell $1.97 to $137.80/cwt. December hogs decreased $1.37 to $64.50/cwt. January crude oil also settled 54 cents lower to $45.72/barrel.
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