We strive to assist farmers in better managing their revenue and helping them gain back control. If you have clients that need professional consultation and guidance, please get me in touch with them. As a leader in this industry, Total Farm Marketing can help your clients implement and manage a range of marketing tools, such as Milk Plant & Elevator Contracts, Hedging Tools, and D-RP. We know that every operation’s needs are unique, so we provide assessment consultations, webinars, group presentations, education, and individual management consultations to help meet their goals. Find resources here: Webinars & Events

Together, let’s work to keep these dairy men and women in the game. 

Contact: Michael Rusch
Sales Director | Total Farm Marketing
Direct: 262.438.0323 | Text: 262.334.9779 | Email: Mike@TFM.ag

Milk

Second month class III milk futures tacked on another 35c this week, as the market has rallied for three weeks in a row. This puts the October 2020 contract back up to $19.24 per hundredweight. Considering most producers hold breakevens in milk around the $16.50 mark, prices are back to being profitable again for dairies. Following the October contract is November at $17.72 and December at $16.74. The class III market is rallying from the fact that the government has announced they will be purchasing additional commodities on the open market for the food for families program. Since the announcement, the spot cheese price has rallied back to this week’s close of $1.88/lb. While cheese is recovering, the class IV market and products are quiet. Nearby class IV futures remain less than $14.00 with butter sub-$1.50 and powder sub-$1.05.

Corn

Corn futures rallied another 10.50c overall this week, pushing the December 2020 contract to a close of $3.6850 per bushel. This is the contract’s highest weekly settlement for that contract since the week of March 9, 2020. The much anticipated USDA Supply and Demand report on Friday brought about a good amount of intraday fireworks for corn, but ultimately the market movement was fairly muted. Dec corn gained just 3.50c on Friday. Within the report, the USDA cut corn yield from its August projection from 181.80 bushels per acre (bpa) to 178.50 bpa. The market had been looking for a cut closer to 177.70 bpa. Corn production came in at 14,900 million bushels versus 15,278 million bushels in the August report. In other news, Brazil is considering lifting import tariffs due to a lack of domestic supplies.

Soybean Meal

Soybean meal futures posted a third consecutive week of strong price gains. Since bottoming in early August at $283.10, the front month October contract has gained $36.80 over the course of the past five weeks. This week’s price movement saw a $7.80 gain overall, with $7.20 of that coming from Friday’s session alone. The market reacted well to the fact that the USDA said soybean yield could come in at 51.90 bushels per acre versus the August estimate of 53.30 bpa. The market had been looking for a figure closer to 51.60 bpa, but the fact that they cut yield as much as they did was viewed as bullish. Soybean futures jumped as many as 20.50c on the news today, with front month September pushing back over $10. The market is watching the La Nina weather pattern in Brazil and Argentina, which is causing dryness.

Market Quotes