Milk Prices Rally Despite A Soft Tuesday In CME Trade
Global dairy event 248 this morning saw an overall gain of 1.7% from the last event 2 weeks prior. Cheese saw nice gains of 2.5% to a U.S. price equivalent of $1.68, butter continued to see values slide 1.3%, as did anhydrous milk fat, falling 1.5%. The remaining markets showed gains. Lactose up 1.3%, rennet casein up 5.6%, skim milk powder was up 3.3% and whole milk powder saw gains 2.2%.
The U.S. CME spot market took a softer turn Tuesday. Butter fell 1 cent to $2.06 ½ with 2 loads moving, Cheddar blocks fell 3 cents to $1.83 ¾, with barrels fall half a penny to $2.15 per lb. Dry whey was unchanged with no bids, no offers, and no trades. Grade A nonfat dry milk was our lone move higher, gaining 1 ¾ cents to $1.23 ½ per lb.
Class III milk saw November up 1 to $20.32, December fell 8 to $18.39, and Jan – March gained 5-11 to average at $17.52.
Class IV saw gains of 13 cents in December and January to finish at $17.11 and $17.38 per cwt.
The milk production report was released by the USDA. U.S. Milk production grew 1.3% in October from the same month in 2018 to 18.1 billion lbs. They adjusted the cow herd report from September 7,000 head higher and showed an increase of 5,000 head of cattle from September to October. This is an expansion of the herd, yet we are still 40,000 cows lighter than last year.