A One-Two Punch Takes Milk Prices Higher
A combination one-two punch took milk prices higher on Tuesday.
A stronger barrel trade brought buyers to the market who moved the price up 4 and a half cents after 14 loads moved from seller to buyer. Prices finished at $1.25 and a quarter. Block cheddar was unchanged after a single load traded. It finishes once more at $1.33 Grade A nonfat dry milk was also higher, moving upward 2 and three-quarters cents on four loads to finish at 92 and a half cents.
Dry whey, unfortunately, moved the opposite direction falling a half a cent to 43 and a quarter after a pair of trades and butter dropped a quarter cent on offers alone to finish at $2.19 and three-quarters.
The second feature was a series of tweets early in the day by President Trump announcing progress in the discussion with China. Later an announcement came out that China would reduce the tariff on automobiles imported to China from the United States from 40%, as it stands now, back to 15%. And while nothing was said about agricultural products the hope of progress helped milk prices climb.
Class III futures rose more than 20 cents in the first quarter with the first half average rising 19 cents to $15.04. Class IV markets saw similar activity, rising six cents in its average for the first half of 2019 to finish at $15.37.