Class III Marches Higher
Class III milk continues to march higher. Tuesday started with a Global Dairy Trade event that was overall down less than 1% from two weeks prior. Butter had the largest change, fall 4.9% from prior trade at $1.68/lb. U.S. equivalent. Cheddar was slightly higher, gained 6/10 of a percent, lactose fell 2.5%, skim milk powder was half a percentage point lower, and Whole Milk powder was up 6/10 of a percent.
The CME spot trade was similarly mixed. Butter fell 1 ¾ cent to 1.66 ¼ but had no trades. Cheddar was mixed but traded nice volume. Blocks fell just a quarter of a cent to 2.66 even with 5 loads moving from seller to buyer and Barrels moved 6 loads and tighten our spread, moving to 2.46 ½/lb. and the block/barrel spread narrows to 19 ½ cents.
Grade A nonfat dry milk gained a quarter of a cent to $0.99 ¼ /lb., dry whey gained a penny to $0.34 ½/lb. but failed to move a load.
Class III milk was unchanged in July at $24.32, but August gained 15 to $23.30, and September gained 63 to $21.36 per cwt.
Class IV was unchanged in July at $13.80, August gained 5 to $13.95, and September gained 6 cents to 14.45/cwt.
The USDA released June’s milk production report Tuesday afternoon. There were adjustments to May milk production, changed it from down 1.1% year over year to only down ½ or a percent from prior year and June production was up 0.05% over June of 2019. Cow numbers shrank in June 10,000 head from May.