Cheddar Trumped By A Softer Market
After the July production was released on Monday which showed cow numbers down an additional 9,000 head, Class III milk prices experienced weakness on Tuesday despite support in cheddar prices in the Global Dairy Trade Event 242. GDT support in cheddar was ultimately trumped by a softer CME spot market, specifically cheddar barrels.
In the Global Dairy Trade, just cheddar and whole milk powder traded higher. Cheddar gained eight tenths of a percent while whole milk powder was up 2.1%, respectively. Products of those losing in value Tuesday on GDT were butter, down 3.4% and skim milk powder three tenths of a percent lower. CME spot product markets had cheddar barrels 4 cents lower following 6 loads that moved from seller to buyer. Barrels ended the day at $1.71 per lb.
Butter softened 2 cents to $2.31 per lb. on 3 loads changing hands. Grade A nonfat dry milk fell a quarter cent to $1.02 and ¾ cents per lb. Products gaining in value included dry whey adding 1 and 3.4 cents to 38 and ¾ cents per lb. Blocks traded 2 loads and a quarter cent higher to $1.91 per lb. Class III milk prices lost 1-8 cents between August through December 2019. 2020 months for Class III ranged from 5 cents lower to 2 cents higher. Class IV milk also dropped losing 2-10 cents in 2019.