According to the USDA Cold Storage report, US butter stocks totaled 239.6 million pounds in October, down 14.1% (39.2 million pounds) on the year. Total cheese inventories were at 1.45 billion pounds, relatively unchanged (-460,000 pounds) versus 2021.
Barrel prices fell to the lowest level since early August. Today’s 39.5 cent block-barrel spread is the widest gap in either direction since November 2020. Barrels slipped to $1.8050. Blocks remained at $2.20. Butter advanced 3 cents to $2.93. Nonfat dry milk eased 1 penny to $1.4175. Dry whey held steady at $0.44.
Class III milk futures pushed lower on Tuesday. December milk dipped 24 cents to $21.01/cwt. January gave up 23 cents to $20.30/cwt. Class IV milk futures were mildly lower despite spot butter climbing.
The grain markets receded Tuesday. March corn fell 4.25 cents to $6.5925. March soybeans decreased 5.25 cents to $14.3650. January soybean meal lost $3.00 to $405.00/ton. March Chicago Wheat settled 7.75 cents lower to $8.1050.
The livestock sector also saw selling pressure. February live cattle dropped 30 cents to $156.42. January feeder cattle declined 95 cents to $181.67. February lean hogs eased 7 cents to $90.07. January crude oil rose $1.12 to $81.16/barrel.
