Barrel Cheese Takes Jump
For the first couple of hours of the dairy trade on Tuesday the global dairy trade captured the spotlight, closing 1.6% lower in its closely-followed, volume-weighted price index. Among the eight categories, all of them were lower with the exception of buttermilk powder and whole milk powder, the flagship contract. Whole milk powder did close 1.3% higher to $1.43 per pound, while skim milk powder dropped 3% to 89 cents per pound.
Butter had its largest drop in recent history, falling 4.9% to $2.55 per pound. Cheddar dropped 4.8% to $1.79 per pound.
The lower auction was quickly upstaged by the CME spot trade which saw blocks and barrels moving in the opposite direction. Blocks rose 3 ¼ to $1.78 ¾ while barrels ran up 11 ½ cents to $1.66. The spread now stands at 12 ¾ cents, and that’s the lowest the spread has traded since mid may.
Elsewhere butter dropped ¾ cent to $2.68 ¼, and grade A nonfat dry milk was up ½ cent to 86 ¾ cents per pound.
In response to this, the Class III market rose 11 cents to an average of $17.24 from now through the end of December. Class IV markets dropped 4 cents to $17.04.