Milk futures mostly higher, cash dairy mixed
Milk futures on the Chicago Mercantile Exchange were mostly higher Tuesday after a strong day of global prices reported on the Global Dairy Trade index.
November Class III milk unchanged at $23.27. December nine cents higher at $15.24. January down three cents at $15.88. February six cents higher at $16.31. March through May contracts six to nine cents higher.
Dry whey up $0.01 at $0.44. One trade was made at that price.
Blocks down $0.04 at $1.62. One sale was made at $1.6575.
Barrels down $0.0025 at $1.4125. Seven trades were made ranging from $1.3950 to $1.4125.
Butter up $0.0475 at $1.41. Nine trades were made ranging from $1.3925 to $1.41.
Nonfat dry milk up $0.0350 at $1.1450. Twelve trades were made ranging from $1.13 to $1.1450.
The Global Dairy Trade index in New Zealand increased 4.8 percent Tuesday and was the largest gain since the beginning of July. Gains were seen in almost all categories with Lactose, up 13.5 percent, and whole milk powder, up 5 percent, posting the largest increases.
The USDA has made nearly $3 billion in combined direct milk payments to farmers through the Coronavirus Food Assistance Program.
As of November 29th, the agency has approved more 20,000 applications for the CFAP2 program. The CFAP1 program had 20 percent more applications approved and distributed an additional $700,000 in milk payments compared to the current distribution for the second round of funding.
CFAP1 paid for losses experienced from January through March and to farmers who dumped milk during that period while CFAP2 has made payments based on production history for the remainder of the year with smaller rates than in the first round of funding.
Wisconsin dairy farmers represent more than 20 percent of applications and milk payments for CFAP2.
Dairy farmers in California, New York, Michigan, and Minnesota round out the top five states for CFAP2 with more than $1 billion made in milk payments so far. Enrollment for the program ends December 11.