$17 Milk Later This Year?
To wrap up the week on Friday, CME spot dairy product markets saw impressive moves in cheese but weakness in the butter and dry milk markets.
Blocks added an impressive 11₵ to finish at $1.60 per pound, while barrels gained 3₵ and closed at $1.45 per pound. Blocks traded four times, while barrels traded 24 loads. Butter traded 14 loads and closed 1.25₵ lower, closing at $2.75. Grade A nonfat dry milk dropped 50₵ to close at 84.5₵ on 7 trades.
In total this week, butter traded 43 loads, blocks 4 loads, barrels traded 54 loads and nonfat dry milk traded 12 times.
After a 20₵ move higher in Class III milk markets on Thursday, Friday also brought stronger prices. The spot month of May was 10₵ higher while June moved 17₵. Second half prices moved 5₵-10₵ higher and even saw September print a $17 number for parts of the day. We haven’t seen that number since the beginning of April. Second half Class III prices closed the week near $16.70 per cwt. Class IV markets had little trades but made gains of 15₵ and 8₵ in July and September respectively.