Class IV Milk Breaks to the Upside
Volatility continues to dominate the markets in both the dairy and grain complex. No bidders showed up for blocks or barrels in the CME cash dairy product trade as we await awards for the extension of the Farmer to Family Food Box on January 19th. Butter gained the 1.25 cents to $1.30/lb. Grade A Nonfat Milk was up 1.25 cents as well on 14 trades. Dry Whey sits at 51 cents/lb.
Class III milk futures were down much of the day before the announcement of a Section 32 solicitation for $40 million on both cheese and butter. February and March settled 40 and 58 cents higher with roughly a $1.00/cwt trading range on the day. The further out 2021 months reacted with less enthusiasm as we saw a range of down 11 to positive 12. Class IV had an impressive day gained 4-36 cents on the day.
The grain markets rebounded sharply as we took a small breather yesterday. March corn climbed 9.75 cents to $5.3425/bushel. March soybeans soared 24.25 cents to $14.3025/bushel. March soybean meal followed suit, gaining $7.80 to $464.90/ton. March Chicago Wheat jumped 9.50 cents to $6.70/bushel.
Fats and feeders finished softer on the day. February live cattle lost 17 cents to $112.07/cwt. January declined 97 cents to $132.60/cwt. February lean hogs were down 55 cents to $66.30/cwt. February crude oil rose 71 cents to $53.62/cwt.
