volatility
March 8, 2017

CME Spot Session Responds to GDT Auction

 |  By: Know Your Market

By Matt Tranel, Commodity Risk Management Group

Global Dairy Trade (GDT) event #183 concluded on Tuesday which saw the index down 6.3%. Butter and buttermilk powder were the lone winners with butter up 1.2% at $2.11 and buttermilk powder up 8.4%.

The cheddar index saw a decline of 4.2% dropping to $1.5575. The GDT flagship products of skim milk powder and whole milk powder saw the biggest declines on Tuesday. Skim milk was down 15.5% at 96₵ whole milk was down 12.4% to $1.26.

CME spot product prices also took a dip in relation to the GDT results. Butter, just like GDT, was the only winner and added 2₵ to finish at $2.1675. Cheddar markets watched blocks slip 2₵ to $1.46, while barrels lost 0.75₵ to $1.43.  Grade A nonfat dry milk declined 0.5₵ to 80₵.

Class III markets started the day with a much softer price. May was down as much as 29₵ but reversed course to finish higher. First half prices finished 5₵ - 12₵ higher while the second half saw mixed results.

Class IV markets welcomed the higher butter trade in the GDT and CME session. April and May were up 18₵ and 19₵, while July and August gained 9₵ and 4₵ respectively.

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