Milk Markets Continue to Bleed
The milk market was severely disappointed with the $354 million announcement for Round 5 of the Farmer to Family Food box. One key question remains unanswered: Will the UDSA still spend the $1.5 billion with future extensions through the end of April?
Spot cheese broke hard with no trades on the block and just 1 on the barrel. No bidders could be found. Blocks were down 7 while barrels slid 12 cents. Butter continues to move higher, jumping 5 cents to $1.4550/lb. Grade A nonfat milk gave up yesterday’s gains while dry whey remains at $.5350/lb.
Class III futures were hammered lower when reality of the Farmer to Family Food Box did not meet market expectations. Volatility will likely remain in the market while we await more details from USDA. January milk lost 6 cents to $16.16/cwt. February milk suffered the largest setback, falling $1.23 to $17.25/cwt. March receded 73 cents to $17.88/cwt. Class IV futures saw very little trade take place.
Soybeans led the freefall lower on Tuesday’s overnight session before making a nice rebound. March soybeans dropped 16.25 cents to $13.6925/bushel. March corn fell 4 cents to $5.22/bushel. Nearby Chicago Wheat gave up 4.50 cents to $6.6775/bushel.
February live cattle inched 2 cents higher to $113.35/cwt. January feeders gained 90 cents to $135.30/cwt. February lean hogs climbed $1.95 to $68.42/cwt. February crude oil added 30 cents to $53.28/barrel.