Milk Price Anticipation Builds Under Government Programs
A move lower in cheese on Friday was ignored by the Class III milk markets. Block cheese fell 7 cents/lb and ended at $1.83/lb following five loads trading hands. Barrels moved eight loads and a quarter cent downward to a $1.5725/lb settlement. Butter and Grade A non-fat dry milk each exchanged thirteen loads between seller and buyers Friday. Butter lost another penny and nonfat finished unchanged. Whey added 2 cents with a $0.52/lb closing price.
Class III values across 2021 were higher Friday as anticipation builds regarding USDA’s announcement of awards under the 5th round of the Farmers to Families Food Box Program. February through May last traded on the day anywhere from 20-36 cents stronger while June onward was in the 2-15 cent range. Class IV put together solid results in 2nd half 2021 as prices were up double digits.
A round of profit taking was witnessed in the corn and soybean markets after stronger weekly trade across the grain complex. Corn prices stepped back 3 cents/bu while soybeans dropped 13 cents. Meal prices were down $1-$2/ton in early 2021 while 2022 and 2023 prices rose $2-$4/ton. The wheat complex ranged from 2-6 cents/bu higher in Friday’s trade. On the week corn increased $0.35/bu, soybeans $0.37/bu, meal $16/ton, and wheat around $0.40/bu stronger.
