MILK
Milk futures did not fall apart Wednesday with higher cheese and dry whey providing support. Traders did not get as excited about the gains as they did Tuesday but would rather take a wait-and-see attitude before adding more premium to the market. Class I sales are strong as schools are back in session, for the most part. There are reports that some schools have moved to remote learning again where COVID cases have increased substantially. This likely will not be widespread, but it does cause one to think about what will take place throughout the rest of the school year. That concern has rippled through many areas of the economy, as there is fear of another period of disruption to an already disrupted economy. USDA announced that $700 million in competitive grant funding will be available through the new Farm and Food Workers Relief (FFWR) grant program to help farmworkers and meatpacking workers with pandemic-related health and safety costs. The program will provide relief to farmworkers, meatpacking workers, and front-line grocery workers for expenses incurred due to the COVID-19 pandemic. This relief is intended to help costs realized from personal, family, or living expenses related to the pandemic. These costs could include personal protective equipment (PPE), dependent care, and expenses associated with quarantines and testing that were required because of the pandemic.
AVERAGE CLASS III PRICES
| 3 Month: | $17.30 |
| 6 Month: | $17.40 |
| 9 Month: | $17.44 |
| 12 Month: | $17.51 |
CHEESE
Cheese manufacturers report the demand for cheese remains strong despite the increase of COVID cases. This is not much of a surprise as demand remained strong last year. When food service industry demand declined, retail demand picked up the slack. The greater problem was moving production to where it needed to be. The issues of a lack of truck drivers and workers during a time of year when demand increases may have a larger impact.
BUTTER
Current fundamentals for butter point to a more positive outlook. There was no significant increase of cream supply over the holiday period as is generally seen. Cream prices are creeping higher, prompting some plants to continue to sell some cream rather than churn it in order to keep inventory limited. Demand is seasonal. Price is expected to continue to slowly increase as time progresses.
OUTSIDE MARKETS SUMMARY
September corn gained 2.50 cents, closing at $4.9825. September soybeans gained 2 cents, closing at $12.7075, with September soybean meal up $0.10 per ton, closing at $337.40. September wheat fell 10.50 cents, closing at $6.9825. October live cattle declined $0.65, ending at $123.10. October crude oil increased $0.95, ending at $69.30 per barrel. The Dow declined 69 points, ending at 35,03l, while the NASDAQ declined 88 points, closing at 15,287.
