Class III Futures Make a Jump
Class III milk futures were up 5 cents for October, 19 cents in November and 25 cents in December. First half 2018 made gains of 10 to 16 cents to move that average back to $15.60 per cwt. Second hald 2018 prices were up 2 to 13 cents per cwt. Class IV markets had only the month of November trade which was 11 cents softer at $14.82 per cwt.
CME spot product markets saw strength in cheese and butter, but additional weakness in nonfat dry milk. Blocks gained a half cent to $1.72 on 2 bids while barrels added a quarter cent on 1 bid to close at $1.68 1/2 per pound. Butter jumped 2 1/2 cents to $2.40 on 2 trades and 3 bids. Grade A nonfat dry milk lost another 1 1/2 cents and ended Tuesday at 74 1/2 cents per pound. That's the lowest price on dry milk since May 3, 2016 when prices settled that month with a $12 number in front of it.
Event 198 of the Global Dairy Trade Auction took place on Tuesday resulting in the index dropping 1%. Anhydrous milk fat was the lone product to move higher as it finished up 5.2%. Butter dropped 2 1/2% to a value of $2.54 per pound. Cheddar declined .1% on Tuesday at a value of $1.86 per pound.
Rennet casein was down 8.6% while the flagship products of skim and whole milk powder lost 5.6 and a half of a percent, respectively. Skim finished Tuesday at 81 1/2 cents while whole milk powder finished at $1.37 per pound.