Dairy Markets Gain Strength
A stronger fat complex bolstered higher prices for product in the Global Dairy Trade (GDT) auction on Tuesday, anchored mostly by butter and whole milk powder.
This was welcomed news for world markets that were caught in a vacuum of lower trade after the last GDT auction found whole milk and skim milk powder down by 12% and 15% respectively.
Borrowing from the strength in the GDT, U.S. markets have also risen.
On Wednesday, the block market ascended to $1.45 per pound. That was up 2₵ after buyers and sellers exchanged two loads. Barrels were up 2₵ as well, moving to $1.41 per pound after four loads traded hands. That brings the block barrel spread to a healthy 4₵ and continues to move the market in a strong direction.
Grade A nonfat dry milk built on that same strength and saw three trades take place taking prices to 82.25₵, 1.75₵ higher than Tuesday’s finish. Butter, not following suit, finished unchanged at $2.12 per pound, an offer remained above the market.
Class III prices were pleased with the product performance with most months up single digits through the course of 2017. Class IV saw little activity with only July posting a trade in the 2017 calendar.