A Wave of Selling Hit the Class III Milk Market
A wave of selling hit the Class III milk market on Tuesday as it produced one of the higher volume trading days in quite some time. June fell 9 cents to $15.29 per cwt. The third quarter dropped 30-39 cents per cwt. while the fourth quarter declined 15-28 cents. The send half of 2018’s average is now offering $16.25 cents per cwt., down 51 cents from the peak established on May 22 at $16.81 per cwt. Prices for 2019 were down 1-11 cents in the first half as well.
The softer Class III milk markets were a result of Mexican cheese tariffs, lower Global Dairy Trade and a falling CME spot trading session. Event 213 of GDT resulted in the overall index dropping 1.3%.
Products to note included cheddar declining 3.6% to $1.81 and ¼, butter down 3.5% to $2.47 per lb., skim milk powder up three-tenths of a percent at 93 cents per lb. and whole milk powder was down 1.1% to $1.45 and ¼.
CME spot products followed GDT lower. Cheddar blocks were down 1 and ¾ cents after 13 trades while barrels softened 1 and ½ cents to $1.50 and ½. Butter was down 1 and ½ to $2.36 and ¼, six trades too place.
Grade A nonfat dry milk fell ½ cent to 81 cents per lb. Dry whey was the lone product to trade higher as it added ¼ cent to settle at 40 and ¼.