Butter Continues Its Rocket Ride
Butter prices continue to skyrocket. At the Global Dairy Trade (GDT) auction this week, led the product gains advancing 11.2% to a price of $2.48½, a gain of almost 26 cents since the last GDT event.
This action in the GDT spurred strong reaction in the CME, which saw spot trade jump another 11 cents. The price closed at $2.43 per pound and represents the highest value since December 2015.
Elsewhere in the GDT:
- Buttermilk powder turned in a strong session and increased 7% while anhydrous milkfat was up 8%.
- Cheddar had a modest gain of .6% and finished at $1.69 per pound.
- Skim and whole milk powders were up 1 and 1.3% respectively.
Elsewhere in the CME:
- Class IV harnessed the strength in butter and shot 60 to 65 cents higher in June to October and 37 cents higher in November and December.
- Class III milk markets started out strong but ended weak. May ended up 3 cents higher while June to December futures were down 1 to 5 cents and 10 to 20 cents from their peak. Second half prices traded as high as $17.20 per cwt.
- Grade A nonfat dry milk was unchanged at 88 ¼ cents.
- Barrel markets gained a penny to $1.54 while block markets jumped 3½ cents to settle at $1.67 per pound.