Butter Continues to Rebound
In Wednesday’s CME spot dairy session, butter propelled markets mostly higher. Butter moved 1 ¾ cents higher to finish at $2.60 3/4. Cheddar blocks finished unchanged at $1.70 ¾, while barrel cheese gained a ¼ cent to $1.46 per pound.
Grade A nonfat dry milk was the lone market to trade lower, dropping ½ cent to 86 cents per pound.
Class III milk struggled to hold on to early gains and finished mixed on Wednesday. July, October, December and February 2018 closed 1 to 3 cents lower, while August, September, November and March 2018 closed 2 to 4 cents higher. Second-half 2017 prices finished at $16.57 per cwt, while the first half of 2018 finished at $16.63. Class IV markets saw little action, gaining 2 cents per cwt.
Turning attention to energy markets, diesel markets have gained 23 cents per gallon in the past month on surging crude oil prices. Crude oil is trading near $49 for the first time in a month and a half, pulling spot diesel prices to $1.60 per gallon. Unrest in Nigeria with Islamic groups seizing 10 oil contractors and missile strikes in Saudi Arabia have helped crude oil gain $2 on Tuesday and 75 cents on Wednesday.