Cheddar Barrels Take the Stage
Cheddar Barrels highlighted a mixed day in the CME spot product trade. Gaining 6 cents to finish Monday at $1.57 1/2/lb. Cheddar blocks gained ¾ of a cent to move to $1.67 ½ to bring the block/barrel spread back to 10 cents.
Butter was off 1 ¼ cent to finish at $2.27/lb. Grade A Non Fat Dry Milk was unchanged with no loads changing hands, It closed out trading at $1/lb even. Dry whey was off a quarter of a cent to finish at $0.33 3/4 /lb.
The strength in barrels helped to propel Class III higher as well on Monday. April was unchanged at $15.92, however May was .13 higher to $15.84 and June up 9 cents to 16.04/cwt. Second half months traded up 5-7 cents and finished the day averaging 16.55/cwt.
Class IV milk also showed gains in Monday’s trade. May up 1 cent to 16.26/cwt and June up 7 to $16.68.
Monday marked a busy day in USDA reports, both March cold storage and Milk production were released. We saw a decrease in milk production for March of 4/10 of a percent Nationwide compared to March 2018. This was driven by the loss of cows from the herd as total cow numbers fell to 9.34 million, a loss of 10,000 cows since February’s report and 86,000 cows from March 2018. Production per cow however gained 10 lbs/cow over March 2018 production.
March Cold storage report showed Butter inventories increased 11 % from February’s report, but fell 1 % from March 2018 levels. Total Natural Cheese inventories rose 1 % from February and was up 4% rom March 2018 to 1.38 billion lbs.
For Commodity Risk Management Group, this is Jenny Wackershasuer on know your markets.