Milkfat demand has grown, complicating life for processors but boosting the milk price for farmers.
Inverted price relationship is the first since March.
Strong demand and slower milk growth both good signs for milk prices.
Block-barrel gap closed to just ½ cent.
Cow numbers down 1,000 head from June, but still above 9.4 million.
Given the demand surges that typically occur in August, prices could move higher in the near term.
47 loads have traded hands in just two days
U.S. prices are below global levels.
Class III markets responded negatively with September, October and November contracts dropping more than 30 cents.
Trading volume fairly heavy, with more then 32,000 metric tonnes selling.