The October Milk Production Report released Thursday afternoon showed milk production declining 0.5% year-over-year, the first contraction since May 2020. This was below most pre-report expectations. Also noteworthy, negative cow numbers was last seen in December 2019.
Spot butter advanced through the $2 mark, settling at $2.0375. This represents the highest price since November 2019. Spot blocks gained 6 cents to $1.73/lb and barrels added 1 penny to $1.4550/lb, with nine loads trading hands. Dry Whey held steady at $.70/lb while Nonfat held firm at $1.53/lb.
Class III and IV milk futures added significant gains. December class III milk advanced 58 cents to $17.73/cwt. January milk tacked on 55 cents to $18.30/cwt. February shot up 35 cents to $18.75/cwt. Class IV milk futures jumped 15-34 cents in the first half of 2022.
The grain complex ended lower on the day after early morning strength. December corn lost 2.25 cents to $5.73/bushel. January soybeans fell 11.75 cents to $12.6525/bushel. December soybean meal dropped $4.30 to $370.40/ton. December Chicago Wheat settled at $8.20/bushel.
The livestock sector saw mostly green. December live cattle gained 92 cents to $133.15/cwt. January feeder cattle rallied $2.45 to $161.37/cwt. December lean hogs decreased $1.07 to $75.10/cwt. Crude oil rebounded off some of its lows, moving to $78.83/barrel.
