Butter, Cheddar And Whole Milk Powder On The Decline
Global Dairy Trade (GDT) Event 267 took place this morning with the overall index falling 1.0%. Products to note that fell included butter declining 1.2% to $1.475/lb, cheddar lost 0.4% and ended at $1.555/lb, and whole milk powder was down 2% to settle at $1.3075/lb. Skim milk powder was a bright spot in the event rising 1.8% to a value of $1.2075/lb and butter milk powder also gained 3.9%.
CME Spot Dairy Auction followed GDT with cheese turning in modest gains of $0.75/lb in barrels on three trades while blocks were up $0.50/lb on 6 trades, respectively. Barrels closed Tuesday at $1.445/lb, and blocks ended at $1.8025/lb. Butter continues to trade in big volumes as another 19 loads traded hands leaving butter at a settlement price of $1.465, down $0.0225/lb on the day. Grade A non-fat dry milk added a $0.005/lb to $1.03. Nothing happened in whey and its price sits at $0.33/lb.
Class III milk futures traded $0.17 higher in September and $0.36 in October. November 2020 through the end of 2021 closed in a range of $0.05 higher to $0.05 lower. Class IV months settled with September down $0.08 while October traded 132 times with its price up $0.10 to $13.97/cwt. November was also up slightly.
Grains saw a lot of volatility in the overnight session but turned in a calm day session of trade. After USDA released the crop conditions report on Monday afternoon, the market fell $0.07/bu in corn and $0.11 in soybeans on the overnight. Crop conditions were reported where the trade expected them to be following a big surprise the week prior. Corn and soybeans battled back and posted stronger settlements to $3.58/bu and $9.55/bu, respectively. The wheat complex ran $0.06 - $0.115/bu higher as well.