Variability in Global Markets
Global Dairy Trade (GDT) event number 196 took place on Tuesday morning with butter rising 1.2% to a price of $2.67 per pound, after adjusted to 80% butterfat. Cheddar dropped 1.9% to a price of $1.83 per pound, and skim milk powder followed suit falling 1.2% to 87 cents per pound.
Whole milk powder rose 0.6% to $1.42 per pound. This is the flagship contract for the GDT, representing over half of its volume. As a result of this finish the index which benchmarks the performance of all products traded via a volume weighted average rose 0.9%. One noteworthy fact that among the four products mentioned, each of the nearby delivery periods held the strongest prices. This gives the hope the buyers may be coming to the table to secure fall needs.
Meanwhile in the CME spot trade, barrels took on a different tone than GDT cheddar by rising 4 1/4 cents to $1.48 1/2. Blocks went the opposite direction, falling 1/2 cent to $1.59 3/4. That brings the spread between the two to 10 3/4 cents. Butter rose 1/2 cent to $2.46 3/4 and grade A nonfat dry milk rose 1 1/4 to 83 1/2 cents.
This was good news for the Class III markets where the average price rose approximately a nickel to $15.84 from now through December. Class IV markets finished at $15.92.