December Milk Futures Keep Spiraling in the Wrong Direction
The October Cold Storage Report reaffirmed a well-supplied butter market. Total butter inventories gained 66 million lbs. year-over-year at 300 million lbs. Total cheese stocks were 1.33 million lbs., down 17 million lbs. from September. Total cheese stocks were down just 3.2 million lbs. from 2019.
Butter melted another 2.75 cents away to $1.3175/lb. on excellent volume of 26 loads in the CME Cash Dairy Product Trade. Barrels erased Friday’s gains, settling at the familiar territory of $1.40/lb. on seven trades. Blocks gained 1.50 cents to $1.66/lb. Grade A Nonfat Milk fell ¼ of a penny to $1.0825/lb. Dry Whey remains at $.4375/lb.
Class III milk futures encountered more weakness today. December milk has seen over $5/cwt come out of the contract, sitting at $15.63/cwt. First half 2021 lost 3-23 cents to $16.55/cwt. Class IV milk futures saw similar declines with November through February trading in the $13 range.
Two more contract highs were set in the grain complex. January soybeans set a new contract high at $12.00/bu. before retreating to close at $11.9150/bu. December corn climbed to a contract high of $4.2975/bu. before settling at $4.2650/bu. December Chicago Wheat increased 5.50 cents to $5.9875/bu.
Fats and feeders both experienced impressive strength. December live cattle surged $1.90 to $110.00/cwt. January feeder cattle rallied $3.22 to $137.82/cwt. January crude oil gained 45 cents to $42.87/barrel.
