Butter Nears Historic High
The story in the dairy complex today revolved around butter, nonfat dry milk and a late rally in the Class III milk futures.
Butter markets traded another 5¾ cents higher to finish at a price of $2.32 cents per pound. Over the past three trading sessions in butter prices have jumped 19 cents and with an ending price of $2.32 we are just six cents shy of the 2013 peak of $2.38. Demand for butter has been strong, so we will wait to see how far this market can run.
Today’s action saw seven trades while Grade A nonfat dry milk traded 12 times to finish up 2 cents to close at 88 ¼ cents. Cheese markets saw no changes in price on blocks or barrels but did see offers in both markets. Blocks closed at $1.63 ½ and barrels finished at $1.53 per pound.
Class III milk futures saw double digit gains to move 2017 average futures prices back above $17 after dipping under $17 late last week. June milk was 23 cents higher to finish near $16.44 per cwt. Third quarter prices were up 14 to 20 cents and fourth quarter prices increased 7 to 8 cents. Prices in first-half 2018 were up 2 to 5 cents. There was light trading in Class IV with May up 12 cents, June up 30 cents and October 19 cents higher.