FROM THE TRADING DESK:
Ho, ho, ho! If you wished for higher milk prices for Christmas, Santa came through – at least for today. Class III markets settled higher down the board, with the biggest gain in February, with futures up 25 cents to $15.63 per hundredweight. Further out, both Q3 and Q4 Class III futures are at some of the highest levels since early November. Take a close look at those if you need coverage. The Class IV space didn’t see much activity, but some months did post gains, too.
Today’s Highlights:
- There was little activity at the CME today. Whey was the lone mover, up a half cent to $0.7300 per pound with one lot trading. Butter held steady at $1.4025 per pound, with three lots changing hands. Blocks closed at $1.3350 per pound, barrels at $1.4000 per pound and NDM at $1.1800 per pound, all unchanged with no lots traded.
- Class III Q1 futures rose to $15.59 per hundredweight, up 15 cents, while Class IV Q1 futures were unchanged at $13.92. January “all cheese” Q1 futures gained 8 cents to $1.5020 per pound. First quarter butter futures declined to $1.5508 per pound, $0.0052 lower.
- Steady milk output in the Midwest coupled with seasonally softer milk needs brought USDA’s spot prices in the region to a midpoint of -$4.25 per hundredweight, compared to -$2.50 last week, -$3.25 last year and -$3.38 on the five-year average. With strong cream production and lighter demand due to planned holiday downtime, Class II multiples in the Central region dipped to 103 versus 108 last week, 122 last year, and 117 on the five-year average.
Today’s Futures and Options Settlements
Dairy Revenue Protection Quotes
**DRP quotes are for California. Please use the calculator below for your specific state.
Chart of the Day
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